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Concept and nature of white collar crime
Concept and nature of white collar crime
Concept and nature of white collar crime
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White collar criminals commit crimes against wealthy people, corporations, and government for monetary gain. To the degree that the two types of abnormality are also inspired, they might be viewed as together. Both white collar and organized crime out wrongdoing may include a system of guilty parties working in a show or, every so often, a criminal acting alone. Whiter collar offenses might be focused on upgrading the enthusiasm of an association, for the most part, the government, a corporation, or government office however may likewise be persuaded by the possibility of personal benefit by the wrongdoer. The case of Bernard Madoff is a prime example of professional wrongdoing in his Ponzi plot. He tricked thousands of speculators into entrusting him with billions of dollars. Be that as it may, Madoff plan would give monetary gain to him. Normally, composed …show more content…
This Article exhibits that this claim is not accurate in any event not in the ways generally believed (Buell, 2014). Law and routine with regards to condemning, confirmation, and criminal technique cannot powerfully be depicted as privileging the white-collar offender. The substantive criminal law makes charges in white collar cases simpler to bring and harder to argue against than in other cases. Implementation organizations and the political economy in which they exist incorporate highlights that both shelter corporate guilty parties and uplift their exposure to criminal obligation. Corporate performing artists appreciate a vast preferred standpoint in legitimate guard assets in respect to others. That advantage, be that as it may, does not pay off as one may anticipate. A completely created case of benefit can be maintained just by demonstrating that essential American courses of action of criminal law and policing have been
Professor and Director of the Distance Learning Masters Program at The University of Cincinnati, Michael L. Benson has his Ph. D. in Sociology and is the author of "Denying the Guilty Mind: Accounting for Involvement in White-Collar Crime." In a classic study based on interviews with 30 convicted white-collar offenders all men, Benson examines the excuses and justifications used by White-Collar criminals to not only explain their involvement in the crime but also claim their innocence. It focuses mainly on the techniques that are used to deny they did anything wrong in categories separated by antitrust violators, tax violators, violations of financial trust and those committing fraud. Antitrust Violators focused on the everyday character and historical continuity of their offenses. They claimed to be following es...
Just like people, corporations have the capability of committing criminal acts. The Enron scandal in 2001; the Bernard Madoff ponzi-scheme of 2008-2009; both of these examples show that despite internal and external controls, regulations, and oversight, corporations still are a multi-faceted entity that have the propensity to partake in crime. That being true, that criminal entity must be punished and held responsible for their actions. One tool in the prosecutorial tool belt is the use of deferred prosecution and non-prosecution agreements. According to Lanny Breuer, the United States Department of Justice’s Criminal Division, “over the last decade, deferred prosecution agreements have become a mainstay of white collar criminal law enforcement” (Warin, 2012).
Throughout history there have been many white collar crimes. These crimes are defined as non-violent and financial-based crimes that are full ranges of fraud committed by business and government professionals. These crimes are not victimless nor unnoticed. A single scandal can destroy a company and can lose investors millions of dollars. Today, fraud schemes are more sophisticated than ever, and through studying: Enron, LIBOR, Albert Wiggan and Chase National Bank, Lehman Brothers and Madoff, we find how the culprits started there deception, the aftermath of the scandal and what our country has done to prevent future scandals.
The Bernie Madoff Ponzi Scheme is a well-known case and is known as one of the biggest Ponzi scheme’s. In summary the scheme occurred for many reasons that I will some up into 3 points; A lack in competency by regulatory agencies, a lack of regulation, and finally a breach in ethics by Bernie Madoff himself. To explain further, the regulatory agencies like the lawyers and SEC are supposed to prevent schemes such as this one from happening but because they lacked the skills to correctly assess the situation, interpreting the number of tips they had received regarding scheme that had been filed, and to act on those in an efficient manner. One of the tips was made by Harry Markopolos in 2000, of who correctly predicted that Madoff was guilty of fraud. Even after this tip from Markopolos, Madoff was not arrested until 2009. Many family members were also a part of the fraud along with some non-family members such as Frank DiPascali and a team known as the 17th floor team, who helped Madoff carry out his fraud. The idea behind Madoff’s fraud was that he would produce false statements of their investments and when people wanted to pull out their investments, the money wasn’t actually there, which rightfully rose more than a few eyebrows and ultimately led to his arrest.
White-collar crime is seen as a crime performed by a respectable person of high social status in one’s workplace. White-collar crime is the type of crime, the classification of which is basing on the grounds of offender’s belonging to well-educated middle or upper class being representatives of government or business. I am going to argue that elite and low class individuals who committee white-collar crimes are handle in two different ways. The elites who are running these corporations those committee white-collar offenses get prosecuted as civil cases. When you have the same crime committed from an individual of the lower class who will get treated as a criminal offense. Same crime but one is looked at as a deviant behavior, where the other one is looked at as a bad business deal. To help my argument, I am going to use labeling theory, conflict theory, construction of
White collar crime is a term created by Edwin Sutherland in 1939 that refers to crimes committed by people of higher social status, companies, and the government according to the book “White-Collar Crime in a Nutshell” by Ellen Podgor and Jerold Israel. White collar crimes are usually non-violent crimes committed in order to have a financial-gain (Podgor and Israel 3). A very well known white collar crime that has even been taught in many history classes is the Watergate scandal. This is a white collar crime that was committed by government authorities. Watergate was a crime that shocked the nation.
Bernard Madoff had full control of the organizational leadership of Bernard Madoff Investments Securities LLC. Madoff used charisma to convince his friends, members of elite groups, and his employees to believe in him. He tricked his clients into believing that they were investing in something special. He would often turn potential investors down, which helped Bernard in targeting the investors with more money to invest. Bernard Madoff created a system which promised high returns in the short term and was nothing but the Ponzi scheme. The system’s idea relied on funds from the new investors to pay misrepresented and extremely high returns to existing investors. He was doing this for years; convincing wealthy individuals and charities to invest billions of dollars into his hedge fund. And they did so because of the extremely high returns, which were promised by Madoff’s firm. If anyone would have looked deeply into the structure of his firm, it would have definitely shown that something is wrong. This is because nobody can make such big money in the market, especially if no one else could at the time. How could one person, Madoff, hold all of his clients’ assets, price them, and manage them? It is clearly a conflict of interest. His company was showing high profits year after year; despite most of the companies in the market having losses. In fact, Bernard Madoff’s case is absolutely stunning when you consider the range and number of investors who got caught up in it.
Shover, N, & Hochstetler, A. (2006). Choosing white-collar crime. New York, NY: Cambridge University Press.
Today, worldwide, there are several thousands of crimes being committed. Some don’t necessarily require a lethal weapon but are associated with various types of sophisticated fraud, this also known as a white-collar crime. These crimes involve a few different methods that take place within a business setting. While ethical business practices add money to the bottom line, unethical practices are ultimately leading to business failure and impacting the U.S. financially.
White collar and corporate crimes are crimes that many people do not associate with criminal activity. Yet the cost to the country due to corporate and white collar crime far exceeds that of “street” crime and benefit fraud. White collar and corporate crimes refer to crimes that take place within a business or institution and include everything from Tax fraud to health and safety breaches.
Marilyn Price and Donna Norris” (Perri, J.D., CFE, CPA, 2011, p. 23). Even though white collar crimes do not seem as violent as someone that commits murder there is still major damage done. For example, a fraud victim goes through a lot of hardship. They can be harassed, have their identity stolen, and lose everything. This, in many cases, can be looked at as a serious crime.
“To steal from a brother or sister is evil. To not steal from the institutions that are the pillars of the Pig Empire is equally immoral”, Abbie Hoffman said this. But what if the ‘Pig Empire’ that we steal from has a ripple effect on the rest of us and transforms something that should be ‘moral’ into an act of what is unquestionably wrong. In the 21st Century the number one rising crime have been white collar crimes. The Federal Bureau of Investigation, better known as the FBI, describe white- collar crimes as, “ illegal acts [involving] deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force” (Wand 19). These crimes include embezzlement, tax evasion, credit card fraud, and bribery. These picture in the family of white- collar offenses and can dictate the future of business, investors, and individual citizens. The Federal Bureau of Investigation estimates that the United States of America loses $300 billion annually due to white- collar crimes. These are all targets of white- collar crimes. White collar crimes are the hardest cases to solve. White- collar crimes can take several years to solve and can take even more years to figure out that something is wrong but when they are captured the punishments can be costly. Punishments include: fines, home detention, and community confinement, paying the cost of prosecution, forfeitures, restitution, supervised release, and imprisonment. Although white- collar crimes do not display physical damage to our bodies, they neglect the law and showcase that even the most unsuspecting people can be selfish and commit the white- collar crime.
...crimes rather than on street crimes. Rarely will you hear of these crimes on the news until after sentencing has taken place. Unfortunately, corporations can easily afford to pay thousands or even millions of dollars in penalties and fines therefore penalties need to be increased greatly. Due to corporate power, white collar crime is hard to prove even once it is suspected. Determining who began the crime and trying to persuade a jury whom already has a hard time understanding the complexity of these types of crimes can be difficult.
White collar crime was first defined by an American sociologist from Nebraska, Edwin Sutherland, in 1939. He defined it as “A crime committed by a person of respectability or of high social status in the course of his occupation”. Now days, it is defined as “A crime that is financially motivated non- violent and committed by business or government professionals.” White collar criminals do not use violence to obtain the money but instead they use deceit and concealment, they misuse their power and trust. It is often seen as a less serious crime although we hear about these types of crime in the news all the time. The most common types of white collar crime are embezzlement, tax evasion, money laundering.
Fraud and white-collar crime are common forms of crimes that people commit in various aspects and positions in the corporate world. Fraud and white-collar crimes have similar meaning as they refer to the non-violent crimes that people commit with the basic objective of gaining money using illegal means. The cases of white-collar crimes have been increasing exponentially in the 21st century due to the advent of technology because fraudsters apply technological tools in cheating, swindling, embezzling, and defrauding people or organizations. White-collar crime is a complex issue in society because its occurrence is dependent on many factors such as organizational structure, organization culture, and personality traits. Thus, the literature review examines how organizational structure, organizational culture, and personality traits contribute to the occurrence of white-collar crimes.