Chapter 10 White-Collar and Organized Crime Frank Schmalleger PowerPoint presentation created by Ellen G. Cohn, Ph.D.

White-Collar Crime Sutherland’s definition: Violations of the criminal law committed by a person of respectability and high social status in the course of one’s occupation White-collar criminals are less likely to be investigated, arrested, or prosecuted than other types of offenders

Definitional Evolution of White-Collar Crime Early definitions focused on the violator, rather than the offense Today, the focus has shifted to the nature of the crime, rather than the persons or occupations involved Occupational crime: Any act punishable by law that is committed through opportunity created during the course of a legal occupation

Corporate Crime Corporate crime: Environmental crimes: The violation of a criminal statute by a corporate entity or by its executives, employees, or agents acting on behalf of and for the benefit of the corporation Environmental crimes: Violations of the criminal law, which, although typically committed by businesses or by business officials, may also be committed by other individuals or organizational entities, and which damage some protected or otherwise significant aspect of the natural environment

Causes of White-Collar Crime Sutherland - differential association theory White-collar criminality, like other systematic criminality, is learned Hirschi and Gottfredson - general theory of crime White-collar criminals are motivated by the same forces that drive other criminals: self interest, the pursuit of pleasure, the avoidance of pain John Braithwaite - white-collar criminals are motivated by a disparity between corporate goals and limited available conventional opportunities Corporate culture socializes executives into clandestine/illegal behavioral modalities

Curtailing White-Collar and Corporate Crime Recent federal efforts The Corporate Fraud Task Force Sarbanes-Oxley Act (2002) Early federal legislation Sherman Act (1890) Clayton Act (1914) Securities Act (1933) Securities Exchange Act (1934)

Organized Crime Organized crime: Unlawful activities of the members of a highly organized, disciplined association engaged in supplying illegal goods and services Organized crime roots predate establishment of U.S. Ethnic succession: The continuing process whereby one immigrant or ethnic group succeeds another through assumption of a particular position in society

A Typical Organized Crime Family Figure 10.2 – structure of typical organized crime family

Prohibition and Official Corruption Prohibition gave organized crime a vital boost Mafia operations before Prohibition focused on gambling, protection rackets, loansharking Profits from bootlegging led to bribery of government officials and corruption of law enforcement officers

Activities of Organized Crime Gambling Loan-sharking Large-scale drug trafficking Fencing Infiltration of legitimate businesses Labor union racketeering Illegal copying and distribution of recorded media Pornographic presentations (snuff movies)

Other Organized Criminal Groups Black Mafia Cuban Mafia Haitian Mafia Colombian cartels Russian Mafia Asian criminals Inner-city gangs International drug rings Outlaw motorcycle gangs Latino organized groups

Transnational Organized Crime Unlawful activity undertaken and supported by organized criminal groups operating across national boundaries Russian organized crime is of special interest today

Organized Crime and the Law Hobbs Act (1946) Racketeer Influenced and Corrupt Organizations (RICO) Act Part of federal Organized Crime Control Act of 1970 Punishments include asset forfeiture

Money Laundering Money laundering: Main federal laws in this area: The process of converting illegally earned assets, originating as cash, to one or more alternative forms to conceal such incriminating factors as illegal origin and true ownership Main federal laws in this area: U.S. Criminal Code Money Laundering Control Act (1986) Bank Secrecy Act

Policy Issues: The Control of Organized Crime Increase the resources available to law enforcement agencies Increase law enforcement authority Make legitimate opportunities more readily available Decriminalization or legalization to decrease opportunity