White Collar Crimes - Offences in the Corporate WorldWhat are white collar crimes? These are offences that take place usually in business world. Usually, it is committed by a 'person of standing' such a the company's CEO or one of the memebrs of the Board. Whoever commits it though, and whatever way it's carried out, it's an abuse of power and influence for personal gain.White collar crimes refer to nonviolent offenses carried out in business or corporate situations by persons, groups, or companies, the aim being financial gain. Financial gain can mean any of five things:
Most common white collar crimes involve fraud. Many involve such financial institutions as banks or credit card companies. All are characterized by concealment, deceit, and the violation or abuse of trust. Experts state that the incidence of white collar crimes are expected to go up as economies become more dependent on technology to access personal/financial data. Nonprofit watch group NW3C (National White Collar Crime Center) reports that white collar crime arrests have gone up as those for violent crimes have gone down lately. This is supported by recent data from the Bureau of Justice Statistics. Recent statistics also show that white collar criminals seem to focus on the popular crimes of embezzlement and fraud. The watch group estimates that while 1 in 3 households are victimized, only 41% report it. What’s worse is that only 21% ends up being handled by a law enforcement agency. Failure to report the crime stems from uncertainty on whom to call to unawareness of being victimized. Still other victims feel that no good will come from reporting it so why bother. The FBI reports that victims of white collar crimes lose $40 billion each year. The nation isn’t spared either since, from 1970 to 1990, economic costs have skyrocketed from $5 billion to a staggering $100 billion! White Collar Crimes - Recent IncidentsOne of the most prominent personalities convicted of a white collar crime is Martha Stewart. The domestic design tycoon was sentenced to an abbreviated prison term in 2004, although her crimes carried sentences of until five years and $250,000 in fines for each count. Stewart was found guilty of:
Corporate America has indeed been plagued by the recent criminal activities of CEOs. One example is the case of Adelphia Communications founder John Rigas and his sons who were charged with dipping their fingers into the company coffers and concealing a $2-billion debt. Another is the case of the WorldCom CEO accused of participating in Accounting Fraud to the tune of $11 billion. Many judges shorten prison times for these erring execs, but the maximum term was handed down in at least one recent case: the 2001 conviction of Robert Courtney for Health Care Fraud. The Kansas pharmacist was found guilty of diluting chemotherapy medications and got:
White Collar Crimes - Types & PenaltiesThe 20 most common white collar crimes are:
Penalties vary but usually include jail or prison time, huge fines, and victim restitution. If the crime is tried as a felony, statistics show incarceration rates for some white collar crimes (e.g., embezzlement, fraud, counterfeiting) are higher than for possession of firearms or drugs. Prison sentences can last as long as 30 years but average sentences are:
Although
terms may be
relatively lenient, criminals can
suffer dire penalties like losing all their assets and sacrificing
future
relationships with corporate America and the US government. |
| Back To Public Records Directory | Link To Reviews |