Chapter Twelve by fionan


									  Chapter Thirteen
     Enterprise Crime:
White-Collar Crime and
      Organized Crime
Enterprise Crime

   Involves illicit entrepreneurship and commerce
       People twist the legal rules of commercial enterprise for
        criminal purposes
       Corrupts the free market system
   Can be divided into two distinct categories:
    •   White-collar crime
    •   Organized crime
   Both forms can involve violence
White-Collar Crime

   Any business-related act that uses deceit,
    deception, or dishonesty to carry out criminal
   Involves illegal activities of people and institutions
    whose acknowledged purpose is illegal profit
    through legitimate business transactions
   In the past it was considered only corporate crime
   Now include middle-income Americans
Extent of White-Collar Crime

   Difficult to determine the true extent
   According to the White Collar Crime Center:
       About half of households have experienced at least one
        form of white collar victimization each year
       About 2/3 of all Americans will experience at least one
        white collar victimization in their life
       Most common white collar victimizations include pricing
        fraud, credit card fraud, directly affected by corporate fraud
       2/3 of victims report the incident
         30% report to law enforcement agency
Components of White-Collar Crime

   Stings and swindles
   Chiseling
   Individual exploitation of institutional position
   Influence peddling and bribery
   Embezzlement and employee fraud
   Client fraud
   Corporate crime
Stings and Swindles

   A white-collar crime in which people use their
    institutional or business position to trick others out of
    their money

   Using illegal means to cheat an organization, its
    consumers, or both, on a regular basis
   Examples:
    •   Professional chiseling
    •   Securities fraud
Influence Peddling and Bribery

   Using one’s institutional position to grant favors and
    sell information to which one’s co-conspirators are
    not entitled
   Occurs in government as well as business
Embezzlement and Employee Fraud

   Use of one’s position to embezzle company funds or
    appropriate company property for themselves
   The company or organization is the victim
   Committed by both blue-collar workers and
Client Fraud

   Theft by an economic client from an organization
    that advances credit to its clients or reimburses
    them for services rendered
   Examples:
    •   insurance fraud
    •   credit card fraud
    •   fraud related to welfare or Medicare programs
    •   tax evasion
Corporate Crime

   When a powerful institution or its representatives
    violate the laws that restrain these institutions from
    doing social harm or require them to do social good
   Examples:
    •   price fixing
    •   illegal restraint of trade
    •   false advertising
    •   practices that violate environmental protection statutes
Causes of White-Collar Crime

   Rational Choice/Greed
   Rational Choice/Need
   Rationalization/Neutralization
   Cultural
   Self-control
Rational Choice

   Greed
       Greedy people choose to take shortcuts to acquire wealth
       Most believe they will not get caught
   Need
       Some people turn to crime to fulfill a financial or
        psychological need

   Use of rationalizations by offenders to resolve the
    conflict experienced over engaging in illegal
Corporate Culture

   Some business organizations promote white collar
   Place excessive demands on employees while
    maintaining a business climate tolerant of employee
   Enron

   The motives for white-collar crimes are the same as
    for other criminal behaviors
   Offenders have low self-control and are inclined to
    follow momentary impulses without considering
    long-term consequences
White-Collar Law Enforcement Systems

   The Federal government has the authority to
    regulate white-collar crime
       State and local agencies are now combating white-
        collar crime too
   Controlling White-Collar Crime
       Compliance strategies
         methods of controlling white-collar crime that rely on the
          threat of economic sanctions or civil penalties to control
          potential violators, creating a marketplace to obey the law
       Deterrence
         detect criminal violations, determine responsibility, and
          penalize offenders to deter future violations
Organized Crime

   Illegal activities of people and organizations whose
    acknowledged purpose is profit through illegitimate business
   General characteristics
     Conspiratorial activity

     Continuous commitment of primary members

     Economic gain is the primary goal (also power and status)

     Not all activities are illicit

     Use predatory tactics

     Groups are quick and effective in controlling and disciplining

     Not always the “Mafia”

     Does not include terrorists dedicated to political change
Activities of Organized Crime

   Narcotics distribution
   Loan sharking
   Prostitution
   Gambling
   Theft ring
   Pornography
   Stock market manipulation
The Concept of Organized Crime

   Alien Conspiracy Theory
       The belief, adhered to by the federal government and
        many respected criminologists, that organized crime is a
        direct offshoot of a criminal society that was imported to
        the U.S. by Europeans who have a policy of restricting
        membership to people of their own ethnic background
   The Mob: Cosa Nostra
       Some feel the “real” organized crime is made up of 25
        Italian dominated families
         Gambino, Lucchese, Bonanno, Genovese families

       Made men
Contemporary Organized Crime Groups

   Now organized crime groups are more
    considered a loose confederation of ethnic
    and regional crime groups
       Chicano
       Hells Angels Motorcycle Club
       Middle Eastern
       Chinese
       African criminal enterprises
       Balkan criminal organizations
       Eastern Europe
Controlling Organized Crime

   Racketeer Influenced and Corrupt Organization Act
   Allows prosecutors to bring additional charges
    against people engaged in 2 or more acts prohibited
    by 24 existing federal and 8 state laws
   Features monetary penalties that allow confiscation
    of all profits from criminal activities
   Intended for use against organized criminals; also
    used against white-collar offenders
The Future of Organized Crime

   Successful arrests and prosecution are an indication
    that the traditional organized crime syndicates are in
   The “Mafia” had been hurt by changing values in
    U.S. society
   There are still new groups thriving
   Always opportunities for illegal practices and huge
       Always demand for illegal goods and services
   Internet provides for new types of organized crime

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