NCJ Number
208062
Date Published
2004
Length
17 pages
Annotation
Based on the findings of the first phase of a research project on economic crime in the Czech Republic, this paper discusses the nature of the crimes and the characteristics of the offenders.
Abstract
The pilot study analyzed 25 court files on economic crimes. Five of the 25 cases involved financial crime, i.e., offenses against financial institutions. This paper focuses on four of these cases that caused significant financial damage. All of the four cases involved crimes committed by the founders of the financial institutions. In all cases, the capital invested by the founders was much smaller than the total value of the financial assets they controlled; and the founders, acting alone or in concert with other managers, siphoned off money from the financial institution. The criminal method involved establishing one or more companies within the orbit of the parent company. These "secondary" companies were linked to one another and with the parent company through the founders or accomplices. Money was transferred from the parent company to the secondary companies and ultimately to the offenders. Although the small sample of offenders analyzed prohibits the development of a definitive offender typology, there were some characteristic features of the offenders studied. Accomplices tend to be naive, younger people who want a luxurious life but do not have the money to sustain it. Another type of offender commits crimes repeatedly until discovered. Then there is the legitimate entrepreneur who encounters financial difficulties and attempts to deal with them through ruthless criminal activity. Other types of offenders are the "manipulators," whose financial experience provides opportunity and knowledge to illegally manipulate financial affairs; and the "megalomaniac" who has a lofty position in the financial institution that conditions them to believe there are no bounds to their discretionary actions based on self-interest. 14 references