Economically Motivated Crime

White-Collar Crime
 Edwin H. Sutherland coined term
 Organizational Crime: corporation/agency benefits form law-violating behaviour
 Professional crime: law-violating behaviours by professionals (lawyers, physicians, psychologists)
 State-authority crime: law-violating behaviours by those with legal authority
 Individual Crime: law-violating behaviour by individual

Some view white-collar crimes along 2 dimensions:

1. Occupational crimes – offences committed against businesses and government by those with “higher”
status
2. Corporate crimes – offences committed by organizations to advance their own interests (i.e. price
fixing)
*Crime focussed on individual vs crime focussed on organizations*

 Senator Mike Duffy was put on trial for fraud (31 counts)

Profiling the White-Collar Criminal

 Age/race/gender – white male, 40 y/o
 Education – higher education levels
 Position – often knowledge/involvement in financial side of business. Depending on position, the type
of crime varies

 Studies:
o Fraudulent statements – tended to be high status
o Asset misappropriation/corruption – middle class
o Organizations victims of corruption – large profit generating corporations
o Asset misappropriation – more often in smaller organizations
o Fraudulent statements – more often small organizations

o White collar criminals more hedonistic (supportive of pursuit of pleasure)

o More likely to give in to temptation when they had chance to make money illegally
o White collar criminals more conscientious

o White collar criminals (WCC) have lower integrity than non-criminals

o Traits of WCC: irresponsibility, lack of dependability, disregard for rules/social norms
Profiling the Victims of White-Collar Crime
 Organizational type – positive association between the size/level of bureaucracy of the organization
and willingness to approve of stealing from organization. Those with large bureaucracies get little
sympathy from public, alluding to large profits.
 Organizational size – larger organizations. Factors interact – decentralization and level of control
 Internal controls – those with greater internal controls – less likely to be victimized
Public Perceptions of White-Collar Crime
 Many want as harsh/harsher punishment than violent crimes
  Greater government resources to combat WCC
 Street offenders perceived to be prosecuted more severely
 Those who commit robbery – punished similar to those who commit fraud

Theft
 Punishment:
o +$5000  indictable offence, max 10 years in prison
o -$5000  hybrid offence (can be either indicatable or summary conviction, decision made by
crown’s prosecuting office)
 If indictable – no more than 2 years
 If summary – max 6 months, fine of $2000, or both

Property Crime
 Categorized in 2 ways:
1. Theft of personal property – wallet, credit card, money
2. Household crime – B&E, vandalism, theft of cars, theft of household property
 There is an increase in property crime

Fraud
 Two categories:
1. - $5000
2. + $5000
 Fraud – when deceit/fraudulent means are used to deprive someone of property, money, valuable
security, services
 Critical element – uses deception to take something that does not belong to them

Identity Theft: Special Case of Fraud

 Identity crime – generic term. Describes all forms of unlawful activity involving identity including
identity theft and fraud
 Identity theft – obtaining/possessing ID information with intent to use deceptively, dishonestly,
fraudulently in the commission of a crime
 Identity fraud – actual deceptive use of IS information of other person in connection with various
frauds (impersonation, misusing credit card etc.)
 Trafficking in ID information – those who transmit, makes available, distribute, sells other persons ID
information or has in their possession for any of above purposes, knowing/being reckless as to whether
the information will be used to commit an indictable offence that includes fraud, deceit, falsehood as
element of offence
 Identity document – any document that ID’s person/contains ID information (SIN card, driver license,
passport etc.)
 Breeder document – genuine document used to confirm one’s ID when applying for genuine document
(e.g. birth certificate)
 Identity information – information (including biological/physiological information) of a type that is
commonly used alone/in combination with other info to ID individual (e.g. fingerprint, voiceprint, retina
image, CC number etc.)
Other types of fraud include:
  Advance fee fraud: requiring payment before deliver/service
 Online auction fraud
 Investment fraud
 Counterfeit
 Home renovation fraud
 Health fraud
 Fraudulent bankruptcy
 Corruption/bribery

Cybercrime
 Criminal offence involving computer as subject of crime, or tool used
 2 categories:
1. Technology as target
2. Technology as instrument

Cyberbullying
 Communication technologies to repeatedly intimidate/harass others
 Victims’ inability to escape
 Risk factors: antisociality, few prosocial peers
 Risk factors for victims: entering high school, depression

Prostitution
 Providing sexual services for money
 Most commonly female sellers, male buyers
 2014 – Bill C-36 found parts of criminal code to be unconstitutional in that they put sex workers in
danger
 The Protection of Exploited Persons and Communities Act
o Criminalizes buying sex, profiting from sex, third party advertising
o Cannot sell sex where those under 18 are expected to be (school, playgrounds etc.)
o Illegal to buy/communicate with intention of buying sex
 Punishment – $500 fine, increasing with number of offences committed
The Male Client
 Two groups:
1. Lower social-sexual effectiveness, greater sensation seeking behaviour, motivated by desired
intimacy
2. High level of sensation seeking, motivated by novelty/variety
Attitudes towards prostitution:
 Younger/less educated – believed myths, less likely to support decriminalization
 Men who engage are from varying backgrounds/motivations
The Pimp
 Controls prostitutes, arranges customers, takes part of earnings
 May start as client
 40% of jailed prostitutes were controlled by pimps
 Organized Crime
 Composed of 3+ people, inside/outside of Canada, has main purpose of facilitating one or more serious
offences that would likely result in material benefit by group or any in the group
 Does not mean a group that commit one offence together
 Hell’s angels was first time courts recognized a group as criminal organization
Extent of Organized Crime in Canada
 900 in Canada (2008)
 Criminal Intelligence Service Canada (CISC) – the cornerstones of organized crime:
o BC lower mainland, southern Ontario, greater Montreal are largest concentrations
o Drug trade largest criminal market
o Impact that law enforcement has on disbanding organized crime is short-lived (regroup quickly,
consumer demand)
o Most have international affiliations
o Organized crime groups infiltrate/exploit legitimate businesses—laundering money, criminal
activity etc.
How do Organized Crime Networks Operate?
 Some have hierarchy/core membership
 More often fluid
 CISC – methods used to gain competitive advantage in criminal marketplace:
o Violence/intimidation – externally and internally
o Critical skills – manipulate groups that have critical skills to facilitate crime (e.g. counterfeiting)
o Money laundering

Organized Crime and Sex Trade

 Three elements of human trafficking:
1. The act – what is done
2. The means – how it is done
3. The purpose – why it is done
 Often lured with promise of job
 Have passports stole – “work” to pay off
 World fastest growing crimes
 800 people trafficked into Canada a year, non-government data show 16,000 per year
 Bill C-49 created 3 new indictable offences
o Allow for charges against Canadians who go to other countries seeking child prostitution (sex
tourism)
 Maintaining control:
o Psychological, blackmail, grooming
 Sex workers tend to come in and out of trafficking situations
 Recommendations:
o Improve public awareness
o Provide outreach/intervention for victims
o Provide housing/protection for victims

Organized Crime and the Drug Trade

 Greater profits than any other trafficked commodity
  Majority male, most commonly drugs hidden in luggage
 China is largest single source
 Money from drug sales – typically laundered

Organized Crime and Fraud

 Often extensively involved in fraud
o Mass marketing fraud – target consumers in other countries (prizes, sweepstakes, internet
auctions)
o Mortgage fraud
o Payment card fraud – info taken from POS terminals to nearby vehicles
o Contraband tobacco – 22% of cigs in Canada are illegal
o Intellectual property rights crime – e.g. fake designer bags
o Vehicle-related crimes
o ID theft and fraud

Group Types in Organized Crime and Street Gangs

 Groups of friends
o Does not engage in antisocial acts
 Spontaneous Criminal Activity Groups/Gangs
o Can be large, social
o Shoplifting, theft, bullying, swarming
o Fluid – no leadership
o Typically, not connected to organized crime
o Weapon use is limited, but present
o Join for sense of belonging
o Recruitment through existing social networks
o Tend to leave as they mature
 Purposive group/gangs
o Main purpose is committing specific offence
o More structured than ^
 Youth street gangs
o Money-making criminal activity
o Violence against other gangs
o Hang clothing, tattoos
o Planned activities
o Hierarchy
o Some members coerced while in prison
o Some groups may require proof of criminality
o Those who choose to leave often need exit strategies
 Structured criminal organizations
o Highly structures
o Business operations (some international)
o Maintain low profile
o Use street level groups for criminal acts
Theories of Economically Motivated Crime
Property/Theft
 Routine activity theory
o Availability of suitable targets
o Absence of guardians
o Motivated behavior
 E.g. home is absent of guardians, financial strain could be motivator
Fraud
 The fraud triangle:
1. Opportunity to commit fraud
2. Pressure
3. Rationalization of fraud
 More likely to occur when pressure exists
 “capability” is seen as another key piece – must be in right position to commit fraud, intelligence to,
immune to stress, narcissist personality, deceptive, strong coercive skills
Cybercrime
 Rational choice theory
o Weigh costs and benefits
Prostitution
 No specific theory
 Social strain
 Financial strain
The Drug Trade
 Social strain theory
o Where opportunities for economic advancement exist, they will do what it takes
o Quick, easy profits
Gangs
 Interactional Theory
o Positive bonds with society must first be weakened
o Then leads to delinquent behaviours
o Seek peers who engage in same behaviour
 Structural control perspective
o Gangs are product of weakened systems of social control
 Structural adaptation
o Gangs created in response to environmental conditions

Factors Associated with Criminal Conduct among Economically

Motivated Offenders
Property Crime
 Substance abuse is common factor
 Homelessness
 Unemployment
Fraud/White-Collar Crime
 Some frauds committed by middle-class persons
 Low self-control (credit card, academic etc.)
Cybercrime
 Low self-control
 Believe there are few risks of being caught
 Inflated confidence behind screen
Prostitution
 Economic
 Drug use problems
 Run away from home (abuse)
 Mental health/low self-esteem
Drug Trade
 Unemployment
 Substance abuse
Gangs
 Drugs
 Economically motivated
 Possession of weapons
 Low education

Assessment Approaches and Effectiveness

 There are different method of assessment depending on the kind of crime committed
 Risk assessment tailored to offences committed

Treatment Approaches
White Collar Crime Legislation
 2003 – National White-Collar Crime Centre of Canada (NW4C) introduced under Canada
Corporations Act to prevent/respond to economic crime
o Links national/international systems
 WCC tend to work for the institutions they are stealing from
 Sometimes asked to pay back what was stolen
Property Crime Interventions
 Alternatives, Attitudes, and Associates Program is common treatment
 Goal  teach goal setting, problem solving
 self-management, emotion, attitude skills
 emphasizes positive relationships
 26 group sessions
Fraud Interventions
 All-day groups session
 Goal  look at/challenge motivation for crime
  Personal, legal, societal consequences discussed
Cybercrime Interventions
 No general treatment
 Depends on type of offence committed
 Child pornography – Lucy Faithful Foundation in UK
o Discuss actions, implications, prevention
o Figure out “why”
o 10 weeks
o Effectiveness unclear
Prostitution Interventions
 Group in Victoria BC formed group – Prostitutes Empowerment Education and Resource Society
(PEERS) go on 4 principles
1. Choice: support for those who want to get out of sew work and those who want to continue
2. Capacity building: focusses on strengths and helps build on them
3. Harm reduction: programs for those with addictions
4. Trust: peer-led services. Sex-workers design/deliver their own services
Drug Trade Interventions
 Low-level drug trade offences  Drug Treatment Court
1. Dependency assessment – history, consequences, social support examined
2. Orientation/stabilization – group sessions
3. Intensive treatment – 2-hour group sessions 4 times a week for 3 weeks – recognize triggers,
understand functions of drug use, learn how to develop positive coping mechanisms
Gang Interventions
 Incredibly complex
 The Little Village Gang Violence Reduction Project – designed to reduce serious violence in
Chicago’s gang-ridden neighbourhoods
o Law enforcement, social services, grassroots organizations
o 5 principles:
1. Community mobilization – community leaders and residents are involved
2. Social intervention – array of services
3. Provision of academic, economic, social opportunities
4. Gang suppression – held accountable for actions
5. Facilitating organizational change and development – support provided to the community to
solve the gang problem
 Some evidence for reduction in violent arrests, but otherwise no real change was seen. Program was
dissolved

Future Directions
 Treatment plans must be multi-faceted
 Concern for use of internet – increase in technology crime
o Ease of crossing borders

Summary
1. White-collar crime is categorized into occupational crime and corporate crime. Occupational crimes are
offences committed against businesses and government, generally by those with a “higher” social status.
 Examples include expense account fraud and tax evasion. In contrast, corporate crimes are committed by
organizations to advance their own interests. Corporate crime offences include price fixing. The
distinction between occupational and corporate crime can be thought of as occupational crime being
committed by individuals and corporate crime being committed by organizations.

2. Theft is the notion of “stealing.” That is, taking something that belongs to someone else. Theft is
covered in section 322 of the Canadian Criminal Code. There is a demarcation line at $5000 when
deciding on punishment for theft. Fraud occurs when deceit or fraudulent means are used to deprive
someone of property, money, valuable security, or services. The Criminal Code defines fraud in section
380. Similar to theft, fraud offences are categorized in the justice system as fraud under $5000 or fraud
over $5000. Many thefts also can be frauds and it is sometimes up to the police to decide whether to
charge an offender with fraud or theft.

3. Compared to non-prostitute youth, adolescent prostitutes are more frequently classified as runaways and
use a wider variety of drugs, whereas the non-prostitute youth tend to experience more childhood
physical abuse. Although adolescent prostitutes often have a number of issues (e.g., abuse, poor family
relations, low self-esteem), these variables are also present in adolescents who are not prostitutes.
Prostitution clients are significantly less likely to subscribe to a feminine sex role orientation, have lower
social–sexual effectiveness, and have higher sensation-seeking tendencies.

4. A “criminal organization” is defined in section 467.1 of the Criminal Code as a group that is: 1)
composed of three or more persons in or outside of Canada; and 2) has as one of its main purposes or
activities the facilitation or commission of one or more serious offences that, if committed, would likely
result in the direct or indirect receipt of material benefit, including financial benefit, by the group or by
any of the persons who constitute the group.

5. Organized crime groups engage in fraud (including mass-marketing fraud and intellectual property
rights crime), the sex trade (including prostitution and human trafficking), and the drug trade (including
the importation and distribution of a variety of drugs such a marijuana and cocaine).

Discussion Questions
1. During your summer job at a large manufacturing company, you notice that the supply cabinet has many
of the office supplies (e.g., paper, pens, Post-it notes, binders, etc.) you will need when you go back to
school in September. You decide to take a few things each week, believing that such a large corporation
won’t notice the items as missing. Debate whether your actions constitute white-collar crime or theft.

2. You volunteer at an after-school drop-in program for teens aged 13 to 16. Many of the teens have
difficult home lives. List factors that should be targeted to reduce the likelihood that these teens will run
away and become prostitutes.

3. Debate whether the legalization of drugs would reduce drug trafficking.

4. After being declined for a credit card, you contact your bank to better understand why your application
was rejected. It soon becomes clear that someone has stolen your identity, obtained and used numerous
credit cards in your name, and defaulted on the debts. What are some strategies to prevent this from
happening to others?