Larry J. Siegel Valerie Bell University of Cincinnati, Cincinnati, OH Chapter Twelve Enterprise Crime: White-Collar Crime, Cyber Crime, & Organized Crime

Enterprise Crime –Use of illegal tactics to gain profit in the marketplace. Enterprise crimes can involve either the violation of law in the course of an otherwise legitimate occupation or the sale and distribution of illegal commodities. Enterprise Crime

–White-Collar Crime –Cyber Crime –Organized Crime Enterprise Crime

Components of White-Collar Crime –White-Collar Fraud Pyramid schemes Repair frauds Contract fraud Enterprise Crime

Components of White-Collar Crime –Chiseling Professional chiseling: medical crimes Professional chiseling: financial crimes –Churning –Front-running –Bucketing –Insider trading Enterprise Crime

Components of White-Collar Crime –Exploitation –Influence Peddling Influence peddling in government Influence peddling in criminal justice Influence peddling in business –Payola Enterprise Crime

Components of White-Collar Crime –Embezzlement and Employee Fraud Blue-collar fraud –Pilferage –Employee apprehensions –Employee recovery dollars –Rate of apprehension –Putting it in context Enterprise Crime

Components of White-Collar Crime –Embezzlement and Employee Fraud Management fraud –Tyco International Ltd –Enron Corporation –WorldCom Enterprise Crime

Components of White-Collar Crime –Embezzlement and Employee Fraud Client fraud –Health care fraud –Tax evasion Enterprise Crime

Components of White-Collar Crime –Corporate (Organizational) Crime Illegal restraint of trade –Sherman antitrust act Price fixing Deceptive pricing False claims advertising Worker safety/environmental crimes Enterprise Crime

Theories of White-Collar Crime –Rationalization/Neutralization View –Corporate Culture View –Self-Control View –Controlling White-Collar Crime Compliance vs. deterrence Enterprise Crime

Cyber Crime –Information Technology –Globalization –Cyber Crime –Cyber Theft Enterprise Crime

Cyber Crime –Cyber Theft : Cyber Crimes for Profit –Computer Fraud Theft of information “Salami” fraud Software theft Manipulation of accounts/banking systems Corporate espionage Enterprise Crime

Cyber Crime –Cyber Stalking –Cyber Bullying –Cyber Terrorism Enterprise Crime

Cyber Crime –Extent and Costs of Cyber Crime Controlling cyber crime –Other specialized enforcement agencies What the future holds Enterprise Crime

Cyber Crime –Pornography and Prostitution –Denial-of-Service Attack –Distributing Dangerous Drugs Enterprise Crime

Cyber Crime –Illegal Copyright Infringement Warez –Internet Securities Fraud Market manipulation Fraudulent offerings of securities Illegal touting Enterprise Crime

Cyber Crime –Identity Theft Phishing –Etailing Fraud Enterprise Crime

Cyber Crime –Cyber Vandalism: Cyber Crime with Malicious Intent Viruses Worms Trojan horses Web defacement Enterprise Crime

Organized Crime –Characteristics of Organized Crime Organized crime is a conspiratorial activity Continuous commitment by primary members Usually structured along hierarchical lines Economic gain as its primary goal Not limited to providing illicit services Employs predatory tactics Enterprise Crime

Organized Crime –Characteristics of Organized Crime Conspiratorial groups are usually very quick and effective in controlling and disciplining their members, associates, and victims Not synonymous with the Mafia Does not include terrorists dedicated to political change Enterprise Crime

Organized Crime –Activities of Organized Crime –The Concept of Organized Crime Alien conspiracy theory Mafia –Contemporary Organized Crime Groups Enterprise Crime

Organized Crime –Controlling Organized Crime RICO Enterprise theory of investigation –The Future of Organized Crime Enterprise Crime