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The term—reportedly coined in 1939—is now synonymous with the full range of frauds committed by business and government professionals. It’s not a victimless crime. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars The term white-collar worker refers to a person who performs professional, managerial, or administrative work, in contrast with a bluecollar worker, whose job requires manual labor. Typically white collar work is performed in an office or cubicle. The term refers to the white dress shirts of male office workers common through most of the nineteenth and twentieth centuries Western countries as opposed to the blue shirts, uniforms or cover-alls of manual or service workers. White collar crime impacts the economy by increasing the cost of doing business and raising prices for the consumer. White collar crime decreases the efficiency of doing business and has a negative impact on the bottom line of a company. In some extreme cases (Enron) white collar crime can bankrupt companies and / or have a major impact on the stock market. When white collar crimes are caught, new regulation can restrict business and lower efficiency even more. The only difference between white collar crime and 'real' crime is that there is normally not a single identifiable victim and there was no threat or use of violence. Most scams / cons, fraud, corruption, and theft fall under 'white collar crimes.'
you are going to have a lot of fraud. against individuals and small businesses. and we have never seen anything like this.If anything. the Manhattan district attorney. ''So. when you look back and you have high activity in the market.'' said Robert M. It can also mean less pay for employees and even cutting jobs. The effect can continue to ripple when it comes to those employees or investors who now find themselves unable to pay off loans. Morgenthau. like they did in the 1980s in the United States. they are going to go after the money. . white collar crimes are the most damaging crimes to the economy since they prevent business from taking place in a fair market. and credit becomes harder to obtain. has skyrocketed. it must make up for it by raising costs. When a company suffers from fraud from any source. while violent crime has plummeted nationwide. The global economy has created new opportunities for organised crime and corruption. law enforcement officials say. whitecollar crime. fueled by the economy and made easier by the Internet. Scandals like Enron can also wipe out innocent employees' retirement accounts. it can cause investors to lose faith in the stock market. ''When there is a lot of money around. Organised criminal activity often spans the boundary between legitimate and illegitimate business and criminal networks increasingly control parts of domestic economies and seek to capture state functions In recent years. When stock fraud or insider trading scandals break out. which ultimately means higher prices for consumers.
from many different backgrounds. accurate statistics are difficult to gather because the crime goes unreported and unpunished so often. it seems. The term is identifying those illegal nonviolent activities that involve traditional notions of deceit. Now. The FBI has admitted that arrest rates for white-collar crimes are significantly lower than that for other types of crime [source: Barnett]. Enron and other publicized scandals. no consensus exists on a definition." White collar criminals may leave only complex paper trails that take time and skill to sift through. Sociologist of criminology. As we discussed earlier. with the growth of technology and the rise of Internet. . white collar computer crime is more rampant. manipulation. Have you opened a medical statement recently and had too many charges on it? Were you charged for examinations that you did not need? Or were the charges from a doctors office you did not use? You may have been a victim of a white collar crime! It can happen to anyone! White Collar Crime is a term that was defined by Edwin Southerland. Local law enforcement teams often find themselves ill-equipped to track down the criminal.Obviously. The exact toll it has. concealment. deception. "Colonel Mustard. but also more difficult to solve. Numerous factors make white-collar crime statistics hard to come by. Today it is known that white collar crime can be committed by anyone. no DNA evidence. there are no bloody footprints. is hard to quantify. in the kitchen. and people disagree on what counts as a white-collar crime. no eyewitnesses and no smoking gun. with the revolver. are only the tip of the proverbial iceberg. however. however. Even if there were a consensus. One can't conclusively declare as in the board game Clue. Even if fraud is suspected. this kind of crime can have an enormous impact on society. These crimes have been known to be committed by business professional and government agents. breach of trust or illegal circumvention. both because of the wide ripples and the dilemma of finding accurate statistics.
Though these crimes are non-violent they have a great affect on corporate companies. tax evasion. gender. education or social status. environmental law violations. computer/internet fraud. The cost of corporate crime to society is many times that of organized crime or street crime. embezzlement. Such white collar crimes increase the cost of doing business. According to the National Health Care Anti-Fraud Association (NHCAA). Businesses and consumers are not only loosing financially. securities exchange. The rise in white collar crime incidents has also contributed to a rise in cost to the nation. it is estimated that about 3% or 68 billion dollars of all Health Care spending is lost to Health Care fraud. identity theft. Corporate crime can cost billions of dollars. excluding medical fraud. Insurance Fraud. According to the Federal Bureau of Investigation (FBI) these types of crimes cost the United States more than 300 billion dollars annually. mail fraud. insider trading. There are various types of white collar crime that increased economic hardship for the average citizen and consumer. financial crimes. it is costing the average family about $400-$700 more annually for insurance. While premiums are increased due to fraud. This increase in Health Care Insurance Fraud will also increase medical cost because people also have to pay to replace the money that is lost in the cases of fraud that take place. bankruptcy fraud. People are losing lives and savings. bribery/kickbacks.whether it is race. insurance fraud. health care fraud. consumers and the United States economy. government fraud. The FBI estimates a loss as high as 10% for Health Care related fraud. money laundering. it usually does not create the original impact as a store robbery that only cost a few hundred dollars. accounts for about 40 Billion dollars annually. counterfeiting. public corruption. qui tam. their health is put in danger. Due to the aging of the baby boomers Health Care fraud is only expected to rise because of the high insurance rates and medical bills. which impacts consumer through increased prices and decreased services. credit card fraud. the cost of everyday goods are higher. White collar crimes include: anti-trust law violations. honest people are . but because these losses are frequently spread out over so many unaware victims. telemarketing fraud and trade secret theft.
commodities. Fraud committed by executives does not only damages stock holders but public confidence for corporations.loosing their jobs and honest businesses are loosing money. The Department of Justice. . Telemarketing companies committing fraud are hard to track down and prosecute because most of the companies are between jurisdiction. Kenneth Lay born in Missouri 1942 was an American businessman. Computer fraud via the internet is used to acquire personal information such as credit card numbers. Lay was once one of the highest paid Ceo's earning a $42 million compensation package in 1999. the Securities and Exchange Commission and others. Most of these agencies also have contact information where white collar crimes can be reported. usernames. The Government Accountability Office estimates that about 10% of all funds of domestic programs will be lost through contracting processes linked to public corruption. the Federal Trade Commission. Today there are many agencies and organizations trying to combat white collar crime. National White Collar Crime Center. The crime Lay committed was that he liquidated more than $300 million in Enron stock in stock options. telemarketing frauds target the elderly who are usually at home and sometimes with no one to help them with such things. A study done in 2004 by the Federal Trade Commission showed that fourteen percent of consumer fraud is achieved through the internet or email. such as the Federal Bureau of Investigation. They provide information for consumers on ongoing cases of white collar crime and how to protect them selves from these types of crimes. passwords or other information that can be use in criminal activities. and services company based in Houston. they are trying to get rich of hard working people. Bankruptcy and antitrust offenses are having the greatest impact on the economy. Greed is one of the main reasons people commit white collar crimes. Some types of fraud hurt the most vulnerable. Texas. It was named "America's Most innonative Company" by Fortune for 6 consecutive years. making it harder to be investigated by local officials. Enron was an energy.
These outside companies would show how strong of a company Enron appeared to be. Enron had stocks that went as high as $90.Ken Lay. Lay died in Colorado on vacation in July 2006. During Kenneth Lay's trial he stated that Enron made up 90% of his own wealth. Kenneth Lay was the Chairman and Chief Executive officer for Enron. Enron would hide all of their losses so none of their employees would find out. in 2000. and a few others figured out that Enron was not making any money. Lay was found guilty on all six counts of conspiracy and fraud. He was to be sentenced in October 2006. However.000 employees were laid off and ordered a half an hour to clear there desks and leave! . so they decided to create outside companies. Kenneth Lay ruined many lives and burden many of his employees with this fraud. Enron encouraged their own employees to but more stock even though they were secretly taking theirs out. Enron employees lost their retirement funds. As much as 20.
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