PROPOSED FEDERAL CRIMINAL CODE AND WHITE-COLLAR CRIME (FROM REFORM OF THE FEDERAL CRIMINAL CODE - SYMPOSIUM, 1979 - SEE NCJ-64754)

• NCJ Number: 64759
• Journal: George Washington Law Review Volume: 47 Issue: 3 Dated: (MARCH 1979) Pages: 523-549
• Author(s): D J HAUPTLY; N L RIDER
• Date Published: 1979
• Length: 27 pages
• Corporate Author: George Washington University
• Publication Format: Article
• Language: English
• Country: United States of America

Annotation

PROVISIONS OF THE PROPOSED FEDERAL CRIMINAL CODE (THE CODE) RELATING TO THE DETECTION AND PROSECUTION OF WHITE-COLLAR CRIMES ARE DISCUSSED.

Abstract

GOVERNMENT LAW ENFORCEMENT OFFICIALS GENERALLY AGREE THAT THE CRIMINAL JUSTICE SYSTEM HAS LARGELY IGNORED THE NONVIOLENT OFFENSES REFERRED TO AS WHITE-COLLAR CRIMES. FORTUITOUS DETECTION OF WHITE-COLLAR CRIME HAS HAD LITTLE DETERRENT IMPACT EVEN WHEN CONVICTIONS HAVE BEEN OBTAINED BECAUSE THE COMPARATIVELY LIGHT SENTENCES IMPOSED HAVE FAILED TO REFLECT THE OFFENSES' SERIOUSNESS. ENACTMENT OF THE PROPOSED CODE WOULD MAKE AVAILABLE THE LEGISLATIVE TOOLS TO IMPROVE THE SITUATION. COMPLICITY, AND FRAUD AND COMMERCIAL BRIBERY ARE THE TWO GENERAL ASPECTS OF WHITE-COLLAR CRIME ADDRESSED IN THE CODE. RESOLUTION OF THE COMPLICITY QUESTION WILL DETERMINE WHICH ACTORS WILL FACE CRIMINAL SANCTIONS AND WHICH WILL BE EXONERATED DESPITE RELATIONSHIP TO THE FORBIDDEN CONDUCT. TRADITIONALLY, COMPLICITY QUESTIONS HAVE BEEN LEFT TO THE COURTS. CHAPTER FOUR OF THE CODE ADDRESSES THE PROBLEM OF ESTABLISHING COMPLICITY OF AGENTS AND MEMBERS OF ORGANIZATIONS. SECTION 402 WOULD DELINEATE THE LIABILITY OF AN ORGANIZATION FOR THE CONDUCT OF ITS AGENTS, AND 403 WOULD SPECIFY THE LIABILITY OF AN AGENT FOR THE CONDUCT OF AN ORGANIZATION. REGARDING FRAUD AND COMMERCIAL BRIBERY, CURRENT LAW PROHIBITS FRAUDULENT SCHEMES UNDER THREE SIMILAR FEDERAL STATUTES, EACH OF WHICH APPLIES TO SCHEMES EMPLOYING A DIFFERENT INSTRUMENT OF INTERSTATE COMMERCE, FROM WHICH FEDERAL JURISDICTION ARISES. SECTION 1734 OF THE PROPOSED CODE WOULD CONTAIN TWO OFFENSES. IT WOULD CONSOLIDATE THE THREE FEDERAL FRAUD STATUTES INTO ONE PROHIBITION OF ALL FRAUDULENT SCHEMES. IT WOULD ALSO CONTAIN A SECOND OFFENSE AIMED AT PYRAMID SALES. SECTION 1751 OF THE CODE WOULD RETAIN AND EXPAND STATUTES THAT CREATE FELONY GRADE COMMERCIAL BRIBERY OFFENSES. FOOTNOTES ARE INCLUDED. (LWM)