Trusted Criminals White Collar Crime In Contemporary Society

by Friedrichs, David O.

• ISBN13: 9780534535629
• ISBN10: 0534535623
• Edition: 2nd
• Format: Paperback
• Copyright: 2003-08-05
• Publisher: Wadsworth Publishing

Summary

This comprehensive text helps students understand the problems involved in studying white collar crime, explanations for crime, the principal focus of the crimes, and the character of the legal and criminal justice response to the crime.

Author Biography

David O. Friedrichs is professor of sociology/criminal Justice at the University of Scranton.

Table of Contents

Preface	xxiii
Acknowledgments	xxix
The Discovery of White Collar Crime	1	(31)
Edwin H. Sutherland and the Discovery of White Collar Crime	2	(2)
E. H. Sutherland: The ``Father`` of White Collar Crime Studies	3	(1)
Defining White Collar Crime	4	(8)
Some Issues of Debate on the Meaning of White Collar Crime	5	(1)
A Multistage Approach to Defining White Collar Crime	5	(3)
Trust and White Collar Crime	8	(1)
Respectability and White Collar Crime	9	(1)
Risk and White Collar Crime	10	(2)
Comparing White Collar Crime and Conventional Crime Offenders	12	(4)
Cross--Cultural and International Dimensions of White Collar Crime	13	(3)
The Social Movement against White Collar Crime	16	(1)
The National White Collar Crime Center	17	(1)
Images of White Collar Crime: The Role of the Media	17	(3)
The Media as Entertainment: White Collar Crime in Films and on TV	19	(1)
Exposing White Collar Crime	20	(10)
Informers and Whistle-Blowers	20	(3)
Muckrakers and Investigative Reporters	23	(3)
The Food Lion/ABC Primetime Live Case	26	(1)
The Consumer Movement, Public Interest Groups, and Labor Unions	26	(1)
The Internet and White Collar Crime	27	(1)
Ralph Nader and the Consumer Movement	28	(1)
The Role of Politicians and Political Institutions	28	(1)
Criminal Justice Professionals and Academics (Including Criminologists)	29	(1)
Discovering White Collar Crime, in Sum	30	(1)
Key Terms	30	(1)
Discussion Questions	31	(1)
Studying White Collar Crime and Assessing Its Costs	32	(25)
Underlying Assumptions and Different Perspectives	32	(1)
Specific Challenges in the Study of White Collar Crime	33	(2)
The Complex Nature of White Collar Crime	33	(1)
Gaining Access for Research	34	(1)
Obtaining Statistics	34	(1)
Obtaining Research Support	34	(1)
A Case Study: The Revco Medicaid Fraud Case	35	(1)
Research Methods for Studying White Collar Crime	35	(1)
Scholarly Research and White Collar Crime	36	(6)
Case Studies	36	(1)
Experiments	37	(1)
Surveys	38	(1)
Observational Research	38	(1)
Secondary Data Analysis and Event Historical Analysis	39	(1)
Archival Data Analysis and Historical Ethnography	39	(1)
Content Analysis	40	(1)
Comparative Studies of White Collar Crime	40	(1)
Students' Role as Researchers	40	(1)
Public Perception of White Collar Crime: How Serious Is It?	41	(1)
Measuring White Collar Crime: How Prevalent Is It?	42	(4)
Conventional Crime and White Collar Crime Rates	43	(1)
Victimization Surveys and Self-Report Studies	44	(1)
Measuring Specific Forms of White Collar Crime	45	(1)
The Need for Reliable Data	45	(1)
The Cost and Consequences of White Collar Crime	46	(3)
Direct Costs	46	(2)
Indirect Costs	48	(1)
Physical Costs	49	(1)
Other Costs	49	(1)
Victims of White Collar Crime	49	(6)
The Roles of Victims	51	(1)
Organizations as Victims of White Collar Crime	52	(1)
Specific Forms of Suffering of White Collar Crime Victims	53	(1)
Studying White Collar Crime and Assessing Its Costs, in Sum	54	(1)
Psychological Consequences of Fraud Victimization	55	(1)
Key Terms	55	(1)
Discussion Questions	55	(2)
Corporate Crime	57	(32)
The Historical Development of the Corporation and Corporate Crime	57	(1)
The Corporation in Society Today	58	(2)
A Typology of Corporate Crime	60	(1)
Corporate Violence	61	(12)
Corporate Violence against the Public: Unsafe Environmental Practices	61	(2)
The Exxon Valdez and Prince William Sound	63	(1)
Legal Challenges Continue	64	(1)
Corporate Destruction of a Community	65	(1)
Corporate Violence against Consumers: Unsafe Products	65	(3)
The Ford Pinto Case	68	(1)
Confronting a Far-Reaching Problem	69	(1)
Corporate Violence against Workers: Unsafe Working Conditions	69	(1)
The Production and Sale of Tobacco: Corporate Crime?	70	(2)
Asbestos and the Manville Corporation	72	(1)
The Complexity of Determining Culpability	72	(1)
The Film Recovery Systems Case	73	(1)
Corporate Abuse of Power, Fraud, and Economic Exploitation	73	(10)
Crimes against Citizens and Taxpayers: Defrauding the Government and Corporate Tax Evasion	74	(2)
Crimes against Consumers: Price Fixing, Price Gouging, False Advertising, and Misrepresentation of Products	76	(2)
Crimes against Employees: Economic Exploitation, Corporate Theft, Unfair Labor Practices, and Surveillance of Employees	78	(2)
The Enron Case and the Devastation of Employee Retirement Accounts	80	(1)
Crimes against Competitors: Monopolistic Practices and Theft of Trade Secrets	80	(2)
The Case against Microsoft	82	(1)
Crimes against Owners and Creditors: Managerial Fraud, Self-Dealing, and Strategic Bankruptcy	83	(3)
Are Universities and Colleges Corporate Criminals?	86	(1)
Corporate Crime, in Sum	87	(1)
Key Terms	87	(1)
Discussion Questions	88	(1)
Occupational Crime and Advocational Crime	89	(27)
Crimes by Small Businesses: Retail Crime and Service Fraud	90	(3)
Retail Crime	90	(1)
The Pharmacist and Drug Dilution: Occupational Crime as Violence	91	(1)
Defrauding Vulnerable People	91	(1)
Service Business Fraud	92	(1)
Crimes by Professionals: Medical, Legal, Academic, and Religious Crime	93	(11)
Medical Crime	94	(2)
Legal Crime	96	(2)
The Case of Roy Cohn: Corrupt Lawyer	98	(1)
Academic Crime: Professors, Scientists, and Students	98	(1)
Lawyers and the Abuse of Political Power	99	(4)
Religious Crime	103	(1)
Crimes by Professionals, in Sum	104	(1)
Employee Crime	104	(6)
The Case of Televangelist Jim Bakker	105	(1)
Forms of Employee Theft	106	(1)
Employers' Responses to Employee Theft	107	(1)
Alternative Forms of Employee Crime	107	(1)
Union Leaders Who Steal from Their Union Members	108	(1)
Some Factors in Employee Theft	108	(1)
Conditions in the Workplace and Employee Crime	109	(1)
Donkeys, Wolfpacks, Vultures, and Hawks: A Typology of Employee Theft	110	(1)
Employee Crime, in Sum	110	(1)
Occupational Crime, in Sum	110	(1)
Advocational Crime and White Collar Crime	111	(3)
Income Tax Evasion	111	(2)
A Case of Sales Tax Evasion	113	(1)
Other Forms of Advocational Crime	114	(1)
Key Terms	114	(1)
Discussion Questions	115	(1)
Governmental Crime: State Crime and Political White Collar Crime	116	(28)
Governmental Crime: Some Basic Terms	118	(1)
Governmental Criminality on an Epic Scale	119	(2)
The Threat of Nuclear War as Crime and Other Weapons of Mass Destruction	120	(1)
The Vietnam War	120	(1)
U.S. Military Activity in the ``New World Order''	121	(1)
Forms of State Criminality	121	(8)
The 9/11 Attack on America and Rogue States	122	(1)
The Criminal State	122	(2)
Adolf Hitler: The Greatest White Collar Criminal of the 20th Century?	124	(1)
The Repressive State	124	(2)
Suharto and the Looting of Indonesia	126	(1)
The Corrupt State	126	(1)
State Negligence	127	(1)
State Criminality, in Sum	128	(1)
State-Organized Crime	129	(1)
The White House and State-Organized Crime	130	(4)
State-Organized Crime and Federal Investigative Agencies	131	(2)
Police Crime	133	(1)
Political White Collar Crime	134	(9)
Political System Corruption	134	(1)
Corruption in the Electoral Financing Process	134	(1)
The Watergate Affair	135	(1)
Political White Collar Crime in the Executive Branch	136	(3)
Political White Collar Crime in the Legislative Branch	139	(2)
Political White Collar Crime in the Judicial Branch	141	(1)
Governmental Crime, in Sum	141	(1)
Police Corruption as a Form of ``Political`` White Collar Crime	142	(1)
Key Terms	143	(1)
Discussion Questions	143	(1)
State-Corporate Crime, Crimes of Globalization, and Finance Crime	144	(24)
State--Corporate Crime	144	(2)
State-Corporate Crime, Nazi Germany, and the Holocaust	145	(1)
Crimes of Globalization	146	(5)
Sweatshops in Developing Countries: Criminal Enterprises or Economic Opportunities?	148	(1)
The Role of the World Bank in a Global Economy	148	(1)
The International Monetary Fund, the World Bank, and the Case of Zaire	149	(1)
The Dam at Pak Moon: A Case of Global Crime Jessica Friedrichs	149	(1)
The World Bank and Crimes of Globalization	150	(1)
Finance Crime	151	(16)
Banking/Thrifts Crime: The Savings and Loan Mess	151	(2)
Banks and Investment Fraud	153	(3)
The Charles Keating Case	156	(1)
The BCCI Case	157	(1)
Insider Trading	157	(3)
The Corporate Takeover Controversy	160	(3)
Finance Crime and Financial Markets	163	(1)
Derivatives and Bankruptcy of Orange County	164	(2)
The Martin Frankel Case	166	(1)
Hybrid White Collar Crimes, in Sum	166	(1)
Key Terms	167	(1)
Discussion Questions	167	(1)
Enterprise Crime, Contrepreneurial Crime, and Technocrime	168	(23)
Enterprise Crime: Organized Crime and White Collar Crime	168	(7)
The Relation between Governmental Crime and Syndicated Crime	170	(1)
Historical Roots of Organized Crime	171	(1)
The Relation between Syndicated Crime and White Collar Crime	172	(1)
Joe Valachi of Cosa Nostra and Carl Kotchian of Lockheed	173	(1)
Hazardous Waste Disposal	173	(1)
Arson as a Form of Enterprise Crime	174	(1)
The Relation between Syndicated Crime and Finance Crime	174	(1)
The Looting of the Thrifts and Syndicated Crime	175	(1)
Contrepreneurial Crime: Professional Criminals and White Collar Crime	175	(9)
Joseph ``Yellow Kid'' Weil and the Big Con	176	(1)
Historical Origins of Professional Crime	176	(1)
The Relation between Professional Crime and White Collar Crime	176	(1)
Fraudulent Businesses: Swindles, Scams, and Rackets	177	(1)
The Fence	178	(1)
Fraud	178	(1)
A Contrepreneur's Advice to Potential Victims	179	(1)
Charity as Fraud	180	(2)
Pump and Dump: The Jonathan Lebed Case	182	(2)
When Fraud Leads to Violence	184	(1)
Technocrime	184	(5)
Technocrime Defined	185	(1)
Computer Crime	185	(2)
Identity Theft as White Collar Crime	187	(1)
The Law and Computer Crime	188	(1)
The Pursuit of Computer Crime Cases	188	(1)
Other Types of Technocrime	189	(1)
Key Terms	189	(1)
Discussion Questions	190	(1)
Explaining White Collar Crime: Theories and Accounts	191	(27)
Underlying Assumptions and Points of Departure	192	(1)
What Do We Want to Explain?	192	(1)
Explaining White Collar Criminality	193	(4)
The Biogenetic Explanation	193	(1)
The Demonic Explanation	194	(1)
Psychological Explanations	194	(3)
Mental Illness, Drug Addiction, and Intellectual Aptitude: Factors in White Collar Crime?	197	(1)
White Collar Delinquency	197	(1)
Sociogenic Explanations	197	(1)
Organizational Criminality and the Crimes of Organizations	197	(5)
Organizational Responsibility	198	(2)
The Various Dimensions of Organizational Criminality	200	(2)
Explaining Organizational Crime, in Sum	202	(1)
Explaining White Collar Crime: Theories and Perspectives	202	(6)
General Theories of Crime and White Collar Crime Theories	202	(1)
Classical Criminology and Rational Choice	203	(1)
A General Theory of Crime and Rational Choice	204	(1)
Alternative Dimensions of Crime and Choice	204	(1)
Social Control and Bonds	205	(1)
Social Process and Learning	205	(1)
The Moral and Sensual Attractions of White Collar Crime	206	(1)
Interactionism and Labeling	206	(1)
The ``Presentation of Self'' and White Collar Crime	207	(1)
Neutralization, Rationalization, and Accounts	207	(1)
Structural Strain and the Structure of Opportunity	208	(1)
Conflict Theory and Criminogenic Societies	209	(3)
The Structure of Contemporary Capitalist Society and White Collar Crime	210	(1)
Economic Wilding, Capitalism, and White Collar Crime	211	(1)
Radical and Critical Perspectives on White Collar Crime	211	(1)
White Collar Crime in a Postmodern World	212	(1)
Explaining Criminalization and White Collar Crime	212	(2)
Women as a Special Class of Victims of White Collar Crime	213	(1)
Integrated Theories of White Collar Crime	214	(1)
An Integrated, Multilevel Approach to Understanding the Enron et al. Cases	214	(2)
Explaining White Collar Crime, in Sum	215	(1)
Key Terms	216	(1)
Discussion Questions	217	(1)
Law and the Social Control of White Collar Crime	218	(24)
Social Control and White Collar Crime	218	(1)
Formal Law and White Collar Crime	219	(1)
The Historical Origins of White Collar Crime Laws	220	(1)
The Carrier's Case and the Law of Employee Theft	221	(1)
Contemporary Legislative Lawmaking and White Collar Crime	221	(4)
The Dialectical Perspective of Lawmaking	222	(1)
The Influence of Business on the Lawmaking Process	223	(1)
The Sarbanes--Oxley Act	224	(1)
Alternative Sources and Forms of Law and Lawmaking	225	(4)
The Constitution and Constitutional Law	225	(1)
Case Law	226	(1)
Executive Lawmaking	226	(1)
Administrative Law	227	(2)
A Selective Review of Substantive White Collar Crime Lawmaking	229	(6)
Antitrust Law	229	(2)
Occupational Safety and Health Laws	231	(1)
Environmental Protection Laws	231	(2)
The RICO Law	233	(1)
White Collar Crime Law and the Legal Curriculum	234	(1)
Civil and Criminal Law and White Collar Crime	235	(1)
Law, Corporations, and the Concept of Criminal Liability	236	(4)
Corporate Criminal Liability	236	(2)
A Comparative Perspective on Corporate Criminal Responsibility	238	(1)
Corporate Personhood and Corporate Decision Making	239	(1)
The Corporate Criminal Liability Controversy	240	(1)
Law and the Social Control of White Collar Crime, in Sum	240	(1)
Key Terms	240	(1)
Discussion Questions	241	(1)
Policing and Regulating White Collar Crime	242	(27)
Criminal Justice System Policing: Law Enforcement	242	(5)
State and Federal Enforcement Agencies	243	(1)
The FBI	244	(1)
The Inspectors General	245	(1)
The U.S. Postal Inspection Service	245	(1)
The U.S. Secret Service, U.S. Customs Service, and U.S. Marshals Service	246	(1)
The Internal Revenue Service's Criminal Investigative Division	246	(1)
The Regulatory System Response	247	(12)
The Origins and Evolution of Regulation	248	(1)
The Creation and Operation of Federal Regulatory Agencies	249	(1)
The Contemporary Debate on Regulation	250	(2)
The Regulatory Agency's Philosophy: Compliance versus Deterrence	252	(1)
Criticisms of Regulatory Agencies	253	(1)
Other Factors in Regulatory Response	254	(1)
Prominent Regulatory Agencies and Their Functions	254	(1)
Agency Capture	255	(2)
The SEC in Recent Years	257	(2)
Private Policing	259	(2)
Forensic Accountants as Fraud Detectives	261	(1)
The Role of Lawyers and Accountants Policing White Collar Crime	261	(4)
Lawyers and Professional Ethics	261	(2)
Accountants and Auditing Responsibilities	263	(2)
Self-Regulation: Internal Controls and Professional Associations	265	(3)
The Role of Corporate Boards in Self-Regulation	266	(1)
Self-Regulation in Financial Firms	266	(1)
Self-Regulation and the Professions	267	(1)
Policing and Regulating White Collar Crime, in Sum	268	(1)
Key Terms	268	(1)
Discussion Questions	268	(1)
Prosecuting, Defending, and Adjudicating White Collar Crime	269	(27)
Prosecution at the Local, State, and Federal Levels	269	(7)
Local Prosecutors	269	(2)
The Pinto Case: Prosecuting the Ford Motor Company	271	(1)
New York Attorney General Eliot Spitzer and Wall Street	272	(1)
State Attorney Generals	272	(1)
Federal Prosecutors	272	(2)
The Prosecution of Antitrust Cases	274	(1)
The Prosecution of Environmental Crime	274	(1)
Special Prosecutors (Independent Counsel)	275	(1)
The Role of the Grand Jury in White Collar Crime Cases	276	(1)
``Perp Walks'' for White Collar Crime Defendants	277	(1)
Defending White Collar Criminals	277	(3)
David Boies and White Collar Crime Cases	278	(2)
Adjudicating White Collar Crime: Plea Bargaining and Trial	280	(1)
The Role of the Trial Jury	281	(1)
Jurors and Punitive Damages	282	(1)
Judges and the Sentencing of White Collar Criminals	282	(6)
Sentencing	283	(1)
Explaining Disparity in Sentences for White Collar Offenders	284	(2)
Sentencing Organizational Offenders	286	(1)
Sentencing Guidelines and White Collar Offenders	287	(1)
White Collar Criminals in the Correctional System	288	(2)
House Arrest as Punishment	290	(1)
Civil Suits	290	(5)
SLAPPS: Strategic Lawsuits Against Political Participation	292	(1)
Citizen Suits and Class Action Suits	292	(1)
William Lerach: Shareholder Hero or Economic Terrorist?	293	(1)
The Role of Mediators and Arbitrators in the Settlement of Complaints	294	(1)
Collateral Civil Suits	294	(1)
Prosecuting and Adjudicating White Collar Crime, in Sum	295	(1)
Key Terms	295	(1)
Discussion Questions	295	(1)
Responding to the Challenge of White Collar Crime	296	(23)
Raising Consciousness of White Collar Crime	296	(1)
Policy Options for Responding to White Collar Crime	297	(1)
Responding to White Collar Crime as a Moral Issue	297	(4)
Do Moral Appeals Work?	298	(1)
Business Ethics Courses in the Curriculum	298	(1)
Business Ethics within the Business World	299	(1)
Shaming as a Response to White Collar Crime	300	(1)
Securing Compliance and Sanctioning White Collar Crime	301	(1)
Law and the Coercive Response to White Collar Crime	302	(3)
Civil Suits and Penalties	302	(1)
Cooperative versus Punitive Approaches to Corporate Crime	303	(1)
``Just Deserts'' and Corporate Crime	304	(1)
Deterrence and White Collar Crime	305	(1)
Rehabilitation, Probation, and Enforced Self-Regulation	306	(3)
Probation	307	(1)
Enforced Self-Regulation	307	(2)
The ``Devil's Advocate'' and Corporate Probation	309	(1)
Fines, Restitution, and Community Service	309	(2)
Sentencing Guidelines for Fines	309	(1)
Restitution	310	(1)
Community Service	311	(1)
Occupational Disqualification	311	(1)
Incarceration	311	(2)
Contractual Disqualification for Corporations	312	(1)
Organizational Reform and Corporate Dissolution	313	(1)
Responding to Residual Forms of White Collar Crime	314	(1)
Controlling Governmental Crime	314	(2)
Responding to White Collar Crime Internationally	315	(1)
Structural Transformation as a Response to White Collar Crime	316	(2)
Responding to the Challenge of White Collar Crime, in Sum	317	(1)
A Concluding Note: Trusted Criminals and White Collar Crime in the 21st Century	317	(1)
Key Terms	318	(1)
Discussion Questions	318	(1)
Appendix A: White Collar Crime Films	319	(3)
Appendix B: White Collar Crime and the World Wide Web	322	(3)
References	325	(70)
Subject Index	395	(12)
Name Index	407