White Collar Crime Flashcards
Define white collar crime
refers to financially motivated, non-violent (or non-directly violent) crimes committed by individuals, businesses and government professionals.
Examples of white collar crime
credit card fraud, tax evasion, defrauding customers, breaking health and safety laws.
What are the three types of white collar crime?
professional, organised, corporate.
What is professional white collar crime?
such as accountants stealing their clients funds, or Dr Shipman using his position of power to kill patients.
What is organised white collar crime?
seeking profits through illegal business. frequently employs violence or physical intimidation. eg the mafia.
What is corporate white collar crime?
crime is committed by or on behalf of a company, eg cheating customers or evading tax. the individual tends to benefit.
Why do white collar crimes often remain undetected, and go on for so long?
1.) perpetrators use sophisticated methods to hide their crimes, eg system passwords, complex transactions, business jargon.
2.) offenders often appear respectable, so people remain unaware and unsuspecting.
3.) cases are business related, and so not very glamorous or exciting, and difficult to understand. this means the media is less likely to publicise them.
Why was Bernie Madoff’s Ponzi scheme so successful?
Many instead money with him, as he had a trusted reputation, he claimed to use a legitimate strategy, and his returns were high but not unbelievable.
He has able to give returns out of the bank account where he stored investments, as he had more money coming in than he was giving back.
What caused the downfall of Bernie Madoff’s Ponzi scheme and what were the consequences?
In 2008, a financial crash caused investors to pull money from stocks. This meant Madoff could no longer keep up with returns.
In 2009, he pled guilty, and was sentenced to 150 years in prison, where he died in 2021.
What was the effect of Bernie Madoff’s Ponzi scheme?
The Ponzi scheme lasted at least 17 years, and defrauded thousands of investors out of an estimated $65 billion.
Why is white collar crime not reported?
Personal: fear, shame, disinterest.
Social/cultural: lack of knowledge, lack of media interest, lack of public concern, complexity.
