2. Copyright © 2006 Pearson Education Canada Inc. 10 - 1 Chapter 10 Organized and Corporate Crime “…had I a hundred tongues, a hundred mouths, a voice of iron and a chest of brass, I could not tell all the forms of crime…” Virgil (70-19 B.C.)

3. Copyright © 2006 Pearson Education Canada Inc. 10 - 2 Learning Objectives Describe the nature and significance of organized crime. Discuss the various types of organized crime groups in Canada. Assess the extent of corporate crime and the difficulty in regulating it. Discuss the causes of corporate crime. Evaluate the ways in which corporate crime and organized crime can be controlled.

4. Copyright © 2006 Pearson Education Canada Inc. 10 - 3 Introduction Economic crimes of the powerful and/or influential Evolution of the concept of ‘greed’ What activities? What activities? Trafficking drugs, weapons, cigarettes Trafficking drugs, weapons, cigarettes Trafficking migrants Trafficking migrants Prostitution & pornography Prostitution & pornography Fraud, counterfeiting Fraud, counterfeiting Robbery Robbery Bribery, extortion Bribery, extortion

5. Copyright © 2006 Pearson Education Canada Inc. 10 - 4 Definitions NOT in Canadian Criminal Code but under section 462.3 “enterprise crime offence” BUT defined by police as Two or more persons Consorting together on perpetuating basis Participate in illegal activities Directly or indirectly for economic gain Abadinsky: Org Crime Control Act p.287

6. Copyright © 2006 Pearson Education Canada Inc. 10 - 5 International Definitions United Nations Convention against Transnational Organised Crime http://www.unodc.org/unodc/en/crime_cicp_signatures_convention.html http://www.unodc.org/pdf/crime/final_instruments/383e.pdf Canada a signatory Definitions p. 25 – Crimes articles 5,6,8 Confiscation, third parties, extradition, protection of witnesses, int’l cooperation

7. Copyright © 2006 Pearson Education Canada Inc. 10 - 6 Profile of Organised Crime Non-ideological (generally) Hierarchical or blood ties Limited or exclusive membership Specialization or division of labour Monopolistic Rules and regulations

8. Copyright © 2006 Pearson Education Canada Inc. 10 - 7 Crime Groups in Canada Aboriginal crime groups: Kahnawake & St. Regis – smuggling cigarettes, alcohol and illegal gambling operations “manufactured organized crime”? Power of the ‘black market’ Prevention through social development

9. Copyright © 2006 Pearson Education Canada Inc. 10 - 8 Other Types Drug Cartels Columbia, Nigeria, Japanese, Russian… Threats to democracy and national security Corruption – a cog in a corrupt government Transcend borders… ‘tour de force’ Ethnic Groups An assimilation problem? An assimilation problem? Influence of past social and political environment Influence of past social and political environment The power of violence (Vietnamese) The power of violence (Vietnamese) International recognition (e.g., Netherlands) International recognition (e.g., Netherlands)

10. Copyright © 2006 Pearson Education Canada Inc. 10 - 9 Outlaw Motorcycle Gangs Rebellion or ritualism or retreatism? The Hell’s Angels and Harley’s A subculture of capitalist system Evolved in level of sophistication Chain of command Use of violence and bribery Defined rules and regulations

11. Copyright © 2006 Pearson Education Canada Inc. 10 - 10 Explaining organized crime Definitional challenge “Che” Guevara & Crusaders of 1100-1300s Ethnic groups - an assimilation problem? Ethnic groups - an assimilation problem? Social & political environment influence? Social & political environment influence? Strain, blocked opportunity, and anomie Government “control/laws”? Government “control/laws”? Challenge to counter Challenge to counter Police resources Police resources Regulate? Regulate?

12. Copyright © 2006 Pearson Education Canada Inc. 10 - 11 Corporate Crime Crimes against public order by ‘big business’ Legitimised because of “high-status” members Legitimised because of “high-status” members The ‘good’ / ‘bad’ corporate citizen Pervasive in society Challenge to counter – why?

13. Copyright © 2006 Pearson Education Canada Inc. 10 - 12 Types MONEY MONEY MONEY!!! Investor fraud, embezzlement Investor fraud, embezzlement Price fixing Price fixing Tax evasion & competition law violations Tax evasion & competition law violations Against economy, humanity & employees Against economy, humanity & employees Computer crimes – data encryption, hacking, identity thefts, data manipulation Computer crimes – data encryption, hacking, identity thefts, data manipulation

14. Copyright © 2006 Pearson Education Canada Inc. 10 - 13 Explaining Corporate Crime Sutherland: “White collar crime” Pervasive in society Pervasive in society learned, status, accepted, helplessness learned, status, accepted, helplessness highly profitable, relatively risk free highly profitable, relatively risk free Challenge to counter Challenge to counter neutralisation, shaming, police resources neutralisation, shaming, police resources laws & sentences laws & sentences regulate? regulate? NO single theory or strategy sufficient

15. Copyright © 2006 Pearson Education Canada Inc. 10 - 14 SUMMARY Different characteristics but similar modus operandi Pervasive! + Economic impact!! Providing an ‘illicit market’ Definitional challenge Intervention efforts minimal Role of an interdisciplinary and integrated approach