Trusted Criminals: White Collar Crime in Contemporary Society

Front Cover......Page 1
Title Page......Page 2
Copyright......Page 3
Brief Contents\n......Page 6
CONTENTS......Page 7
FOREWORD......Page 20
PREFACE......Page 22
1 The Discovery of White Collar Crime......Page 36
Edwin H. Sutherland and the Discovery of White Collar Crime......Page 37
Box 1.1 E. H. Sutherland: The \"Father\" of White Collar Crime Studies......Page 38
Defining White Collar Crime......Page 40
A Multistage Approach to Defining White Collar Crime......Page 41
Social Harm and White Collar Crime......Page 43
Trust and White Collar Crime......Page 44
Respectability and White Collar Crime......Page 45
Risk and White Collar Crime......Page 46
Class......Page 48
Box 1.3 Cross-Cultural and International Dimensions of White Collar Crime......Page 49
Race......Page 50
Criminal Careers......Page 51
The Social Movement against White Collar Crime......Page 52
Images of White Collar Crime: The Role of the Media......Page 53
Box 1.4 The National White Collar Crime Center......Page 54
Informers and Whistleblowers......Page 55
Box 1.5 The Media as Entertainment: White Collar Crime in Films and on TV......Page 56
Box 1.6 Whistleblower or White Collar Criminal?......Page 58
Muckrakers and Investigative Reporters......Page 60
The Consumer Movement, Public Interest Groups, and Labor Unions......Page 63
Box 1.7 The Internet, Blogs, and White Collar Crime......Page 64
The Role of Politicians and Political Institutions......Page 65
Key Terms......Page 67
Discussion Questions......Page 68
2 Studying White Collar Crime and Assessing Its Costs......Page 69
Specific Challenges in the Study of White Collar Crime......Page 70
Obtaining Statistics......Page 71
Research Methods for Studying White Collar Crime......Page 72
Case Studies......Page 73
Experiments......Page 74
Surveys......Page 75
Secondary Data Analysis and Event History Analysis......Page 76
Archival Data Analysis and Historical Ethnography......Page 77
Students\' Role as Researchers......Page 78
Measuring White Collar Crime: How Prevalent Is It?......Page 79
Box 2.4 Conventional Crime and White Collar Crime Rates......Page 81
Victimization Surveys and Self-Report Studies......Page 82
The Need for Reliable Data......Page 83
Direct Costs......Page 84
Indirect Costs......Page 86
Other Costs......Page 87
Victims of White Collar Crime......Page 88
Box 2.6 Women as a Special Class of Victims of White Collar Crime......Page 89
The Role of the Victim......Page 90
Specific Forms of Suffering of White Collar Crime Victims......Page 91
Studying White Collar Crime and Assessing Its Costs, in Sum......Page 93
Discussion Questions......Page 94
The Historical Development of the Corporation and Corporate Crime......Page 95
The Corporation in Modern Society......Page 96
Box 3.1 \"It\'s Legal but It Ain\'t Right\"......Page 98
A Typology of Corporate Crime......Page 99
Corporate Violence against the Public: Unsafe Environmental Practices......Page 100
Box 3.2 The Exxon Valdez and Prince William Sound......Page 102
Corporate Violence against Consumers: Unsafe Products......Page 103
Box 3.3 Corporate Destruction of a Community......Page 104
Box 3.4 The Ford Pinto Case......Page 107
Corporate Violence against Workers: Unsafe Working Conditions......Page 108
Box 3.5 The Production and Sale of Tobacco: Corporate Crime?......Page 109
Box 3.6 Asbestos and the Manville Corporation......Page 110
Box 3.7 The Film Recovery Systems Case......Page 111
Crimes against Citizens and Taxpayers: Defrauding the Government and Corporate Tax Evasion......Page 112
Box 3.8 Halliburton, Vice President Cheney, and Iraq War Contracts......Page 113
Crimes against Consumers: Price Fixing, Price Gouging, False Advertising, and Misrepresentation of Products......Page 116
Crimes against Employees: Economic Exploitation, Corporate Theft, Unfair Labor Practices, and Surveillance of Employees......Page 118
Crimes against Franchisees and Suppliers: Discount and Chargeback Frauds......Page 120
Crimes against Competitors: Monopolistic Practices and Theft of Trade Secrets......Page 121
Crimes against Owners and Creditors: Managerial Accounting Fraud, Self-Dealing, and Strategic Bankruptcy......Page 122
Box 3.10 The Case against Microsoft......Page 123
Box 3.11 Adelphia, HealthSouth, WorldCom, and Accounting Fraud......Page 125
Are Universities and Colleges Corporate Criminals?......Page 126
Box 3.12 Student Loan Industry and Fraudulent Conduct......Page 128
Discussion Questions......Page 129
4 Occupational Crime and Avocational Crime......Page 131
Crimes by Small Businesses: Retail Crime and Service Fraud......Page 132
Retail Crime......Page 133
Defrauding Vulnerable People......Page 134
Service Business Fraud......Page 135
Crimes by Professionals: Medical, Legal, Academic, and Religious Crime......Page 136
Medical Crime......Page 137
Legal Crime......Page 140
Academic Crime: Professors, Scientists, and Students......Page 142
Box 4.3 Plagiarist or Hate Crime Victim?......Page 143
Box 4.4 Student Loan Officials and Conflicts of Interest......Page 144
Religious Crime......Page 148
Employee Crime......Page 149
Box 4.5 Exorbitant Executive Compensation: Just Reward or Grand Theft?......Page 150
Forms of Employee Theft......Page 151
Employers\' Responses to Employee Theft......Page 152
Alternative Forms of Employee Crime......Page 153
Some Factors in Employee Theft......Page 154
Conditions in the Workplace and Employee Crime......Page 155
Income Tax Evasion......Page 156
Box 4.9 Actor Wesley Snipes and a Tax Evasion Case......Page 158
Occupational and Avocational Crime, in Sum......Page 159
Discussion Questions......Page 160
5 Governmental Crime: State Crime and Political White Collar Crime......Page 162
Governmental Crime: Some Basic Terms......Page 164
Governmental Criminality on an Epic Scale......Page 165
The Vietnam War......Page 166
U.S. Military Activity in the \" New World Order\"......Page 167
The Criminal State......Page 168
Box 5.2 The Perception of the United States as a Criminal State, and President George W. Bush as a State Criminal......Page 169
The Repressive State......Page 171
The Corrupt State......Page 173
State Negligence......Page 174
State-Organized Crime......Page 176
The White House and State-Organized Crime......Page 177
Box 5.4 The Watergate Affair......Page 178
State-Organized Crime and Federal Investigative Agencies......Page 179
Police Crime......Page 181
Corruption in the Electoral Financing Process......Page 182
Political White Collar Crime in the Executive Branch......Page 183
Box 5.5 The Corrupt Firing of U.S. Prosecutors......Page 186
Political White Collar Crime in the Legislative Branch......Page 188
Political White Collar Crime in the Judicial Branch......Page 189
Governmental Crime, in Sum......Page 190
Box 5.6 Police Corruption as a Form of \"Political\" White Collar Crime......Page 191
Key Terms......Page 192
Discussion Questions......Page 193
State-Corporate Crime......Page 194
Box 6.1 State-Corporate Crime, Nazi Germany, and the Holocaust......Page 195
Crimes of Globalization......Page 197
Box 6.2 Private Mercenaries and Military Contractors in Iraq; Operation Iraqi Freedom as Theft on a Grand Scale......Page 198
Box 6.3 Economic Hit Men and Crimes of Globalization......Page 199
The Role of the World Bank in a Global Economy......Page 200
The World Bank and Crimes of Globalization......Page 201
Box 6.5 The Dam at Pak Moon: A Case of Global Crime by Jessica Friedrichs......Page 202
Finance Crime......Page 203
Banking/Thrifts Crime: The Savings and Loan Mess......Page 204
Box 6.6 Frauds and the Collapse of the Subprime Mortgage Loan Market......Page 207
Box 6.7 Investment Banks: Wealth Producers or Large-Scale Fraudsters?......Page 209
Box 6.8 The Charles Keating Case......Page 212
Insider Trading......Page 213
Finance Crime and Financial Markets......Page 218
Box 6.10 Short Sellers Who Spread False Rumors: Worse than Inside Traders?......Page 219
Box 6.11 Fraudulent Conduct in the Mutual Funds and Hedge Funds Industries......Page 220
Hybrid White Collar Crime, in Sum......Page 224
Discussion Questions......Page 225
Enterprise crime: Organized crime and White Collar Crime......Page 227
The Relation between Governmental Crime and Syndicated Crime......Page 229
Historical Roots of Organized Crime......Page 230
The Relation between Syndicated Crime and White Collar Crime......Page 231
The Relation between Syndicated Crime and Finance Crime......Page 233
Box 7.3 From Street Thug to Equity Markets Fraudster......Page 234
The Relation between Professional Crime and White Collar Crime......Page 235
Box 7.4 Joseph \"Yellow Kid\" Weil and the Big Con......Page 236
Fraud......Page 237
Box 7.6 Fraud in the World of Art and Antiquities......Page 238
Box 7.7 Advance Fee Frauds......Page 240
Box 7.8 Charity as Fraud......Page 241
Box 7.9 Jordan Belfort and the Stratton Oakmont Penny Stock Fraud......Page 242
Technocrime, Including Computer Crime......Page 246
Computer Crime......Page 247
Box 7.11 Identity Theft as White Collar Crime......Page 249
The Law and Computer Crime......Page 250
Other Types of Technocrime......Page 251
Enterprise Crime, Contrepreneurial Crime, and Technocrime, in Sum......Page 252
Discussion Questions......Page 253
8 Explaining White Collar Crime Theories and Accounts......Page 254
What Do We Want to Explain?......Page 255
The Biogenetic Explanation......Page 256
Psychological Explanations......Page 257
Sociogenic Explanations......Page 260
Organizational Responsibility......Page 261
The Various Dimensions of Organizational Criminality......Page 263
General Theories of Crime and White Collar Crime Theory......Page 266
Box 8.5 Low Self-Control and White Collar Crime......Page 267
Classical Criminology and Rational Choice......Page 268
Control Balance and Control Fraud Theories......Page 269
Social Process and Learning......Page 270
Interactionism and Labeling......Page 271
Neutralizations, Rationalizations, and Accounts......Page 272
Structural Strain and the Structure of Opportunity......Page 273
Conflict Theory and Criminogenic Societies......Page 274
The Structure of Contemporary Capitalist Society and White Collar Crime......Page 275
Radical and Critical Perspectives on White Collar Crime......Page 276
Box 8.9 White Collar Crime in a Postmodern World......Page 277
Explaining Criminalization and White Collar Crime......Page 278
Integrated Theories of White Collar Crime......Page 279
The Subprime Mortgage Market Frauds: Applying an Integrated Theoretical Approach......Page 280
Explaining White Collar Crime, in Sum......Page 282
Discussion Questions......Page 283
Social Control and White Collar Crime......Page 285
Formal Law and White Collar Crime......Page 286
The Historical Origins of White Collar Crime Laws......Page 287
Box 9.1 The Carrier\'s Case and the Law of Employee Theft......Page 288
The Influence of Business on the Lawmaking Process......Page 289
Box 9.2 The Dialectical Perspective on Lawmaking......Page 290
Box 9.3 Bailout Legislation as Save-the-Economy Measures or Save–Wall Street Crooks Measures......Page 291
The Constitution and Constitutional Law......Page 293
Case Law......Page 294
Executive Lawmaking......Page 295
Administrative Law......Page 296
Antitrust Law......Page 297
Occupational Safety and Health Laws......Page 299
Environmental Protection Laws......Page 300
The RICO Law......Page 302
Civil and Criminal Law and White Collar Crime......Page 303
Law, Corporations, and the Concept of Criminal Liability......Page 304
Corporate Criminal Liability......Page 305
Box 9.8 A Comparative Perspective on Corporate Criminal Responsibility......Page 306
Corporate Personhood and Corporate Decision Making......Page 308
Box 9.9 Proposed Colorado Ballot Measure on Corporate Fraud......Page 309
Discussion Questions......Page 310
Criminal Justice System Policing: Law Enforcement......Page 312
State and Federal Enforcement Agencies......Page 313
The FBI......Page 314
The Inspectors General......Page 315
The U.S. Secret Service, U.S. Customs Service, and U.S. Marshals Service......Page 316
The Internal Revenue Service\'s Criminal Investigative Division......Page 317
The Regulatory System Response......Page 318
The Origins and Evolution of Regulation......Page 319
The Creation and Operation of Federal Regulatory Agencies......Page 320
Box 10.1 The Contemporary Debate on Regulation......Page 321
The Regulatory Agency\'s Philosophy: Compliance versus Deterrence......Page 322
Criticisms of Regulatory Agencies......Page 324
Prominent Regulatory Agencies and Their Functions......Page 325
Box 10.2 The Role of Regulation in Relation to the Global Economic Crisis......Page 326
Box 10.3 Agency Capture......Page 327
Box 10.4 The SEC in Recent Years, and the Financial Crisis of 2008......Page 329
Box 10.5 Protecting the Environment: Alternatives to Relying Upon the EPA......Page 331
Private Policing......Page 332
The Role of Lawyers and Accountants in Policing White Collar Crime......Page 334
Lawyers and Professional Ethics......Page 335
Accountants and Auditing Responsibilities......Page 337
Self-Regulation: Internal Controls and Professional Associations......Page 338
Box 10.7 Credit Rating Agencies as a Failed Policing Entity......Page 339
Self-Regulation in Financial Firms......Page 340
Self-Regulation and the Professions......Page 341
Policing and Regulating White Collar Crime, in Sum......Page 342
Discussion Questions......Page 343
11 Prosecuting, Defending, and Adjudicating White Collar Crime......Page 344
Local Prosecutors......Page 345
State Attorney Generals......Page 347
Federal Prosecutors......Page 348
Box 11.3 Deferred Prosecution Agreements and Lawyer–Client Privilege Waivers......Page 350
The Prosecution of Environmental Crime......Page 351
Box 11.4 Prosecutorial Initiatives in Response to the Financial Crisis of 2008......Page 352
Special Prosecutors (Independent Counsel)......Page 353
Defending White Collar Criminals......Page 354
Box 11.5 \"Perp Walks\" for White Collar Crime Defendants......Page 355
Box 11.6 To Testify or Not to Testify......Page 357
Adjudicating White Collar Crime: Plea Bargaining and Trial......Page 359
Box 11.7 The Enron Trial of Kenneth Lay and Jeffrey Skilling......Page 360
The Role of the Trial Jury......Page 361
Box 11.8 Punitive Damages, the U.S. Supreme Court, and the Role of Juries......Page 362
Judges and the Sentencing of White Collar Criminals......Page 363
Sentencing......Page 364
Explaining Disparities in Sentences for White Collar Offenders......Page 365
Sentencing Organizational Offenders......Page 367
Sentencing Guidelines and White Collar Offenders......Page 368
White Collar Criminals in the Correctional System......Page 370
Civil Suits......Page 372
Box 11.11 Plaintiffs\' Lawyers as Heroes—and as Villains......Page 374
Box 11.12 The Role of Mediators and Arbitrators in the Settlement of Complaints......Page 375
Citizen Suits and Class Action Suits......Page 376
Collateral Civil Suits......Page 377
Discussion Questions......Page 378
12 Responding to the Challenge of White Collar Crime......Page 380
Policy Options for Responding to White Collar Crime......Page 381
Responding to White Collar Crime as a Moral Issue......Page 382
Business Ethics Courses in the Curriculum......Page 383
Business Ethics within the Business World......Page 384
Securing Compliance and Sanctioning White Collar Crime......Page 385
Box 12.2 Corporate Human Rights Obligations and Corporate Social Responsibility: Promotion of Ethical Corporations—or Simply Good Public Relations?......Page 386
Law and the Coercive Response to White Collar Crime......Page 387
Civil Suits and Penalties......Page 388
Compliance versus Punitive Approaches to Corporate Crime......Page 389
Deterrence and White Collar Crime......Page 390
Box 12.4 Retribution and \"Just Deserts\" for Corporate Crime......Page 391
Rehabilitation, Probation, and Enforced Self-Regulation......Page 393
Enforced Self-Regulation......Page 394
Fines, Restitution, and Community Service......Page 395
Sentencing Guidelines for Fines......Page 396
Occupational Disqualification......Page 397
Incarceration......Page 398
Organizational Reform and Corporate Dissolution......Page 399
Box 12.7 Citizen Works Proposals for Cracking Down on Corporate Crime......Page 400
Box 12.8 Scandinavian Countries\' Initiatives Against White Collar Crime......Page 401
Controlling Governmental Crime......Page 402
Structural Transformation as a Response to White Collar Crime......Page 403
Responding to the Challenge of White Collar Crime, in Sum......Page 404
A Concluding Note: Trusted Criminals and White Collar Crime in the 21st Century......Page 405
Discussion Questions......Page 406
REFERENCES......Page 407
NAME INDEX......Page 465
SUBJECT INDEX......Page 481