NCJ Number
45546
Date Published
1977
Length
17 pages
Annotation
THE CONCEPT OF ECONOMIC AND WHITE-COLLAR CRIME IS DEFINED, TRACED HISTORICALLY, AND ILLUSTRATED; SYSTEMS FOR CLASSIFYING ECONOMIC CRIMES ARE PRESENTED, AND PROBLEMS OF STUDYING ECONOMIC CRIME ARE NOTED.
Abstract
THE ORIGINS OF THE TERM 'WHITE-COLLAR CRIME' ARE TRACED TO THE CRIMINOLOGIST EDWIN H. SUTHERLAND, WHO DEFINED IT AS 'SUITE CRIME,' OR THE STREET CRIME OF THE BUSINESS AND PROFESSIONAL COMMUNITIES. HE CALLED FOR THE TREATMENT OF WHITE-COLLAR CRIME AS REAL CRIME REQUIRING THE INVOKING OF PENAL RATHER THAN CIVIL SANCTIONS. OBJECTIONS WHICH HAVE BEEN RAISED TO THE CONCEPT OF WHITE-COLLAR CRIME CENTER AROUND: (1) THE USE OF THE WORD 'CRIME,' SINCE MOST CASES OF SUCH VIOLATIONS ARE HANDLED OUTSIDE OF THE CRIMINAL JUSTICE SYSTEM; (2) THE FACT THAT AN UNINFORMED PUBLIC DOES NOT PERCEIVE THE ACTIVITY AS CRIMINAL (NOR DO THE PERPETRATORS) AND (3) THE ARGUMENT THAT WHITE-COLLAR CRIME IS SO PERVASIVE THAT IT IS THE NORM AND NOT THE EXCEPTION. ANOTHER DEFINITION CITED IS THAT OF HERB EDELHERTZ: 'ECONOMIC CRIME' IS 'AN ILLEGAL ACT OR SERIES OF ACTS COMMITTED BY NONPHYSICAL MEANS AND BY CONCEALMENT OR GUILE, TO OBTAIN MONEY OR PROPERTY, TO AVOID THE PAYMENT OR LOSS OF MONEY OR PROPERTY, OR TO OBTAIN BUSINESS OR PERSONAL ADVANTAGE.' HE PRESENTS A FOUR-CATEGORY CLASSIFICATORY SYSTEM OF WHITE-COLLAR CRIME: (1) CRIMES BY PERSONS OPERATING ON AN INDIVIDUAL AD HOC BASIS, E.G., TAX VIOLATIONS, CREDIT CARD FRAUD, CHARITY FRAUDS; (2) CRIMES COMMITTED IN THE COURSE OF THEIR OCCUPATIONS BY THOSE OPERATING INSIDE BUSINESS, GOVERNMENT, OR OTHER ESTABLISHMENTS IN VIOLATION OF THEIR DUTY OF LOYALTY AND FIDELITY TO EMPLOYER OR CLIENT, E.G., COMPUTER FRAUDS, COMMERCIAL BRIBERY OR KICKBACKS, EMBEZZLEMENT; (3) CRIMES INCIDENTAL TO AND IN FURTHERANCE OF BUSINESS OPERATIONS, BUT NOT THE CENTRAL PURPOSE OF THE BUSINESS, E.G., FRAUD AGAINST THE GOVERNMENT, FOOD AND DRUG VIOLATIONS, CHECK KITING, HOUSING CODE VIOLATIONS; AND (4) WHITE-COLLAR CRIME AS A BUSINESS OR AS THE CENTRAL ACTIVITY, E.G., BANKRUPTCY, LAND, HOME IMPROVEMENT, MERCHANDISING, INSURANCE, PYRAMID, AND OTHER RELATED FRAUDS AND SCHEMES. COMMON ELEMENTS OF ECONOMIC CRIME CITED BY EDELHERTZ ARE THE INTENT TO COMMIT A WRONGFUL ACT OR TO ACHIEVE A PURPOSE INCONSISTENT WITH LAW OR PUBLIC POLICY, DISGUISE OF PURPOSE OR INTENT, RELIANCE BY THE VIOLATOR ON IGNORANCE OR CARELESSNESS OF THE VICTIM, ACQUIESCENCE BY THE VICTIM IN WHAT HE BELIEVES TO BE THE TRUE NATURE AND CONTENT OF THE TRANSACTION, AND CONCEALMENT OF THE CRIME BY VARIOUS MEANS. THE AUTHOR NOTES THAT EDELHERTZ FAILS TO DIFFERENTIATE ECONOMIC CRIMES BY LEVELS OR CLASSES AND ACCORDINGLY PROPOSES THE FOLLOWING HIERARCHY: THE CONSUMER-FRAUD LEVEL; PRICE FIXING BY CHAIN STORES, BANK INTEREST RATES, 'COMPETITIVE' BIDDING IN THE CONSTRUCTION INDUSTRY, AND GENERAL MISREPRESENTATION AT THE SECOND LEVEL; AND AT THE THIRD LEVEL, THE ECONOMIC PRACTICES PERPETRATED BY LARGER, USUALLY NATIONAL, ORGANIZATIONS AND BUREAUCRACIES IN INDUSTRY. THE AUTHOR CONCLUDES THAT THE ECONOMIC CRIME PROBLEM IS A MISNOMER AND A CUL-DE-SAC IN THAT, APART FROM THOSE AT THE LOWEST LEVEL WHO DEFRAUD THE PUBLIC, THE PROBLEM OF ECONOMIC CRIME IS NOT A CRIME PROBLEM AT ALL BUT RATHER AN ISSUE OF WHAT KIND OF INDUSTRIAL AND POSTINDUSTRIAL SOCIETY IS TO EMERGE, HOW IT IS TO BE ORGANIZED AND REGULATED, AND BY WHOM. AMONG THE PROBLEMS OF DOING RESEARCH IN THIS FIELD IDENTIFIED BY MEMBERS OF A SEMINAR ON ECONOMIC CRIME ARE THE DIFFICULTY OR IMPOSSIBILITY OF PERFORMING QUALITATIVE AND QUANTITATIVE ANALYSIS, REPLICATING STUDIES, OBTAINING INFORMATION FROM THE SUBSYSTEMS OF THE CRIMINAL JUSTICE STRUCTURE, PROCURING FUNDING FOR ECONOMIC CRIME RESEARCH, AND LOCATING CRIMINOLOGISTS WITH BOTH RESEARCH COMPETENCY AND THE NECESSARY TRAINING IN LAW AND COMMERCE. EXTENSIVE REFERENCES ARE PROVIDED.