Corporate Crime

Question 1

what is Insider trading

Answer 1

• illegal trading by people with knowledge that gives them the advantage over other investors

Question 2

How do the costs of corporate compare to street level crime

Answer 2

the corporation is a tool for obtaining money from victims that same way like a gun is a tool for street crime

Question 3

What are Ponzi schemes

Answer 3

• investors are promised substantial returns but existing investors are paid off with money from new victims

Question 4

What are pump and dumps

Answer 4

• Stock prices are artificially inflated and then shares are sold for profit

Question 5

Why do judges sometimes believe white collar offenders should be sentenced more leniently

Answer 5

• public is more concerned with street and violet crime
• corporate crime is complex and costs a lot to prosecute
• corporate crime can be multi-jurisdictional
• corporate criminals are non-violent

Question 6

Define and apply the concepts of juristic person/corporate personhood

Answer 6

makes them formally liable to the same laws as “natural person”.

• the fault of this concept is that corporations cannot be imprisoned

Question 7

Define and apply the concepts of corporate homicide

Answer 7

workplace accidents and occupational deaths are often the result of employer carelessness or unsafe conditions
but have very light penalties

Question 8

Define and apply the concepts of criminogenic market structure

Answer 8

A economic market that is structured in such a way that it tends to produce criminal behaviour

Question 9

What did Shover and Hochstetler’s (2006) research argue about the components that explain corporate and white collar crime

Answer 9

1. Competitive spirit (winning is the only thing)
   -start to cheat and break rules
2. Arrogance (the rules don’t apply to them)
   - think they are above everyone
3. A sense of entitlement (they deserve what they stole)
   -they deserved it due to their status

Question 10

What does research on the issue of corporate crime reveal about the role of social class and crime

Answer 10

shows that corporate crime and social class are positively correlated

Question 11

How does Sutherland define white collar crime

Answer 11

• financially motivated, nonviolent crime committed by business and government professionals

define as: a crime committed by a person of respectability and high social status

Question 12

What is executive disengagement

Answer 12

employees do not inform their superiors of certain actions so superiors cannot be held responsible