U.S. flag

An official website of the United States government, Department of Justice.

NCJRS Virtual Library

The Virtual Library houses over 235,000 criminal justice resources, including all known OJP works.
Click here to search the NCJRS Virtual Library

PREPARED STATEMENTS OF HERBERT EDELHERTZ (FROM WHITE-COLLAR CRIME - HEARINGS BEFORE HOUSE SUBCOMMITTEE ON CRIME, 95TH CONGRESS, 2ND SESSION, JUNE 21, JULY 12, AND 19 AND DECEMBER 1, 1978 - SEE NCJ-62172)

NCJ Number
62176
Author(s)
H EDELHERTZ
Date Published
1979
Length
9 pages
Annotation
AN AUTHORITY ON WHITE-COLLAR CRIME DISCUSSES THE SCOPE OF AND REMEDIES TO THE PROBLEM, INCLUDING THE FEDERAL GOVERNMENT'S ROLE, BEFORE THE HOUSE SUBCOMMITTEE ON CRIME.
Abstract
WHITE-COLLAR CRIME IS A WIDESPREAD EXAMPLE OF ANTISOCIAL BEHAVIOR WHICH IS FINANCIALLY OR MATERIALLY MOTIVATED AND OCCURS AS AD HOC VIOLATIONS, ABUSES OF TRUST, COLLATERAL BUSINESS CRIMES, AND CON GAMES. SUCH INSIDIOUS BEHAVIOR IS OFTEN RATIONALIZED BY THOSE WHO SAY THE ACTS INVOLVED ARE NOT STREET CRIMES, THE GOVERNMENT DOES NOT 'UNDERSTAND' THE MARKETPLACE, AND 'EVERYONE IS DOING IT'. THESE BLURRED DISTINCTIONS BETWEEN ILLICIT AND LEGAL BEHAVIOR WILL CONTINUE IF ADEQUATE ENFORCEMENT OF EXISTING LAWS IS LACKING, IF THE SAME ACTS ARE MADE THE SUBJECT OF OPITIONAL CRIMINAL OR CIVIL ACTION, IF THE WHITE-COLLAR OFFENDER IS TREATED MORE LENIENTLY EVEN AFTER CRIMINAL PROSECUTION AND CONVICTION, AND IF REMEDIES FOR THE VICTIMS OF ECONOMIC CRIMES ARE INADEQUATE. ESTIMATES OF DOLLAR LOSSES FROM WHITE-COLLAR CRIME RANGE FROM $3 TO $60 BILLION PER YEAR, DEPENDING UPON WHAT CRIMES ARE INCLUDED; ESTIMATES OF THE IMPACT OF SUCH CRIMES ON PEOPLE, QUALITY OF LIFE, BUSINESS OPERATIONS, AND PUBLIC TRUST ARE IMMENSE AND FAR MORE SIGNIFICANT THAN MERE DOLLAR LOSSES. BECAUSE THE INTEGRITY ISSUE IS THE MOST IMPORTANT ONE POSED BY WHITE-COLLAR CRIME, THE MORAL TONE OF SOCIETY WILL CONTINUE TO ERODE UNLESS SUCH CRIME IS MORE EFFECTIVELY CURBED. WHITE-COLLAR CRIME ENFORCEMENT ON THE FEDERAL LEVEL HAS BEEN IMPEDED BY STRUCTURAL AND RESOURCE PROBLEMS (LEGAL JURISDICTION, LACK OF RESOURCES, AND ENFORCEMENT POLICIES). THE FEDERAL GOVERNMENT SHOULD ACT TO DETER WHITE-COLLAR CRIME BY SETTING AND ENFORCING STANDARDS OF INTEGRITY IN BUSINESS CONDUCT; ANALYZING AND REORGANIZING FEDERAL EFFORTS TO DETECT, INVESTIGATE, AND PROSECUTE WHITE-COLLAR CRIMES; MAKING WHITE-COLLAR CRIME UNPROFITABLE FOR BUSINESSES; AAND PROVIDING SUPPLEMENTARY SERVICES AND FACILITIES TO LOCAL AND STATE LAW ENFORCEMENT AGENCIES. (WJR)