White Collar Crimes Flashcards
What is white-collar crime?
“A crime committed by a person of respectability and high social status in the course of his or her occupation” - Edwin Sutherland
What are the 2 category of white-collar crime?
Occupational Crime and Organizational Crime
Occupational crime?
WCC committed by an individual or group of individuals exclusively for personal gain
Organizational Crime (corporate crime)?
Crimes committed with the support and encouragement of a formal organization and intended in part to advance the goals of that organization
What two ways can WCC be understood
Crimes against the public (corporate and business crime, crimes by individual and professional practitioners)
Crimes within organization (offences against the organization, offences against employees)
Are the financial costs of street crimes more that white collar crimes
No, formal organization allows crimes of great magnitude compared to person acting alone
True of false: An average of more than two deaths a day occur as a result of workplace injuries
True
Are social classed WCC positively or negatively correlated?
Positively
What are the 3 components of middle/upper class lifestyle that contribute to criminal behaviour according to Shover and Hochstetler?
- Competitive Spirit (winning is the only thing)
- Arrogance (the rules don’t apply to them)
- A sense of entitlement (they deserve what they stole)
What is Canada’s Nortel
Nortel was was one the most valuable company in Canada, financial statements over stated revenues so it looked like the company was very profitable. The shares eventually dropped from $124 to $1 and many investors lost huge amounts. The Executives were highly paid and civil charges have been laid against some. Investors lost $300 billion
In the past, consumer safety has been an issue. What was the incident in 2007 in which both the government and the industry failed?
Several incidents of unsafe Chinese products were being sold; contaminated pet food, counterfeit toothpaste, unsafe children toys
True or false: Even though manufacturing has moved offshore, North American companies and governments still have to ensure safety and quality?
True
What the 1992 Westray mine explosion
26 killed in mine explosion in Nova Scotia due to negligence and incompetence. Company violated safety rules and gov’t inspectors did not enforce them. At the time no law could hold anybody liable. BUT in 2003 there was a new law passed to hold managers and directors accountable for workplace safety
What are the 2 issues with occupational crime?
Misconduct and failure of organizations to deal with misconduct
`Why is occupational crime often hidden
Occupational crime us often hidden because it is dealt with by professional associations
What is a breach of trust?
Stealing from investors
What is insider trading?
Using knowledge not available to people outside the company to profit from stocks
examples of internet fraud?
spam email, hacking company sites, not delivering articles on ebay
What is blue-collar crime?
Crimes that are committed by a lower-social class, where as white collar crime is committed by the upper-class
What is tax fraud?
When people do not report their income honestly, some people exaggerate deductions to receive more on their income tax.
What is political corruption?
The use of power by government officials or their network contacts for illegitimate private gain`
eg. The WE charity scandal of the Trudeau gov’t in 2020
What is employee fraud?
When an employee commits fraud against their employer
eg. taking kickback from suppliers, creating phone invoices, stealing company property and cash
