1. Defining White-Collar Crime  A violation of the law committed by a person or group of persons in the course of an otherwise respected and legitimate occupation or business enterprise. ©2012 McGraw-Hill Ryerson Ltd.LO1 Martha Stewart, an icon of good homemaking, was accused of selling thousands of shares of ImClone Systems Inc., stock just prior to the company’s announcement that it failed to receive U.S. Food and Drug Administration approval for an anticancer drug. Was this insider trading? Did she trade on material, non-public information?

2. Crimes Committed by Individuals  Occupational crimes: Crimes committed by individuals for themselves in the course of rendering a service - Medicare fraud, misuse of client’s funds by lawyers and brokers, substitution of inferior goods are all examples of occupational crimes.  Employees may abuse their authority for private gain – kickbacks, bribes and favours.  Believe the organization can absorb the loss. ©2012 McGraw-Hill Ryerson Ltd.LO1

3. Types of White-Collar Crime  Investment-related crimes  Bankruptcy fraud  Fraud against the government  Consumer fraud  Insurance fraud  Tax fraud  Bribery, corruption, political fraud  Insider-related fraud ©2012 McGraw-Hill Ryerson Ltd.LO1