Schmall crim today8e_ppt_ch13

Criminology Today
An Integrated Introduction
CHAPTER
Criminology Today: An Integrated Introduction, 8e
Frank Schmalleger
Copyright © 2017 by Pearson Education, Inc.
All Rights Reserved
White-Collar and
Organized Crime
13

All Rights Reserved
Frank Schmalleger
A Brief History of White-Collar
Crime
• Financial scandals have a long history
in the U.S.
 Teapot Dome 1929
 Ivan Boesky
• Insider trading 1980s
 Michael Milken
• 1980s securities fraud
 S&L disaster 1980s
 Sham banking operations 1990s
continued on next slide

All Rights Reserved
Frank Schmalleger
A Brief History of White-Collar
Crime
• 21st century crimes
 Enron
 WorldCom Inc.
 Adelphia Communications
 ImClone
 Martha Stewart
 Various securities firms

All Rights Reserved
Frank Schmalleger
Understanding White-Collar Crime
• Edwin H. Sutherland's definition
 Crimes committed by a person of
respectability and high social status in
the course of one's occupation
• Emphasized need to study upper-class
criminality
• Said white-collar criminals less likely to
be investigated, arrested, prosecuted
than other types of offenders

All Rights Reserved
Frank Schmalleger
Definitional Evolution of White-
Collar Crime
• White-collar crime (Edelhertz)
 Committed by nonphysical means and
by concealment or guile…
• Upperworld crime (Geis)
 Crimes by persons not considered the
'usual' kind of offenders

All Rights Reserved
Frank Schmalleger
Definitional Evolution of White-
Collar Crime
• Blue-collar crime
 Crimes by members of less prestigious
occupational groups
• Occupational crime
 Crimes through opportunity created
during legal occupation

All Rights Reserved
Frank Schmalleger
Green's Typology of Occupational
Crime
• Organizational occupational crime
• State authority occupational crime
• Professional occupational crime
• Individual occupational crime

All Rights Reserved
Frank Schmalleger
White-Collar Crime Today
• Early definitions focused on the
violator, rather than the offense when
deciding whether to classify a crime as
"white collar."
• Today, the focus has shifted to the
nature of the crime, rather than the
persons or occupations involved.

All Rights Reserved
Frank Schmalleger
Corporate Crime
• Corporate crime
 Violation of a criminal statute by a
corporate entity or by its executives,
employees, or agents acting on behalf
of and for the benefit of the corporation
• Culpability greatest when company
officials are shown to have had advance
knowledge
• Corporate liability unique to U.S.

All Rights Reserved
Frank Schmalleger
Figure 13-2 Types of Financial Crime
Source: Derived from Federal Bureau of Investigation, Financial Crimes Report to the Public, Fiscal Year 2007,
http://www.fbi.gov/publications/financial/fcs_report2007/financial_crime_2007.htm#financial (accessed May 10,
2015).

All Rights Reserved
Frank Schmalleger
Corporate Fraud
• Accounting schemes, self-dealing by
corporate executives, obstruction of
justice, insider trading, kickbacks,
misuse of corporate property for
personal gain
• Corporate fraud causes significant
financial losses to investors and also
has the potential to cause damage to
investor confidence and US economy.

All Rights Reserved
Frank Schmalleger
Securities and Commodities Fraud
• Stock market manipulation, high-yield
investment fraud, advance-fee fraud,
hedge-fund fraud, commodities fraud,
foreign exchange fraud, broker
embezzlement
• Associated losses range from
macroeconomic to corporate to
intensely personal.

All Rights Reserved
Frank Schmalleger
Health Care Fraud
• Particularly target Medicare and
Medicate but all health-care programs
are subject to fraud.
• Not limited to any particular geographic
area, can target large health-care
programs and beneficiaries, becoming
more complex and sophisticated
• Now being committed by organized
crime groups

All Rights Reserved
Frank Schmalleger
Mortgage Fraud
• Involves material misstatements,
misrepresentation, and/or omissions
related to the property or potential
mortgage relied on by an underwriter
or lender to fund, purchase, or insure a
loan
• Equity skimming, property flipping,
mortgage debt elimination

All Rights Reserved
Frank Schmalleger
Insurance Fraud
• Insurance industry size makes it a
prime target for criminal activity.
• Insurance fraud involving arson related
to the mortgage crisis
• Workers' compensation fraud increased
greatly with economic downturn.

All Rights Reserved
Frank Schmalleger
Mass-Marketing Fraud
• Fraud connected with communications
media (telemarketing, mass mailings,
Internet, etc.)
• Nigeria letter fraud
• Foreign lottery/sweepstakes fraud
• Overpayment fraud
• Welfare fraud

All Rights Reserved
Frank Schmalleger
Money Laundering
• The process by which illegal gains are
disguised as legal income.
• Money Laundering Control Act
• Bank Secrecy Act

All Rights Reserved
Frank Schmalleger
Environmental Crimes and Green
Criminology
• Environmental crimes
 Violations of the criminal law that
damage some protected or otherwise
significant aspect of the natural
environment
• Green criminology
 The study of environmental harm, law,
regulation, victimization, and justice

All Rights Reserved
Frank Schmalleger
Terrorism and White-Collar Crime
• Terrorist activity frequently involves
white-collar crime.
 Terrorists need money.
 Lower profile than street crimes
• One way to curtail terrorist activities is
through legislation criminalizing the
financing of terrorism.

All Rights Reserved
Frank Schmalleger
Causes of White-Collar Crime
• Sutherland: Differential association
theory
 White-collar criminality is learned
• Hirschi and Gottfredson: General theory
of crime
 White-collar criminals are motivated by
the same forces driving other criminals

All Rights Reserved
Frank Schmalleger
Causes of White-Collar Crime
• Braithwaite: Integrated theory
 White-collar criminals motivated by
disparity between corporate goals and
limited conventional opportunities

All Rights Reserved
Frank Schmalleger
Curtailing White-Collar and
Corporate Crime
• White-collar crimes are difficult to
investigate, prosecute, convict.
 Not always clear what happened
 Offenders better educated and better
able to conceal their activities
 Evidence often understandable only to
financial or legal experts
 Offenders can hire excellent defense
attorneys.

All Rights Reserved
Frank Schmalleger
Corporate Crime
• President G.W. Bush
 Corporate Fraud Task Force
 Sarbanes-Oxley Act
• President B. Obama
 Financial Fraud Enforcement Task Force
 Fraud Enforcement and Recovery Act
 New initiatives targeting financial crimes
and unfair trading practices

All Rights Reserved
Frank Schmalleger
Corporate Crime
• Sarbanes-Oxley Act (2002)
• Sherman Act (1890)
• Clayton Act (1914)
• Securities Act (1933)
• Securities Exchange Act (1934)

All Rights Reserved
Frank Schmalleger
Organized Crime
• Organized crime
 Unlawful activities of a highly organized
group engaged in supplying illegal
goods/services
• Italian criminal organizations came to
the U.S. in late 19th/early 20th
centuries.
• Became a quasi-police organization in
Italian ghettos of American cities

All Rights Reserved
Frank Schmalleger
Organized Crime
• Ethnic succession
 Continuing process of one immigrant or
ethnic group succeeding another by
assuming its position in society
• Jewish and Italian criminal groups
flourished in New York City in late
19th/early 20th centuries.

All Rights Reserved
Frank Schmalleger
Prohibition and Official Corruption
• Prohibition was a godsend for the
Mafia.
• Existing infrastructure allowed efficient
entry into running/sale of contraband
liquor.
• Huge profits led to wholesale bribery of
government officials, quick corruption
of many law enforcement officers.

All Rights Reserved
Frank Schmalleger
Other Organized Criminal Groups
• Criminal enterprise
 Group of individuals with an identifiable
hierarchy, and extensive supporting
networks, engaged in significant
criminal activity
• Hallmark of true criminal organizations
 Function independently of any members
 Have continuity over time as personnel
change

All Rights Reserved
Frank Schmalleger
Other Organized Criminal Groups
• State laws defining criminal enterprise
more inclusive than federal statutes
• Stereotype is Italian and Sicilian
Mafioso.
 Face of organized crime in US changed
 Threat broader, more complex
 Groups of different nationalities operate
in US or target US citizens from afar

All Rights Reserved
Frank Schmalleger
Figure 13-4 International Organized Criminal Groups Whose Activities Impact the United States
Source: Schmalleger, Frank, Criminology. Printed and Electronically reproduced by permission of Pearson
Education, Inc., Upper Saddle River, New Jersey.

All Rights Reserved
Frank Schmalleger
Transnational Organized Crime
• Transnational organized crime
 Unlawful activity undertaken and
supported by organized criminal groups
operating across national boundaries
• Globalization of crime requires
international coordination of law
enforcement efforts.
• U.S. law enforcement activities must
expand beyond national borders.

All Rights Reserved
Frank Schmalleger
Organized Crime and the Law
• Hobbs Act
 The first federal legislation aimed
specifically at curtailing the activities of
organized crime
• RICO
 Racketeer Influenced and Corrupt
Organizations statute
 Asset forfeiture

All Rights Reserved
Frank Schmalleger
Policy Issues: The Control of
Organized Crime
• Increase the resources available to law
enforcement agencies
• Increase law enforcement authority
• Make legitimate opportunities more
readily available
• Decriminalization or legalization to
decrease opportunity

Schmall crim today8e_ppt_ch13

Recommended

Recommended

More Related Content

What's hot

What's hot (14)

Viewers also liked

Viewers also liked (10)

Similar to Schmall crim today8e_ppt_ch13

Similar to Schmall crim today8e_ppt_ch13 (20)

More from Rappahannock Community College

More from Rappahannock Community College (10)

Recently uploaded

Recently uploaded (20)

Schmall crim today8e_ppt_ch13