NCJ Number
143201
Journal
Crime, Law and Social Change Volume: 19 Issue: 3 Dated: (April 1993) Pages: 223-243
Date Published
1993
Length
21 pages
Annotation
This analysis of subsidy fraud against the financial interests of the European Community (EC) highlights structural impediments to fraud control, draws parallels with other research on organized crime, and suggests that the distinction between organized crime and white collar crime be abandoned in favor of an enterprise model of crime.
Abstract
The case of subsidy fraud involved 57 offenders in Italy who were charged with a long list of fraud and fraud- related crimes that cost the EC several billion lire. The fraud essentially involved false documents and invoices and was discovered as part of an investigation into orgiastic practices involving the use of illegal drugs. The case demonstrates the extent of and potential for fraud against the EC and also shows that social structural features must be recognized in order to understand the full magnitude of fraud. The authors emphasize the importance of understanding difficulties in fraud control, as well as distinctions between organized crime and white collar crime. They conclude that legal changes and strict controls alone cannot substantially reduce the potential for fraud in the EC, especially in view of the abolition of the EC's internal borders in 1993. 66 notes and references