Unit 4 - Ch. 6

Question 1

Is Canada seen as tough on white-collar crimes? (Economically motivated crimes)

Answer 1

No – Canada is viewed as soft on white-collar crimes.

Question 2

Define Economic Crime

Answer 2

Criminal offences in which the primary motivation is economic gain.

Question 3

What two broad categories can economic crimes be placed in?

Answer 3

Individual and group crimes.

Many economic crimes (white-collar crime, theft, property crime, fraud, prostitution, drug dealing) can be perpetrated by a lone offender or by large organizations such as gangs, criminal organizations, or “legitimate” business corporations.

Question 4

According to the 2014 Global Economic Crime Survey (PricewaterhouseCoopers 2015), 36 percent of Canadian organizations surveyed reported being the victim of one or more economic crimes. The top four reported forms of economic crimes were:

Answer 4

1) asset misappropriation (58 percent; e.g., employees stealing cash/assets),

2) procurement fraud (33 percent; e.g., unlawful bidding processes),

3) accounting fraud (22 percent), and

4) cybercrime (22 percent; e.g., spreading viruses, hacking, phishing).

The survey also revealed that a sizeable number of Canadian organizations were the victims of bribery/corruption, competition laws/anti-trust violations, illegal insider trading, money laundering, espionage, intellectual property theft, and mortgage/tax fraud.

It should be noted that for most economic crime (including white-collar crime), male offenders outnumber female offenders. Prostitution is one exception to this trend and is discussed later in this chapter.

Question 5

What is the research methodologies for economic crimes?

Answer 5

Large-scale surveys of corporations - Get victim perspective

Surveying or interviewing the perpetrators of economically motivated crime

Question 6

What are the different types of economic crimes?

Answer 6

1. White-Collar Crime
2. Theft
3. Property Crime
4. Fraud
5. Identity Theft (Special case of fraud)
6. Cybercrime/Cyberbullying
7. Prostitution/Sex Trade
8. Organized Crime (Fraud, sex trade, Drug trade)

Question 7

How was the term “White-collar crime” coined?

What is the more modern definition?

Answer 7

1939 - Edwin Sutherland - “Crime committed by a person of respectability and high status in the course of his occupation”.

Modern - Green (1997):

Organizational crime—a corporation or agency profits from law-violating behaviour (e.g., bribing pubic officials, Chief Financial Officer falsifies tax record with Board of Director’s consent).

Professional crime—law-violating behaviours by professionals such as lawyers, physicians, psychologists, etc. (e.g., a doctor bills for seeing eight patients when he only saw four).

State-authority crime—law-violating behaviours by those with legal authority (e.g., bribes taken by public officials, police brutality, torture of individuals in custody).

Individual crime—law-violating behaviours by individuals (e.g., stealing supplies from an employer, not reporting full income to Revenue Canada).

Question 8

Some researchers simply view white-collar crime along two dimensions:

Answer 8

Occupational Crimes: offences committed against businesses and government by perpetrators with a “higher” social status. These offences include expense account fraud and tax evasion

Corporate Crimes: are offences committed by organizations to advance their own interests. Corporate crime offences include price fixing (e.g., companies that all sell the same product decide on a price, preventing price variability for the consumer) and the payment of kickbacks to manufacturers or retailers (who use the organization’s product). The distinction between occupational and corporate crime can be thought of as crime focused on individuals versus crime focused on organizations.

Question 9

Price Fixing

Answer 9

Occurs when companies group together to sell the same product for the same price; there is no price variability for the consumer.

Question 10

Profiling a white-collar criminal - What are some common characteristics of white-collar offenders? (Holtfreter, 2005)

Answer 10

Age/Race/Gender:
-White Male
-Approx. 40 years old
-Male offenders outnumber female offenders
-Female white-collar offenders typically held lower level positions such as clerical jobs
-Male white-collar offenders typically held higher level positions

Education:
-White-collar criminals tend to have greater educational attainment compared to other types of offenders – Higher level positions in corporations typically need higher education

Position:
-White-Collar offenders will have knowledge and be involved in the financial aspects of the organization that would facilitate occupational crime such as embezzlement. An individual’s position in the organization facilitates the types of white-collar crimes possible to commit. Those in manager/executive positions have greater opportunities.

Question 11

In a study by Holtfreter (2005), 1142 occupational fraud cases were examined to differentiate between individual offender characteristics and organizational victim characteristics. Three types of occupational fraud were assessed. What were they?

What were the results of the study?

Answer 11

-Asset Misappropriation: Typically middle-class - More often in smaller organizations

-Corruption: Typically middle-class - Corporations victimized by corruption typically large profit-generating corporations.

-Fraudulent statements: Tended to be “high status”. - Typically in smaller organizations

Question 12

Blickle, Schlegel, Fassbender, and Klein (2006) surveyed 76 prisoners convicted of white-collar crime in Germany and 150 managers working in various companies. Some significant differences were found between the two groups:

Answer 12

-White-collar criminals were more hedonistic (more supportive of the pursuit of pleasure and life enjoyment) which lead to a greater likelihood of giving into temptation when opportunity presented itself to make money illegally.

-The criminals also had stronger narcissistic tendencies and less behavioural self-control than the managers.

-Speculated that white-collar criminals were more conscientious (responsible, careful, or diligent). The researchers speculated that the criminals were high-level executives who would require conscientiousness to obtain the education and training necessary to achieve their level of employment.

However,

Another study found that white-collar criminals have lower integrity than non-criminals. Other differentiating traits of white-collar criminals included irresponsibility, lack of dependability, and disregard for rules/social norms.

Question 13

Common characteristics of victims of white-collar crime are also outlined by Holtfreter (2005):

Answer 13

ORGANIZATIONAL TYPE: A study by Smigel (1956) found that there was a positive association between the size and level of bureaucracy of the organization and the willingness to approve of stealing from that organization. Corporations with large bureaucracies can receive little sympathy from the public, often perceived as making large profits.

ORGANIZATIONAL SIZE: Very generally, larger organizations are associated with greater crime than smaller organizations (Gricar 1983). A number of factors have been found to interact with organizational size however, including decentralization and level of control.

INTERNAL CONTROLS: Organizations that have greater internal controls, such as audits and anonymous reporting systems, are less likely to be victimized. Furthermore, if these controls then result in the dismissal of guilty employees, less victimization will occur.

Question 14

What is the public perception of white-collar crimes according to a telephone survey examined by Holtfreter, Van Slyke, Bratton, and Gertz (2008)?

402 U.S. Citizens

Answer 14

-Large number of respondents want white-collar criminals punished as harsh/more harsh than violent criminals

-Respondents wanted greater government resources allocated to fight white-collar crimes

-U.S. Citizens perceived street criminals as more likely to be arrested and sentenced more severely than white-collar criminals.

-Public felt that robbery should be punished similarly to fraud

Question 15

The criminal code of Canada (section 322) states…

Answer 15

…that “every one commits theft who fraudulently and without colour of right takes, or fraudulently and without colour of right converts to his use or to the use of another person, anything, whether animate or inanimate, with intent.”

Question 16

Criminal Code of Canada (Section 322) – There is a demarcation of ______ when deciding on the punishment for crime. Theft over ______ is an indictable offence with a maximum punishment of ____________. Theft under _________ is considered a hybrid offence, meaning it can be treated either as an indictable offence or a less serious summary conviction. This decision is made by the Crown prosecutor. If theft under ______ is prosecuted as an indictable offence, the maximum penalty is ____________. As a summary conviction, the maximum penalty is ________, ________, or __________.

Answer 16

1. $5000
2. $5000
3. 10 years imprisonment
4. $5000
5. $5000
6. Imprisonment for no more than 2 years
7. Six months imprisonment, a fine of $2000, or both

Question 17

What is a common type of theft?

Answer 17

Shoplifting. It is not a specific criminal offence but simply a theft categorized by the value of the merchandise stolen under the Canadian Criminal Code. It incorporates both low-value and high-value items.

Question 18

According to Employment and Social Development Canada (2015), property crime can be categorized in one of two ways:

Answer 18

-Theft of personal property such as wallets, credit cards, or money

-Household crime that includes breaking and entering, vandalism, theft of cars or car parts, and theft of household property.

Question 19

Employment and Social Development Canada (2015) also indicates that victimization rates of personal property crimes increased from_____ incidents per 1000 people in 1999 to_____ incidents per 1000 people in 2009. Household property crime victimization also increased from _____ incidents per 1000 households to _______ incidents from 1999 to 2009.

Answer 19

1. 75
2. 108
3. 218
4. 237

Question 20

Under section 380 of the Criminal Code of Canada, fraud is divided into two categories:

Answer 20

1. Fraud over $5000
2. Fraud over $5000

Question 21

When does fraud occur?

Answer 21

Fraud occurs when deceit or fraudulent means are used to deprive someone of property, money, valuable security, or services. Many thefts can also be fraud, and it is sometimes up to the police to decide whether to lay a fraud charge or a theft charge against an offender.

Question 22

In January 2010, Senate Bill _____ became law, which created a number of new offences under the Canadian Criminal Code and identified aspects of identity theft that were not already covered by existing provisions. What are the definitions of some of these offences with a focus on the “preparatory stages of identity theft by making it an offence to obtain, possess, transfer or sell the identity documents of another person”?

Answer 22

1. S-4

-Identity Crime: term used to describe all forms of illicit conduct (unlawful activity) involving identity including but not limited to identity theft and identity fraud.

-Identity Theft: defined as obtaining and possessing identity information with the intent to use the information deceptively, dishonestly or fraudulently in the commission of a crime. Under Criminal Code Section 402.2 (1) Everyone commits an offence who knowingly obtains or possesses another person’s identity information for criminal reasons

-Identity Fraud: is the actual deceptive use of the identity information of another person (living or dead) in connection with various frauds (e.g., personating another person and the misuse of debit card or credit card data).

-Trafficking in identity information: Criminal Code Section 402.2 (2) Everyone commits an offence who transmits, makes available, distributes, sells or offers for sale another person’s identity information, or has it in their possession for any of those purposes, knowing that or being reckless as to whether the information will be used to commit an indictable offence that includes fraud, deceit or falsehood as an element of the offence.

-Identity Document: an identity document can be any document that identifies a person or that contains identity information. Parliament has created a specific criminal offence in relation to a list of the most common types of official identity documents (section 56.1 (3)).

-Breeder Document: a genuine document used to confirm one’s identity when applying for other genuine documents. A birth certificate is a good example of a breeder document. Once altered, counterfeited or illegally obtained, a breeder document can be used to apply for other genuine ID documents or cards.

-Identity Information: Criminal Code Section 402.1 “identity information” means any information — including biological or physiological information — of a type that is commonly used alone or in combination with other information to identify or purport to identify an individual, including a fingerprint, voice print, retina image, iris image, DNA profile, name, address, date of birth, written signature, electronic signature, digital signature, user name, credit card number, debit card number, financial institution account number, passport number, Social Insurance Number, health insurance number, driver’s license number or password.

Question 23

In addition to identity fraud, a number of other types of fraud are possible. These include:

Canadian Anti-Fraud Centre

Answer 23

1. Advance Fee Fraud: Fraud that required payment before delivery of service
2. Online auction fraud: Fraud that occurs through online purchasing (non-delivery of goods/services, non-payment for goods/services delivered)
3. Investment Fraud: Fraud that occurs with investments impacting a person of company (insider training)
4. Counterfeit: Fraud associated with counterfeit currency or payment cards
5. Home renovation fraud: Fraud associated with home renovation services or sale (real estate fraud)
6. Health fraud: Fraud associated with healthcare or services, including insurance
7. Fraudulent Bankruptcy: Fraud associated with personal or corporate bankruptcy claims (concealment of assets)
8. Corruption/Bribery: Any misuse of power and position by a public or non-government official (bribery of a public official)

Question 24

Foreign Affairs, Trade and Development Canada (2015) defines cybercrime as a….

Answer 24

…“criminal offence involving a computer as the object of the crime (hacking, phishing, spamming), or as the tool used to commit a material component of the offence (child pornography, hate crimes, computer fraud). Criminals can also use computers for communication and document or data storage.”

Question 25

The RCMP breaks cybercrime into two categories:

Answer 25

1. Technology as target: criminal offences targeting computers and other information technologies, such as those involving the unauthorized use of computers, or mischief in relation to data.
2. Technology as an instrument: criminal offences where the Internet and information technologies are instrumental in the commission of a crime, such as those involving fraud, identity theft, intellectual property infringements, money laundering, drug trafficking, human trafficking, organized crime activities, child sexual exploitation, or cyber bullying.

Question 26

According to the RCMP, cyberbullying involves…

Answer 26

…the use of communication technologies such as the Internet, social networking sites, websites, email, text messaging, and instant messaging to repeatedly intimidate or harass others”.

Question 27

What acts are considered cyberbullying?

Answer 27

Sending mean or threatening emails or text/instant messages

Posting embarrassing photos of someone online

Creating a website to make fun of others

Pretending to be someone by using their name

Tricking someone into revealing personal or embarrassing information and sending it to others

Question 28

Xantidis and McCabe (2000) examined the characteristics and motivations of men seeking the services of female sex workers. In this study, 66 clients and 60 non-clients completed a questionnaire assessing sex roles, social–sexual effectiveness, and sensation-seeking behaviour. What were the findings?

Answer 28

Demographics: Clients and non-clients were similar in age, education, marital status, and occupation

Clients were less likely to subscribe to feminine sex-role orientation, had lower social-sexual effectiveness, and had high sensation-seeking behaviours.

Motivation to seek prostitutes: Client group partitioned into two groups.

1. Low social-sexual effectiveness and seemed motivated to visit sex workers because they desired intimate contact
2. High level of sensation-seeking and seemed motivated to visit sex workers because they wanted novelty and variety in sexual encounters.

Question 29

Sawyer, Metz, Hinds, and Brucker (2001) examined the attitudes towards prostitution of 140 males aged 19 to 66 years who had used prostitutes. What were the findings?

Answer 29

Younger and less educated males (when compared to men who were older and more educated) were more likely to believe in inaccurate myths about prostitution and less likely to support the decriminalization of prostitution. Approximately 33 percent of men had who used a prostitute reported they enjoyed sexual relations with the prostitute. Fifty-seven percent reported that they tried to stop using prostitutes. Approximately a third of the participants reported being arrested for using prostitutes.

Overall, the study suggests that men who engage in the use of prostitution are a mixed group with varying backgrounds and motivations for seeking to purchase sexual services.

Question 30

What is a pimp?

Answer 30

A “pimp” controls prostitutes, arranges customers for them, and takes part of the prostitute’s earnings. Pimps may start as male clients, then become an intimate partner, and end as a controlling pimp.

Question 31

In a study that compared women controlled by pimps to those not controlled by pimps, Norton-Hawk (2004) questioned 50 jailed prostitutes, of which 40 percent had been controlled by a pimp. What were the characteristics associated with prostitutes controller by pimps? Why should these be considered as risk factors?

Answer 31

-Single (Not in a relationship)
-Did not complete high school
-Non-caucasian
-Never held legitimate employment
-Dysfunctional family background
-Younger age for first sexual activity
-Younger age for use of illegal drugs
-More likely to experience violence from customers

It is important to consider these as risk factors since it may be helpful to target the factors to reduce pimp-controlled prostitution.

Question 32

A “criminal organization” is defined in section 467.1 of the Criminal Code as a group that…

Answer 32

1) is composed of three or more persons in or outside Canada; and 2) has as one of its main purposes or activities the facilitation or commission of one or more serious offences that, if committed, would likely result in the direct or indirect receipt of material benefit, including financial benefit, by the group or by any of the persons who constitute the group.”

This definition does not include a group of individuals who come together randomly to commit a single offence.

Question 33

(amounts) – The Canadian Security Intelligence Service (CSIS) estimated that there were approximately ________ organized crime groups in Canada in 2008. In 2011, CSIS identified _____ crime groups in Canada

Answer 33

1. 900
2. 729

Question 34

Criminal organizations use a number of methods to increase profitability, expand power bases, and protect against criminal charges.

According to CISC, the following methods are used to gain a competitive advantage in the criminal marketplace (organized crime):

Answer 34

1. Violence and Intimidation: Internally (keep members in line) and externally (against criminal rivals, witnesses, community members). Lower-level groups pose a more immediate public safety threat.
2. Critical Skills: Skilled members/outsiders needed to carry out certain organized crime (fraud, counterfeiting, etc.). Either recruited or coerced. Commonly lawyers, bank reps, accountants.
3. Money Laundering: Lower-level groups use restaurants, casinos, purchase of luxury goods. Higher-level groups use offshore investments, real estate ventures. Both use legitimate or shell companies to launder money.

Question 35

The United Nations Office on Drugs and Crime (UNODC) created the Protocol to Prevent, Suppress and Punish Trafficking in Persons (also called the Trafficking Persons Protocol), which defines human trafficking as:

(Just remember the broken down version in 3 parts)

Answer 35

Recruitment, transportation, transfer, harbouring or receipt of persons, by means of threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation. Exploitation shall include, at a minimum, the exploitation of the prostitution of others or other forms of sexual exploitation, forced labour or services, slavery or practices similar to slavery, servitude or the removal of organs.

1. The act (what is done) - Recruitment, transportation, transfer, harbouring, receipt of persons
2. The means (how it is done) - Threat or use of force, coercion, abduction, fraud, deception, abuse of power/vulnerability, giving payments or benefits to a person in control of the victim
3. The purpose (why it is done) - Exploitation including exploiting the prostitution of others, sexual exploitation, forced labour, slavery or similar practices, and the removal of organs.

Question 36

Trafficked females are often exploited and frequently lured by….

with promises of….

then forced into….

Women risk abuse and exploitation as… until they repay…. to regain…..

Answer 36

by individuals known to them or their families

with promises of jobs as waitresses, nannies, or cleaners

then forced into sex work or exploited while working.

as prostitutes for up to 18 hours a day, 7 days a week,

until they repay so-called travel debts

to regain their passports from their captors/employers.

Question 37

What is increasingly being recognized as one of the world’s fastest-growing crimes and a significant violation of human rights?

Answer 37

Trafficking of women and adolescents.

RCMP estimates 800 people are trafficked into Canada each year. Other agencies estimates the number to be closer to 16 000

On an international scale, some sources suggest that four million girls and women are sold into prostitution, slavery, or forced marriage every year.

Question 38

Bill C-49 (sections 279.01–279.04 of the Criminal Code) created three new indictable criminal offences to specifically address trafficking in persons:

Answer 38

Section 279.01 prohibits anyone from recruiting, transporting, transferring, receiving, holding, concealing, or harbouring a person, or exercising control or influence over the movements of a person for the purpose of exploiting or facilitating the exploitation of that person. The maximum penalty for trafficking involving the kidnapping, aggravated assault, aggravated sexual assault, or death of an individual is life in prison.

Section 279.02 prohibits anyone from receiving a financial or other material benefit for the purpose of committing or facilitating the trafficking of a person, with a maximum penalty of 10 years.

Section 279.03 prohibits the withholding or destruction of documents such as a victim’s travel documents or documents establishing their identity for the purpose of committing or facilitating the trafficking of that person, with a maximum penalty of 5 years.

Question 39

Sex tourism

Answer 39

Going to other countries to seek (often child) prostitution.

Question 40

A number of mechanisms are used to maintain control. Traffickers may use…

Answer 40

blackmail (e.g., threaten to send pornographic images to family and friends)

psychological control (e.g., threaten one’s family)

create or strengthen a pre-existing chemical dependency (e.g., giving victims drugs and alcohol)

or employ a complex “grooming” process in which they first create an illusion of being in a loving relationship.

The victim then feels that they owe the trafficker something, which leads to a gradual process of exploitation (e.g., having sex with the trafficker’s “friend” as a favour, eventually building into more exploitative situations such as attending a party where the victim is gang-raped and filmed). The victim then experiences low self-worth, accepts the circumstances she finds herself in, and feels she deserves it and cannot get out.

Question 41

Wohlbod et al. made several recommendations (to reduce human trafficking crimes) in their study, including:

Answer 41

Improving public awareness

Providing better outreach and intervention for victims

Providing better housing/protection for victims (e.g., dedicated human trafficking shelters) (Wohlbod et al. 2014)

Question 42

Organized crime groups are often extensively involved in fraud. Riley (1998) compiled a useful summary of organized crime fraud activities. What are they?

Answer 42

-Mass marketing Fraud: Organized crime groups in Canada target Canadians and consumers in other countries, including the United States and Australia. Top mass-marketing fraud schemes include prize/sweepstakes/lottery and gift schemes, Internet auctions, and vacation giveaways.

-Mortgage Fraud: Organized crime groups operate a number of schemes involving fraudulent mortgage applications that contain false information about the prospective buyer or property through the use of false appraisals and employment records. Organized groups may recruit family members to submit fraudulent mortgage applications to avoid detection.

-Payment Card Fraud: Information is transferred from point-of-sale terminals to vehicles nearby and almost instantly transferred to “card factories”

-Contraband tobacco: Illegal cigarettes - primarily in Ontario and QC

-Intellectual property rights crime: Counterfeit goods (handbags, jewelry, clothes

-Vehicle-related crime: Primarily in Toronto and Montreal - Steal car, change vin, disassembled for parts

-Identity theft/fraud

Question 43

Mellor, MacRae, and Pauls, and Hornick (2005) developed a gang typology that included gang activities, gang organization, motivation to join gangs, recruitment strategies, and exit strategies. What are the 5 types?

Answer 43

Type A: Group of friends - Does not engage in antisocial acts

Type B: Spontaneous Criminal Activity Group/Gangs - Large and social in nature. Members typically prosocial, and criminal activity that does occur is spontaneous or situation motivated (shoplifting, theft, bullying, etc.). Fluid group, no permanent leadership/hierarchy. Not connected to organized groups. Limited weapon use. Recruitment is passive, exiting is possible and risk-free.

Type C: Purposive Group/Gangs - Forms for committing specific offence. Size dependent on specific crime and group typically disbands once committed. Property theft, home invasion, extortion, robbery, hate crimes, vigilante-type assaults. More structured than type B. Small, male-dominated membership. Little to no link to organized crime groups. Members join for emotional needs, thrill-seeking, survival, boredom, retribution purposes. Recruitment through social groups and group is short-lived. Easily dissolved by arrest or diversion.

Type D: Youth Street Gangs - Organized to carry out money-making criminal activity/violence against other gangs. Members wear gang specific clothing, tattoos, jewelry, and mark their territory with graffiti. Planned and organized activities. Commits wide variety of crimes. Prostitution, intimidation, vehicle theft, assault, robbery, homicide, etc. Usually has a hierarchy. May or may not have connections to organized crime groups. Moderate levels of leadership and code of conduct is imposed. Affiliated + non-affiliated members. Initiations. Core members completely loyal to gang. Motivation for joining is money, power, protection, lack of alternatives, social acceptance. Recruitment done via friends, family, or taking in disenfranchised youth. Some members coerced to join while in prison. May require proof of criminality to join. Initiations for males includes violence, being beaten, or committing certain offences. Females often have to have intercourse with all the male members. Very difficult to leave gang but can be “beaten out” (severe assault). Requires help from police, community, and family to leave.

Type E: Structured Criminal Organizations - Highly structured and sophisticated business operations that may operate internationally. To maintain low profile/distance from criminal acts, these groups tend to use street-level groups to carry out many aspects of business. They have been known to use children under 12 to spy, commit break and enter, and act as couriers, as well as engage in child pornography.

Question 44

As of November 2011, ______ percent of Correctional Service Canada’s inmate population was known to be affiliated with a criminal organization or gang

Answer 44

10%

Question 45

Theories of Economically-Motivated Crime -Theory to explain Property and Theft

Answer 45

A common theory used to explain economically motivated property crime is the routine activity theory (Cohen and Felson 1979).

The routine activity theory has three components: availability of suitable targets, absence of guardians, and motivated behaviour.

For example, in the case of a robbery, an offender identifies an empty home as a suitable target with the absence of guardians and financial strain might be a motivator behind the offending behaviour.

Question 46

Theories of Economically-Motivated Crime - Explaining Fraud (2 theories)

Answer 46

The fraud triangle (Cressey 1973) is an explanation of fraud that has three facets that form the triangle: 1) opportunity to commit fraud, 2) pressure to commit fraud, and 3) rationalization of the fraud.

The perceived pressure is the motive for the offender to commit the crime. Once the offender believes that he or she is able to commit the crime without being caught (i.e., has an opportunity), the act will be carried out (Dorminey, Fleming, Kranacher, and Riley 2012). Lastly, the offender rationalizes that his or her behaviour is morally acceptable due to the situation he or she is currently in (e.g., financial strain).

Wolfe and Hermanson (2004) proposed a fraud diamond, which considers four elements of fraud. As in Cressey’s model, fraud is considered more likely to occur when someone has pressure or incentive to commit fraud, when weak controls are in place that allow for opportunity, and when the person can rationalize the behaviour (which is an attitudinal component). Wolfe and Hermanson’s fourth factor concerns “capability.” That is, the person must have the traits and abilities to commit the fraud. In order to be “capable” one must be in the right position to commit the fraud, be intelligent, immune to stress, have a narcissist personality (i.e., egotistic, grandiose), be deceptive, and have strong coercive skills.

Question 47

Theories of Economically-Motivated Crime - Explaining Cybercrime

Answer 47

A theory that is helpful in explaining cybercrime is rational choice theory (Cornish and Clarke 1986). Rational choice theory posits that offenders weigh the costs and benefits of the crime in question prior to committing it. Wada, Longe, and Danquah (2012) suggest that this theory can also extend to cybercrime criminals.

A theory that is helpful in explaining cybercrime is rational choice theory (Cornish and Clarke 1986). Rational choice theory posits that offenders weigh the costs and benefits of the crime in question prior to committing it. Wada, Longe, and Danquah (2012) suggest that this theory can also extend to cybercrime criminals.

Question 48

Theories of Economically-Motivated Crime - Explaining Prostitution

Answer 48

While there is no set theory that explains why offenders become involved in economically motivated prostitution, one could argue that social strain theory may provide an explanation.

Social strain theory proposes that society has predetermined, set goals, but does not offer the ability to achieve these goals to every person in society (Merton 1938). People who are in need of money may turn to prostitution in order to acquire income so they can achieve societal goals. Agnew (2006) also proposed that individuals may engage in prostitution to achieve monetary goals, since they may feel that it is the only option to overcome the stress and strain experienced in their lives.

Question 49

Theories of Economically-Motivated Crime - Explaining the Drug Trade

Answer 49

Walters (2002) suggests that social strain theory also can be applied to offenders in the drug trade. The basic premise of social strain theory is that when there are opportunities for economic advancement, one will do whatever it takes to generate income. Because of this, offenders may seek out drug-trade opportunities to generate quick and easy profits to lessen the financial strain they experience. Similarly, Agnew (2006) considers that the selling of drugs may be an avenue a person takes to help achieve monetary goals.

Question 50

Theories of Economically-Motivated Crime - Explaining Gangs (3)

Answer 50

Interactional theory (Thornberry 1987; Thornberry and Krohn 2001) is a common theory used to help explain gangs.

Interactional theory suggests that positive bonds with society must first be weakened before a person engages with a gang. This breakdown of positive bonds then leads to delinquent behaviour and the seeking out of peers who engage in similar behaviour.

Decker, Melde, and Pyrooz (2012) discuss two different theoretical approaches to gangs and gang violence. The first is a structural control perspective, which posits that gangs are a product of weakened systems of social control. The second perspective is structural adaptation whereby gangs are created in response to environmental conditions. Once gang members are initiated, they are in an environment that promotes and fosters their delinquency. Gangs then work as a unit to achieve any economic goals they may have.

Question 51

Factors Associated with Criminal Conduct among Economically-Motivated Offenders - Property Crime

Answer 51

-Substance Abuse (Support their habit)
-Homelessness (Survival)
-Poverty level and unemployment

Question 52

Factors Associated with Criminal Conduct among Economically-Motivated Offenders - Fraud and White-Collar

Answer 52

-Middle-class status
-Low self-control
-White-collar = typically male, high status, highly educated

Question 53

Factors Associated with Criminal Conduct among Economically-Motivated Offenders - Cybercrime

Answer 53

-Low self-control
-Believes they are not committing person-to-person crime
-Inflated level of confidence from being behind computer screen

Question 54

Factors Associated with Criminal Conduct among Economically-Motivated Offenders - Prostitution

Answer 54

-Typically woman
-Homeless (survival)
-Drug abuse (support habit)
-May have ran away from home (abusive household or drawn to the excitement of the street)
-Mental health issues
-Low self-esteem

Question 55

Factors Associated with Criminal Conduct among Economically-Motivated Offenders - Drug Trade

Answer 55

-Unemployment
-Quick and easy profit
-Substance abuse
-Violence (disagreements on pricing, retaliations, punishment for low quality drugs)

Question 55

Factors Associated with Criminal Conduct among Economically-Motivated Offenders - Gangs

Answer 55

-Drug use (Deal and use)
-Possession of weapons
-Reduced level of fear (which can lead to offending behaviour)
-Violence
-Low-level of education

Question 56

Assessment Approaches and Effectiveness - Property Crimes and Fraud

Answer 56

Virginia Sentencing Commission created an assessment approach that is often used for fraud/property crime offenders.

-Assesses likelihood of recidivism
-Classifies offender on their risk of future offences
-Scores used to determine if offender should be incarcerated
-Factors such as offender characteristics, prior arrest record, prior incarcerations, and prior felony convictions are examined
-Recommendations for diversion based on point total.

Offenders who have been assessed with this instrument and received higher scores did have higher recidivism rates. Similarly, offenders who were recommended for diversion using this tool had a lower rate of recidivism (compared to those offenders who were not recommended).

Question 57

Assessment Approaches and Effectiveness - Cybercrime

Answer 57

No general assessment approach to cybercrime as a whole. Encompasses various activities which makes overall assessment difficult.

Sexual Cybercrime: clinical assessment tool for sexual offending that is also useful in assessing risk for online offenders may be useful.

Although online sex offenders have not been included in the validation of the Risk Matrix 2000/Sex (RM2000/S) assessment tool, the RM2000/S does include “being a non-contact offender” and “not knowing the victim” as aggravating factors; both of these factors are prevalent in online sexual offending. Similarly, the STABLE 2007 and ACUTE 2007 assess trait characteristics that are also common in Internet offenders and these assessment tools can be useful in examining the level of risk that an online sexual offender presents.

Question 58

Risk Matrix 2000 (RM2000)

Answer 58

Risk Matrix 2000 (RM2000) is a statistically-derived risk classification process intended for males aged at least 18 who have been convicted of a sexual offense. At least one of these sexual offenses should have been committed when the perpetrator was aged 17 or older. It uses simple factual information about individuals’ past history to divide them into categories that differ substantially in their rates of reconviction for sexual or other violent offenses.

Question 59

STABLE 2007 and ACUTE 2007

Answer 59

The STABLE-2007 and the ACUTE-2007 are specialized tools designed to assess and track changes in risk status over time by assessing changeable “dynamic” risk factors. “Stable” dynamic risk factors are personal skill deficits, predilections, and learned behaviours that correlate with sexual recidivism but that can be changed through a process of “effortful intervention”.

“Acute” dynamic risk factors are highly transient conditions that would only last hours or days. These factors are rapidly changing environmental and intrapersonal stresses, conditions, or events that have been shown by previous research to be related to imminent sexual reoffence.

Question 60

Assessment Approaches and Effectiveness - Prostitution - VASOR-2

Answer 60

The Vermont Assessment of Sex Offender Risk-2 (VASOR-2) is designed to assess risk among adult males who have been convicted of a qualifying sex offence.

This assessment consists of a 12-item reoffence risk scale and a 4-item severity factors checklist. Although this scale cannot be used for an offender convicted solely for prostitution, it can be used when a prostitution offence is committed in addition to contact sex offences such as sexual assault. The VASOR-2 can also be used to asses non-contact sex offences, such as exhibitionism, in addition to prostitution.

The VASOR-2 reoffence risk scale has been shown to have moderate accuracy in predicting recidivism.

Question 61

Assessment Approaches and Effectiveness - Drug Trade - LSI-R

Answer 61

The Level of Service Inventory-Revised (LSI-R) is an assessment tool that contains 54 items and covers different criminogenic domains such as criminal history, education/employment, alcohol and drug use, and emotional health. For those convicted of involvement in the drug trade, the LSI-R has been shown to be effective in predicting whether an offender will return to prison for similar drug trade offences. An offender’s LSI-R scores are considered when making decisions involving sentencing, discretionary release opportunities, and/or parole eligibility.

Question 62

Assessment Approaches and Effectiveness - Gangs

Answer 62

An assessment approach for gangs can be characterized as an approach for group-based violence (Cook 2014). This type of risk assessment can be applied to an individual who identifies with a larger group.

The Multi-Level Guidelines approach is another way to assess group-based violence. This approach is a form of structured, professional-judgment risk assessment. It consists of 20 risk factors broken down into four categories: individual, individual-group, group, and group-societal. Factors that are examined include violent behaviour, group-based identity, group violence, and intergroup threat. This assessment is still relatively new. However, professionals that have utilized this assessment reported these guidelines to be useful and helpful for assessing group-based violence (Cook 2014).

Question 63

Treatment Approaches and Effectiveness - White Collar Crime Legislation

Answer 63

In 2003, the National White-Collar Crime Centre of Canada (NW4C) was incorporated under the Canada Corporations Act in order to prevent and respond to economic crime by linking national and international systems through the Canadian Anti-Fraud Centre. There are a number of acts dealing with various forms of economically motivated crime.

-White-collar criminals typically work for the organization they are stealing from and may be ongoing due to lack of detection of organization prefers not to report it to avoid publicity.
-White-collar criminals may be fire/asked to pay back what they stole
-Federal, provincial, and municipal laws prohibit various corporate crimes.
-Government inspectors responsible for enforcement of corporate offences but tend to have less authority to investigate than police.

Question 64

Acts dealing with various forms of economically motivated crimes:

1. Competition Act (1986)
2. Food and Drugs Act (1985)
3. Hazardous Products Act (1985)
4. Immigration Act (2008)
5. Income Tax Act (2007)

Answer 64

1. Prohibits advertising sales when prices have not been lowered, claiming a product can do something it cannot, and selling used cars as new
2. Prohibits selling contaminated food/drugs
3. Prohibits selling dangerous items
4. Prohibits bribing an immigration officer
5. Prohibits Tax Evasion

Question 65

Treatment Approaches and Effectiveness - Property Crime Interventions

Answer 65

The Alternatives, Attitudes, and Associates Program is a commonly used treatment program for offenders who commit property crime.

-Geared towards criminal attitudes, values, and beliefs.
-Teach goal-setting
-Teach problem solving techniques
-Teach self-management
-Emotional skills
-Attitude skills
-Emphasizes prosocial relationships
-26 group sessions - varies in duration (about 2-3 hours typically)

Question 66

Treatment Approaches and Effectiveness - Fraud Interventions

Answer 66

All day group session
-Examine/Challenge motivation behind crime
-Social, legal, and societal consequences discussed
-Factors examined
-Discuss potential risk vs reward to help deter (in relation to career, legal, family, personal impacts)

Question 67

Treatment Approaches and Effectiveness - Cybercrime Interventions

Answer 67

No general treatment for cybercrimes

As a whole, treatment programs may be available for specific type of offence committed.

Faithful Foundation in the U.K. (a registered a child protection charity, see http://lucyfaithfull.org) has developed a program geared towards offenders who view online child pornography.

This program allows offenders to discuss what they have done, the implications their actions have on both themselves and the children, and how they can prevent it from happening again. Offenders in this program are confronted with trying to figure out why they looked at the pictures and whether they do or do not have a sexual attraction to children. Offenders are taught to understand that the people in the pictures they are looking at and/or sharing are human beings that have rights and feelings. The program typically runs for 10 weeks with sessions lasting two-and-a-half hours. To date, it is unclear whether such a program is effective.

Question 68

Treatment Approaches and Effectiveness - Prostitution Interventions

Answer 68

Women working in the sex trade may experience violence, substance abuse, physical and mental health issues, and homelessness. In order to address these issues, a group of Victoria, B.C., sex-trade workers formed an organization called PEERS (Prostitutes Empowerment Education and Resource Society) in 1995 (Rabinovitch and Strega 2004). PEERS is based on four principles:

Choice: PEERS supports both women who want to get out of the sex trade and those who want to continue working within it. PEERS focuses on providing sex-trade workers with concrete, practical, and accessible help without judgment.

Capacity building: PEERS recognizes the strengths of sex workers (e.g., communication and interpersonal skills, adaptability, ability to work under pressure, experience with difficult clients, and the ability to negotiate) and works to build on these skills through employee therapy, counselling, and chemical dependency treatment.

Harm reduction: A variety of programs are provide for people who are actively in addiction and working regularly in the trade.

Trust: Peer-led services are organized, in which sex-trade workers design and deliver their own services.

Question 69

Treatment Approaches and Effectiveness - Drug Trade Interventions (DTC phases)

Answer 69

Offenders convicted of low-level drug trades offences to sustain their own habit can attend a drug treatment court (DTC).

DTC Phases:

1. Dependency assessment (Drug use history, consequences of drug use, and social support examined) - Develop treatment plan
2. Orientation and stabilization: Group sessions discussing norms of DTC. Three two-hour support group sessions for four-eight weeks to discontinue drug use and develop links to community resources.
3. Intensive Treatment Plan - Two-hour group sessions four time a week for three week. Learn to recognize triggers, understanding drug use, develop positive coping skills.
4. Bi-weekly group sessions - Therapy

Question 70

Treatment Approaches and Effectiveness - Gang Interventions (GVRP - 5 core principles)

Answer 70

The Little Village Gang Violence Reduction Project (GVRP; Spergel 2007) was a community-wide program designed to reduce serious violence in Chicago’s gang-ridden Little Village neighbourhood.

The program takes an integrated, community-wide approach that includes law enforcement, social welfare agencies, and grassroots organizations all working together in a team-oriented manner. The programs five core principles are:

1. Community mobilization—community leaders and residents are involved
2. Social intervention—multidisciplinary teams provide outreach to at-risk and current gang members and provide an array of services
3. Provision of academic, economic, and social opportunities
4. Gang suppression—gang-involved youth are held accountable for their actions
5. Facilitating organizational change and development—support is provided to the community to solve the gang problem

Overall arrest rates did not differ across groups and no differences were observed in property-related crime. However, some evidence for reductions in violence-related arrests was found. Due to these mixed results, the program is no longer in operation. The lack of success may have been due to program implementation problems and unsuccessful community mobilization. Some components may actually have increased gang cohesiveness (e.g., having rival gangs play softball). Finally, none of the programming targeted criminal thinking or the cognitive distortions held by gang members