White Collar Crimes

Question 1

What is white-collar crime?

Answer 1

“A crime committed by a person of respectability and high social status in the course of his or her occupation” - Edwin Sutherland

Question 2

What are the 2 category of white-collar crime?

Answer 2

Occupational Crime and Organizational Crime

Question 3

Occupational crime?

Answer 3

WCC committed by an individual or group of individuals exclusively for personal gain

Question 4

Organizational Crime (corporate crime)?

Answer 4

Crimes committed with the support and encouragement of a formal organization and intended in part to advance the goals of that organization

Question 5

What two ways can WCC be understood

Answer 5

Crimes against the public (corporate and business crime, crimes by individual and professional practitioners)

Crimes within organization (offences against the organization, offences against employees)

Question 6

Are the financial costs of street crimes more that white collar crimes

Answer 6

No, formal organization allows crimes of great magnitude compared to person acting alone

Question 7

True of false: An average of more than two deaths a day occur as a result of workplace injuries

Answer 7

True

Question 8

Are social classed WCC positively or negatively correlated?

Answer 8

Positively

Question 9

What are the 3 components of middle/upper class lifestyle that contribute to criminal behaviour according to Shover and Hochstetler?

Answer 9

1. Competitive Spirit (winning is the only thing)
2. Arrogance (the rules don’t apply to them)
3. A sense of entitlement (they deserve what they stole)

Question 10

What is Canada’s Nortel

Answer 10

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

Question 11

In the past, consumer safety has been an issue. What was the incident in 2007 in which both the government and the industry failed?

Answer 11

Several incidents of unsafe Chinese products were being sold; contaminated pet food, counterfeit toothpaste, unsafe children toys

Question 12

True or false: Even though manufacturing has moved offshore, North American companies and governments still have to ensure safety and quality?

Answer 12

True

Question 13

What the 1992 Westray mine explosion

Answer 13

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

Question 14

What are the 2 issues with occupational crime?

Answer 14

Misconduct and failure of organizations to deal with misconduct

Question 15

`Why is occupational crime often hidden

Answer 15

Occupational crime us often hidden because it is dealt with by professional associations

Question 16

What is a breach of trust?

Answer 16

Stealing from investors

Question 17

What is insider trading?

Answer 17

Using knowledge not available to people outside the company to profit from stocks

Question 18

examples of internet fraud?

Answer 18

spam email, hacking company sites, not delivering articles on ebay

Question 19

What is blue-collar crime?

Answer 19

Crimes that are committed by a lower-social class, where as white collar crime is committed by the upper-class

Question 20

What is tax fraud?

Answer 20

When people do not report their income honestly, some people exaggerate deductions to receive more on their income tax.

Question 21

What is political corruption?

Answer 21

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

Question 22

What is employee fraud?

Answer 22

When an employee commits fraud against their employer

eg. taking kickback from suppliers, creating phone invoices, stealing company property and cash