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White-collar crime refers to financially motivated, nonviolent crime committed by business and government professionals. Within criminology, it was first defined by sociologist Edwin Sutherland in 1939 as "a crime committed by a person of respectability and high social status in the course of his occupation". Typical white-collar crimes could include fraud, bribery, Ponzi schemes, insider trading, labor racketeering, embezzlement, cybercrime, copyright infringement, money laundering, identity theft, and forgery. Lawyers can be specialized in white-collar crime.
- 1 Definitional issues
- 2 Relationship to other types of crime
- 3 Punishment
- 4 See also
- 5 Further reading and references
- 6 References
- 7 External links
Modern criminology generally rejects a limitation of the term by reference, rather classifies the type of crime and the topic:
- By the type of offense, e.g., property crime, economic crime, and other corporate crimes like environmental and health and safety law violations. Some crime is only possible because of the identity of the offender, e.g., transnational money laundering requires the participation of senior officers employed in banks. But the FBI has adopted the narrow approach, defining white-collar crime as "those illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence" (1989, 3). While the true extent and cost of white-collar crime are unknown, the FBI and the Association of Certified Fraud Examiners estimate the annual cost to the United States to fall between $300 and $660 billion.
- By the type of offender, e.g., by social class or high socioeconomic status, the occupation of positions of trust or profession, or academic qualification, researching the motivations for criminal behavior, e.g., greed or fear of loss of face if economic difficulties become obvious. Shover and Wright (2000) point to the essential neutrality of a crime as enacted in a statute. It almost inevitably describes conduct in the abstract, not by reference to the character of the persons performing it. Thus, the only way that one crime differs from another is in the backgrounds and characteristics of its perpetrators.
- By organizational culture rather than the offender or offense which overlaps with organized crime. Appelbaum and Chambliss offer a twofold definition:
- Occupational crime which occurs when crimes are committed to promote personal interests, say, by altering records and overcharging, or by the cheating of clients by professionals.
- Organizational or corporate crime which occurs when corporate executives commit criminal acts to benefit their company by overcharging or price fixing, false advertising, etc.
Relationship to other types of crime
The types of crime committed are a function of what is available to the potential offender. Thus, those employed in relatively unskilled environments and living in inner-city areas have fewer opportunities to exploit than those who work in situations where large financial transactions occur and live in areas where there is relative prosperity. Blue-collar crime tends to be more obvious and thus attracts more active police attention such as vandalism or shoplifting. In contrast, white-collar employees can incorporate legitimate and criminal behavior, thus making themselves less obvious when committing the crime. Therefore, blue-collar crime will more often use physical force, whereas in the corporate world, the identification of a victim is less obvious and the issue of reporting is complicated by a culture of commercial confidentiality to protect shareholder value. It is estimated that a great deal of white-collar crime is undetected or, if detected, it is not reported.
Corporate crime deals with the company as a whole. The crime benefits the investors or the individuals who are in high positions in the company or corporation. The relationship white-collar crime has with corporate crime is that they are similar because they both are involved within the business world. Their difference is that white-collar crime benefits the individual involved, and corporate crime benefits the company or the corporation.
One well-known insider trading case in the United States is the ImClone stock trading case. In December 2001, top-level executives sold their shares in ImClone Systems, a pharmaceutical company that manufactured an anti-cancer drug. The U.S. Securities and Exchange Commission investigated numerous top-level executives, as well as Martha Stewart, a friend of ImClone's former chief executive who had also sold her shares at the same time. The SEC reached a settlement in 2005.
The negotiation of agreements between a state and a corporation will be at a relatively senior level on both sides, this is almost exclusively a white-collar "situation" which offers the opportunity for crime. Although law enforcement claims to have prioritized white-collar crime, evidence shows that it continues to be a low priority.
When senior levels of a corporation engage in criminal activity using the company this is sometimes called control fraud.
Organized transnational crime
Organized transnational crime is organized criminal activity that takes place across national jurisdictions, and with advances in transportation and information technology, law enforcement officials and policymakers have needed to respond to this form of crime on a global scale. Some examples include human trafficking, money laundering, drug smuggling, illegal arms dealing, terrorism, and cybercrime. Although it is impossible to precisely gauge transnational crime, the Millennium Project, an international think tank, assembled statistics on several aspects of transnational crime in 2009:
- World illicit trade of almost $780 billion
- Counterfeiting and piracy of $300 billion to $1 trillion
- Global drug trade of $321 billion
Individuals may commit crime during employment or unemployment. The two most common forms are theft and fraud. Theft can be of varying degrees, from a pencil to furnishings to a car. Insider trading, the trading of stock by someone with access to publicly unavailable information, is a type of fraud.
In the modern world, there are a lot of nations which divide the crimes into some laws. "Crimes Related to Inducement of Foreign Aggression" is the crime of communicating with aliens secretly to cause foreign aggression or menace. "Crimes Related to Foreign Aggression" is the treason of cooperating with foreign aggression positively regardless of the national inside and outside. "Crimes Related to Insurrection" is the internal treason. Depending on a country, conspiracy is added to these.
In the United States, sentences for white-collar crimes may include a combination of imprisonment, fines, restitution, community service, disgorgement, probation, or other alternative punishment. These punishments grew harsher after the Jeffrey Skilling and Enron scandal, when the Sarbanes–Oxley Act of 2002 was passed by the United States Congress and signed into law by President George W. Bush, defining new crimes and increasing the penalties for crimes such as mail and wire fraud. In other countries, such as China, white-collar criminals can be given the death penalty, yet some countries have a maximum of 10-25 years imprisonment, Certain countries like Canada consider the relationship between the parties to be a significant feature on sentence when there is a breach of trust component involved. Questions about sentencing disparity in white-collar crime continue to be debated.  Although, white-collar crime poses a serious threat in today's society, it becomes extremely difficult to identify. The FBI, concerned with identifying this type of offense, collects annual statistical information on only three categories: fraud, counterfeiting/forgery, and embezzlement. All other types of white-collar crime are listed in an, "miscellaneous" category.
Longest White Collar Sentence(USA)
|Name||Company||Occupation||Crime||Counts||Losses caused by the defendant||Company Loss||Year||Co defendants||Sentence (Yr)|
|Sholam Weiss||National Heritage Life Insurance||Investor, Consultant||Racketeering, Wire fraud, Money Laundering||77||$0||$0 (company realized a profit after all assets were sold off)||2000||13||845|
|Keith Pound||National Heritage Life Insurance||Mortgage Specialist||Racketeering, Wire fraud, Money Laundering||74||$0||$0 (company realized a profit after all assets were sold off)||2000||13||740|
|Norman Schmidt||Capital Holdings||Investment adviser, Financier||Ponzi scheme, Money Laundering, Mail Fraud, Wire Fraud, securities fraud||36||$38,414,988||$38,414,988||2008||5||330|
|Bernard Madoff||Madoff Securities International Ltd||Stock broker, Investment adviser, Financier||Ponzi scheme, Money Laundering, Mail Fraud, Wire Fraud, securities fraud, Theft or embezzlement,||11||$2,000,000,000||$13,000,000,000||2009||5||150|
|Robert Allen Stanford,||Stanford Financial Group||Businessman in the financial services sector||Ponzi scheme, Money Laundering, Mail Fraud, Wire Fraud, securities fraud.||21||$5,900,000,000||$5,900,000,000||2009||110|
|Frederick Brandau||Frederick Brandau’s South Florida life insurance company||Businessman in the financial services sector||Conspiracy to commit mail fraud; conspiracy to commit wire fraud, conspiracy to commit money laundering.||117,000,000||55|
|Bernard Ebbers||WorldCom||Businessman in the financial services sector and telecommunication||Accounting Fraud||15||$11,000,000,000 ($0 after $5.6 billion settlement with victims)||$11,000,000,000||2005||25|
|Marc Dreier||Dreier LLP||Attorney||Money Laundering, Mail Fraud, Wire Fraud, securities fraud, Theft or embezzlement,||8||$700,000,000||$700,000,000||2009||20|
|Walter Forbes||CUC International.||Accounting Fraud||12||$3,275,000,000||$14,000,000,000||2007||1||12|
|Jeffrey Skilling||Enron||Former CEO of Enron||False statement, Insider trading, securities fraud, conspiracy||51||$41,950,874||$7,200,000,000||2006||10|
|Richard Marin Scrushy||HealthSouth Corporation,||Businessman
former chairman and chief executive officer of MedPartners, Inc.
- Accounting scandals
- Con man
- Corporate crime
- Franchise fraud
- Immigration and Customs Enforcement (ICE)
- Industrial espionage
- IRS Criminal Investigation Division (IRS-CID)
- Money laundering
- Mortgage fraud
- Office of Criminal Investigations (OCI)
- Organi-cultural deviance
- Organized crime
- Penny stock scam
- Sarbanes–Oxley Act
- Securities and Exchange Commission (SEC)
- Securities fraud
- Terrorist financing
- United States Marshals Service
- United States Postal Inspection Service
- United States Secret Service
Further reading and references
- Appelbaum, Richard P. & Chambliss, William J. (1997). Sociology: A Brief Introduction. New York: Longman. ISBN 0-673-98279-3
- Barnett, Cynthia. (Undated). The Measurement of White-Collar Crime Using Uniform Crime Reporting (UCR) Data.
- Clarke, Ronald V. (1997). Situational Crime Prevention: Successful Case Studies (2nd edition). New York: Criminal Justice Press. ISBN 0-911577-38-6
- Cox, Steven P. (2017) "White-Collar Crime in Museums", Curator:The Museums Journal 60(2):235-248.
- Dillon, Eamon Dilloninvestigates.com, The Fraudsters – How Con Artists Steal Your Money Chapter 5, Pillars of Society, published September 2008 by Merlin Publishing, Ireland ISBN 978-1-903582-82-4
- Friedrichs, David O. (2003) Trusted Criminals: White Collar Crime in Contemporary Society, Wadsworth. ISBN 0-495-00604-1
- Geis, G., Meier, R. & Salinger, L. (eds.) (1995). White-collar Crime: Classic & Contemporary Views. NY: Free Press.
- Green, Stuart P. (2006). Lying, Cheating, and Stealing: A Moral Theory of White Collar Crime. Oxford: Oxford University Press.
- Koller, Cynthia A. (2012). "White Collar Crime in Housing: Mortgage Fraud in the United States." El Paso, TX: LFB Scholarly. ISBN 1593325347. ISBN 978-1593325343
- Koller, Cynthia A., Laura A. Patterson & Elizabeth B. Scalf (2014). When Moral Reasoning and Ethics Training Fail: Reducing White Collar Crime through the Control of Opportunities for Deviance, 28 Notre Dame J.L. Ethics & Pub. Pol'y 549 (2014). Available at: http://scholarship.law.nd.edu/ndjlepp/vol28/iss2/5
- Lea, John. (2001). Crime as Governance: Reorienting Criminology.
- Leap, Terry L. (2007) Dishonest Dollars: The Dynamics of White-Collar Crime. Ithaca: Cornell University Press. ISBN 978-0-8014-4520-0
- Newman, Graeme R. & Clarke, Ronald V. (2003). Superhighway Robbery: Preventing E-commerce Crime. Portland, Or: Willan Publishing. ISBN 1-84392-018-2
- Rolón, Darío N. Control, vigilancia, y respuesta penal en el ciberespacio, Latinamerica´s new security Thinking, Clacso 2014.
- Reiman, J. (1998). The Rich get Richer and the Poor get Prison. Boston: Allyn & Bacon.
- Pontell, H. & Tillman, R. (1998). Profit Without Honor: White-collar Crime and the Looting of America. Upper Saddle River, NJ: Prentice Hall.
- Shapiro, Susan P. (1990). "Collaring the Crime, not the Criminal: Reconsidering the Concept of White-collar Crime", American Sociological Review 55: 346–65.
- Simon, D. & Eitzen, D. (1993). Elite Deviance. Boston: Allyn & Bacon.
- Simon, D. & Hagan, F. (1999). White-collar Deviance. Boston: Allyn & Bacon
- Shover, Neal & Wright, John Paul (eds.) (2000). Crimes of Privilege: Readings in White-Collar Crime. Oxford: Oxford University Press. ISBN 0-19-513621-7
- Sutherland, Edwin Hardin (1949). White Collar Crime. New York: Dryden Press.
- Thiollet, J.P. (2002). Beau linge et argent sale — Fraude fiscale internationale et blanchiment des capitaux, Paris, Anagramme ed. ISBN 2-914571-17-8
- U.S. Department of Justice, Federal Bureau of Investigation (1989). White Collar Crime: A Report to the Public. Washington, D.C.: Government Printing Office.
- "FBI — White-Collar Crime". FBI.
- "White Collar Criminal Defense Guide". Law Offices of Randy Collins. Retrieved 2016-12-23.
- Andrew Restuccia and Emily Holden (May 16, 2018). "Pruitt taps outside attorney for help amid investigations". Politico.com. Retrieved May 17, 2018.
- Friedrichs, David O. (2009). Trusted Criminals: White Collar Crime In Contemporary Society (4 ed.). Wadsworth Publishing. p. 50. ISBN 978-0495600824. citing Kane and Wall, 2006, p. 5
- Appelbaum, Richard & Chambliss, William J. (1997). Sociology: A Brief Introduction. New York: Longman Pub Group. p. 117. ISBN 9780673982797.
- Clarke, R. V. G. (1997). Situational Crime Prevention: Successful Case Studies (2 ed.). Harrow and Heston. ISBN 9780911577389.
- O'Grady, William (2011). Crime in Canadian Context: Debates and Controversies (2 ed.). Oxford University Press. ISBN 9780195433784. Retrieved 1 June 2012.
- Anderson, Jenny (20 January 2005). "S.E.C. Settles ImClone Insider Trading Case". New York Times. Retrieved 1 June 2012.
- Anzalone, Charles (28 April 1991). "White-Collar Crime Has Become Priority of Law Enforcement". Buffalo News.
- "State's white collar convicts get lighter sentences". California Watch.
- Rubino, Esq. PA, Frank. "White Collar Crime - An Overview". Retrieved 30 January 2012.
- "Penalties for White Collar Crime". Blumberg & Associates.
- "Is China's White-Collar Death Penalty Fair?". The American Lawyer. Retrieved 30 January 2012.
- "What is Breach of Trust in Canada?". Alexander Ejsmont. Retrieved 30 November 2013.
- Podger, Prof. Ellen S. (21 February 2007). "Throwing Away the Key". Yale Law Journal. Retrieved 30 January 2012.
- "White-Collar Crime - Further Readings". law.jrank.org. Retrieved 2017-03-24.
- "Sholam Weiss". 1 Jan 2016.
- "Satisfaction of Restitution" (PDF). 28 July 2016.
- "The Longest White-Collar Prison Sentences". Forbes. 24 June 2009.
- "CRIMINAL DOCKET FOR CASE #: 1:04-cr-00103-REB-1". pacer.gov. 1 May 2008.
- "Norman Schmidt Sentenced To 330 Years". justice.gov. 29 April 2008.
- "Orange is the New White-Collar". Fortune. 25 May 2006.
- "Ebbers Gets 25-Year Sentence For Role in WorldCom Fraud". Washingtonpost. July 14, 2005.
- "Ex-Cendant chairman fails to overturn fraud conviction". Reuters. 23 June 2015.
- Blueyonder.do.uk Archived 2015-03-07 at the Wayback Machine.
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