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

2. 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

3. 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

4. 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

5. 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

6. 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)

7. 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

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

9. 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

10. 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)

11. 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

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

13. 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

14. 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

15. 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