Chapter 11 begins with the classic definition or “statement” of white collar crime by Edwin Sutherland. It then discusses occupational crime and organizational crime along with how researchers measure these types of crime. Several problems faced by researchers are lineated. The typology of white collar crime developed by Edelhertz is explained and broken into four (4) categories: crimes by person operating on an individual ad hoc basis, crimes committed in course of employment, crimes incidental to business, and white collar crime as a business.
Legal regulations are then discussed, including professional associations, traditional criminal law, civil law, and administrative law. The Sherman Antitrust Act of 1890 is explained along with the types of sanctions regulatory agencies can enforce. Criticisms of these agencies are also presented. Occupational crimes are discussed regarding crimes by employees against individuals, crimes by employees against employees, crimes by employees against organizations, crimes by organizations against employees, and crimes by organizations (corporations) against organizations. Theory and crime are also discussed.
The Classic Statement
Measurement and Cost of Occupational and Corporate Crime
History of Corporate, Organizational, and Occupational Crime
Criminal Careers of Occupational and Organizational Offenders
Theory and Crime
The Classic Statement
White Collar Crime: “A crime committed by a person of respectability and high social status in the course of his occupation.”
Suggested that the costs of white collar crime are greater than those of street crime.
Occupational Crime: Personal violations that take place for self-benefit during the course of a legitimate occupation.
Corporate (Organizational) Crime: Crimes committed by officials on behalf of the employing organization.
The Measurement and Cost of Occupational and Corporate Crime
Little is known about the extent of these crimes.
Problems faced by researchers:
1. The higher professions are self-regulating, and sometimes remain silent regarding violations.
2. Many employers simply ask for resignations from errant workers to avoid scandal.
3. Occupational crime statistics are not kept on a systematic basis by any agency or association.
4. Probes of occupational wrongdoing by outsiders are usually greeted by secrecy.
The History of Corporate, Organizational, and Occupational Crime
A long history exists in the U.S.
Typology of White Collar Crime (Edelhertz):
1. Crimes by persons operating on an individual ad hoc basis.
Income Tax Violations
Credit Card Fraud
2. Crimes committed in the course of employment, in violation of their duty of loyalty and fidelity to employers or clients.
The History of Corporate, Organizational, and Occupational Crime (cont’d)
Typology of White Collar Crime (Edelhertz) (cont’d):
3. Crimes incidental to, and in furtherance of, business operations, but not central to its purpose.
4. White collar crime as a business, or as the central activity.
This is covered in this text under the label “professional crime.”
Advance Fee Swindles
Food and Drug Violations
Many professions largely self-regulate.
Occupational crime may be controlled by:
Traditional Criminal Law
Corporations have been considered legal “persons” since a Supreme Court decision of 1886.
Legal Regulation (cont’d)
The Sherman Antitrust Act (1890): Forbids restraint of trade and the formation of monopolies; makes price fixing a felony.
Regulatory agencies can enforce sanctions: