NCJ Number
53134
Date Published
1977
Length
18 pages
Annotation
THE CONCLUSIONS OF A WEST GERMAN COMMISSION WITH REGARD TO VARIOUS WHITE-COLLAR OFFENSES ARE OUTLINED, ALONG WITH SPECIFIC RECOMMENDATIONS FOR THE EXISTING CRIMINAL CODE.
Abstract
THE COMMISSION STUDIED THE GROWING INSTANCES OF SUCH OFFENSES AS THE USE OF INSIDE INFORMATION ON SECURITIES EXCHANGES TO AN UNFAIR ADVANTAGE IN STOCK MARKET SPECULATION AND FRAUD INVOLVING CHECKS AND CREDIT CARDS. IT CONCLUDED THAT EXISTING FINANCIAL LAWS WERE INADEQUATE TO DEAL WITH THE COMPLEXITIES OF THE PROBLEM, AND SUGGESTED SPECIFIC CHANGES TO THE EXISTING LAW TO CLARIFY WHAT CONSTITUTES AN OFFENSE. IT CATEGORIZED GROUPS ACCORDING TO THEIR POSITION (ACCESS TO INSIDE INFORMATION, STOCK HOLDINGS IN THE COMPANY, ETC.) AND RECOMMENDED REQUIREMENTS FOR THESE GROUPS. FOR EXAMPLE, THE TYPES OF SECURITIES TRANSACTIONS THAT COULD BE MADE BY COMPANY OFFINCERS, MAJOR STOCKHOLDERS, AND CERTAIN EMPLOYEES BECAUSE OF THEIR PARTICULARLY GOOD OPPORTUNITIES TO OBTAIN INSIDE INFORMATION SHOULD BE LIMITED; THE EFFECTIVENESS OF SUCH RULES PROHIBITING THE HANDLING OF SECURITIES BY 'INSIDERS' WOULD DEPEND UPON THE CREATION OF A SPECIAL, NEUTRAL POSITION TO OVERSEE SECURITIES TRANSACTIONS AND CLEAR UP ANY SUSPICIONS OF MISCONDUCT. THE COMMISSION ALSO RECOMMENDED CLARIFICATION OF THE CRIMINAL LAW REGARDING THE FRAUDULENT USE OF CHECKS AND CREDIT CARDS, A RAPIDLY GROWING PROBLEM. SPECIFIC PUNISHMENTS, INCLUDING IMPRISONMENT, FINES, AND RESTITUTION, ARE RECOMENDED FOR EACH OFFENSE. --IN GERMAN. (VDA)