NCJ Number
86755
Date Published
1981
Length
20 pages
Annotation
Materialism, social upheaval, and a deterioration of traditional moral values contribute to white-collar crimes such as computer fraud, market manipulation, employee embezzlement, and fraudulent land transactions and bankruptcies; investigators with special skills are required for such crimes.
Abstract
The annual cost of white-collar crime in Canada is at least several hundred million dollars. The cost of such crime is borne by citizens either through increased prices or taxes levied to compensate for unpaid corporate taxes on profits reduced by crime. Computer crime can include vandalism and the manipulation of input or output data for personal profit at the company's expense. Other white-collar crimes include stolen securities, in which organized crime is involved to a great extent; advance fee schemes (money paid in expectation of a future service not received); multilevel sales organizations ('pyramid' schemes); offshore banks and corporate shells, which are outside Canada's jurisdiction; and market manipulation. In the latter case, although Canada has securities and exchange regulations, market manipulators have developed strategies to circumvent these regulations. Employee embezzlement from the employer, suppliers, and customers is also prevalent, along with fraudulent land transactions and bankruptcy. White-collar crime appears to increase when a society experiences sudden prosperity or rapid technological development coupled with rising economic expectations. A new social freedom in Canada has also contributed to the abandonment of traditional values and restraints. A white-collar crime investigator must be able to analyze financial information and contractual arrangements as well as be familiar with computer programming and other enterprises where white-collar crime is prevalent. Knowledge of the various statutes applicable to white-collar crimes is also essential. Nine bibliographic listings are provided.