NCJ Number
48007
Journal
Case and Comment Volume: 82 Issue: 5 Dated: (SEPTEMBER/OCTOBER 1977) Pages: 3-4,6-8,10
Date Published
1977
Length
6 pages
Annotation
THE GROWING PROBLEM OF WHITE COLLAR CRIME IS ASSESSED, AND THE FAILURE OF LAW ENFORCEMENT TO EFFECTIVELY DEAL WITH THE PROBLEM IS OUTLINED.
Abstract
WHITE COLLAR CRIME MAY BE BROADLY DEFINED AS AN ILLEGAL ACT OR SERIES OF ACTS CHARACTERIZED BY GUILE, DECEIT, AND CONCEALMENT, AND NOT DEPENDENT ON THE USE OF PHYSICAL FORCE OR VIOLENCE. IT MAY BE COMMITTED BY ONE OR MORE PERSONS AND MAY INVOLVE MONEY, PROPERTY, OR SERVICES. WHILE SEVERAL HUNDRED TYPES OF WHITE COLLAR CRIMES MAY BE IDENTIFIED, THE MAJOR TYPES INCLUDE CONSUMER FRAUD, UNFAIR COMPETITION, AND COMPUTER AND SECURITIES FRAUDS. CONSUMER FRAUD MAY RANGE FROM DECEPTIVE ADVERTISING, REPAIR SWINDLES, ADVANCE-FEE-LOANS, OR WORK-AT-HOME SCHEMES, TO LAND SALE SCHEMES. UNFAIR COMPETITION AND PREDATORY PRACTICES MAY TAKE THE FORM OF KICKBACKS OR BRIBES OF BUSINESSMEN OR OFFICIALS. COMPUTER AND SECURITIES FRAUDS ARE RAPIDLY GROWING. COMPUTERS LEND THEMSELVES TO EMBEZZLEMENTS, MISAPPROPRAITION OF COMPUTER TIME, THEFT OF PROGRAMS AND CONFIDENTIAL INDUSTRIAL DATA, AND CORPORATE ASSET MANIPULATIONS. SECURITY FRAUD HAS BECOME A LUCRATIVE MARKET IN WHICH ORGANIZED CRIME IS INCREASINGLY INVOLVED. STATE AND LOCAL LAW ENFORCEMENT AGENTS LACK THE FUNDS, MANPOWER, TRAINING, AND SOPHISTICATION TO DEAL WITH WELL PLANNED FRAUD SCHEMES; OVER 95 PERCENT OF THEIR EFFORTS ARE FOCUSSED ON TRADITIONAL TYPES OF OFFENSES. WHILE THE FEDERAL GOVERNMENT HAS THE RESOURCES TO FIGHT WHITE COLLAR CRIME, IT HAS GENERALLY BEEN INEFFECTIVE. MAJOR FACTORS UNDERLYING THIS INEFFECTIVENESS INCLUDE A LACK OF MOTIVATION TO ENTER THE AREA OF WHITE COLLAR CRIME ON A LARGE SCALE, LACK OF BUDGETARY INCENTIVES, AND A COMPLEX AND UNCOORDINATED SYSTEM OF REGULATORY AGENCIES. MOREOVER, ALL CRIMINAL VIOLATIONS ARE REFERRED BY THE REGULATORY AGENCIES TO THE DEPARTMENT OF JUSTICE WHICH HAS CONSIDERABLE LATITUDE IN DECIDING WHETHER OR NOT TO PROSECUTE A CASE. ADMINISTRATIVE AND CIVIL REMEDIES ARE GRADUAL, SLOW, SUBJECT TO POLITICAL PRESSURE, AND OFTEN INEFFECTIVE. GENCIES HAVE COME TO RELY ON CONSENT DECREES IN WHICH THE DEFENDANT AGREES NOT TO VIOLATE CERTAIN STATUTES AGAIN. HOWEVER, CONSENT DECREES ARE NOT POLICED AND VIOLATIONS ARE COMMON; SUCH DECREES HAVE LITTLE DETERRENCE VALUE. IT IS CONCLUDED THAT WHITE COLLAR CRIME IS A PROBLEM OF INCREASING SERIOUSNESS AND ONE WHICH THE PRESENT SYSTEM OF LAW ENFORCEMENT IS TOO CUMBERSOME, POLITICIZED, AND ANTIQUATED TO DEAL WITH EFFECTIVELY. NO REFERENCES ARE PROVIDED. (JAP)