Trusted Criminals White Collar Crime In Contemporary Society

by Friedrichs, David O.

• ISBN13: 9780495006046
• ISBN10: 0495006041
• Edition: 3rd
• Format: Paperback
• Copyright: 2006-06-06
• Publisher: Wadsworth Publishing

Summary

TRUSTED CRIMINALS: WHITE COLLAR CRIME IN CONTEMPORARY SOCIETY is a comprehensive guide that covers topics ranging from the problems involved in studying white collar crimes to the principal focus of the crimes to 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

The Discovery of White Collar Crime	1	(30)
Edwin H. Sutherland and the Discovery of White Collar Crime	2	(2)
Box 1.1 E. H. Sutherland: The ``Father'' of White Collar Crime Studies	3	(1)
Defining White Collar Crime	4	(7)
Box 1.2 The Meaning of White Collar Crime: Some Issues under Debate	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	(1)
Comparing White Collar and Conventional Crime Offenders	11	(4)
Box 1.3 Cross-Cultural and International Dimensions of White Collar Crime	12	(1)
Age	12	(1)
Class	13	(1)
Race	13	(1)
Gender	14	(1)
Other Demographic Variables and Differences	15	(1)
Criminal Careers	15	(1)
The Social Movement Against White Collar Crime	15	(1)
Images of White Collar Crime: The Role of the Media	16	(2)
Box 1.4 The National White Collar Crime Center	17	(1)
Exposing White Collar Crime	18	(11)
Informers and Whistleblowers	18	(1)
Box 1.5 The Media as Entertainment: White Collar Crime in Films and on TV	19	(1)
Box 1.6 ``Deep Throat'' and the Watergate Case	20	(2)
Muckrakers and Investigative Reporters	22	(4)
Box 1.7 The Internet and White Collar Crime	26	(1)
The Consumer Movement, Public Interest Groups, and Labor Unions	26	(1)
The Role of Politicians and Political Institutions	27	(1)
Box 1.8 Ralph Nader and the Consumer Movement	28	(1)
Criminal Justice Professionals and Academics (Including Criminologists)	29	(1)
Discovering White Collar Crime, In Sum	29	(1)
Key Terms	30	(1)
Discussion Questions	30	(1)
Studying White Collar Crime and Assessing Its Costs	31	(24)
Underlying Assumptions and Different Perspectives	31	(1)
Specific challenges in the Study of White Collar Crime	32	(2)
The Complex Nature of White Collar Crime	32	(1)
Gaining Access for Research	33	(1)
Obtaining Statistics	33	(1)
Obtaining Research Support	33	(1)
Box 2.1 A Case Study: The Revco Medicaid Fraud Case	34	(1)
Research Methods for Studying White Collar Crime	34	(1)
Scholarly Research and White Collar Crime	35	(5)
Case Studies	35	(1)
Experiments	36	(1)
Surveys	36	(1)
Box 2.2 Designing a White Collar Crime Survey: Some Challenges	37	(1)
Observational Research	37	(1)
Secondary Data Analysis and Event History Analysis	38	(1)
Archival Data Analysis and Historical Ethnography	38	(1)
Content Analysis	39	(1)
Comparative Studies of White Collar Crime	39	(1)
Students' Role as Researchers	40	(1)
Box 2.3 Public Perception of White Collar Crime: How Serious Is It?	40	(1)
Measuring White Collar Crime: How Prevalent Is It?	40	(5)
Box 2.4 Conventional Crime and White Collar Crime Rates	42	(1)
Victimization Surveys and Self-Report Studies	43	(1)
Box 2.5 Measuring Specific Forms of White Collar Crime	44	(1)
The Need for Reliable Data	44	(1)
The Costs and Consequences of White Collar Crime	45	(3)
Direct Costs	45	(1)
Indirect Costs	46	(1)
Physical Costs	47	(1)
Other Costs	48	(1)
Victims of White Collar Crime	48	(5)
The Role of the Victim	50	(1)
Box 2.6 Organizations as Victims of White Collar Crime	51	(1)
Specific Forms of Suffering of White Collar Crime Victims	52	(1)
Box 2.7 Psychological Consequences of Fraud Victimization	53	(1)
Studying White Collar Crime and Assessing its Costs, in Sum	53	(1)
Key Terms	54	(1)
Discussion Questions	54	(1)
Corporate Crime	55	(34)
The Historical Development of the Corporation and Corporate Crime	55	(1)
The Corporation in Modern Society	56	(3)
Box 3.1 ``It's Legal But It Ain't Right''	58	(1)
A Typology of Corporate Crime	59	(1)
Corporate Violence	59	(11)
Corporate Violence against the Public: Unsafe Environmental Practices	60	(2)
Box 3.2 The Exxon Valdez and Prince William Sound	62	(1)
Box 3.3 Corporate Destruction of a Community	63	(1)
Corporate Violence against Consumers: Unsafe Products	63	(4)
Box 3.4 The Ford Pinto Case	67	(1)
Corporate Violence against Workers: Unsafe Working Conditions	67	(1)
Box 3.5 The Production and Sale of Tobacco: Corporate Crime?	68	(2)
Box 3.6 Asbestos and the Manville Corporation	70	(1)
Corporate Abuse of Power, Fraud, and Economic Exploitation	70	(14)
Box 3.7 The Film Recovery Systems Case	71	(1)
Crimes against Citizens and Taxpayers: Defrauding the Government and Corporate Tax Evasion	71	(1)
Box 3.8 Halliburton, Vice President Cheney, and Iraq War Contracts	72	(2)
Crimes against Consumers: Price Fixing, Price Gouging, False Advertising, and Misrepresentation of Products	74	(3)
Crimes against Employees: Economic Exploitation, Corporate Theft, Unfair Labor Practices, and Surveillance of Employees	77	(1)
Box 3.9 The Enron Case and the Devastation of Employee Retirement Accounts	78	(1)
Crimes against Franchisees and Suppliers: Discount and Chargeback Frauds	79	(1)
Crimes against Competitors: Monopolistic Practices and Theft of Trade Secrets	79	(1)
Box 3.10 The Case against Microsoft	80	(1)
Crimes against Owners and Creditors: Managerial Accounting Fraud, Self-Dealing, and Strategic Bankruptcy	81	(2)
Box 3.11 Adelphia, HealthSouth, WorldCom, and Accounting Fraud	83	(1)
Are Universities and Colleges Corporate Criminals?	84	(2)
Corporate Crime, In Sum	86	(1)
Key Terms	87	(1)
Discussion Questions	87	(2)
Occupational Crime and Avocational Crime	89	(27)
Crimes by Small Businesses: Retail Crime and Service Fraud	90	(3)
Retail Crime	90	(1)
Box 4.1 Occupational Crime as Violence: Drug Dilution and Fake Asbestos Removal	91	(1)
Defrauding Vulnerable People	91	(1)
Service Business Fraud	92	(1)
Crimes by Professionals: Medical, Legal, Academic, and Religious Crime	93	(12)
Medical Crime	94	(3)
Legal Crime	97	(1)
Box 4.2 Lawyers and the Abuse of Political Power	98	(1)
Academic Crime: Professors, Scientists, and Students	99	(1)
Box 4.3 Plagiarism and Trusted Criminals	100	(1)
Box 4.4 Stealing from the School District	101	(3)
Religious Crime	104	(1)
Employee Crime	105	(7)
Box 4.5 Extravagant Executive Compensation: Just Reward or Grand Theft?	106	(2)
Forms of Employee Theft	108	(1)
Employers' Responses to Employee Theft	108	(1)
Box 4.6 Union Leaders Who Steal from Their Union Members	109	(1)
Alternative Forms of Employee Crime	109	(1)
Some Factors in Employee Theft	110	(1)
Conditions in the Workplace and Employee Crime	111	(1)
Box 4.7 Donkeys, Wolfpacks, Vultures, and Hawks: A Typology of Employee Theft	111	(1)
Avocational Crime and White Collar Crime	112	(3)
Income Tax Evasion	112	(2)
Box 4.8 A Record Case of Individual Tax Evasion	114	(1)
Other Forms of Avocational Crime	114	(1)
Occupational and Avocational Crime, In Sum	115	(1)
Key Terms	116	(1)
Discussion Questions	116	(1)
Governmental Crime: State Crime and Political White Collar Crime	116	(29)
Governmental Crime: Some Basic Terms	118	(1)
Governmental Criminality on an Epic Scale	119	(2)
Box 5.1 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)
Box 5.2 Post-9/11 Initiatives: Protecting Us against Terrorism or Perpetrating State Crimes?	122	(1)
The Criminal State	122	(2)
Box 5.3 Adolf Hitler: The Greatest White Collar Criminal of the 20th Century?	124	(1)
The Repressive State	125	(1)
The Corrupt State	126	(1)
Box 5.4 Suharto and the Looting of Indonesia	127	(1)
State Negligence	128	(1)
State-Organized Crime	129	(5)
The White House and State-Organized Crime	130	(1)
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)
Box 5.5 The Watergate Affair	135	(1)
Political White Collar Crime in the Executive Branch	136	(4)
Political White Collar Crime in the Legislative Branch	140	(1)
Political White Collar Crime in the Judicial Branch	141	(1)
Box 5.6 Police Corruption as a Form of ``Political'' White Collar Crime	142	(1)
Governmental Crime, In Sum	143	(1)
Key Terms	144	(1)
Discussion Questions	144	(1)
State-Corporate Crime, Crimes of Globalization, and Finance Crime	145	(28)
State-Corporate Crime	145	(3)
Box 6.1 State-Corporate Crime, Nazi Germany, and the Holocaust	146	(2)
Box 6.2 Military Contractors in Iraq: Corporate Warriors and the Halliburton Corporation	148	(1)
Crimes of Globalization	148	(5)
Box 6.3 Corruption in the Oil-for-Food Program	149	(1)
Box 6.4 Sweatshops in Developing Countries: Criminal Enterprises or Economic Opportunities?	150	(1)
The Role of the World Bank in a Global Economy	150	(1)
The World Bank and Crimes of Globalization	151	(1)
Box 6.5 The Dam at Pak Moon: A Case of Global Crime by Jessica Friedrichs	152	(1)
Finance Crime	153	(17)
Banking/Thrifts Crime: The Savings and Loan Mess	153	(3)
Box 6.6 Investment Banks: Wealth Producers or Large-Scale Fraudsters?	156	(3)
Box 6.7 The Charles Keating Case	159	(1)
Insider Trading	159	(1)
Box 6.8 The BCCI Case	160	(2)
Box 6.9 The Corporate Takeover Controversy	162	(4)
Box 6.10 Insider Trading and the Martha Stewart Case	166	(1)
Finance Crime and Financial Markets	166	(1)
Box 6.11 Fraudulent Conduct in the Mutual Funds and Hedge Funds Industries	167	(3)
Box 6.12 The Martin Frankel Case	170	(1)
Hybrid White Collar Crime, In Sum	170	(1)
Key Terms	171	(1)
Discussion Questions	171	(2)
Enterprise Crime, Contrepreneurial Crime, and Technocrime	173	(25)
Enterprise Crime: Organized Crime and White Collar Crime	173	(7)
The Relation between Governmental Crime and Syndicated Crime	175	(1)
Historical Roots of Organized Crime	175	(2)
The Relation between Syndicated Crime and White Collar Crime	177	(1)
Box 7.1 Joe Valachi of La Cosa Nostra and Carl Kotchian of Lockheed	177	(1)
Hazardous Waste Disposal	178	(1)
Box 7.2 Arson as a Form of Enterprise Crime	179	(1)
The Relation between Syndicated Crime and Finance Crime	179	(1)
Box 7.3 The Looting of the Thrifts and Syndicated Crime	180	(1)
Contrepreneurial Crime: Professional Criminals and White Collar Crime	180	(10)
Historical Origins of Professional Crime	181	(1)
Box 7.4 Joseph ``Yellow Kid'' Weil and the Big Con	181	(1)
The Relation between Professional Crime and White Collar Crime	181	(1)
Fraudulent Businesses: Swindles, Scams, and Rackets	182	(1)
Box 7.5 The Fence	183	(1)
Fraud	183	(1)
Box 7.6 A Contrepreneur's Advice to Potential Victims	184	(1)
Box 7.7 Advance Fee Frauds	185	(1)
Box 7.8 Charity as Fraud	186	(1)
Box 7.9 Pump and Dump: The Jonathan Lebed Case	187	(3)
Box 7.10 When Fraud Leads to Violence	190	(1)
Technocrime, Including Computer Crime	190	(6)
Technocrime Defined	191	(1)
Computer Crime	191	(2)
Box 7.11 Identity Theft as White Collar Crime	193	(1)
The Law and Computer Crime	194	(1)
The Pursuit of Computer Crime Cases	195	(1)
Other Types of Technocrime	195	(1)
Enterprise Crime, Contrepreneurial Crime, and Technocrime, In Sum	196	(1)
Key Terms	196	(1)
Discussion Questions	196	(2)
Explaining White Collar Crime: Theories and Accounts	198	(27)
Underlying Assumptions and Points of Departure	199	(1)
What Do We Want to Explain?	199	(1)
Explaining White Collar Criminality	200	(4)
Box 8.1 The Demonic Explanation	200	(1)
The Biogenetic Explanation	201	(1)
Psychological Explanations	201	(2)
Box 8.2 Mental Illness, Drug Addiction, and Intellectual Aptitude: Factors in White Collar Crime?	203	(1)
Sociogenic Explanations	203	(1)
Box 8.3 White Collar Delinquency	204	(1)
Organizational Criminality and the Crimes of Organizations	204	(5)
Organizational Responsibility	204	(2)
The Various Dimensions of Organizational Criminality	206	(2)
Box 8.4 Diffusion Theory and Intermediate Fraud	208	(1)
Explaining White Collar Crime: Theories and Perspectives	209	(6)
General Theories of Crime and White Collar Crime Theory	209	(1)
Box 8.5 Low Self-Control and White Collar Crime	210	(1)
Classical Criminology and Rational Choice	210	(1)
Alternative Dimensions of Crime and Choice	211	(1)
Box 8.6 The Moral and Sensual Attractions of White Collar Crime	212	(1)
Social Control and Bonds	212	(1)
Social Process and Learning	212	(1)
Interactionism and Labeling	213	(1)
Neutralizations, Rationalizations, and Accounts	213	(1)
Box 8.7 The ``Presentation of Self'' and White Collar Crime	214	(1)
Structural Strain and the Structure of Opportunity	215	(1)
Conflict Theory and Criminogenic Societies	216	(3)
The Structure of Contemporary Capitalist Society and White Collar Crime	216	(1)
Radical and Critical Perspectives on White Collar Crime	217	(1)
Box 8.8 Economic Wilding, Capitalism, and White Collar Crime	218	(1)
Box 8.9 White Collar Crime in a Postmodern World	219	(1)
Explaining Criminalization and White Collar Crime	219	(1)
Box 8.10 Women as a Special Class of Victims of White Collar Crime	220	(1)
Integrated Theories of White Collar Crime	220	(1)
An Integrated, Multilevel Approach to Understanding the Enron et al. Cases	221	(1)
Explaining White Collar Crime, In Sum	222	(1)
Key Terms	223	(1)
Discussion Questions	223	(2)
Law and the Social Control of White Collar Crime	225	(24)
Social Control and White Collar Crime	225	(1)
Formal Law and White Collar Crime	226	(1)
The Historical Origins of White Collar Crime Laws	227	(1)
Box 9.1 The Carrier's Case and the Law of Employee Theft	228	(1)
Contemporary Legislative Lawmaking and White Collar Crime	228	(3)
The Influence of Business on the Lawmaking Process	229	(1)
Box 9.2 The Dialectical Perspective on Lawmaking	230	(1)
Alternative Sources and Forms of Law and Lawmaking	231	(4)
The Constitution and Constitutional Law	231	(1)
Box 9.3 The Sarbanes-Oxley Act	232	(1)
Case Law	233	(1)
Executive Lawmaking	233	(1)
Administrative Law	234	(1)
A Selective Review of Substantive White Collar Crime Lawmaking	235	(6)
Antitrust Law	236	(1)
Occupational Safety and Health Laws	237	(1)
Environmental Protection Laws	238	(2)
The RICO Law	240	(1)
Box 9.4 White Collar Crime Law and the Legal Curriculum	241	(1)
Civil and Criminal Law and White Collar Crime	241	(1)
Law, Corporations, and the Concept of Criminal Liability	242	(5)
Box 9.5 Law Professor Stuart Green and the Moral Theory of White Collar Crime	243	(1)
Corporate Criminal Liability	243	(2)
Box 9.6 A Comparative Perspective on Corporate Criminal Responsibility	245	(1)
Corporate Personhood and Corporate Decision Making	246	(1)
Box 9.7 The Corporate Criminal Liability Controversy	247	(1)
Law and the Social Control of White Collar Crime, In Sum	247	(1)
Key Terms	248	(1)
Discussion Questions	248	(1)
Policing and Regulating White Collar Crime	249	(28)
Criminal Justice System Policing: Law Enforcement	249	(5)
State and Federal Enforcement Agencies	250	(1)
The FBI	251	(1)
The Inspectors General	252	(1)
The U.S. Postal Inspection Service	252	(1)
The U.S. Secret Service, U.S. Customs Service, and U.S. Marshals Service	253	(1)
The Internal Revenue Service's Criminal Investigative Division	253	(1)
The Regulatory System Response	254	(12)
The Origins and Evolution of Regulation	255	(1)
The Creation and Operation of Federal Regulatory Agencies	256	(1)
Box 10.1 The Contemporary Debate on Regulation	257	(1)
The Regulatory Agency's Philosophy: Compliance versus Deterrence	258	(1)
Criticisms of Regulatory Agencies	259	(1)
Other Factors in Regulatory Response	260	(1)
Box 10.2 Agency Capture	261	(1)
Prominent Regulatory Agencies and Their Functions	261	(3)
Box 10.3 The SEC in Recent Years	264	(1)
Box 10.4 Protecting the Environment: Alternatives to Relying upon the EPA	265	(1)
Private Policing	266	(2)
Box 10.5 Forensic Accountants as Fraud Detectives	268	(1)
The Role of Lawyers and Accountants in Policing White Collar Crime	268	(4)
Lawyers and Professional Ethics	269	(1)
Accountants and Auditing Responsibilities	270	(2)
Self-Regulation: Internal Controls and Professional Associations	272	(3)
Box 10.6 The Role of Corporate Boards in Self-Regulation	273	(1)
Self-Regulation in Financial Firms	273	(1)
Self-Regulation and the Professions	274	(1)
Policing and Regulating White Collar Crime, In Sum	275	(1)
Key Terms	275	(1)
Discussion Questions	276	(1)
Prosecuting, Defending, and Adjudicating White Collar Crime	277	(30)
Prosecution at the Local, State, and Federal Levels	277	(7)
Local Prosecutors	277	(2)
State Attorney Generals	279	(1)
Box 11.1 The Pinto Case: Prosecuting the Ford Motor Company	280	(1)
Federal Prosecutors	280	(1)
Box 11.2 New York Attorney General Eliot Spitzer and Wall Street	281	(1)
The Prosecution of Antitrust Cases	282	(1)
The Prosecution of Environmental Crime	282	(1)
Special Prosecutors (Independent Counsel)	283	(1)
The Role of the Grand Jury in White Collar Crime Cases	284	(1)
Box 11.3 ``Perp Walks'' for White Collar Crime Defendants	285	(1)
Defending White Collar Criminals	285	(4)
Box 11.4 David Bodies and White Collar Crime Cases	286	(2)
Box 11.5 To Testify or Not to Testify	288	(1)
Adjudicating White Collar Crime: Plea Bargaining and Trial	289	(1)
The Role of the Trial Jury	290	(2)
Box 11.6 Jurors and Punitive Damages	291	(1)
Judges and the Sentencing of White Collar Criminals	292	(1)
Box 11.7 Reversal of Arthur Andersen Conviction Due to Jury Charge by Judge	292	(1)
Sentencing	292	(6)
Explaining Disparities in Sentences for White Collar Offenders	294	(2)
Sentencing Organizational Offenders	296	(1)
Sentencing Guidelines and White Collar Offenders	297	(1)
White Collar Criminals in the Correctional System	298	(3)
Box 11.8 House Arrest as Punishment	300	(1)
Civil Suits	301	(4)
Box 11.9 SLAPPs: Strategic Lawsuits against Public Participation	302	(1)
Box 11.10 William Lerach: Shareholder Hero or Economic Terrorist?	303	(1)
Citizen Suits and Class Action Suits	303	(1)
Collateral Civil Suits	304	(1)
Box 11.11 The Role of Mediators and Arbitrators in the Settlement of Complaints	305	(1)
Prosecuting and Adjudicating White Collar Crime, In Sum	305	(1)
Key Terms	306	(1)
Discussion Questions	306	(1)
Responding to the Challenge of White Collar Crime	307	(25)
Raising Consciousness about White Collar Crime	307	(1)
Policy Options for Responding to White Collar Crime	308	(1)
Responding to White Collar Crime as a Moral Issue	308	(3)
Box 12.1 Do Moral Appeals Work?	309	(1)
Business Ethics Courses in the Curriculum	309	(1)
Business Ethics within the Business World	310	(1)
Box 12.2 Can a Corporation Be Ethically Transformed? The Case of Tyco	311	(1)
Securing Compliance and Sanctioning White Collar Crime	311	(2)
Box 12.3 Shaming as a Response to White Collar Crime	312	(1)
Law and the Coercive Response to White Collar Crime	313	(2)
Civil Suits and Penalties	314	(1)
Compliance versus Punitive Approaches to Corporate Crime	314	(1)
Deterrence and White Collar Crime	315	(3)
Box 12.4 ``Just Deserts'' and Corporate Crime	316	(2)
Box 12.5 A ``Chief Criminologist'' for the SEC?	318	(1)
Rehabilitation, Probation, and Enforced Self-Regulation	318	(2)
Probation	318	(1)
Box 12.6 The ``Devil's Advocate'' and Corporate Probation	319	(1)
Enforced Self-Regulation	319	(1)
Fines, Restitution, and Community Service	320	(2)
Sentencing Guidelines for Fines	321	(1)
Restitution	322	(1)
Community Service	322	(1)
Occupational Disqualification	322	(1)
Box 12.7 Contractual Disqualification for Corporations	323	(1)
Incarceration	323	(1)
Organizational Reform and Corporate Dissolution	324	(2)
Box 12.8 Citizen Works Proposals for Cracking Down on Corporate Crime	325	(1)
Box 12.9 A Stakeholder Model for Corporations: Costco and Whole Foods	326	(1)
Responding to Residual Forms of White Collar Crime	326	(1)
Controlling Governmental Crime	326	(2)
Box 12.10 Responding to White Collar Crime Internationally	327	(1)
Structural Transformation as a Response to White Collar Crime	328	(1)
Responding to the Challenge of White Collar Crime, in Sum	329	(1)
A Concluding Note: Trusted Criminals and White Collar Crime in the 21st Century	329	(1)
Key Terms	330	(1)
Discussion Questions	330	(2)
Appendix: White Collar Crime in Films	332	(3)
References	335	(77)
Name Index	412	(13)
Subject Index	425