Self-Dealing, Fraud, & Penalties

Citations Listed

How Self-Dealing Works

“Self-dealing may involve many types of individuals who work under the guidelines of fiduciary responsibility. They may include trustees, attorneys, corporate officers, board members, and financial advisors, among others. Self-dealing may consist of a variety of actions seeking to inappropriately enrich oneself, such as using company funds as a personal loan, ignoring a duty of loyalty to an employer to assume a deal or opportunity for oneself, or using insider or non-public information in a stock market transaction. Self-dealing may take many forms. It does not need to always directly enrich the individual committing the act, but can be on behalf of another party.

Self-Dealing and Fraud

“On a corporate scale, self-dealing often involves partners, corporate officers, board members, and the like. They may take advantage of their position in ways that profit them at the expense of their clients, shareholders, employees, etc.

Self-dealing isn’t in and of itself a crime, but it does constitute a breach of fiduciary duty and a conflict of interest (often with insider information), and as such will likely merit punitive measures in a civil court. However, it is often accompanied by fraud with company funds, which is a crime and punishable as such.”

Examples of Criminal Penalties

“For instance, Title 18 of U.S. Code Section 1348 imposes a penalty of up to $250,000 in fines as well as up to 25 years in prison for securities fraud.”

Published by Trudy Sobocienski

My blog, "Beyond Leadership" is a creative place to share my personal feelings and thoughts while working in leadership roles for a variety of Alaska Native organizations, both for and not-for profit entities. An incredible leader and mentor of mine once asked while we were in Washington, DC, "What happened to you between the ages of 7-10 that motivated you to serve in a native leadership capacity". I was struck by that poignant thought and as such, include actual entries from my mother and my diaries beginning in the early 1970's. I enjoy sharing these excerpts because it captures the parallels she and I were experiencing throughout life, from two separate worldviews. Hers as a young mother of four and mine as her eldest child. I have never came across a book on leadership that lays bare a leaders personal feelings, thoughts, hopes, fears and dreams they were experiencing. So for me, my goal is two-fold: 1. Share the incredible life my parents created for my siblings and I growing up in remote Alaska; and, 2) Sharing my humanity, through my personal diaries and journals, while serving as the youngest-ever President/CEO for the Alaska Native Health Board. There are passages that will include significant policy issues I was working on throughout my career and travels. There are many more passages that do not. I cannot speak for my mom's passages, because I am reading them as I share them here, with you; with her permission of course.

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