White Collar Crime Flashcards
What is White collar crime?
Crimes committed by the upper/higher class like fraud. (Often hidden from public view).
Why is white collar crime hard to prosecute? (there are problems…)
Problems in identifying who is responsible and who is the victim.
Case study: what happened at the. Guinness affair?
FALSE CLAIMS of SUCCESS led to HIGH SHARE PRICES, with COMPANY DIRECTORS making millions.
Guinness affair: What happened with Gerald Roson?
He received one year sentence in open prison, but released on parole after six months. Still one of Britain’s 100 richest people.
How is most white collar crime dealt with?
Most white collar crime is dealt with ADMINISTRATIVELY by EXTERNAL AGENCIES like EPA (Environmental Proection Agency) and not criminally. Only serious cases go to court
Consequences of false claims of success & high share prices of the Guiness affair?
Company directors made millions
Case study: Enron Scandal. What happened?
FALSE ACCOUNTING and REPORTS OF HIGH PROFIT allowed President Kenneth Lay to borrow $75million from a company before it was made bankrupt.
What is blue collar crime?
Crimes committed by manual factory workers (w.c) these are street crimes like theft which are in public view.
Consequence of Enron?
-20,000 creditors were owed an estimate of $67 billion -19,000 people lose their jobs and savings.
What is Corporate crime?
Crimes committed ON BEHALF of a company, eg. TAX EVASION, TOXIC WASTE DUMPING.
What is Occupational Crime?
Crimes committed AT THE EXPENSE of companies. Eg. Fraud.
