White-collar crime is a catch-all phrase for a variety of frauds, schemes, and commercial offenses committed primarily by businesspersons, confidence men, and public officials. It includes a broad range of non-violent offenses that have cheating at their core. Notable examples include consumer fraud, bribery, and stock manipulation.
Definition and Scope of White-Collar Crime
Types of White-Collar Crime
1. Consumer Fraud: Deceptive practices that result in financial or other losses for consumers. Common forms of consumer fraud include false advertising, telemarketing fraud, and identity theft.
2. Bribery: The solicitation, offering, receiving, or giving of any item of value as a means of influencing the actions of an individual holding a public or legal duty.
3. Stock Manipulation: The deliberate intervention in the free trading of securities to create artificial, false, or misleading appearances with respect to the price or market for a security.
Historical Context
The term “white-collar crime” was first coined by sociologist Edwin Sutherland in the late 1930s to describe crimes committed by individuals of high social status and respectability in the course of their occupation.
Applicability
These crimes predominantly occur in the business and governmental sectors and are usually committed by individuals in positions of power and trust.
Legal Framework
White-collar crimes are governed by various statutes including the Racketeer Influenced and Corrupt Organizations (RICO) Act, the Sarbanes-Oxley Act, and various federal and state fraud statutes.
Preventive Measures
Organizations and governments deploy multiple measures to prevent white-collar crimes, including:
- Internal Controls: Systems within companies designed to ensure accuracy and reliability.
- Whistleblower Protections: Laws and policies that protect individuals who report misconduct.
- Regulatory Oversight: Bodies like the Securities and Exchange Commission (SEC) actively monitor and regulate to prevent such crimes.
Comparisons with Other Crimes
White-Collar Crime vs. Blue-Collar Crime
- White-Collar Crime: Financially motivated, non-violent crimes typically committed by individuals in professional environments.
- Blue-Collar Crime: Generally involves more immediate physical harm and includes crimes like burglary, theft, and assault.
White-Collar Crime vs. Corporate Crime
- White-Collar Crime: Usually committed by individuals within an organization.
- Corporate Crime: Conducted by a company (or large number of individuals) to benefit the company.
Related Terms
- Insider Trading: Illegal trading of a company’s stock by people using confidential company information.
- Embezzlement: Misappropriation or theft of funds belonging to an employer or organization.
- Money Laundering: The process of making large amounts of money generated by a criminal activity appear to be earned legitimately.
FAQs
Can white-collar crimes lead to imprisonment?
Are white-collar crimes prevalent across the globe?
What are some famous examples of white-collar crime?
References
- Sutherland, Edwin H. White-Collar Crime: The Uncut Version. Yale University Press, 1983.
- “White-Collar Crime.” FBI. https://www.fbi.gov/investigate/white-collar-crime
- “Sarbanes-Oxley Act of 2002.” Pub. L. No. 107-204, 116 Stat. 745.
Summary
White-collar crime represents a complex array of offenses characterized by deceit and committed by individuals in positions of authority and trust. It spans consumer fraud, bribery, stock manipulation, and more. As societies become more integrated and economies more sophisticated, the landscape of white-collar crime continues to evolve, requiring vigilant regulatory frameworks and preventative measures.
