White-Collar Crime

What is the Positive School of Thought?

-External factors such as social and economic -Learned from others -Promoted by the environment in which you live. -Look outside the individual for the causes of crime -Crime will be replaced through mitigating the influences that promote criminal behavior.

What is the Ethical School of Thought?

-Learning -Pressure in the business environment -Competitive individualism -Criminal Tendencies -The failure of the individual to choose the proper course of action needs to be examined. 1. External factors play a role in influencing criminal behavior. 2. A free willed decision lies at the base of virtually all-criminal behavior. 3. The explanation of crime lies in reducing the external forces that induce criminal behavior, and make the punishment fit the crime.

Five Elements of White Collar Crime

1. Intent: To commit a wrongful act or to achieve a purpose inconsistent with law or public safety. (It is usually inferred from the behavior or statements of the subjects of the investigation. It is made to avoid something that is by law such as disclosure of facts or deception.) 2. Disguise: The hiding of the real purpose of the crime. (May be written or oral or used in combination and it involves the character of the offender's conduct.) 3. Reliance: The reliance by the offender on the ignorance or carelessness of the victim. (Victim-related since it is based on the offenders perception on the susceptibility of the victim. The offender will not make a move unless he can depend on the victim's inability to perceive what is going on. 4. Voluntary Victim Action: The victim willingly assists the offender with the crime. (A white- collar scheme is not in the full control of the operator. He must induce the victim to "voluntarily" undertake some act for the scheme to work. The offender employs a disguise to deceive the victim and relies on his judgment on the inability of the victim.) 5. Concealment: The violation of the criminal act is hidden. (The continuing element of the crime and it may result in new crimes being developed to cover up old crimes. Concealment and disguise may overlap since the maintenance of the façade of respectability is the manner and means in which white-collar crimes can be used over and over.

What investigative techniques would you use in an investigation of White Collar Crime?

1. Not ask who did it, you will already know. 2. What was done? 3. What was the intent? 4. Was it a crime?

Four Motivations of White Collar Crime

1. Personal Crimes: Crimes by persons operating on an individual, ad hoc basis, for personal gain in a non-business context. (Examples: Individual income tax invasion, credit card fraud, and insurance fraud.) 2. Abuse of Trust: Crimes in the course of their occupations by those operating inside businesses, government, or other establishments, or in a professional capacity, in violation of their duty of loyalty and fidelity to the employer or client. (Examples: Commercial bribery and kickbacks, bank violations by bank officials, employees, and directors, and employee petty larceny and expense account fraud.) 3. Business Crime: Crimes incidental to and in furtherance of business operations, but not the central purpose of such business operations. (Examples: Housing code violations by landlords, deceptive advertising, collusion between physicians and pharmacists to cause the writing of unnecessary prescriptions). 4. Con Games: A white-collar crime as a business, or the central activity of the business. (Examples: medical or health frauds, phony contests, home improvement schemes, charity and religious frauds).

What is a con game?

A White Collar Crime as a business, or the central activity of the business. Examples: -Medical or Health Frauds -Phony Contests -Home Improvements Schemes -Charity and Religious Frauds

What is a subpoena?

A legal document ordering a person to appear in court.

What is the modern definition of White Collar Crime?

A nonviolent crime involving elements of intentional deceit, concealment, corruption, misrepresentation, and abuse of trust to gain the property of another, and is often facilitated by the willing cooperation of unaware and knowing victims.

What is voluntary victim action?

A white-collar scheme is not in the full control of the operator. He must induce the victim to "voluntarily" undertake some act for the scheme to work. The offender employs a disguiser to deceive the victim and relied on his judgment on the inability of the victim.

Describe Health Care Frauds

All health care providers and health care organizations have legitimate access to patients and to the vicarious government programs and private companies that provide health care insurance.

What is consumer fraud?

Anything that can be sold or marketed legitimately can be sold or marketed fraudulently. It is not limited to a particular industry. (Examples: Misleading Advertising, Real Estate Fraud, Bait and Switch Advertising, Repair Frauds, Charity and Advocacy Frauds). *It is the classic crime of deception.*

What is a personal crime?

Crimes by persons operating on an individual, ad hoc basis, for personal gain in a non-business context. Examples: -Individual income tax invasion. -Credit Card Fraud -Insurance Fraud

What is an abuse of trust?

Crimes in the course of their occupations by those operating inside business, government, or other establishments, or in a professional capacity. In violation of their duty of loyalty and fidelity to employer or client.

What is a business crime?

Crimes incidental to and in furthence or business operations but not the central purpose of such business operations. Examples: -Housing Code Violations by landlords -Deceptive Advertising -Collision between physicians and pharmacists to cause the writing of unnecessary prescriptions.

What is the Regulatory Justice System?

Evolved to monitor and control the behavior of economic institutions. -In this system control tends to be more persuasive and less punitive. -The goal is to bring the offender in touch with the law.

What is the Structural School of Thought?

Focuses less on individual behavior and more on the behavior of law. -Social political and economic expectations and conditions cause certain behavior to be defined as criminal. Defines criminal behavior and the application of legal enforcement.

What is Differential Association?

Formalized statements on his theory of "differential association". -Theory based on a principle: Examples: Crime is learned within intimate groups. Motives and drives is learned from legal codes as favorable or unfavorable; criminal behaviors are learned by association; criminal behavior is an expression of general needs and values.

What are the weapons of White Collar Crime?

Fountain pen, advertisement, glib sales pitch, obtains money or property, and obtains a business or personal advantage.

Who was Edwin Sutherland?

He developed the concept of White Collar Crime in 1939.

Advocational Crime

Illegal but nonconventional criminal acts committed by "White Collar Workers" outside a specifically organizational or occupational context, including tax evasion, insurance fraud, loan/credit frauds, custom evasion, and the purchase of stolen goods.

What is considered the sociological aspect of White Collar Crime?

It is the status of the offender, rather than the legal uniqueness of the offense that is important.

What is insurance fraud?

It occurs when any act committed with the intent to fraudulently obtain some benefit or advantage to which they are not otherwise entitled or someone knowingly denies some benefit that is due and to which someone to entitled.

What is Civil Law?

It requires a lower standard of evidence to prove responsibility (preponderance of evidence rather than proof beyond a reasonable doubt.) -The punishments are economical and not a deprivation of liberty.

What is the director and officer's responsibility in Sarbanes-Oxley Act of 2002?

It requires chief executive officers and chief financial officers to certify their companies' financial records.

Elite deviance

Most harmful because the participants involved have the most resources and the consequences of their acts are more national, international and global in scope.

What are the causes of White Collar Crime?

Objective to obtain money, property, or services, or to secure a business or personal advantage.

Why is White Collar crime a crime of opportunity?

Opportunity plays an important part in environmental and workplace crimes. Many environmental and workplace violations are illegal in the sense that they violate various regulations. -Criminal prosecutions is reserved for the most egregious violations in which the laws are knowingly and intentionally broken.

What is the Classical Schools of Thought?

People choose to violate the law because it brings them pleasure (financial gain) and the prospect of pain (apprehension) is low. -Crime is caused b the individual exercises of free will and rational choice. -Crime is immoral; wrong. -Punishment is necessary to deter violators of the law from repelling their crime and serves as an example to others who violate the law. -Crime prevention is possible through swift and certain punishments that affect the gains of criminal behavior (Not so much today because of Due Process) Also called the Hedonistic Theory

What is the significance of $250 Billion Dollars?

The amount of money that Bernie Madoff stole.

Occupational Crime

The illegal or harmful financially driven activity committed within the context of a legitimate, respectable occupation.

What are the "dark figures"?

The number of unreported or undiscovered crimes.

What is reliance?

The reliance by the offender on the ignorance or carelessness of the victim. It is victim related since it is based on the offender's perception on the susceptibility of the victim. The offender will not make a move unless he can depend on the victim's inability to perceive what is going on.

What is concealment?

The violation of the criminal act is hidden. Concealment of the crime from the victim and law enforcement is the primary objective.

What is the impact of unreported crimes on White Collar Crime Statistics?

They are easily gone unnoticed, and can very quickly end up in a huge loss of money.

What are Pyramid Schemes?

They are non-sustainable business models that involve promising participants payment or services, primarily for enrolling other people into the scheme, rather that supplying any real investment or sale of products or services to the public.

What is the "Neutralizing Theory"?

They believed that most people drift into and out of criminal behavior but will not commit a crime unless they have available to them the techniques of shedding the guilt. -Denial of Responsibility -Denial of Injury -Condemnation of Others -Appeal to Higher Loyalties

How does planning and organization relate to White Collar Crime?

They distinguish White Collar Crime from other crimes; one definition is; "the planned or organized illegal act of deception of fraud, usually accomplished during the course of legitimate occupational activity, committed by an individual or corporate entity."

What are Criminal Violations?

They require a mandatory court appearance. They include such charges as DUI's, and reckless driving. The criminal will have a notice mailed to their address with a court date.

What is intent?

To commit a wrongful act or to achieve a purpose inconsistent with law of public safety.

What is disguise?

To consummate the crime, it is part of the manner and means by which the crime is committed.