Chapter 14

racketeer influenced and corrupt organizations (RICO)

Title IX of the 1970 Organized Crime Control Act; provides for enhanced criminal and civil penalties for individuals engaging in activities with criminal organizations.

cybercrime definition

cybercrime consists of at least three features: The act was committed using (1) a computer, (2) a "victim" computer, and (3) an intermediary network.

kefauver committee

in 1950, charged with three responsibilities that focused on whether organized crime used the services of interstate commerce to engage in illegal activities and identifying the persons, firms, or corporations involved in such activities.

the organized crime control act of 1970

As a result of the President's Commission on Law Enforcement and the Administration of Justice, Congress passed the Organized Crime Control Act in 1970. A key component of this legislation was titled Racketeer Influenced and Corrupt Organizations (RICO). It would take nearly a decade, however, for authorities to adequately apply RICO. There are three criminal penalties for RICO violations, which can be applied simultaneously: (1) a fine of no more than $25,000, (2) a prison term of no more than 20 years (for each racketeering count), and (3) the forfeiture of any interest obtained or maintained in the course of state violations.

occupational safety and health act of 1970

among other things, this federal act established the Occupational Safety and Health Administration and made it a misdemeanor to cause the death of a worker by willfully violating safety laws.

cooper v pate

as a result of this 1964 Supreme Court decision, prisoners were allowed to sue state officials in federal court, which resulted in much litigation and changed the prison conditions in the 1970s.

edwin sutherland

coined the term white-collar crime; generally considered the most prominent criminologist of the 20th century.

mafioso

referred to characteristics of a man, such as pride, self-confidence, and a sense of "arrogant" behavior.

mafia

similar to an extended social family; members took an oath swearing, under punishment of death, to a code of silence. It started as a self-protection group, but by the 1860s expanded to criminal activities such as smuggling, cattle rustling, and extortion.

organized crime definition

sometimes defined through a typology, such as the means of obtaining the goals and the reasons for engaging in such activity: an economic objective or a political objective.

environmental protection agency

started in 1970, charged with protecting human health and safeguarding the natural environment.

Outlaw Motorcycle Gangs

the tough-guy image of these groups was perpetuated and membership increased, along with organization and sophistication. Soon, behavior of some groups was less rebellious and more openly criminal; some members refer to themselves as "one-percenters."

internet fraud definiton

use of the internet to engage in fraud, often identity theft.

cyberstalking definition

when an individual engages in stalking behavior through such means as electronic mail or electronic communication

types of criminal organization

- Organized crime is not synonymous with the Mafia. In this section, we begin with a brief discussion of the Mafia followed by discussion of other types of criminal organization, including outlaw motorcycle gangs, prison gangs, and urban street gangs.

incidence and impact on society

- After his presidential address to the ASS, Sutherland published a key study regarding corporate crime and violations by most of the largest companies in the United States at that time (the 1940s).38 In this seminal study, Sutherland examined the decisions of courts and regulatory commissions against the 70 largest mercantile and industrial corporations in the nation. Considering that the study was done in the 1940s, the findings are quite startling. Sutherland found that a total of 547 adverse decisions had been made against these 70 companies, with an average of almost eight decisions per corporation. Even more surprising was the prevalence of the substantiated rule violations; specifically, every single one of the corporations that Sutherland included in his sample had a decision against it, which implies that all highly successful businesses in the United States had engaged in unethical practices (and been caught). Perhaps most shocking, virtually every corporation had committed more than one offense, with 97.1% recidivating. It appears that being caught and charged once did not do much to deter the businesses from engaging in unethical behaviors again. Keep in mind that corporate crime usually goes undiscovered, so the fact that almost every business in this study was caught more than once implies that the most successful companies actively and repeatedly engage in unethical activity for a profit. Interestingly, although Sutherland made a strong argument that all these activities were criminal, only 9% (49 out of the 547) of the decisions were made by criminal courts. The others were made mostly by federal or state oversight agencies, which often lack the power that criminal courts can wield in terms of punishment and/or stigma. It is amazing that every highly successful company in the United States was found by an authoritative body to have committed a rule violation, and most had committed more than a handful of such violations. When comparing these rates of violations, some may argue that there were a higher percentage of companies committing such violations in the 1940s due to lower regulation. However, that doesn't seem to be a strong argument, because there was enough regulation to catch every single company (of the top 70) engaging in unethical practices and, furthermore, enough to catch most of them numerous times. Has the increase in laws, regulatory codes, and investigation reduced this rate of violations among modern corporations? The scientific answer is that we do not know for sure, because there was no stable, consistent measure of such violations from the 1940s to now. But given the recent revelations regarding the extensive amount of grossly unethical practices at some of the nation's most respected and "successful" corporations—especially those with strong political ties, such as Enron (see "Why Do They Do It?") and others (e.g., WorldCom and Adelphia)—there has not likely been a significant reduction in the incidence of corporate criminality in the past 70 years. After all, other investigations of the largest businesses in the nation have all found that corporate misbehavior is not the exception but the norm; in fact, it appears that the more successful the company, the more it has been charged with violations. For example, one analysis of the 582 largest manufacturing and retail/service corporations in the United States from 1975 to 1976 found that 60% of the corporations had at least one violation, and this was in just the two-year period of the study! Close to half the companies had more than one violation, and some had more than 30 violations in this short period of time, which of course represents a chronic state of corporate offending.39 Furthermore, a review of corporate crime among Fortune 500 companies found that well over half (62%) were involved in at least one violation between 1975 and 1984, while another analysis found that every single one of the 25 largest Fortune 500 corporations had been convicted of a violation between 1977 and 1990.40 Further, a 2012 review by the nonpartisan, nonprofit group Ethics Resource Center (ERC), led by former U.S. congressman Michael Oxley—co-author of the federal Sarbanes-Oxley Act (passed in 2002) that sought to hold corporations more accountable for unethical activity—found that workplace misconduct at Fortune 500 companies is higher than the corporate average in the nation.41 More specifically, this study by the ERC found that high-level employees of 52% of Fortune 500 companies said they had observed misconduct in their workplace during the last 12 months! Given that this study only covered a one-year period, it is highly likely the percentage of Fortune 500 corporations that engage in unethical activity even once every few years is far higher. In sum, a review of the evidence of the rate (and causes) of modern white-collar crime summarily concluded: The reality of corporate crime in U.S. society changes little from year to year. Corporate crime is rampant; corporations are criminal recidivists . . . and corporate crime is treated with kid gloves by government agencies and the criminal justice system.

crimes against the environment

- Although forms of pollution have existed throughout human civilization, the real turn for the worse for the environment was the Industrial Revolution (mid-1700s to mid-1800s), which resulted in a dramatic shift from rural-based economies to industrial-based economies. In the preindustrial period, farmers were dependent on the land, so for the most part, they treated it well. Once the Industrial Revolution began, countless numbers of factories and plants were built, and this resulted in unprecedented dumping of deadly chemicals and waste products into bodies of water, toxins being released from endless streams of smoke from factory chimneys, and massive destruction of majestic forests and natural resources. However, there was virtually no understanding of the damage being done, and pollution was not acknowledged as a concept, let alone a problem. In the 20th century, it became obvious that much damage had been done, and efforts have since been made to repair and restrict harm to the environment. Many laws and regulations were passed, and federal, state, and local agencies were created, such as the most prominent federal agency, the Environmental Protection Agency (EPA; see http://www.epa.gov). The EPA is not a Cabinet agency, but the administrator (appointed by the president) is normally given Cabinet rank, so he or she certainly has almost daily contact with the president of the United States. - The EPA, established in 1970, is charged with protecting human health and safeguarding the natural environment, which is quite a burden.62 For instance, there are 30,000 waste sites, along with more than 10 billion pounds of toxic chemicals that pose a significant threat of pollution, in the United States.63 Furthermore, the EPA estimates that about 60,000 deaths—mostly among the elderly and young children—each year in the United States are a direct result of toxic particles emitted from manufacturing plants. Also, in one report, the EPA identified 149 manufacturing plants throughout the nation where air in nearby communities had been determined to be toxic and dangerous. - The EPA often works with the U.S. Department of the Interior and U.S. Department of Agriculture in developing and enforcing regulations to protect the environment from corporate crimes. These include laws against air pollution, against water pollution, for preserving forests and other natural areas, for appropriate hazardous waste disposal, and for protecting endangered species. This has been one of the most common areas of corporate violation over the past few decades, and the EPA has been busy. Although the vast majority of the nearly 20,000 people working for the EPA are doing their best to protect us and the environment, imagine their shock, as well as the public's, when it was discovered that EPA executives in the early 1980s were committing corporate crime. Specifically, Rita Lavelle was appointed by President Reagan and put in charge of a large fund to clean up the most extreme cases of corporate pollution resulting from improper disposal of hazardous waste.65 She participated in questionable decisions with some of the most chronic corporate polluters and used the dispersal of monies for political purposes; she was later convicted on four felony counts in 1983. So again, here is an example of the hypocrisy of white-collar crime and how it destroys the moral fabric of society. After all, why should any business respect the environmental codes when the very people who create and enforce the codes have been known to engage in high levels of corruption?

theoretical explanations

- Although historically the empirical research on theories explaining white-collar crime was limited, in the past few decades there has been a significant increase in attention to this area. A 2012 review of the extant scientific research testing the empirical validity of various theories discussed previously in this book found that some theories were better than others at explaining white-collar crime.70 Regarding the conclusions that can be reached from this review of the empirical research, the theory of differential association, techniques of neutralization, and other social learning principles are extremely valid in understanding the influence of the corporate world. In white-collar crime, however, it is not a person's significant others (friends, family, etc.) who form the important definitions of doing "good"; rather, it is his or her supervisors and professional colleagues who are most likely to affect decisions to act unethically in business practices. Furthermore, this is consistent with the use of excuses or neutralization techniques to allow an individual to do what he or she knows is inherently wrong for the good of a higher authority (company, supervisors, loyalty to colleagues, etc.). In fact, one study showed that executive MBA candidates, who had much experience in the corporate world, were significantly more likely to use neutralization techniques in explaining why they agreed to market and sell an admittedly dangerous drug than were normal MBA students, who had far less experience in the corporate world. - This may help explain why there is virtually no evidence for deterrence at the corporate level. Companies that have been caught have, in all likelihood, gotten away with such violations for many years, and they know that the potential benefits far outweigh any sanctions they may face if they are brought to account for a few of their total violations. Relatedly, portions of rational choice theory are strongly supported by empirical research, in the sense that violating ethical business rules often leads to much gain in terms of financial profit and/or employer recognition. This also relates to the cultural/subcultural findings regarding motivations to commit white-collar crime, which clearly show the significant cultural emphasis in most companies that focus solely on making a profit; thus, any other normative value system pales in comparison with helping contribute to the profit margin. And with few exceptions, individuals tend to take on the mentality or normative culture of the company at which they work. After all, that company is paying them and providing their livelihood, so it is only natural. But aren't business majors at most universities instructed in ethics? Yes, and such moral beliefs are both key in social bonding theory and a key conditional variable in many rational choice theories of offending. However, studies show that the cultural norms of one's environment seem to overwhelm university-led ethical training.77 Not surprisingly, an individual will typically follow the orders of superiors and/or subcultural pressures among colleagues to make a profit for the company, despite any ethical principles learned in school or opposing personal beliefs. Regarding opportunity theories, such as routine-activities theory, the ready-made opportunity to commit various white-collar crimes is quite attractive, especially given the low likelihood of being caught and the ease of achieving economic gain via one's everyday job. After all, there doesn't seem to be much of a downside to engaging in illegal and unethical behavior in most white-collar positions, especially when one sees on the news that even when someone is caught and convicted, that person usually doesn't spend any time in prison. And even when such persons do serve time, it is often at a minimum-security facility—quite a difference from serving "hard time." So there doesn't seem to be much certainty or severity of punishment, but there is likely to be a huge payoff or promotion if one does engage in unethical practices. Given the current lack of enforcement of laws against such behaviors in the course of business, it only makes sense to engage in them. Until more certain enforcement and far more severe penalties are mandated, it is highly unlikely that white-collar workers' perceptions and motivations will change, especially given the constant opportunities to engage in criminal activity. Regarding strain theory, especially institutional anomie theory, there is believed to be an American cultural value of monetary success, which often takes priority over other important social factors (family, friends, education, etc.). This strain for success, or even greed, has its source in both individuals and corporations. Furthermore, the source of strain for monetary gain emanates from sources both internal and external to the company, ranging from the performance of specific employees to global economic trends. In terms of conflict theory, especially regarding the overall political or economic ideology of various corporations (such as those in other countries), studies show that whether a company is based in a communistic or a capitalistic country, the goal is profit. Specifically, studies have shown that white-collar crime existed at a high rate in more socialist and communist countries.78 This is likely due to these countries not having much enforcement against such practices, since they are believed not to exist in such idealistic societies. But greed is a universal pattern, so you will find it everywhere, in any society and at any time. After reviewing all the relevant empirical studies for each of the theories above, the authors concluded: The majority of empirical research in white-collar crime thus far has been built off traditional theories that were originally developed to explain conventional crimes. However, white-collar and conventional offenders . . . are distinctly different. . . . Our next step should be to move beyond conventional explanations.79 We agree with this assessment, and more topic-specific theories must be created to understand fully the reasons and motivations for committing white-collar crime. This is also true of another form of corporate-related offending, which we will discuss next—organized crime and racketeering.

internet fraud

- Businesses have the option of placing their operations, either entirely or as an added component, online. While this has allowed legitimate businesses to expand their customer base, it has also given illegitimate businesses or operations an opportunity to engage in internet fraud. Some of the most common types of online fraud are listed below. - Fraudulent sales. Online purchases create risks for both the merchant and the customer. The merchant does not want to release the goods until payment has been received, and the customer does not want to pay before delivery. While offline purchases require payment upon delivery, more trust is required when making online purchases.163 Ubid and eBay are two of the most popular internet auction sites. Some interesting items have been put up for auction, illustrating that practically anything can be sold: A man's family. The man promised that the highest bidder would receive a happy family, ready for holidays and family events. An island. The island, apparently located off the coast of the United States, was advertised as ideal for a remote casino resort. Escort services. The winner was promised an "unforgettable afternoon."164 Even in more ordinary cases of online auction fraud, the winning bidder pays the seller but never receive the merchandise. Further, since these transactions can occur between a seller and purchaser living in different states or even different countries, it can be difficult to investigate and prosecute these offenses. However, many states have statutes that criminalize fraudulent selling practices, and these statutes apply to auction fraud cases just as they would to more traditional transactions.165 Advance-fee frauds. In this type of fraud, the victim is lured to pay monies with the expectation of receiving some service or benefit that never materializes. One of the most well-known advance-fee frauds is the Nigerian email scam (see Figure 14.2 for an example). Others include dating scammers, someone impersonating an FBI or other government official requesting the payment of a fine, and computer support scams, in which fraudsters call victims to inform them that they have detected malware. - Mail-order bride services/solicitation of prostitutes. Mail-order bride services and solicitation of prostitutes are not new offenses, but engaging in these crimes through the internet is a relatively new phenomenon. For instance, there are more than 30,000 websites for mail-order brides. There are various types of mail-order bride fraud. One scam is when a woman contacts numerous men and states that she likes their letters. A man may then respond by asking her to visit, usually in the United States. As soon as he sends the woman money to pay for her trip, she cuts off all contact. In another type of scam, the woman is actually a man posing as a potential wife.167 Online prostitution refers to soliciting sexual acts through the internet, either by facilitating communication between prostitutes and those seeking their services or by using electronic communications and websites to facilitate meetings. It is this second form that fraudsters often employ. One type of fraud occurs when a "date" is scheduled, with a required deposit prior to the arranged meeting. The website obtains the "customer's" credit card information, but the services are never provided.

child pornography

- Child pornography portrays children engaged in sexual acts or in a sexual way. These depictions are the same as those in adult pornography except that the media (e.g., photographs, video) include images of children, children and adults, or children and animals or objects.157 As with adult pornography, child pornography exists to meet the demand for such material. During the spring of 2018, the Department of Justice initiated the Internet Crimes Against Children (ICAC) task forces. The 61 ICAC tasks forces coordinated their efforts in what was designated "Broken Heart." This operation resulted in the arrest of more than 2,300 suspected online child sex offenders. During this three-month operation, these task forces investigated more than 25,200 complaints of technology-facilitated crimes against children. Specifically, the operation targeted those who "(1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children."158 Further, there are national and international organizations that support pedophiles and child sexual exploitation. One such organization is the North American Man/Boy Love Association (NAMBLA). A review of the literature identified four common categories of online users of child pornography: Individuals who encourage prevailing or developing sexual interests in children Individuals who communicate with other sexual offenders who use child pornography as a broader pattern of offending Individuals who are impulsive and curious Individuals who are involved in child pornography for nonsexual reasons, such as financial gain159 During the 1980s, federal law enforcement agencies aggressively focused on pursuing those involved in the manufacturing and distribution of child pornography. Such efforts resulted in the belief that the issue of child pornography was a "controllable problem." That all changed, however, with the advent of the internet.160 Deputy Assistant Attorney General Kevin V. Di Gregory testified before Congress in June 1996 that the trafficking in child pornography by computer users has, in some ways, challenged the progress of nearly eight years of aggressive child pornography investigation and prosecution. Whereas by the early 1990s, the Government had largely eradicated the cottage trade within the United States for this material and distribution was typically limited to trading or sharing between individual pedophiles who actually knew each other, today computer technology has reinvigorated both the commercial and non-commercial distribution of obscene child pornography.161 With the ever-growing World Wide Web, there will be a continuous expansion of child pornography. Further, law enforcement efforts are difficult and characterized by legal definitional issues, overlapping jurisdictions, and entrapment problems.

example: Reiman & Leighton - important concepts

- even though the US crime rate has declined in recent years, it is still substantially higher than other countries across the world, especially concerning lethal violence. - reiman and leighton believed that even though violent crime has declined, little of it has to do with our government and policies, especially the war on crime laws and tough on crime policies. EX: Canada has also seen a drop in violent crime without adopting similar polices and law. - reiman and leighton say that the US government provides society with certain reasons for why we still have high crime rates. However, they believe that the government is only providing excuses for the high crime rates. - in other words, reiman and leighton ultimately argue that these are false reasons that the government says to us for why we still have high crime rates. - the first excuse for high crime rates is that we're too soft on crime, even though in the last 30 years there has been an increase and mandatory sentences and harsher punishment. - the second excuse is our modern life, even though other modern countries have lower crime rates than us. - the third excuse is that our American youth are the problem. However, changes in crime rates are not only dependent on the size of the youth population. in addition, and discussed as earlier in the course concerning life courses theories and the age crime curve, research has found that youth, for the most part, age out of crime. - the fourth excuse is that the criminal justice system does not know why we have high crime rates. The criminal justice system responds to crime after it occurs, since most criminals do not believe that they will be caught, harsher sentences have a little impact. instead, reiman and leighton believe that there are sources of crime in our country that result in high crime rates. - the first source is inequality. this includes unemployment and poverty. - the second source of crime is the conditions of prisons and the overuse of them. - the third source of crime, according to reiman and leighton are guns, especially handguns. - the final source of crime is the current drug policy. as a reminder, reiman and leighton do not believe that the US governments reason for high crime rates but they believe that the source of crime in the US stem from inequality, prisons, guns, and drugs. Furthermore, reiman and leighton argued that the criminal justice system can only be a just and fair system if it equally protects the interests and rights of all victims and punishes individuals who violate these rights. when this does not happen, they believe that the criminal justice in and of itself is criminal. Reiman and leighton argued that then the criminal justice system has its own rules of equal protection and fairness. from this, they introduced several strategies that they believe need to be put in place in order to protect society, promote justice, and subsequently reduce crime. this means reducing the occurrence of violent crime, white collar crime, and corporate crime in order to protect society. - the first solution that there needs to be an end to crime producing property. - the second solution is to let crime fit the harm and the punishment fits the crime. in other words, reiman and leighton believe that the criminal justice system must treat all harmful acts in proportion to the actual harm that the produce with respect to the social class of the criminal. - the third solution, according to reiman and leigton, is to legalize the production and sale of illicit drugs and to treat addiction as a medical problem. - the fourth solution is to enact and vigorously enforce stringent gun control laws. - in order to promote justice in the united states reiman and leighton believe that the first solution is to decrease the amount of discretion by police, prosecutors, and judges. they argue that procedures need to be developed to hold criminal justice decision makers accountable to the public for the fairness of their decisions. This strategy may help decrease the amount of bias that occurs across racial and social class lines in terms of court decisions. - the second solution is to transform the concept equal right to counsel into the right to equal counsel as far as it is possible. - the third solution according to reiman and leighton, is to establish a more equal distribution of wealth income and make equal opportunities a reality for all Americans.

Computer Fraud and Abuse Act of 1984:

originally designed to protect national security, financial, and commercial information; medical treatment; and interstate communication systems from malicious acts, including unauthorized access; allows victims of such crimes to bring civil suits against violators.

hacking

The term hacker most likely emerged from the electrical engineering labs at the Massachusetts Institute of Technology (MIT). As at other universities, some MIT students engaged in attention-seeking pranks; these students were called "hacks." The term soon took on the meaning of creative invention, especially as computing was developing as a discipline.148 However, today individuals who claim to be hackers contend that true hackers are concerned with enhancing computer security. Later, the term cracker was suggested to replace hacker in the media. Although some use this term, it usually refers to an individual who violates copyright protection. In the computer science community, the distinction between these two terms is recognized; outside this community, the two terms often refer to the same activity.149 One suggested definition of hackers is that used by those within the hacker community: A hacker is one who obtains unauthorized access to a computer system, file, or network. - Robert Moore described six general types of hacker: black hat hackers, white hat hackers, gray hat hackers, script kiddies, hactivists, and cyber terrorists:151 Black hat hackers. These individuals violate computer security essentially out of malice or for personal gain. They write programs to damage computer systems and networks. Because of these hackers, organizations have had to spend millions of dollars to develop protected computer networks and operating systems. White hat hackers. These hackers are involved in writing programs to protect systems and networks from being illegally and maliciously accessed. They attempt to hack into targeted computers. If successful, they subsequently notify the computer system's owner of its vulnerabilities. Gray hat hackers. A blend of black hat and white hat hackers, these individuals may be considered "opportunistic." They may successfully target and access a computer system and then notify the system's owner. Rather than informing the administrator of how the system was exposed, these hackers offer to correct the defect for a fee. Script kiddies. These hackers are deemed the lowest on the hacker ladder, due to their limited technical ability. Essentially, they search the internet for hacker utility programs and then launch the programs at a target computer system. Due to their limited technical knowledge, they are considered risky because they are not aware of how programs will affect the attacked computer system. Some well-known hacking attacks, such as the shutting down of the eBay and Amazon websites, were done by script kiddies. Hactivists. In reference to their methods, these individuals are similar to those hackers described above. They differ, however, in their motives. Hactivists attempt to hack computer systems or networks that will provide them an avenue to spread their political message. They may access the server that hosts a webpage and then modify the page to reveal their message. Cyber terrorists. These individuals access computer systems linked to critical infrastructures, such as water purification, electricity, and nuclear power plants. Such "attacks" can cause damage or even death due to loss of service. These hackers are relatively new but are gaining attention and inspire a great deal of public fear.152 The IC3 also recognizes hactivists, as hackers whose interests focus on promoting a social or political cause

white collar crime

criteria include (1) upper-class offender, (2) work-related violations, (3) work-related violations of blue-collar workers excluded, and (4) regular crimes committed by upper-class persons excluded.

hackers

individuals who violate computer security.

identity theft definition

obtaining someone's personal details in order to commit identity fraud; can be used by criminals and terrorists to establish false identities and escape detection.

introduction

- This chapter examines a large group of offenses that do not generally fit in the traditional concept of predatory street crimes, such as murder, rape, assault, burglary, and motor-vehicle theft. The types of offending examined in this chapter include various types of white-collar, organized, and computer (or cyber) crime. Although these crimes do not receive nearly the amount of attention that traditional street crimes get on the evening news or in newspapers, they cause far more damage to society, in terms of both property/financial losses and violence, than all street crimes combined. While in years past, clear distinctions were made between organized and white-collar crime, recently some researchers have maintained that these two types of offense may be similar rather than fundamentally distinct

breakdown in social fabric

- Beyond the relatively high levels of economic and violent damage caused by white-collar crimes, a number of theorists have made the argument that these "suite" crimes are also far worse than "street" crimes in terms of the damage done to the moral and social fabric of society.59 To clarify, they argue that corporate crime creates a higher level of immorality in American society because of the nature of hypocrisy typically inherent in the offenders and/or offending. After all, these offenders are often individuals who are looked up to by other members of society, and they are often persons, such as community leaders, politicians, or judges, who have condemned and even prosecuted others for street crimes that didn't inflict near the damage of their own "suite" crimes. As Clinard and Yeager (1980) claimed in their classic work: It is hypocritical to regard theft and fraud among the lower classes with distaste and to punish such acts while countenancing upper-class deception and calling it "shrewd business practice." A review of corporate violations and how they are prosecuted and punished shows who controls what in law enforcement in American society and the extent to which this control is effective; . . . corporate crime is generally surrounded by an aura of politeness and respectability rarely if ever present in cases of ordinary crime.60 Furthermore, most high-profile businesses guilty of corporate wrongdoing had strong political ties to certain groups—namely, the Republican Party. Specifically, an analysis showed that virtually every corporate violator made more contributions to the Republican Party (which has a generally more pro-business or laissez-faire [hands-off] attitude) than to the Democratic Party.61 However, the history of corporate and white-collar violations clearly is on both sides of the aisle in terms of political ideology. - When we poll our students about how serious they perceive white-collar crime to be compared with street crimes, they often claim that they don't care much about white-collar crime because it doesn't directly affect them. But indeed it does! After all, who will be paying for the Enron fallout, the savings and loan scandal of the late 1980s, fraudulent insurance claims, and the other thousands of corporate violations each year? American taxpayers and consumers. Furthermore, we are far less likely to be injured or killed by traditional street offenders than by corporate offenders, whether from unsafe pharmaceuticals, hazardous consumer products, or dangerous working conditions.

transnational organized crime

- Born in the 1970s, and accelerating in the 1990s, a new type of organized crime has evolved—transnational organized crime. Given changes in the geopolitical climate, a globalized world economy, and softer borders, along with an astonishing development of information technology, criminal organizations are no longer restricted to domestic organizations within a regional area.117 The Department of Justice defined transnational organized crime as self-perpetuating associations of individuals who operate internationally for the purpose of obtaining power, influence, monetary and/or commercial gains, wholly or in part by illegal means, while protecting their activities through a pattern of corruption or violence.118 Following are other factors associated with transnational organized crime: In at least part of their activities, they commit violence or other acts that are likely to intimidate, or they make actual or implicit threats to do so. They exploit differences between countries to further their objectives, enriching their organization, expanding its power, and/or avoiding detection/apprehension. They attempt to gain influence in government, politics, and commerce through corrupt as well as legitimate means. They have economic gain as their primary goal, not only from patently illegal activities but also from investment in legitimate businesses. They attempt to insulate their members from detection, sanction, and/or prosecution through their organizational structure.119 The FBI noted that "major theft crimes" carried out by not only transnational, but also nationally based and regionally based, criminal organizations have a significant impact on the U.S. economy, in the form of increasing consumer prices as well as the loss of tax revenues to states and communities. Major theft crimes include art theft, cargo theft, and jewelry and gem theft

theoretical explanations section

- Dennis Kenney and James Finckenauer noted that while there had been some positive developments in understanding organized crime, there were criticisms that this type of criminal activity lacked a sound theoretical framework.135 Kenney and Finckenauer reviewed various theoretical perspectives that attempt to provide an understanding of organized criminal behavior, such as cultural transmission, culture conflict, and strain theories, as well as low self-control theory. Another theoretical perspective they discussed was ethnicity and ethnic succession: Organized crime has been described as being "caused" by the efforts of successive immigrant groups to make it in America. Cut off from legitimate opportunities for achieving socioeconomic and political success, immigrants have been forced by circumstances to climb . . . the "queer ladder" of upward social mobility, namely, crime, and especially organized crime.136 Another theoretical perspective presented was enterprise theory. This perspective maintains that the legitimate marketplaces do not provide an opportunity for customers to obtain goods and services; thus, illicit entrepreneurs fill this void by providing such goods and services themselves.137 Kenney and Finckenauer concluded with an outline of a theory proposed by Peter Reuter.138 Reuter was attempting to understand under what circumstances some gangs are deemed organized crime groups. He contended that adult gangs are primarily in existence for economic purposes—specifically, to make money. Another key characteristic is the supply-and-demand conditions that help organized crime flourish. Thus, according to Reuter, three factors affect the extent of organized crime in a particular city: Illegal market opportunities (e.g., gambling, drugs, and loan sharking) that are contingent on coordinated groups of people in frequent interaction The extent of recent migration of significant ethnic groups into the community, allowing for recruitment as well as potential clients for goods and services The strength and corruptness of local political authority139 Kenney and Finckenauer stressed that Reuter's "mini-theory" provides an exploratory foundation for conceptual and empirical research in an effort to enhance our understanding of organized criminal behavior. Further, a sound theoretical framework is essential to providing effective intervention to prevent or control organized crime.

outlaw motorcycle gangs

- During the late 1940s, outlaw motorcycle gangs (OMGs) evolved as disorganized and unruly groups made up of disgruntled World War II veterans. Through the decades, the tough-guy image was perpetuated and membership increased, along with the organization and sophistication of these groups.104 Soon, some of these groups' behavior was more rebellious than openly criminal.105 In fact, OMG members refer to themselves as "one-percenters": Some years ago . . . the American Motorcycle Association . . . [estimated] that outlaw motorcyclists comprised less than one per cent of the motorcycling population. Outlaw gangs immediately seized on the figure as a reflection of their belief that they are rebels, operating outside society's laws and norms. - While the 1% figure is meaningless today, members refer to themselves as "one-percenters" to flaunt their status as lawless outsiders. OMGs today are secretive and close-knit groups with selective membership. Membership in OMGs is symbolized by "colors," which are often displayed on denim or leather jackets with embroidered patches sewn on the back. These patches display a gang logo and may also include "rockers" that identify the name of the gang and home city of the chapter. The colors are the member's most prized possession and represent his primary commitment—to the gang and its criminal lifestyle. The outrageous treatment of women who associate with the members is also part of the OMG lifestyle. Women are considered less important than the gang itself or the member's motorcycle. In some gangs, women are used to generate money through prostitution as well as for the transportation of drugs and weapons.107 Some of the most notorious OMGs are the Hells Angels, the Outlaws, the Bandidos, and the Pagans (see Table 14.2). Among these, the Hells Angels are regarded as the wealthiest and most powerful. They have not only an extensive membership in the United States but also chapters in Brazil, Canada, Colombia, Australia, New Zealand, Japan, and seven Western European countries. The Hells Angels also have a sophisticated and wide-ranging counterintelligence structure to protect their members against arrest and prosecution.108 There are sophisticated but smaller OMGs, including the Vagos (in the West and Southwest), the Warlocks (in the region of Pennsylvania, New Jersey, and Delaware), the Dirty Dozen (in Arizona), the Gypsy Jokers (in the Pacific Northwest), and the Sons of Silence (in Colorado)

White collar crime & Corporate crime

- unlike traditional forms of crime white collar crime and corporate crime are relatively new offenses made possible by the complex financial transactions that are relevant to our modern society. - compared to the more traditional theories of crime that have been discussed throughout the course. The theoretical explanations of white collar crime are limited in number and are mostly restricted with the trying to apply the traditional criminological theories to white collar and corporate offended.

cybercrime

- Evgeniy Mikhailovich Bogachev is on the FBI's most wanted list; a reward of $3 million has been offered for information that could lead to his arrest and/or conviction. Beginning in September 2011, the FBI initiated an investigation of a modified version of the Zeus malware (computer software with the purpose of disrupting, damaging, or obtaining unauthorized access to a computer), known as GameOver Zeus (GOZ). The FBI estimates that GOZ is responsible for more than one million computer infections, resulting in financial losses of more than $100 million. In August 2012, Bogachev was indicted by a federal grand jury in the District of Nebraska on charges of conspiracy to participate in racketeering activity; bank fraud; conspiracy to violate the Computer Fraud and Abuse Act; conspiracy to violate the Identity Theft and Assumption Deterrence Act; and aggravated identity theft.140 Cybercrime is a relatively new area of criminal activity. As there have been tremendous advances in technology in recent years, there have also been tremendous opportunities for criminals to hijack this technology. In 2000, the Internet Crime Complaint Center (IC3), within the FBI, was established to provide the public with a reliable and convenient reporting mechanism to submit information to the FBI concerning suspected Internet-facilitated criminal activity, and to develop effective alliances with industry partners.141 From 2014 to 2018, the IC3 received approximately 300,000 complaints per year. The complaints covered a wide range of scams affecting victims worldwide (see Figure 14.1). One part of the IC3 is their Recovery Asset Team (RAT). From February to December 2018, RAT was able to recover $192,699,195.72 lost due to internet crime—a 75% recovery rate. - In this section, we provide a brief definition of cybercrime, followed by a general overview of various types of cybercrime, such as hacking, identity theft, child pornography, internet fraud, and cyberstalking. Next, we present some of the criminal justice responses to cybercrime. We conclude this section by reviewing some theoretical explanations of cybercrime.

definitions and history

- Experts in the area of white-collar crime consider it one of the most difficult concepts to define, with there being little consistency from researcher to researcher.7 The first prominent acknowledgment of "white-collar crime" as an important concept for criminologists to study was presented at an American Sociological Society (ASS, later renamed the American Sociological Association, or ASA) conference in 1939 by Edwin Sutherland,8 who coined the term white-collar crime and is generally considered the most prominent criminologist of the 20th century (for this and other work, such as the formation of differential association theory, see Chapter 10). In this presentation, which was the ASS presidential address, Sutherland did not provide a clear definition of white-collar crime but simply presented a variety of cases that seemed to apply.9 For example, he discussed the racketeering cases against Chicago's Al Capone, as well as the Federal Trade Commission investigations of automobile companies that falsely advertised low-interest-rate loans and the false claims of some of Hearst's publications, such as Good Housekeeping. His discussion also included cases in which judges and various officials accepted bribes or engaged in other unethical practices in which they abused the power of their positions. Perhaps the reason why Sutherland did not provide a clear definition of crime in his address was because he first needed to convince other academics that white-collar crime was an actual, serious form of criminal activity. Perhaps the most profound statement he made in his address was "White-collar crime is real crime." - Before we discuss the contents and importance of Sutherland's presidential address, it is important to note that there was a history of research in the study of corporate and occupational crimes—even going back to the ancient Greeks, who issued decrees against those who forced up prices of imported grain, the penalty for which was death for that person and his entire family.11 Although most textbooks claim that Sutherland introduced the concept of corporate, occupational, or industrial crimes, that is not true. Specifically, prior to Sutherland's address, there were numerous scientific studies on "white-collar bandits," "robber-barons," "corporate crime," "muckrakers," and "industrial crime," all of which refer to forms of corporate, industrial, occupational, or political corruption.12 In fact, some of these studies are considered seminal, such as Matthew Josephson's Robber Barons: The Great American Capitalists13 and George Anderson's Consolidation of Gas Companies in Boston,14 published in 1934 and 1905, respectively—well before Sutherland's address. - Although similar terms, such as white-collar bandits, had been used many times before, Sutherland does deserve credit for coining the term white-collar crime and, more important, for bringing far more attention to the topic by making it the primary focus of his ASS presidential address, which was prominently reported by the mainstream press and significantly increased public attention to this type of offending. At the end of Sutherland's presidential address at the ASS conference in 1939, he provided a summary list of his four primary propositions, the first (implying its importance) being that "white-collar criminality is real criminality, being in all cases in violation of the criminal law," which is a vague and weak definition.15 Subsequently, in 1945, Sutherland published a study on the prevalence of white-collar crime (discussed below); again, a clear definition of the concept was not provided.16 However, in 1949, Sutherland published two works that supplied definitions, albeit still somewhat vague, for white-collar crime. One of these was White-Collar Crime,17 in which he provided the definition in a footnote, stating that white-collar crime may be defined approximately as a crime committed by a person of respectability and high social status in the course of his occupation . . . [which] excludes many crimes of the upper class, such as . . . murder . . . since these are not customarily a part of their occupational procedures . . . and refer[s] principally to business managers and executives.18 There are a number of things to note about this definition. First, as you can see from the wording, particularly use of the word approximately, even Sutherland (the man who coined the term) appears to have lacked confidence in what "white-collar crime" means.19 However, the definition contains some key distinctions that separate it from descriptions of typical street crimes. The first necessary condition is that the offenders are at the top of the socioeconomic structure, due to the requirement of having a "white-collar" job as opposed to a "blue-collar" job or no job at all. According to this portion of Sutherland's definition, if a clerk at a fast-food restaurant steals money from the register, it is not considered white-collar crime because, although the person committed the crime while engaging in work-related duties, he or she clearly does not hold a white-collar position. Later, we will discuss modern criticisms of this requirement in defining white-collar crime.20 Another key element of this definition is that offenses by upper-class individuals are considered white-collar crime only if they are employment-related. A business executive may be a serial killer or a drug dealer, but if these violations do not pertain to his actual job, then they do not count as white-collar crime. Finally, the definition notes that this term refers "principally" to business executives, but such a word is vague (once again suggesting Sutherland's lack of confidence in specifying the exact meaning of the term) and therefore allows some deviation from including only violations committed by executives. Still, it is clear that the person must have a white-collar position to qualify, even if not that of a manager or high-ranking corporate officer. The second relevant publication by Sutherland in 1949 was a brief, five-page entry titled "The White Collar Criminal" in Branham and Kutash's Encyclopedia of Criminology.21 Despite its relative obscurity, this entry seemed to provide the most straightforward definition of this form of offending. Specifically, Sutherland wrote that the white-collar criminal is defined as a person with high socioeconomic status who violates the laws designed to regulate his occupational activities. . . . The white collar criminal should be differentiated . . . from the person of lower socio-economic status who violates the regular penal code or the special trade regulations which apply to him, and . . . from the person of high socio-economic status who violates the regular penal code in ways not connected with his occupation.22 For the most part, this definition is highly consistent with Sutherland's first definition, taken from White-Collar Crime. Specifically, in both definitions, Sutherland stipulated four criteria constituting white-collar crime: The offender is upper-class. The committed violations are work-related. The work-related violations of blue-collar workers are excluded. Regular crimes (i.e., those occurring outside employment) committed by upper-class persons are excluded. Also in the encyclopedia entry, Sutherland stated that the laws violated by white-collar offenders are sometimes in the regular penal code but often found only in regulatory or trade codes (many of which are now created and enforced by agencies such as the Securities and Exchange Commission, or SEC). Perhaps the most important consequence of Sutherland's creation of the term white-collar crime, and his definition and promotion of the concept, was the almost immediate attention, particularly empirical studies, focused on the topic.23 Although many of these studies failed to apply his definitional criteria to the offenses they examined and some clearly deviated from the parameters set by his criteria, there is no doubt that Sutherland's writings and presentations between 1939 and 1949—not to mention his subsequent work in the area—got the ball rolling in terms of research and theoretical development regarding white-collar crime. Still, despite the criteria established by Sutherland, the term white-collar crime was both criticized and loosely applied to a variety of behaviors, particularly by the researchers of the 1940s through the 1960s, while others questioned the limits that had been set or the use of the term criminal in such situations. For instance, some argued that many, if not most, of the persons Sutherland referred to had not been convicted in criminal court and therefore could not be considered "criminals" who had committed "crimes."24 Sutherland responded to this argument by (a) noting the need to determine the harm done by such acts and to acknowledge that these individuals' behavior was in violation of the mandate of legal codes and (b) stating that these factors deserved more emphasis in the criminal justice system and/or society's response to such offenders.25 Unfortunately, even today, white-collar criminals are far less likely than traditional street criminals to be investigated, caught, charged, and convicted, let alone sentenced to significant prison time. Perhaps the epitome of this type of minor "wrist-slapping" is seen in the case of Michael Milken, an American financier. In 1990, Milken admitted to stealing about a billion dollars via illegal business practices. He was ordered to pay back only about 60% of that and spent only a few years in prison. (He later received a standing ovation in Congress after donating some money—likely stolen via insider trading—to prostate cancer research—likely because he had just been diagnosed with this disease.) Some of these criminologists acknowledged considering the criteria established by Sutherland when determining whether the offenses they were examining deserved the label "white-collar crime." For example, one researcher explicitly questioned whether embezzlers were white-collar offenders, considering that many of them were not persons of high status, although most had committed their crimes during the course of their occupational duties.26 A similar doubt was expressed by a researcher who examined individuals who had violated wartime regulations regarding meat rationing, involving unauthorized distribution and/or consumption (i.e., the black market).27 Other experts outright claimed that Sutherland's definitional criteria were far too restrictive and should allow for inclusion of any offenders working for a business.28 These are just a couple of the many examples of offending that fall in the "gray area" between white-collar crimes and regular types of crime, as well as bring up questions of what constitutes criminal behavior. Another major cause of confusion when it comes to defining white-collar crime is that a variety of other terms are typically used synonymously. These terms include corporate crime, organizational crime, occupational crime, upperworld crime, business crime, and suite crime (as opposed to traditional street crime).29 Some have even claimed that there is virtually no distinction between white-collar crime and organized crime (this issue will be discussed further in a later section in this chapter).30 Others would argue that these terms do have distinctions. For example, a strong argument has been made regarding the difference between occupational crime and corporate crime: The former includes offenders at all levels of the business/social structure, whereas the latter is generally crime committed by managers or executives (often under the direction of the CEO or board of directors).31 One summary of the early scientific works on white-collar crime, particularly regarding definitional issues, concluded that the primary criterion is that the act occur in relation to the offender's occupational role, which the author claimed was more important than the type of offending or the person's socioeconomic standing.32 Unfortunately, there is also debate over what behaviors are considered a part of one's occupational role and, thus, what activities constitute white-collar crime. Even in more recent times, experts have offered refined definitions, such as suggesting that the primary criterion is abuse of a position of authority or trust.33 Still other theorists go as far as to claim that there is no reason at all to distinguish white-collar crimes from traditional crimes.34 Interestingly, some recommendations have been to go back to using Sutherland's original criteria,35 an idea that appears to be gaining support.36 Despite such pointed criticisms and ongoing disagreements among criminologists about a clear definition of white-collar crime, a short list of the general categories of various white-collar offenses includes (1) fraud, (2) labor violations, (3) manufacturing violations, (4) unfair business practices, (5) abuse of authority, and (6) regulatory or administrative violations.37 Each of these categories contains many specific forms of crime; in this chapter, examples will be provided for each general type and variations will be discussed. Examples of fraud include tax evasion and false advertising. Labor violations, discussed in detail later, include different forms of harassment and dangerous working conditions that can cause injuries and death. Manufacturing violations include the production and distribution of unsafe consumer products, as well as environmental violations (e.g., toxic-waste dumping). The category of unethical business practices has likely gotten the most attention in the media recently, due to the prosecution and/or conviction of many high-ranking business executives in the United States. Unfair business practices include insider trading, bid rigging, antitrust violations, and illegal mergers. Perhaps one of the better-known categories for criminal justice practitioners is abuse of authority, including bribery, extortion, brutality, and kickbacks. Finally, a host of rules and codes established by federal, state, and local agencies govern the functioning of businesses and other organizations; offenses against these codes are considered regulatory/administrative violations and include copyright, trademark, and patent infringements.

organized crime

- For decades, the American public has had a curious fascination with organized crime. For instance, after notorious bank-robbing gang leader John Dillinger was gunned down by the FBI in 1934, photographs were circulated of his body in the morgue. In fact, the Cook County (Chicago) morgue allowed the public to view his body. Many people enjoy watching movies and television programs that depict the so-called mob lifestyle, such as The Godfather, Goodfellas, The Sopranos, and Peaky Blinders. However, many of these movies and television programs contain some myths or "entertainment" license. In this section, we provide a general overview of issues pertaining to organized crime, beginning with a definition and followed by the historical context of organized crime in the United States. Next, we will review different types of criminal organization as well as criminal justice responses to organized crime. We will conclude this section with a brief outline of various theoretical explanations for this type of criminal activity.

identity theft

- Identity theft is defined as "the procuring of . . . false identity regardless of its use . . . [often] to commit identity fraud, but in some cases, it is used by criminals and terrorists to establish false identities and escape detection."154 There are generally three types of identity theft. The first type is when the identity thief assumes the life of the victim. One possible motivation for this form of identity theft is that of someone engaging in organized criminal activities. The trail left behind would lead to someone else, with no affiliation to the criminal organization, rather than to the thief. This type of identity theft is rare, possibly because taking over an individual's life is extremely difficult. - The second form of identity theft is beginning to evolve but has received little attention, perhaps due to the lack of financial or physical harm to its victims. This type of identity theft is "virtual" identity theft. Today, most internet users have email accounts. Recently, individuals have hijacked others' accounts for the purpose of, for example, harassing people or spamming them. The third type of identity theft is the most common. It occurs when a victim's credit identity is stolen, such as his or her Social Security number or other identifying information. Subsequently, the offender will use this stolen information to apply for credit in the victim's name.155 There are various approaches to obtaining an individual's identity in this regard, including the following: Carding. This refers to stealing a victim's credit card information and subsequently using the information to purchase items, especially electronics. A key feature of carding is delivery of purchased items. One method has been to have the items delivered to a shipping facility (e.g., Mail Boxes Etc. or The UPS Store) where the offender can open a fake account to store these items. Dumpster-diving. This method involves offenders obtaining materials, such as credit card carbons or preapproval credit card forms, that include identity information. One new development in this area is Dumpster-diving in university unions, particularly those that provide postal service for students. Students often receive preapproval notices and usually throw them in the trash immediately. Credit card skimming. A majority of companies no longer use slider machines that create credit card carbons. Rather, they use electronic card readers. When a credit card is slipped into this reader, the information is scanned from the magnetic strip on the back of the credit card. Subsequently, this information is sent to a credit card verification service through a call made by the machine. If the card is accepted, then the machine will save the authorization numbers in a separate digital file. Offenders can implement various methods to steal this information during the scanning procedure. Shoulder-surfing. In this method, when a victim presents his or her credit card to pay for merchandise at a retailer, the offender peers over the victim's shoulder and memorizes the card number. Interestingly, offenders need not memorize all 16 numbers. Experienced thieves may have a listing that includes information on the first eight numbers associated with the card. For instance, the gold Visa cards begin with a different eight-number sequence than do regular Visa cards. Thus, the offender needs to memorize only half the numbers and the expiration date.

definition section

- In the 1986 Report to the President and the Attorney General, the President's Commission on Organized Crime noted that when defining organized crime, the problem is not in the word crime; rather, the difficulty is with the term organized.80 One approach to defining organized crime is to incorporate a typology. This typology includes such factors as the means of operation (e.g., violence, theft, corruption) and the reasons for engaging in such activities—an economic objective (e.g., through common crime, illegal business, or legal business) or a political objective (e.g., through the existing order, against the existing order).81 While there is no agreed-on definition of organized crime, Howard Abadinsky listed various factors associated with this type of criminal activity as identified by law enforcement agencies and researchers.82 Organized crime is absent of political goals. Organized crime is hierarchical. Organized crime has limited or exclusive membership. Organized crime constitutes a unique subculture. Organized crime perpetuates itself. Organized crime is willing to use illegal violence. Organized crime is monopolistic. Organized crime is governed by rules and regulations.

criminal justice responses

- Law enforcement has lagged behind the remarkable technological advances and the easy availability of this technology to millions of individuals. A number of large law enforcement agencies have devoted resources to electronic crime investigation; medium-sized agencies may be attempting to develop an electronic crime investigation unit or cross-train detectives from traditional fields. Small agencies, however, are often not able to devote the resources to a specialized computer crime unit.176 Further, law enforcement needs to determine whether they will be reactive or proactive when investigating the various types of cybercrime: The question facing law enforcement has been whether to handle these crimes in a reactive or proactive manner. Cyberstalking and identity theft are almost always viewed in a reactive manner because a victim's complaint is necessary in order to begin an investigation. However, digital child pornography has become such a widespread problem that many agencies have begun employing proactive investigations in attempts to control the problems that develop from this activity.177 For instance, the FBI, through Operation Innocent Images, has been proactively investigating pedophiles for years, and now local and state law enforcement agencies are also implementing these types of investigations. One method has been for the officer to enter various chat rooms, pretending to be a child, usually between the ages of 6 and 14, in an attempt to lure potential groomers (i.e., pedophiles). The officer agrees to meet with the groomer; then, at the arranged time and place of the meeting, the groomer is arrested by an undercover officer - Another important facet of investigating cybercrime involves search warrants. It is essential that operating systems, storage devices, and hardware specifications be clearly articulated in the development of a comprehensive search warrant.179 For instance, where other types of crime are concerned, investigators may seize additional evidence under the "plain view" exception to search warrant requirements. In reference to computers, however, the concept of "plain view" may not be as clear. The 1998 case of United States v. Carey illustrated this point. Patrick Carey had been under investigation for possible sale and possession of cocaine. During his arrest, officers observed in plain view a "bong." Subsequently, the officer asked Carey to consent to a search of his apartment. Carey consented to the search and signed a formal written consent. The officers recovered cocaine, marijuana, and hallucinogenic mushrooms. They also confiscated two computers, thinking they could be subject to forfeiture of evidence of drug dealing. The investigators then obtained a warrant to search the files on the computers for evidence related to drugs. Their investigation revealed files containing child pornography; Carey was charged with one count of child pornography. On appeal, Carey challenged the admissibility of the child pornography because it was discovered as a result of a warrantless search. The court ruled that the investigators had exceeded the scope of the warrant and reversed Carey's conviction, noting that "the plain view doctrine may not be used to extend a general exploratory search from one object to another until something incriminating at last emerges."180 In 2015, Thomas Holt and his colleagues recommended that policies and practices targeting cybercrime make use of such strategies as enhancing public awareness, systematic data reporting, uniform training and certification courses, onsite management assistance for electronic crime units and task forces, and cooperation with the high-tech industry.181 Compared with state legislatures, the U.S. Congress has acted more swiftly to enact legislation establishing computer-specific statutes—specifically, legislation that addresses such crimes as electronic fraud and hacking.182 Below, we present a brief overview of some legislation focusing on cybercrimes.

the historical context of organized crime in the united states

- No sooner had crime become profitable in America than it became organized. And no sooner did it become organized than it became a regular part of the American way of life, thanks to the cooperation and collusion of government officials. Organized crime did not begin with twentieth century Prohibition. It began with the colonial pirates.83 Some scholars argue that pirates during the American colonial era were a form of organized crime group. These pirates developed a well-structured, hierarchical organization; engaged in nonideological goals; and had a restricted membership.84 Crime at the end of the piracy era was essentially disorganized. By the turn of the 19th century, New York City was the "entrepreneurial center" of the country. Many immigrants entered the country to seek freedoms, opportunities, and fortunes. These factors also made New York the center for conspiracies, crooks, and criminals.85 In the 1850s, gangs began to dominate the criminal arena. These gangs included the Forty Thieves, the Hudson Dusters, the Short Tails, and the Dead Rabbits; they evolved when groups of immigrants banded together for protection as well as for the exploitation of other immigrants. These gangs eventually formed partnerships with the political machines of the time in an effort to control their vice enterprises.86 One notorious political machine was Tammany Hall. Tammany Hall took its name from a 17th-century Delaware chief named Tamanend. It was founded in 1789 to oppose the ruling conservative Federalist party. A primary strength of Tammany Hall was its skill in getting candidates elected to the state legislature in Albany and to the board of aldermen in New York City. - In 1919, the Eighteenth Amendment to the Constitution was passed, outlawing the manufacture, sale, distribution, and transportation of alcoholic beverages.88 Prohibition created an opportunity for criminals, who recognized the need for a means of meeting the continued, if diminished, public demand for alcohol. They set about innovating ways of producing, transporting, and importing it. At about this time, Prohibition and the Chicago political machine created one of the most notorious criminal organizations in U.S. history.89 Prohibition provided Italian American, Jewish, and Irish American gangsters with an opportunity to increase their clout. The profits earned from illegally supplying alcohol were great; however, even with a more powerful position, many of these gangs continued to operate as they did in their "wild early days."90 This often resulted in violence among various gangs to increase their control over this illegal market. In response to the need for tax revenue during the Great Depression, the state of Nevada legalized gambling in 1931. Bugsy Siegel was the first prominent criminal to realize the potential of legalized gambling.91 In 1947, Siegel and partners opened the Flamingo Hotel in Las Vegas, Nevada. This opening heralded organized crime's control of the legal gambling industry.92 Given their experience as "bootleggers," criminal organizations had the business acumen to control gambling. Many of the lavish hotels, such as the Flamingo, were controlled, albeit through hidden interests, by organized crime. Usually, monies were "skimmed" before being counted for tax purposes; this money was distributed to the organized crime bosses in proportion to their "hidden" ownership. In fact, from 1973 to 1983, at least $14 million was skimmed from just one hotel, the Stardust. Today, Las Vegas is not controlled by organized crime; rather, casinos are now major corporate entities.93 In 1986, the President's Commission on Organized Crime noted that of the various developments in organized crime during the preceding 20 years, three developments were significant. One was the increasing awareness of various criminal organizations other than the Mafia. While many were based on ethnicity, others had originated in U.S. prisons and outlaw motorcycle gangs. Another development was the success of law enforcement against the leadership, membership, and associates of La Cosa Nostra (literally, "Our Thing"), which some considered to be the best-known organized crime group of the past 30 years. The third significant development was organized crime's involvement in drug trafficking:94 "It is essential that we broaden our view to include all significant facets of organized crime. There will be little lasting benefit in disabling La Cosa Nostra if other groups successfully claim its abandoned criminal franchise."95 Today there is growing concern over organized crime groups using new technology to engage in various criminal activities. Such crimes involve credit card cloning, phone-card piracy, computer viruses, child pornography, electronic banking fraud, music piracy, counterfeit medicine, and software piracy

labor violations

- One of the more common corporate violations involves crimes against the people who work for the business. Like environmental crimes, these types of offense became far more common during and after the Industrial Revolution. Labor violations range from hiring illegal workers (e.g., children) to exploiting workers to keeping unsafe work conditions and many more variations. The primary legislation developed to investigate labor violations is the Occupational Safety and Health Act (OSHA), passed in 1970. Among other things, this act made it a misdemeanor to cause the death of a worker by willfully violating safety laws.66 Unfortunately, the maximum jail time for this offense is six months, which some theorists have noted is half the maximum term for a person caught riding a wild burro on federal lands.67 OSHA inspectors are charged with establishing and enforcing standards for the safety of American workers; however, that means overseeing 115 million workers, which is near impossible, especially with only about 2,500 inspectors. So they remain busy and often find violators. - For example, OSHA conducted about 40,000 inspections in 2003 alone, finding about 83,600 violations.68 Violators are sometimes fined, but these fines are usually relatively low in relation to the profits being made by the companies. Also, OSHA almost never pursues criminal charges; between 1970 and 2002, OSHA referred only 151 cases to the Department of Justice for criminal prosecution despite finding tens of thousands of violations each year. Of these 151 cases, only 11 resulted in prison sentences, with the maximum being six months. A comprehensive analysis of 170,000 workers killed during the 20-year period from 1982 to 2002 revealed that OSHA investigated only about 24% of these cases, and even in the cases where willful safety violations occurred, the fines were typically $70,000 or less and jail time was extremely rare.69 Thus, it is obvious that little enforcement or deterrence is involved in labor violations. So corporations simply have little or nothing to lose by even willfully violating the labor regulations and codes. Interestingly, labor issues, especially regarding workers' unions, are often related to the next category of white-collar crime we will discuss later in the chapter—organized crime and racketeering.

definitions section

- Scholars have recognized some of the issues surrounding terms and definitions for crimes committed by electronic means, terms such as computer crime, computer-related crime, and cybercrime. There is a question of whether this process of definitional clarification is "hyper-defining": The result of such hyper-definition is to negate some emerging legislation. This is not to suggest that legislators should cease efforts to specifically criminalize computer-specific criminal activity. Indeed, further legislation should be pursued to enhance prosecutorial toolboxes, not to replace or supplant traditional mechanisms.142 Another term was introduced for such crimes—high-technology crime. This refers to any criminal act involving the use of high-technology devices, including computers, telephones, check-reading machines, and credit card machines. High-technology crimes can comprise traditional crimes committed prior to technological developments and more recent crimes that use high-technology devices.143 Thus, this term incorporates crimes that may involve limited use of computers and networks as well as those that completely rely on the use of computers and networks.144 Soumyo Moitra acknowledged that there were initially heated debates as to the various definitions for these crimes; however, he maintained that the term "cybercrime" has gained in both usage and popularity. Interestingly, "cybercrime" was derived from the term "cyberspace," originated by the author William Gibson.145 Cybercrime was defined as follows: "any unauthorized, or deviant, or illegal activity over the Internet that involves a computer (or computers) as the tool to commit the activity and a computer (or computers) as the target of that activity." Cybercrime consists of at least three features: The act was committed using (1) a computer, (2) a "victim" computer, and (3) an intermediary network.146 Interestingly, the term "cybercrime" may have some limitations. Given the emergence of multiple technologies (e.g., mobile devices, social media), it has been suggested to use the term "digital technology crime" or "electronic crime."

prison gangs

- Some have attributed the growth of prison gangs to the 1964 U.S. Supreme Court decision in Cooper v. Pate. As a result of this decision, prisoners were allowed to sue state officials in federal court, which resulted in a great deal of litigation and had the effect of easing oppressive prison conditions. In the 1970s, under the more liberal prison environment, gangs flourished. Prior to Cooper v. Pate, only Washington and California reported the existence of prison gangs; by 1984, more than 60% of state and federal prisons reported gang activity. By the 1990s, some prison gangs had evolved into well-organized crime groups. These gangs were different from previous gangs primarily in their demand for absolute obedience to the "parent" group. For instance, the "death oath," or "blood in and blood out," requires the member to remain a member forever.110 Specifically, this oath requires that to become a member, an inmate must kill or assault another prisoner or staff member; if a member wants to leave the gang, then his blood "will be spilled."111 Often, prison gangs are more powerful in state correctional facilities compared to federal correctional facilities - Organized in the late 1950s, one of the oldest prison gangs is the Mexican Mafia, whose members are primarily Mexican Americans from Southern California.113 In some prisons, the Mexican Mafia controls homosexual prostitution, gambling, and narcotics. Both inside and outside prison, the Mexican Mafia is involved in burglary, assault, robbery, extortion, drug trafficking, and contract killing. Another major prison gang is La Nuestra Familia (literally, "Our Family"), considered an enemy of the Mexican Mafia. This prison gang was established in Soledad Prison (California) in 1967. La Nuestra Familia's outside prison operations include a protection racket, similar to more traditional organized crime groups. The Texas Syndicate originated in Folsom Prison (California) in 1974. Its members are predominately Mexican Americans from the El Paso and San Antonio region. The gang has a reputation for being one of the most violent. The Black Guerilla Family was established at San Quentin Prison by black activist prisoner George Jackson in 1966. This gang is closely associated with the Crips street gang. The Black Guerilla Family is controlled by a central committee consisting of generals, captains, lieutenants, and soldiers. The Aryan Brotherhood is a motorcycle-oriented, white-supremacist gang founded in San Quentin Prison in the 1960s. The Aryan Brotherhood's criminal activities include extortion, protection rackets, drug trafficking, and contract killing

physical costs

- The financial cost of white-collar crime is not the most disturbing type of damage that results from corporate misbehavior. Most experts now agree that the scientific evidence clearly shows that "corporate crime kills, maims, and injures enormously larger numbers of innocent people than all street crimes combined."53 Empirical studies are consistent regarding the high numbers of deaths and physical injuries that directly result from the wrongdoings of business executives. For example, one study showed that a conservative estimate of how many individuals die annually due to corporate crime is at least 105,000 persons, which includes about 55,000 employees who are harmed while working (including occupational illnesses), another 30,000 consumer deaths from unsafe products, and at least 20,000 citizen deaths from a variety of types of environmental pollution.54 Of course, these estimates do not include how many persons die from falsely prescribed or marketed pharmaceutical drugs, which likely totals many thousands each year and, due to the aging population in the United States, is probably increasing every year—as is the number of people who die from criminally negligent nursing home or medical care. Finally, these estimates do not include the estimated 4.7 million Americans harmed (but not killed) at work, which includes 4.4 million persons who suffer physical injuries and 300,000 who contract occupational illnesses (i.e., get sick due to work conditions),55 with a high percentage of these being directly due to corporate crime. These workplace injuries are far more common than injuries due to traditional street crimes and, on average, are more serious. This was measured by comparing the number of workdays missed due to work-related injuries/illnesses versus workdays missed due to violent assaults; the average number of days missed from work was higher for those injured on the job. Keep in mind that there are only about 15,000 homicides due to street crimes in the United States each year.56 So, considering the previous estimates of annual deaths, it appears that corporate crime causes at least 7 times (and likely 10 times) as many deaths than do traditional street crimes. Furthermore, it appears that while the rate of homicides and assaults due to street crimes has been cut in half over the past 25 years (with most of this decrease coming in the past 15 years), there is no indication that deaths or injuries due to corporate crimes have decreased; on the contrary, there is evidence that such injuries are on the rise.57 A review of the empirical evidence comparing the damages between traditional and white-collar crime concluded, "The total of all violent crime and all property crime combined is less of a threat to society than the crime committed by corporations."

the mafia

- The origins of the Mafia are unclear. One opinion is that the Mafia evolved as a ninth-century response to Arabic domination of Sicily. Another view is that the Mafia evolved in Palermo, Italy, in 1282 as a political organization to free Sicily from French domination. The group's rallying cry was "Morte alla Francia Italia anela" ("Death to the French is Italy's cry"). The acronym of this pledge is MAFIA.97 The true origins of the term Mafia are convoluted by assorted use and personal preference.98 Some of the most common references are listed in Table 14.1. Originally, the Mafia was similar to an extended social family. While not necessarily related by blood, members were related by home village and Sicilian nationality. The members took an oath, swearing under punishment of death to a code of silence. Initially, the Mafia was a self-protection group; by the 1860s, however, they had expanded to criminal activities such as smuggling, cattle rustling, and extortion.99 While the term Mafia referred to beauty, perfection, grace, and excellence, the term Mafioso referred to characteristics of a man, such as pride, self-confidence, and an "arrogant" attitude - In 1878, the newly consolidated Italian government began concentrated efforts to eliminate the Sicilian Mafia. Thus, many Sicilian Mafiosi immigrated to the United States, settling in major urban cities such as Boston, Chicago, Kansas City, New Orleans, New York, and St. Louis.101 The Mafiosi in the United States were similar to other immigrants. When these criminals entered the United States, they assimilated with others but continued their criminal activities. From 1890 to the 1920s, the Mafiosi preyed on other immigrants by forcing their participation in the protection scam. This was known as La Mano Nero, or "The Black Hand." Soon their activities expanded to other crimes, especially during Prohibition.102 Michael Lyman and Gary Potter pose an interesting question: "Does the Mafia really exist?" They provide arguments from both positions. From the "yes" position, they note that there have been high-profile trials on such "mob bosses" as Al Capone, Sam Giancana, "Lucky" Luciano, Vito Genovese, and John Gotti. While the convictions of these "bosses" did not result in total disbanding of the organization, they did provide law enforcement the opportunity to survey, monitor, arrest, interview, and collaborate with members of the Mafia and other organized crime groups. Some also maintain that in 1963, Joe Valachi revealed information about the structure of the Mafia, claiming that there were about 25 Italian gangs throughout the United States, referred to as "families." - From the "no" position, some argue that there is no single organization known as the Mafia; rather, there are loosely structured criminal gangs, some of which are of Italian descent. These Italian gangs, or families, do exist but are not as organized or structured as thought by law enforcement and the media. These individuals maintain, however, that by claiming the existence of a well-organized Mafia, law enforcement agencies can justify their own existence.

cyberstalking

- The term stalking has been in use since the early 1990s to describe harassment or physical threat. Prior to this time, a victim of such harassment was informed that nothing could be done to the perpetrator until he or she made a physical attempt that threatened the victim's safety or well-being.169 After five women were murdered by stalkers, California became the first state in the United States to criminalize this behavior.170 These statutes, however, did not foresee how stalking behavior would emerge within cyberspace. Florida statute explicitly defines cyberstalking as a means to engage in a course of conduct to communicate, or to cause to be communicated, words, images, or language by or through the use of electronic mail or electronic communication, directed at a specific person, causing substantial emotional distress to that person and serving no legitimate purpose. - Cyberstalking may include the following actions: Monitoring electronic communication directly or by using some form of spyware or keystroke-logging hardware Sending electronic messages that threaten, insult, or harass Disrupting electronic communications by inundating a victim's inbox with unwanted messages Disrupting electronic communications by sending a virus Using the victim's email identity to send false messages to others or to purchase goods and services (i.e., committing virtual identity theft) Using the internet to seek and collect a victim's personal information and whereabouts172 Various motivations have been offered as to why someone would turn to stalking. For instance, some stalkers may select their victims opportunistically and subsequently get a sense of satisfaction from intimidating them; this is a type of power-assertive motivation.173 For instance, an abusive ex-husband was involved in a two-year crusade against his ex-wife through email communications. Although the ex-wife obtained a restraining order against him, he continued to send her more than 1,500 pages of threatening messages from numerous email accounts. One such message outlined his plans to shoot her children with a rifle and then beat, rape, and mutilate her with sulfuric acid before slashing her spinal cord so she could never walk again.174 Other individuals may be obsessed with a need to retaliate against their victims for perceived wrongs; this is a type of anger-retaliatory motivation. Gary Dellapenta was a cyberstalker who went to extreme efforts to terrify Randi Barber. He stated that he had an "inner rage" toward her and that he was unable to control this rage. He would send messages that were degrading and intended to bring harm to Barber; he arranged to have other people harm her but was unwilling to do so himself

economic costs

- There is now little doubt that white-collar crime causes far more financial damage to society than all other crimes combined. As one review concluded: The general public loses more money by far . . . from price fixing and monopolistic practices and from consumer deception and embezzlement than from all the property crimes in the Federal Bureau of Investigation's Index combined. Yet these far more costly acts are either not criminal, or, if technically criminal, not prosecuted, or if prosecuted, not punished, or if punished, only mildly. In any event, although the individuals responsible for these acts take more money out of the ordinary citizen's pocket than our Typical Criminal, they rarely show up in arrest statistics and almost never in prison populations - Some estimates by the Federal Bureau of Investigation (FBI)'s Uniform Crime Reports have put the cost of all street crimes at close to $17 billion for the year 2002.44 In a shocking comparison, just one act of corporate crime (Enron) in the early years of the millennium resulted in estimated losses of $60 billion, and it is estimated that the savings and loan industry bailout from 1989 will cost taxpayers $473 billion by the year 2020 (showing the long-term consequences of such events).51 So the "suite" crimes committed by Enron caused more than three times the financial damage of all "street" crimes combined, not to mention the impact of the savings and loan bailout. And these are just two cases discovered and brought to public attention. Furthermore, a "very conservative" estimate of the total economic costs from white-collar crimes each year is about $500 billion, about 30 times (i.e., 3,000%) as much as the total for combined street crimes.52 This works out to an average annual loss of about $1,800 per person, compared with the estimated loss of $60 per person from combined street crimes. And yes, we all pay for such corporate crimes, because such losses, bailouts, recovery funds, and so forth typically come out of federal or state funds, which means taxpayers pick up the bill.

urban street gangs

- Using Maltz's115 characteristics associated with organized crime groups, Dennis Kenney and James Finckenauer evaluated whether urban street gangs could be deemed organized crime groups. The first characteristic of organized crime groups is corruption. At this time, there is no evidence to support the notion that urban street gangs systematically pay off public officials in an effort to avoid arrest and prosecution. The second characteristic, violence or the threat of violence, is a major feature of urban street gangs. The third characteristic, continuity, is a feature of certain street gangs. Some gangs, such as social or party gangs, are more spontaneous; they exist as a gang for a short time and quickly split up. The fourth characteristic is multiple enterprises. The drug "business" is essentially the only enterprise for urban street gangs. While some may be involved in other types of crime, such as property crime, they do not run illegal business enterprises such as gambling, prostitution, and loans. Structure and involvement in legitimate businesses is the fifth characteristic. While some street gangs appear to have some type of organizational structure, there does not seem to be a great deal of expansion from illegal business into legitimate business. The last characteristic is sophistication, discipline, and bonding. While some gangs engage in sophisticated activities, such as speaking in code over the telephone, most gangs do not. In reference to discipline, many urban gangs, especially those involved in the drug business, do stress the need for discipline. Finally, many street gangs emphasize bonding, such as rituals and initiation rites

types of white collar crime

- We will now examine several notable forms of white-collar crime. Although there are hundreds of varieties of corporate offending, due to space limitations, we concentrate here on what we consider to be the most influential and/or fastest-growing types of white-collar crime: violations against the environment, labor violations, and organized crime (i.e., racketeering).

white collar crime section

- White-collar crime did not gain much attention from criminological researchers until the 1940s and remained a relatively low priority until the past few decades. Despite years of being relatively ignored by researchers, white-collar crime is currently receiving much attention, probably due to high-profile chief executive officers (CEOs) and celebrities, such as Martha Stewart, being convicted of illegal business practices. - This section examines the way the concept is defined and how it has evolved, with particular emphasis on its huge impact on modern societies, especially in the United States, due to the global, multibillion-dollar nature of many modern corporations.

example: Reiman & Leighton

- a primary example in the application to control and reduce white collar offending and corporate crime is the research by reiman and leighton and their book the rich get richer and the poor get prison. in their book, reiman and leighton argued that the united states criminal justice system is a failure. the criminal justice system is a failure because it constructs a threat to preoccupy society to be scared of street crime and violent crime. in other words, they think that the criminal justice system is a failure and the system keeps a threat going that actually preoccupies people from the real harms in society. the real harms in society, reiman and leighton believe, are the crimes and illegal activities by the rich and powerful.

environmental crime

- a relatively new area of corporate crime and white collar criminality are crimes that are committed against the environment. Environmental crimes are violations of the criminal law, which although typically committed by businesses or employees, may also be committed by other individuals or organizations. - environmental crimes include damage that has been done to some protected or otherwise significant aspect of the natural environment. Most recently, attention has been paid to an intentional and negligent environmental pollution caused by large corporations. - some of these examples include companies dumping hazardous waste in various geographic locations, ocean dumping by cruise ships, oil spills in the ocean, and tampering with drinking water supplies. Another example of environmental crime includes when workers are exposed to hazardous materials while at work.

white collar crime

- as sutherland was introduced earlier in the course concerning his theory of differential association, he is also connected to the field of criminology. - based on his research with white collar crime, white collar crime in general was first investigated by sutherland in the late 1930s. In fact, sutherland was the first one to coin the term white collar crime. - in the field of criminology, sutherland believed that white collar crime focused on criminal behavior that was committed by a person of responsibility, high social status, and engaged in illegal behavior in the course of his or her occupation. As sutherland saw it, white collar crime involved conspiracies by members of the wealthy class to use their employment positions for personal gain without any regard to the law. - Sutherland argued that during the time period of the 1930s, criminologist failed to recognize the street violations of corporations, even though corporations were committing acts just as predatory as those committed by the lower class. - sutherland also believed that a majority of white collar criminals avoid detection. One of those criminals that who are actually caught, they generally avoid punishment by the criminal justice system. - in other words, white collar criminals are far less likely to be investigated, arrested, and prosecuted than our other types of offenders. - in the 1930s, when white collar criminals were convicted, they are much less likely to receive a prison sentence compared to individuals convicted of street crimes.

controlling & reducing WCC

- it can be generally stated that unlike lower class street criminals, white collar criminals are rarely prosecuted when they are convicted, they tend to receive relatively light sentences. Research has also found that efforts to control and reduce white collar crime may be biased against specific social classes and racial and ethnic groups. - research has shown that the social control agents are less hardworking and diligent when victims of white collar crime are poor or members of a minority group. It is not that minorities and the poor are more likely to be punished for white collar offenses, but as victims, they may not be taken as seriously as other types of victims. - toxic dumping in the presence of lead and asbestos in neighborhoods may continue to occur in poor and minority populated areas compared to more affluent geographic locations. - for the most part, the enforcement and control of white collar crime typically involves two strategies, compliance strategies and deterrence strategies. Compliance strategies rely on the threat of economic sanctions or civil penalties to control potential white-collar offenders. under this strategy, the greater the violation and crime, the larger the economic penalty. Compliance strategies attempt to avoid stigmatization and focus more on the crime itself, not the actual white collar offender. Deterrent strategies rely on the actual punishment of the individual to deter other would be or potential violators compared to compliance strategies that create conditions to make people want to conform to the law to avoid economic penalties, deterrent strategies are oriented towards apprehending specific offenders and punishing them.

suite v. street crime

- keeping in mind the issues surrounding how white collar crime is defined, research has found that people agree that the cost in terms of money and harm of white collar crime were also known as sweet crime outweighs that of street crime. Experts say that the cost of white collar crime in monetary terms amounts to hundreds of billions of dollars. Therefore, white collar crime is considered extremely costly in terms of money to society than any other type of crime. EX: when bernie madoff was convicted of his ponzi scheme, investors lost around $65 billion.

corporate crime

- now, while the definition and concept of white collar crime was just introduced, theres also the definition of corporate crime. corporate crime occurs when powerful institutions willfully violate the law. In other words, corporate crime can be defined as a violation of a criminal statue, either by a corporate entity, Its executive, its employees, or agents acting on behalf of a company for the benefits of a corporation, partnership, or other forms of business. There are various example of corporate crime. - first, actual authority occurs when a corporation knowingly gives authorization for an employee to act illegally. A legal restraint of trade involves a contract or conspiracy designed to stifle competition, create a monopoly, artificially maintain prices, or interfere with free market competition. false claims in advertising occurs when companies make claims about their products that cannot be justified by actual performance. it is illegal to knowingly and actively advertise a product as possession qualities that a product does not have, like the ability to cure the common cold or grow hair. Or for another example, campbells soup and other soup companies are known for portraying their soups and commercials as having hearty pieces of meat, vegetables, and potatoes. However, when you open a can at home, you may find that the soup looks nothing like the commercial. in the past, soup companies would add marbles to the bottom of soup bowls and commercials to push the meat, vegetables, and potatoes to the top of the bowl to make the soup look more full and present a more heartier meal.

traditional crime theories

- relating the topic of white collar crime to criminological theories, there are some traditional crime theories that have attempted to explain the occurrence of white collar crime in support of rationalization and neutralization theories, some researchers have found that offenders rationalized white collar crime to solve personal financial problems. - white collar criminals may say to themselves, all people steal from their employer or job when they are in a tight spot. this form of rationalization allows white collar offenders to meet their financial needs without compromising their values or having feelings of guilt for their illegal behavior. - research has also found that workers who engage in white collar crime have rationalized their behavior by being that everyone else does it. Its not my fault or responsibility or that no one has hurt except insurance companies and they are wealthy anyway. - rational choice theory has also been used to explain the occurrence of white collar crime through the concepts of greed and motivation. - researchers argue that white collar criminals may be motivated by greed and motivation in order to improve their job or support a family. - some criminologists believe that corporate culture is a learned culture. Therefore, white collar crime occurs or corporate crime occurs from the aspects of learning. Based on social learning theory. other researchers have argued that some business organizations promote white collar crime in the same way that the lower class culture encourages the development of juvenile gangs and street crime. - new employees learn the attitudes and techniques needed to commit white collar crime from their business peers. Enron has been used as an example of how social learning theory relates to white collar crimes. A new CEO was brought into Enron to revitalize the company. The new CEO fired layers of management and brought in all new outsiders. huge cash bonuses were granted to top performers. Young managers were given the authority to make $5 million decisions without needing approval from other employees, and seminars were conducted to show executives how to hide profits and avoid taxes. - opportunity theories have also been included as an explanation for why individuals engage in white collar or corporate crime. In particular, researchers have argued that routine activities theory can explain the prevalence of white collar offending. EX: doctors have a constant pattern of working with specialists, medical labs, prescription drug companies, and medical supply companies. White collar criminal opportunities may be found during these continuous encounters. Doctors may develop a system where sleep, splitting, or kickbacks are provided between themselves, the specialist drug companies and supply companies. in turn, doctors receive more patient referrals, order additional medical tests suggest specific treatments or equipment or prescribe only certain brands of medication. this occurs even if these actions are not in the best interest of the patient. - and last, self control theory has also been argued to explain white collar offending. EX: GoPro and Hersehy believe that the motives that produce white collar crime are the same type of motive that produce any other type of criminal behavior. in other words, white collar offenders have the same motives to achieve quick benefits with minimal effort. Therefore, according to godfrey citizen, hershey, white collar criminals are seen as having low self control and follow quick impulses without considering the long term consequences. However, to play devils advocate. If a person has low self control, isnt it also possible that they would not be able to hold these types of white collar and corporate jobs in the first place?

how often does WWC occur?

- some researchers contend that white collar crime is actually more common than street crime. - as a reminder, the cost of white collar crime in terms of money and harm, are more so than that of street crime because of examples such as bernie madoff and ron and other national scandals that have deprived so many people of their life savings and caused huge disruptions to financial markets. - both the criminal justice system and general public believe that white collar crimes are more serious than common law theft offenses. Most recently, more of the general public believes that white collar criminals should be punished in the same manner as other types of crimes. - however, there are various issues when determining the prevalence and frequency of white collar crime in the United States. in other words, there are problems with knowing the true extent and count of white collar crime. - first, this issue arose because white collar crime is not included in the United State count of traditional crime statistics such as the UCR, nivers, and NCVS. for the most part, white collar crime is counted by the national white collar crime center. the national white collar crime center provides the general public with information and research on preventing economic and cyber crime. it has been congressionally funded nonprofit corporation, which trained state and local law enforcement agencies to combat emerging economic and cybercrime problems. - second, and as introduced earlier, another problem with counting the occurrence of white collar crime is because the definition issues and what constitutes a white collar crime. - third, according to law, many of these activities are not considered criminal. it can take a considerable amount of time for certain white collar behaviors to become criminal through the passage of laws.

most common WCC's

- the most common types of white collar crime include price fixing, credit card fraud, and national corporate scandals. - price fixing is an agreement for individuals or companies to buy or sell a product or service only at a fixed price. the intent of price fixing may be to push the price of a product as high as possible. this leads to profits for all sellers. Credit card fraud is a wide ranging term for theft or fraud, using a credit card as a fraudulent source of funds. the purpose may be to obtain goods without paying or to obtain unauthorized funds from an account. Credit card fraud parallels identity theft. One example of a national corporate scandal were the illegal activities of enron, which is another common form of white collar crime. at the end of 2001, it was revealed that enrons reported financial condition was substantially based on institutionalized, systematic, and creatively planned accounting fraud. Enron has since become well known examples of a willful corporate fraud and corruption. However, it is important to note that most white collar crime and victimization is not reported. for the most part, victims are often reluctant to report these specific crimes to the police because they believe that nothing can be done and that getting involved in the justice system is pointless.

definition

- while sutherlands definition of white collar crime was a good start in describing a specific type of crime, criminologists have found that white collar crime is actually very difficult to define. - the main criteria for a crime to be white collar in the 1960s, is that the crime occurred as a part of or a deviation from the violators occupational role. Therefore, early definitions of white collar crime in the 1960s made a larger emphasis of the criminal violator rather than the actual criminal offense. - since the 1960s, the concept and definition of white collar crime has gone through considerable refinements since the 1990s, the focus of the definition of white collar crime has shifted more to the nature of the crime instead of the person or violator involved. The more modern definitions of white collar crime since the 1990s focused on the nature of the crime itself. - in other words, the focus of the definitions surrounds the methods, skills, and knowledge needed to commit white collar crime. - presently, white collar crime is now considered as any business related act that uses deceit, deception, or dishonesty to carry out a criminal act or enterprise.

embezzlement & employee fraud

- within white collar crimes are the offenses of embezzlement and employee fraud. some employers use their occupational positions to embezzle company funds or company properties for themselves and their own financial gains. EX: a lawyer could embezzle funds from one of their clients trust accounts. A financial advisor could embezzle funds from their investors or spouse, could embezzle funds from their significant other. There are two forms of fraud within embezzlement offenses and employee fraud. - the first offense is blue collar fraud. blue collar fraud is when employees steal company property, and this is also called pilfridge. EX: is when a NASA intern stole moon rocks and tried to sell them to an undercover FBI agent. The occurrence of blue collar fraud has been explained by job dissatisfaction workers believing that they are being exploited or workers saying that they steal because of strain and conflict. - the second type of fraud is management fraud. Management fraud occurs when employees convert company assets for personal benefit in the form of receiving illegal raises, illegal bonuses, or fraudulently increasing personal holdings in their own company stock. EX: the toy company Tyco hid unauthorized bonuses and secretly forgave loans to themselves. Other examples include unnecessary repairs and stings and swindles. Unnecessary repairs can occur when a repair shop recommends more than $1,000 and fixes to a car that is not needed. EX: in new jersey, an undercover investigator was told by a repair shop that his car should not be driven without an unnecessary $250 converter replacement. stings and swindles occur when people use their institutional or business position to trick others out of their money. stings in swindles is basically stealing through deception by people who do not even have any business position. this includes door to door sales of faulty merchandise.

the Chicago crime commison

In 1919, a group of Chicago businessmen, concerned about Chicago's "gangland" reputation, formed the Chicago Crime Commission. While some would argue that the Commission was "a self-serving exercise in hypocrisy," it was able to demonstrate the city's crime problem through a successful public-relations campaign. For instance, the public-relations committee introduced the "Public Enemy" list prior to J. Edgar Hoover's version.

the presidents commission on law enforcement and the administration of justice

In 1965, President Lyndon Johnson established the President's Commission on Law Enforcement and the Administration of Justice; there were nine different task forces, one of which was the Task Force on Organized Crime. In its 1967 report to the commission, the task force noted: Today the core of organized crime in the United States consists of twenty-four groups operating as criminal cartels in large cities across the Nation. . . . To date, only the Federal Bureau of Investigation has been able to document fully the national scope of these groups, and the FBI intelligence indicates that the organization as a whole has changed its name from the Mafia to Cosa Nostra.129 The commission maintained that gambling was the largest source of revenue for organized crime, followed by loan sharking and narcotics trafficking.130 The task force continued efforts initiated by the Kefauver Committee. Further, the task force made various recommendations, including a witness protection program, special federal grand juries, and legislation allowing electronic surveillance.

Theoretical Explanations

In 2006, Robert Taylor and his colleagues reviewed several theories to explain computer crime.195 In this section, we highlight a few of these theoretical perspectives to illustrate how theories that have been applied to "traditional" types of criminal behavior can also explain more technologically advanced activities. Routine activities theory contends that when a motivated offender, a suitable target, and the absence of a capable guardian converge, a crime will occur. With the rapid increase in use of computers as well as the internet, the number of suitable targets has also increased. The insufficient software protection for these types of crimes reveals the absence of a capable guardian. Thus, "when motivated offenders are present, they make rational choices by selecting suitable targets that lack capable guardianship."196 This also lessens the offender's chances of being apprehended. A number of studies have applied routine theory to cybercrime, such as by examining national characteristics that would predict a high level of spamming or phishing197 and exploring country-level mechanisms to address online identity theft in Europe.198 Social process theories, such as learning theory and differential reinforcement theory, can help explain crimes committed by individuals who develop and spread computer viruses. A person needs to have a certain level of technical competency to program a virus. This often involves learning how to write the code necessary to develop a virus. In most instances, this learning does not take place face to face; rather, it happens through chat rooms, bulletin boards, or distance learning. There are also positive reinforcements involved with this type of activity, including the excitement of propagating the virus and infecting systems, "admiration" from one's peer group, and possible financial gains. Negative reinforcements can include experiencing hostility from other virus writers and being wanted by law enforcement.199 Social structure theories, specifically strain theory, can be applied when attempting to understand internet fraud schemes and corporate espionage. From this theoretical perspective, criminal behavior may be linked to blocked legitimate opportunities. Thus, individuals who engage in this type of behavior could be considered "innovators"; they use illegitimate means to attain the conventional goal of success, usually measured by financial gain. Interestingly, Merton initially applied this theoretical perspective to explain blocked legitimate opportunities for people predominantly from the lower class. Contemporary strain theorists, however, have attempted to apply this perspective to those from the middle and upper-middle classes. Specifically, individuals from higher socioeconomic classes may also enjoy a certain amount of success by perceiving that legitimate means of accumulating more wealth are blocked.

Executive Order 13694: Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities.

In April 2015, President Obama issued Executive Order 13694, which allows the government to impose sanctions against individuals and groups that threaten the United States' infrastructure through malicious activities in cyberspace.192 As outlined by the executive order, malicious activities constitute those that have the purpose or effect of harming or significantly compromising the provision of services by entities in a critical infrastructure sector; significantly disrupting the availability of a computer or network of computers (e.g., through a distributed denial-of-service attack); or causing a significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain (e.g., by stealing large quantities of credit card information, trade secrets, or sensitive information).

the kefauver committee

In May 1950, Senator Estes Kefauver became chair of the Special Committee to Investigate Organized Crime in Interstate Commerce. The Kefauver Committee was charged with three responsibilities: To conduct an extensive study and investigation to assess whether organized crime used the services, or avenues, of interstate commerce to promote any transactions that violated federal or state law If such transactions did occur, to investigate the persons, firms, or corporations involved To determine whether such interstate criminal operations were responsible for developing corrupting influences in violation of federal or state laws122 During Kefauver's term as chair, the committee heard from more than 600 witnesses in Miami, Tampa, New Orleans, Kansas City, Cleveland, St. Louis, Detroit, Los Angeles, San Francisco, Las Vegas, Philadelphia, Washington, Chicago, and New York.123 The Kefauver Committee provided invaluable information on organized crime; however, the committee did not provide support for the existence of an international Mafia conspiracy:124 Neither the Senate Crime Committee in its testimony nor Kefauver in his book presented any real evidence that the Mafia exists as a functioning organization. . . . The only other "evidence" presented . . . is that certain crimes bear "the earmarks of the Mafia."

the mcclellan committee

In the early 1960s, the Senate Permanent Subcommittee on Investigation, chaired by Senator John McClellan (D-AR), was formed to investigate labor racketeering in the country's trade unions. In 1963, the committee held televised hearings, including the testimony of Joseph Valachi, the first "made member" of the Genovese crime family to testify on Italian American organized crime:126 Valachi was a barely literate, low-echelon soldier whose firsthand knowledge of organized crime was limited to street-level experiences. Much of the information attributed to him is obviously well beyond his personal experience. . . . Nevertheless, this did not prevent his disclosures from becoming the core of a chapter on organized crime in the final report of the President's Commission on Law Enforcement and Administration of Justice.127 Valachi's testimony did not result in any convictions; further, the McClellan Committee failed to recommend a specific definition of organized crime. These hearings, however, did contribute to the government's understanding of this type of criminal activity.128

CONCLUSION

In this chapter, we presented three general categories of crime that some may not consider as fitting in with traditional street crimes, such as murder, larceny, and assault. This does not mean that these types of crime are not associated with more traditional types of offenses. For instance, criminal organizations do engage in murder, and cybercrimes can involve theft. Rather, some would argue that there are unique aspects to these types of offenses that should be recognized. In the first section of this chapter, we attempted to illustrate how scholars have distinguished white-collar crime from traditional forms of offending. We also explored the various ways corporate crimes have harmed society. The next section focused on organized crime. Again, we presented the various complex factors involved in defining organized crime. We then briefly discussed the historical events that have influenced organized criminal behavior, including criminal justice responses to organized crime. We concluded this chapter with a discussion on cybercrime. This is a relatively new type of criminal activity; thus, there are growing challenges associated with investigating cybercrime, as well as legislation that has been enacted to address it. At the beginning of this chapter, we presented the case of William T. Walters. We asked you about your perceptions and descriptions of crime and criminals, as well as whether you thought Walters would be treated differently from other criminal offenders. As noted earlier, in this chapter we attempted to illustrate that criminal behavior is not restricted to what some deem traditional types of offenses; rather, criminal behavior can involve high-level executives and powerful corporations, groups organized around the purpose of engaging in criminal activity, and criminal behavior in which there is no physical contact between the victim and the offender.

the computer fraud and abuse act of 1984

The Computer Fraud and Abuse Act (CFAA) was initially enacted in 1984; it was amended in 1986 and has been amended further since that time. It was originally designed to protect national security, financial, and commercial information; medical treatment; and interstate communication systems from malicious acts, including unauthorized access. In addition, the CFAA allows those who have been victims of such crimes to bring a civil suit against violators. The CFAA does not exclude application of other laws, such as computer crime statutes that broaden the scope of CFAA

The Strengthening State and Local Cyber Crime Fighting Act of 2017.

The Strengthening State and Local Cyber Crime Fighting Act of 2017 amended the Homeland Security Act of 2002. This law recognized the authority of the National Computer Forensics Institute (housed in the U.S. Secret Service) to disseminate information related to the investigation and prevention of cyber and electronic crime and related threats; and educate, train, and equip state, local, tribal, and territorial law enforcement officers, prosecutors, and judges.

the wickersham commission

To assess the effect of Prohibition on criminal activity, the Wickersham Commission was formed in 1929. The findings from the commission revealed that organized criminal activity flourished around bootlegging activities. The commission recommended a more in-depth study of organized crime and its criminal activities. This recommended, more in-depth study was not conducted, however, until years later. This delay was attributed to various factors, including the well-publicized arrests and prosecutions of organized crime "bosses" such as Al Capone and "Lucky" Luciano, giving the public a sense that law enforcement and the criminal justice system were successfully deterring such activities. Further, the public's attention was largely elsewhere, with the Great Depression and World War II. Given these "diversions," organized crime prospered, and it was not until the formation of the Kefauver Committee that there was an extensive investigation into organized crime

tammany hall

a notorious Democratic political machine in New York City from the 1790s through the 1960s with major influence in city and state politics.

the presidents commission on organized crime

Under Executive Order Number 12435, President Reagan created the President's Commission on Organized Crime in 1983. During its three years of existence, the commission produced five reports. Some of the key issues highlighted by the commission were money laundering, labor union racketeering, and "mob lawyers." The commission avoided focusing primarily on Italian American organized crime, focusing also on Colombian cocaine cartels and other criminal groups, such as outlaw motorcycle clubs.133 The commission also provided a more meaningful definition of organized crime. Further, in an effort to enhance its understanding of organized crime groups, the commission developed a contingency model that highlighted levels of involvement of members and nonmembers; these levels included the criminal group (i.e., the core of the organized crime unit), the protectors (e.g., corrupt public officials, businesspersons, judges, attorneys, and financial advisers), specialized support (i.e., those who provide services that facilitate organized crime, such as pilots, chemists, arsonists, and hijackers), user support (i.e., consumers of organized crime's illegal goods and services, such as drug users and people who buy stolen goods), and social support (i.e., those who provide the perception of legitimacy of the criminal organization, such as politicians who seek the organization's support and community leaders who invite its bosses to social gatherings)

Chapter 14 case study

William T. Walters - Phil Mickelson is a professional golfer; he has won five major golf championships, as well as garnered numerous endorsement agreements. Thomas Davis is a former investment banker; he has a Harvard education and lives a "country club lifestyle." Both men had something in common—they owed money to William Walters. William Walters was often considered the most successful sports gambler in the country. After an extensive investigation, the debts of Phil Mickelson and Thomas Davis were revealed to be at the center of an insider trading scheme.1 According to Mike Fish in a 2015 ESPN article, William Walters is thought to have bet more money more successfully than anyone in history, earning hundreds of millions of dollars. Federal and state investigators sniff around his operation regularly. Scores of bettors and bookies have tried to crack his methods so they can emulate him. . . . Walters has outrun them all.2 In May 2016, federal prosecutors brought criminal charges against Walters, alleging that he used illegal stock tips from Thomas Davis to accumulate approximately $40 million in profits. Phil Mickelson has not been criminally accused of any wrongdoing. However, the Securities and Exchange Commission (SEC) has listed him in a civil complaint.3 The SEC maintains that Mickelson earned almost $1 million from illegal stock tips. In a separate statement, Mickelson entered into an agreement with the SEC to repay those monies.4 Thomas Davis, however, had debts that far exceeded Mickelson's. Walters lent Davis money. In return, Davis, who was chairman of Dean Foods, returned the favor by providing Walters with "boardroom secrets." In an effort to conceal their scheme, Walters and Davis used disposable cellphones and developed a "secret code" when discussing Dean Foods. For instance, Dean Foods is a Dallas company. Thus, the two men referred to the company as "the Dallas Cowboys." Andrew Ceresney, director of the SEC's enforcement division, stated, "Davis breached his duty and broke the law as the result of being in dire financial straits. . . . Mr. Walters . . . was 'gambling on a sure thing.'

The Digital Millennium Copyright Act of 1998.

definition: criminalized making, distributing, or using tools, such as software, to evade technological protection measures implemented by copyright owners to prevent access to copyrighted material. The music and video industries have modified their businesses in response to advances in digital technology. These industries have used the internet as a vehicle for individuals to purchase (i.e., download) movies and music. A major problem with such availability, however, is internet piracy.184 Internet piracy is the "unauthorized copying of copyright material for commercial purposes and the unauthorized commercial dealing in copied materials."185 In the 1990s, various entities claimed that they were losing millions of dollars due to copyright violations.186 Under pressure from the motion picture industry, record labels, software publishers, and other entities whose profits are linked to copyrighted material, Congress passed the Digital Millennium Copyright Act in 1998. This act incorporates part of the Copyright Act; it criminalizes making, distributing, or using tools, such as software, to evade technological measures implemented by copyright owners to prevent access to copyrighted material

The Electronic Communications Privacy Act of 1986.

definition: regulates the interception of electronic communications by individuals as well as the government. - In 1986, Congress passed the Electronic Communications Privacy Act, which regulates the interception of electronic communications by individuals as well as by the government. In reference to investigators, this act regulates the amount of information that law enforcement can obtain based on the level of service. Law enforcement is required to obtain a subpoena for basic subscriber information (e.g., name, address, local and long-distance telephone billing records, length of service, and type of service). A court order is needed to acquire transactional information (e.g., records or logs pertaining to the subscriber, such as destinations of outgoing mail). Law enforcement needs to obtain a search warrant to be privy to the actual content of electronic messages

wickersham commission

formed in 1929, this commission found that organized criminal activity flourished around bootlegging operations.