Organized (White Collar?) Crime Defining the concept: The term “white collar crime” coined by Sutherland (1939) Significant because it moved the field away from crimes of the street towards ”upper-world” crime and interest in complexity of social organizations as criminal resources “Crime committed by a person of respectability and high social status in the course of his occupation” Sutherland focused on “crimes of business;” acts that were violations of federal economic regulations (as opposed to embezzlement, etc.)

Social Organization and Power Organization as a weapon to cause harm Organized Crime (IOC groups) State Organized Crime (Value Jet Crash) Occupational Crime (Physician Fraud) 2 Scales to consider: 1.Organizational Complexity 2.Victimization: More serious (often sophisticated) white collar offenses produce greater levels of victimization

Social Organization and Power Organizational Complexity provides power to do more criminal/financial harm Common CrimesWhite Collar Crimes % with a Pattern24.0%52.9% % Lasting more than 1 year6.8%49.9% % which use Organization2.5%22.1% % involving 5 or more People 8.0%13.0% From Weisburd, Wheeler, Waring and Bode (1988)

White Collar Crime The Cost of White Collar Crime –WC far outstrips losses from street crime Financial Costs –Average take for a robbery $434 (1978); $4 billion total –Bribery $3-15 billion –Price-fixing Anti-trust: up to $350 billion –Welfare fraud $1 billion –Enron losses estimated at $ billion (2002) –Unnecessary surgeries: $4 billion Health/Life Costs –Roughly 20,000 homicides annually in the US –National Safety Council estimates 14,000 deaths/year due to workplace accidents –100,000 deaths/year due to occupationally related disease –Estimates of 40-50% of all work-related deaths are the result of legal violations (as opposed to hazardous work conditions not in violation of the law)

Explaining White Collar Crime Merton’s Anomie Theory (Ch. 5) –Legacy of Durkheim –Anomie - normlessness –No regulation on individual desires –R.K. Merton’s Anomie/Strain Individual Adaptation to Social Conditions Social Condition/Structure composed of two elements: –Cultural Goals –Institutional Means

Type of CulturalInstitutional Adaptation Goals Means Conformity++ Innovation+- Ritualistic-+ Retreatist-- Rebellion-/+-/+ Explaining White Collar Crime Implications: 1. Structural Distribution of Institutional Means is Unequal 2. Cultural emphasis on $ success leaves individual aspirations unchecked -One of the elements of the bond (regulation) is not accomplished -This is the result of people being successfully attached (or integrated) -This is truly “Anomic” – a culture that does not provide its members with the social elements necessary to bond and control their behavior.

Relevant Chapters: 32.International Organized Crime Narcotics as a money-making venture Often links to legitimate businesses Different from street gangs? Globalization of deviant/criminal enterprise 33. The Crash of Valuejet Flight 592 Typical of Sutherland’s definition of White Collar Crime: Corporate Crime New idea: State-Corporate Crime >> Govt. as criminal actor What is the role of the government (or regulating agencies charged with protecting the public)? 38. Opportunity and Crime in Medical Professions Protective Cloak Status Altruism Autonomy –Types of Crime Kickbacks Prescription Violations Unnecessary Treatment Sexual Misconduct Medicaid Fraud & Abuse