White Collar Crime

White Collar Crime

Devyn M. Antonucci

University of Tampa

1. Introduction:

        White collar crime is overall phrase that describes a multitude of criminal acts committed by respected people in everyday industries. Movies like “Wolf of Wall Street” depict white collar crime in a decent manner. The movie shows the ins and outs of how business men going about victimizing their “customers”. Although this movie only shows on sector of white collar crime. White collar crime also includes, health care fraud, antitrust violations, consumer fraud, securities fraud, and environmental fraud. White collar crime has been seen as a “victimless crime”, throughout this paper it will be shown how people are effected financially, emotionally, and physically.

1. Definition and Costs of White Collar Crime

The concept of white collar crime was created by Edwin Sutherland over 60 years ago. At the time, the belief was that those living in poverty were more concentrated on and believed to be most likely to commit these crimes. It was Sutherland that changed the outlook on white collar crimes, and changed the focus to those in respectable, high paying jobs. Saying that upper class business men are looking to further their economic, and business interests. Those in respected professions were often ignored because they did not fit the stereotype of an everyday criminal. “ Bayse believes that both white collar and conventional offenders hide behind a criminal mask, are self-centered, need power and control, lead a life style of lying, and lack empathy” ( Payne, 2002)

[pic 1]

                                                        ( Payne, 2002)

        Sutherland came up with two approaches to white collar crime, offender-based, and offense based. White collar crime is defined by Sutherland as “a crime committed by a person of respectability and high social status in the course of his occupation.” (Payne 2002) This definition is the definition that defines the offender based approach. Offender based definition focus more on the high status and power of the criminal. The other definition focuses more on the offense itself rather than the criminal. This definition was created by Herbert Elderlhertz in 1970, he defines white collar crime as “an illegal act or series of illegal committed by non-physical means and by concealment or guile to obtain property or money, to avoid the payment or loss money or property, or to obtain business or personal advantage.” (Salinger 2013) Offense based, focus more on how the act is committed, other than who commits the acts.

        Regarding the definitions of white collar crime, we see how it affects people financially, physically, and socially. Every year companies, and individuals lose countless amounts of money to white collar criminals. White collar criminal due so well at hiding their crime, that to establish a precise number is nearly impossible. Though we know for certainty that is well exceeds money lost to crimes such as robbery, burglary, larceny etc. The FBI (federal bureau of investigation) estimated that $17.6 billion are lost in burglary, robbery, larceny, etc. Whereas (from what has been reported) they estimated that over $300 million has been lost due to white collar crimes. ( Mathers 2004)

[pic 2]

                                                                (Payne 2002)

        White collar crime is mostly seen as financially effecting people, although is has been noted that it effects people physically as well. When people violate work place protocol, such as safety laws, or the manufacturing and distributing of goods, as well as violations of environmental regulations, they can be physically affected. Just about any white collar crime can affect someone physically. “In one case an 84 year old women and her husband lost nearly half a million dollars to a bogus investment scheme. When they learned of this, the husband dies of a heart attack.” (Payne 2002) White collar crime can ruin a person’s life. If they believe they are investing their money in a beneficial manner, only to learn they have been schemed, this can take a huge toll on their mental and physical state.

1. Characteristics and Techniques of White-Collar Crime

        White collar crime is universal. It is not specified to any one profession or industry. These white collar crimes, although different in how they are committed, share similar characteristics and techniques. These help to distinguish white collar crime from conventional crimes such as burglary, or robbery. There are three different characteristics and they are as follows: 1) The offender has access to the target or victim of the crime from their profession; 2) the offender is spatially separated from the victim; and 3) the offenders actions seem honest, and legal in the eyes of the victim and law. (“White Collar Crime” n.d)

        Access is usually simple for criminals if they work in a profession that gives them distance and easy access to victims. This is easy in comparison to a burglar who would have to stake out a home, and figure out when the victim wouldn’t be home, and how to access the home. Profession such as a bank employee would have access to a customer’s money and could embezzle the money without having to break into their home or attacking them on the streets. Another example would be that in health care fraud. Often the offender will bill health care insurance for services that a patient never received. Many times the health care provider will not pick up on the fraud, and the doctor will receive money for a serviced they never provided.