Chapter 13: Green & White-Collar Crimes
What happened in 2006 in the Enron Embezzlement Scandal?
-By 2006 3 top executives plead guilty to 24, 45, and 6 years in prison -Only each only served 12 years, the second died before sentence, third did 5 years -Arthur Anderson was found guilty of obstructing justice
What does the Sarbanes-Oxely act do?
Imposed harsher sentences for destroying, altering, or fabricating financial documents
What is false advertising?
Knowingly advertising for a product or aspects of a product that are not possible or there
What are the two ways we've been stopping green crime?
Legislative actions & Environmental protection agency (EPA)
Organized crime often uses...
Legitimate businesses as a front to openly operate
What is a telemarketing swindle?
Making a false claim or misrepresenting oneself to victim over the phone
What type of health care fraud is the most common?
Medicaid fraud
What is an example of the environmental justice view?
Oil drilling in places that would be prohibited in the U.S.
The Enron Embezzlement Scandal would go down as what?
One of the biggest bankruptcy cases in U.S. history
perpetuator is the company itself meaning...
Person doing the harm must be given permission by company to act in a certain way and customer believes that person has been granted this authority by company
What is a swindler?
Person using business position to commit fraud over time
What is an example of the criminologist view of green crime?
Physical harm done by air pollution warrant severe punishment
What is a detail of a Ponzi scheme?
Pocketing additional money and pooling from new investors
What is an example of peddling in the criminal justice system?
Police officers taking money to give advanced notice on raid
What are some examples of government sources when discussing peddling?
Politicians selling information or taking bribes as favors
What is a type of investment swindle?
Ponzi schemes
What is an example of cooperate crimes?
Price fixing, false advertising
What do religious swindles do?
Take advantage of those wanting to goon religious pilgrimages or missions
What is influence peddling?
Taking a bribe to do a "favor" or tell information
What is blue-collar pilferage?
Taking of company property to later sell for a profit
What are the environmental protection agency's?
-Enforcement arms of the federal government -Investigates criminal allegations of wrong decision
What is the criminologists perspective of green crime?
-Harms perspective, -actions that cause discomfort to individual or is a social harm should be considered illegal and criminal -Harm can be physical, psychological, cultural, emotional, or economic
What are some facts of the Italian Mafia?
-Has strongest roots in the U.S. -Largest presence in NY, NJ, and PA -Deal most with drug trafficking and money laundering (occasionally linked to gambling) -Political corruption of the mafia has allowed this group to retain protection from the justice system -Mafia costs the world $100 billion annually
What happened in 2001 in the Enron Embezzlement Scandal?
-In 2001 reported sudden losses of 638 million raised question by SEC -Arthur Anderson employees (auditing company for Enron) started to shred documents of fraud -At the time Arthur Anderson was the largest accounting firm in the company
What are some of the facts of the Mexican Cartels?
-In late 1970's Miguel Angel Felix Gallardo, established the Guadalajara cartel -Created a relationship with Medellin Cartel -After collapse of Medellin and arrest of Gallardo the Guadalarja cartel was split up
What happened in the Enron Embezzlement Scandal?
-Natural gas company that started in 1985 -Acted as an intermediary between natural gas producers & customers -New competition meant company profits dwindled -Transferred trouble accounts via special purpose entities to keep these numbers off official books
How do Mexican cartels operate?
-Operate generally as distributors -Will sources drug material from other places around the globe -Smuggle into the U.S. to major city ports -From there local gang connections are made to do the actual street selling -It is the decentralized nature of the networks that make the cartels so successful
What is the mafia?
-Originate in Sicily -Criminal gangs empowered by landowners to ensure worker compliance -In the U.S. prohibition prompted the rise in organized gang activity -Today overall commission of family heads coordinate to keep local mafias alive
Today which Mexican cartel is the most powerful?
-Sinaloa cartel is the largest and most powerful -Most famously known as "El Chapo" -Operates as a distributor for Colombian cocaine and Mexican marijuana, methamphetamine and fentanyl -Responsible for 50-70% of cocaine and 80% of marijuana sold in the U.S.
What are religious swindles?
-Targeting the good nature and hope in religious people -Fraudulent charitable organization that is supposedly dedicated to religious work
What is client fraud?
When an organization advances credit, provides loan, supports financially, or reimburses for third party services
What is restrain of trade?
When companies limit the competition by not selling or doing dealing with those outside of conspiracy chain
What are cooperate crimes?
When companies violate laws that restrain them from doing social harm
What are enterprise crimes?
When offenders twist the legal rule for personal economic gain
What is price fixing?
When supply chains standardize and set prices for product parts higher than necessary
What's an example of a telemarketing swindle?
Winning a prize, being a bank teller, antivirus software personnel etc.
What is an example of exploitation?
Withholding service and demanding more money
What is an example of the legality view?
Workplace safety
In white collar crimes what is the estimated cost?
$600 billion
What happened in the 1986 Mafia Commission Trial (United States v. Anthony Salernoetal)
-11 major mafia members including all five crime bosses were charged with extortion, labor racketeering, and murder -OCTF (Organized Crime Task Force) wire tapped the home, phone, and car of Salvatore Avellino -Avellino was a coporegime of the Lucchese family -He had a monopoly of the waste management system in Long Island -These conversations were used to convict all II w/over 100 years of imprisionment
In the national white collar crime center survey...
-17% of people reported wcc victimization -12% of crime are reported to law enforcement
What are some facts of the Russian mafia?
-After the downfall of soviet union -Trafficking drugs, arms, women, and children -Known for national and international dealings -Russian mafias use legitimate business and governmental protections to operate illegal business -Members frequently hold public office -In turn legislation is passed that favor and protect the mafia
What are some facts of the Asian Mafia?
-Asian mafias are well known for human trafficking and narcotics -Chinese gangs import and distribute heroin in China -Cambodia is a drug trafficking hub for several groups -Cambodian women are often exported to Thailand for prostitution -Relaxed law enforcement is responsible for this -In Tawian gangs have placed heavy focus on gaining political power to further gambling and money laundering schemes
What are some of the facts of Chinese Triads?
-Triads originate as an off-shoot of the secrete hung society in Hong Kong -They have established Satellite branches in Taiwan and signapore -Traids primarily use legitimate businesses as fronts for illegal activity (Massage parlors, restaurants, and construction companies
What is illegal fishing?
-Unlicensed fishing involves ignoring home nation rules about type, extent, and location of fishing
What are some facts about Tongs?
-Were primarily involved in illegal gambling operations and opium distribution -These groups were hard to infiltrate as most members did not speak English (or pretended not too).
What are some facts of the Yakuza?
-Yazuka differ from most other organized groups for their prestige -Known for wearing suits with slicked back hair and having substantial wealth -Strict structure, ritual, and adherence to social status norms -Involvement in business and wealth means extortion and bribery are commonly done through the course of legitimate business -Illegitimately, the Yazuka are also involved in Human trafficking and methanphetamine -They will often traffic people through the Philippines or Cambodia
What are the three sources of influence peddling?
1) Government 2) Criminal Justice System 3)Business
What are the three different types of swindlers?
1) Investment 2) Telemarketing 3) Religious
Protection of clean air and water is...
A big issue
An example of exploitation occurring at the justice system would be...
A police officer demanding a bribe to avoid arrest
What is exploitation?
Abusing one's power in an organization to extort people into payments for services not rendered
Typical telemarketing swindles include?
Act now, free gift, send money, cannot afford to miss out
What is the biocentric view of green crime?
Any human activity that disrupts or harms biosystem
What is embezzlement?
Appropriating company property for individual purpose
Exploitation can occur...
At the governmental level, private industry, and in the justice system
What is chiseling?
Business owner cheating customers or employees theft -Overcharging or billing customers
What is healthcare fraud?
Changing documents to bill insurance companies for services that were not actually given
What is Bank fraud?
Check, forgery, card theft
What are the legislative actions?
Clean water act, endangered species act, oil pollution act
White-collar crime (wcc) is not...
Collected in the NCVS or UCR
Organized crime does not...
Commit acts of terror
What is management fraud?
Concealing or changing books to make performance appear greater or take bonus money that is not theirs
What is organized crimes?
Criminal emeyerprises that operate for personal gain through illegal activities -Structured system of buying and selling illegal goods and services
What are the different types of crime organized crime commits?
Cultural property, piracy, human trafficking, migrant smuggling, and organ trafficking
What is an example of the biocentric view?
Deforestation
What's an example of illegal fishing?
Demand for Shark fin soup has resulted in the depletion of shark populations
What are deterrence strategies?
Detecting and punishing for violations criminally
What is an example of peddling in business?
Disclosing confidential client info to help supplies gain edge
What are compliance strategies for stopping white collar crimes?
Encouraging conformity through compliance incentives -Threat of economic or civil penalties
What is the environmental justice view of green crime?
Ensuring the punishment of companies whose conduct would be considered illegal if done in own country
What is professional chiseling?
Exchanging name brand good for generic
What is illegal dumping?
Illegal and improper disposal of hazardous waste -Disposal of electronic devices is quickly become a severe -Inability to keep up with recycling demands, goods are dumped near local water or dumping sites
What is a Ponzi schemes?
Fraud that involves the payment of returns to existing investors from fund contribute by new investors.
What is tax evasion?
Government is cheated out of money by people who evade payment of taxes through fraudulent tax filings
What is illegal logging?
Harvesting Processing and transporting of protected timber -Causes unsustainable damage to natural resources and habitats -Accounts for 50-90% of INTERPOL Forestry Cases
Organized crime today is...
Highly organized and works in intricate networks to transport goods or service
When discussing stopping white collar crimes, what are the several regulatory agencies?
IRS, Secrete service, U.S. customs EPA, SEC
What are some facts about Colombian cartels?
In the early 1970's the Medellin cartel was created by Pablo Escobar -Primairly smuggled up to $60 million dollars of cocaine to various countries daily -At the time this was the biggest and most profitable cartel in the world -Infiltration of the government provided the cartel w/ cover -Escobar was assassinated in 1993 after escaping prison
Over the years congress has significantly...
Increased the regulation and punishment for violations
What is securities chiseling?
Insider trading where advanced internal knowledge of a company is used to buy or sell stock ahead of general public
Shrimp, lobsters, and various fish populations are closely...
Monitored and regulated
Often unrecognized harm due to...
Most cases being handled in civil rather than criminal court
What is green crime?
Violations of law that are there to protect the environment, Issues of global warming, overdevelopment, loss of natural habitats, and population growth promote this interest
What is polluting?
Releasing toxic or toxic levels of chemicals into the air, water, or ground
As a result of this scandal, what was passed in 2002?
Sarbanes-Oxely Act
What is illegal wildlife exports?
Smuggling of protected wildlife across borders -Pets, hunting trophies, apparel, cultural artifacts etc. -Introduction of non-native species can destroy native habitats -US purchases 20% of all illegal wildlife trade
What is white collar crime?
The criminal activities of the rich and powerful
Research shows that police agencies in lower-class neighborhood tend...
To ignore environment violations
Citizen groups have emerged as a way...
To self-police
Following the Chinese immigration to the U.S. gangs known as...
Tongs created
Due to technology what dominates?
Transnational organized crime (TOC)
What is the legalist view of green crime?
Violations of existing criminal laws designed to protect people
What are the different forms of Green crime?
illegal logging, illegal wildlife exports, illegal fishing, illegal dumping, illegal polluting
What is an example of blue-collar pilferage?
taking Construction gear to sell
