White Collar Crime Flashcards
What is Edwin Sutherland’s definition of white collar crime?
‘A crime committed by a person of respectability and high social status in the course of their occupation’. These offenders are often in a position of power and authority in a commercial environment.
Examples of white collar crime
Defrauding customers, tax evasion, breaking health and safety regulations, polluting the environment and discriminating against employees
Define money laundering
The process of making illegally gained money look like it came from a legitimate source so it can be used freely
Define embezzlement
A type of financial fraud where someone takes money or assets that were entrusted to them and uses them for a different purpose than for what they were intended.
Define identity theft
When someone steals personal information and uses it to commit fraud including bank details, addresses and names
Define insider trading
The illegal practice of trading on the stock market to one’s own advantage through having access to confidential information
What is corporate crime?
When crime is committed by or on behalf of a company e.g not disposing waste properly
What is professional crime?
When crime is committed by professionals who abuse their power for personal gain e.g accountants stealing their clients funds
Give 4 victims of white collar crime
- consumers. Companies may make false claims when advertising products or sell dangerous goods
- Tax payers + the government. Companies who evade tax are defrauding other tax payers and depriving government of funds to pay for public services
- Employees. Employers may subject their workers to bullying, sexual harassment or racial discrimination. Around 1000 work related deaths a year result from employers breaking the law
- The public. Everyone suffers when companies pollute the environment
Who was Bernie Madoff and what is the Ponzi scheme?
Bernie Madoff was an investor for 50 years. Anyone who did business with him made profits they felt honoured to be selected. In reality he was stealing investors money by putting it into a large bank account which he pulled money from to pay back old investments. He offered 12% consistent returns. This became known as the Ponzi scheme. The victims of this were anyone who invested with him and madoffs family.
Give 4 examples of offenders of white collar crime
- Respectable individuals high up in a company
- people working in a professional environment and are highly educated/qualified
- organised criminal gangs
- corporations
Explain the level of public awareness of white collar crime
Media coverage is limited compared to violent crime, they are often underreported (not aware they’re a victim, not a ‘real crime’ and feel it won’t make a difference), wcc are often de labelled as breaches of regulation not crime, financial crimes are complex to investigate, law enforcement may lack resources and knowledge to investigate effectively, the offender often has power and respect so they’re less likely to be suspected and may be able to avoid prosecution.
Are WCC criminal or deviant or both?
WCC are deviant and criminal because they break the law but also break social norms and are a betrayal of trust for victims
