The foundation of our country, the keystone to our democratic system, is the integrity of social institutions that we not only assume we can trust but have come to rely on for most aspects in our daily lives. The integrity of these social institutions can only be achieved through building blocks such as internal controls and independent, verifiable information. White collar criminals build a sense of false integrity around them in order to gain the trust of their victims, ranging from the young to the very old. Friedrich’s (2010) Trusted Criminals defines the foundation to white collar crime, the level of trust we have for those in power. We trust those in charge, those with power, and those who represent the integrity of our social institutions. Many times white collar criminals play a prominent role in society, especially in smaller communities, such as the college town of Penn State. Because this educational institution is so beloved by those who go there and the local community, many people cannot even see that an actual crime was committed and that not just Sandusky is guilty. This case is a white collar crime due to the fact that it was at an institutional level. While he may have committed the actual act, several people at different levels were notified, and the act covered up. This is not only a failure at this educational institution, it is a crime. Sandusky was in a position of power where he had gained the trust of his coworkers and the people around him. Therefore, he took advantage of this gained trust to commit unspeakable crimes upon those children around him. Penn State is a trusted institution; well know university that many people love and support. Jeff Anderson said, “Well, in our practice across the count... ... middle of paper ... ...o be intense for arrests for white collar crime than for predatory violence or drug dealing. Indeed, political pressure is more likely to be exerted in blocking or derailing white collar crime investigations than in conventional crime cases, and the police can operate effectively against white collar crime only to the extent that they are relatively free of political influence” (2010:278). Until political influence and the powers of corporations are subdued little can be done to battle this type of crime. People who commit this type of crime have the power to avoid prosecution primarily due the powerful corporations they work for or the institution they are a part of. Works Cited Freidrichs, David O. 2010. Trusted Criminals. Belmont, CA: Wadsworth Cengage Learning. http://www.pbs.org/newshour/bb/sports/july-dec11/pennstate_11-09.html
1. Reiman explains that the idea that white collar crime is taken less seriously is because it protects the elite classes. For example, if the public believes they should fear the poor more than the rich, the rich can commit more crimes and go unnoticed because the population is focused on the poor Reiman explains that that the way crime is explained does not exactly fit what we think crime is. He explains that the notion that white-collar crime being harmless is based on the idea that white collar crimes do not end in injury or death is false because more people’s lives are put at risk than “lower class” crimes. Reinman thinks it is necessary to re- educate the public on white-collar crimes for economic
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.
Along with the huge amounts of power that come with big corporations, comes the temptation of money and the corrupt nature of wanting to attain more at any and all costs. During the early 1900’s, a sect of journalists and writers became frustrated with the corruption found inside corporations and took actions to correct this behavior. In what is now known as the work of the “muckrakers”, large corporations were exposed for “a variety of illegal, unethical, harmful, and otherwise abominable and scandalous practices” including “corruption in municipalities, unhealthful, inhumane conditions in food-processing plants, dangerous conditions in coal mines, illegal and deceptive advertising, the abuse of mental patients by staff, the exploitation of factory workers, the running of ‘sweat shops’ (Goode, White Collar Crime)” and the list continues. However, while the new information characterized this type of behavior as “deviant” it was not in fact “criminal” since no laws were in place against such practices (Goode, White Collar Crime). In 1906, legislation was passed regulating the food processing industry and later, in 1916, the first child labor laws were passed (Goode, White Collar Crime). The term “white collar crime”, however, did not surface until 1939 (Goode, White Collar Crime). During a talk, given by Edwin Sutherland, before the American Sociological Society meeting, Sutherland used the term “white collar crime” to describe “crimes committed by a person of respectability and high social status in the course of his occupation” (Legal Information Institute). The types of crimes that are typically associated with this phrase today include, but are not limited to; bank fraud, blackmail, bribery, counterfeiting, embezzlement, extortion, forgery, insider trading, investment schemes, larceny, money laundering and tax evasion. Today, the white collar criminal,
...f these factors influence why white-collar criminals tend to get away with more than street criminals. However, there are ways to reduce white-collar crime. A good start would be to have the media report more on white-collar crime as it does on street crime. Since money plays a huge factor in a corporations ability to buy excellent attorneys, pay harsh fines, etc., it is important to make white-collar punishments harsher than they currently are (Barkan, 2012). With all these changes, society has a better chance of deterring white-collar crime.
E.). There are various costs of white-collar crime, although an accurate measurement is not easy, they are hard to asses as well as very complex. There are enormous financial losses, sometimes physical damage as a result of negligence, as well as social costs: weakened trust in a free economy, confidence loss in political organizations, and destruction of public morality. “White collar crime could also set an example of disobedience for the general public, with citizens who rarely see white-collar offenders prosecuted and sent to prison becoming cynical about the criminal justice system” (Conklin, J. E.). White-collar crime is undeniably a crime and often encompasses elaborate
Though many ‘people are aware of what corporate crimes are there are still many who do not know’. A corporate or white-collar crime can be described as “a crime committed by any person through the venue of his or her employment that benefits the business”, ‘this can mean that a corporation does an illegal act of indifference to better the corporation’. It is argued that corporate crimes are more harmful to the general public than acts of intention. When it comes to these ‘crimes it can be said that many of the victims that it affects do not realize, that they are being affected and if and when they do know it is argued that they are told that it is due to a misfortunate accident and that there is no one to blame for the Act’. Many criminologists such as Sutherland argued that corporate crime is something
White-collar crime is the financially motivated illegal acts that are committed by the middle and upper class through their legitimate business or government activities. This form of crime was first coined by Edwin Sutherland in 1939 as “a crime committed by a person of respectability and high social status in the course of his occupation.” (Linden, 2016). Crime has often been associated with the lower class due to economic reasons. However, Sutherland stressed that the Criminal Justice System needed to acknowledge illegal business activity as crime due to the repercussions they caused and the damage they can cause to society (Linden, 2016). Crime was prevalently thought to only be
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.
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.
White collar crime is viewed as non-violent and treated differently than other types of crimes; some that are even violent in nature. In general, personal and public perception can vary from one individual to another. “A recent survey conducted by the National White Collar Crime Center (NWCCC) confirm that the public considers certain white collar crimes as more serious than some street crimes, according to Drs. Marilyn Price and Donna Norris” (Perri, J.D., CFE, CPA, 2011, p. 23). Even though white collar crimes do not seem a 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 severe crime. Valuables taken during a burglary can be replaced easily, but someone’s identity and livelihood cannot be given back. Most white...
...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.
The media contributes to public perception of white-collar crime and the criminals. The focus is rarely on institution or corporation, but instead focused on individuals. The media tends to sensationalize the story with myths about the actual event. The Bernie Madoff scandal is a very good example. Media coverage was more focused on Madoff’s wealth, power, and lifestyle, then on the crime. Like any crime the media can distort the image of the actual crime and it can spread the myths as fact. That leads to the community being misinformed about the correct terminology of white-collar
Podgor, E. S. (2007). The challenge of white collar sentencing. Journal of Criminal Law and Criminology.
White-collar crimes and organizational structure are related because white collar-crimes thrive in organizations that have weak structures. According to Price and Norris (2009), the elites who commit white collar-crimes usually exploit weaknesses in organizational structure and formulate rules and regulations that favor their crimes. Makansi (2010) examines case studies to prove that white-collar crime is dependent on organizational structure. For example, the financial crisis that Merchant Energy Business faced in 2001-2002 occurred due to the liberal Financial Accounting Board, which failed to provide a standard model of valuing natural gas and fuel. Moreover, a financial crisis that rocked the securitization market in 2008 was due to fraudulence in the pricing of securitization products. These examples ...