White Collar Crime Sutherlands Definition Coined white collar

“White Collar Crime” • Sutherland’s Definition – Coined “white collar crime” – People of “status” in course of “occupation” • Types of White collar crime – Corporate crime – Government crime – Occupational Crime – Organized crime

Causes of W. C. C. ? • Have we covered any theories that can explain something like corporate crime? – Why do millionaires break the law to get more money?

Sutherland • W. C. C. as “learned behavior” – Learn “rationalizations” and techniques – Not really “crime” but crafty business techniques • “Bait and Switch” • “Price Fixing” – “Corporate Culture”

Rational Choice Theory • The benefit ($) outweighs the cost (CJS penalties) • The “risk” of getting caught is relatively low (low certainty)

Messner and Rosefeld? • The “American Dream Ethos” – Monetary success is unlimited – All pressured to get “MORE”

Low Self-control • Desire for quick certain benefit with minimal effort • W. C. C. as “rare” because most business executives have high self-control

Theories not well equipped to explain WCC? • Merton (goals and means) – Most have “means” to achieve legitimately • Informal Social Control – Most have much to “risk” should they get caught

How Can we Prevent W. C. C. ? • Compliance Strategies – Create environment where compliance is rewarded ($ incentives) – Internal audits, insurance industry as watchdog, whistle-blowers hotline – Administrative Oversight • Securities and Exchange Commission

Preventing W. C. C. II • Deterrence—criminal penalties – Assumption made: criminal behavior is rational (WCC vs. “street crimes” – Criminal punishment rare—usually punish the more powerless businesses – Not “real criminals” don’t deserve prison – Most cases heard in civil court • CONFLICT THEORY!!!!!!

“Organized Crime” • Is there really a “mafia? ” – Myth created by media and a few felons or truth? – How “organized” is organized crime? • Is the “mafia” on the decline? – RICO enforcement – The “geritol gang” – Infusion of street gangs and different ethnic groups

“Blue Collar Crime” • Crimes committed by people of lower status as part of their occupation – Steal from work (property, $) – Tax evasion