Chapter 11:

White-Collar Crime: Occupational &

Corporate
CCJ 3014 – Crime in America
Dr. Matthew Matusiak
White-Collar Crime – The Classic Statement
Edwin Sutherland (1939)
Crime committed by a person of respectability and high
social status in the course of his occupation
Edward Ross (1907)
Criminaloids
Occupational Crime
Personal violations that take place for self-benefit during
the course of legitimate occupation
Corporate Crime
Crimes by business or officials, committed on behalf of
the employing organization
Measurement & Cost of Occupational &
Corporate Crime
Collecting Accurate Data

Problems Facing Researchers

Lack of social science research
 Requires knowledge of law, finance, and economics
 Corporate violations are often administrative and/or civil
 Enforcement is regulatory
 Lack of funding
 Complexity of corporations
 Difficulty in accessing data
History of Corporate, Organizational, &
Occupational Crime
Robber Barons
F. Browning & Gerassi (1980) The American Way of
Crime
Corruption in American Politics
Illinois, New Jersey, and Louisiana
“Boss” Tweed’s Tammany Hall
Corporate Fraud (2002-2003)
66%+ committed by senior managers and directors
40% targeted finance departments
72% all male, 13% all female, 13% mixed
History of Corporate, Organizational, &
Occupational Crime
Edelhertz Typology of White-Collar Crime
Crime by people operating on an individual ad hoc basis
Crime committed in the course of the occupations of
those operating inside business, government, or other
establishments, in violation of their duty of loyalty and
fidelity to employers or clients
Crime incidental to, and in furtherance of, business
operations, but not central to the purpose of the
business
White-collar crime as a business, or as the central
activity
Legal Regulation
Occupations and the Law
Self-regulation
American Medical Association

Organizations and the Law

Corporations
Sherman Antitrust Act (1890)
Federal Regulatory Agencies
 Sanctions available
 Nolo contendere
Legal Regulation
Criticism of Federal Regulatory Agencies
Lack investigative staff
Fines are insignificant compared to economic costs
Imprisonment is rarely used
Enforcement divisions are understaffed
Agency commissions are often filled with corporate
leaders within the regulated sector
Relationships between the regulators and the regulated

No UCR/NIBRS white-collar crime equivalent

Occupational Crime
Crimes by Employees
Crimes by Employees Against Individuals
Public Corruption
 Corruptions Perception Index, 2011
Police Corruption
 Mollen Commission
 Rampart Community Police Station

Judgescam
Watergate
Abscam
Private Corruption
Occupational Crime
Crime by Employees Against Employees
Sweetheart Contracts

Crimes by Employees Against Organizations

Embezzlement
 Non-shareable financial problem
 “Temporarily borrow” from employer
 “Borrowing” breaks down and they’re discovered

Motivation & Rationalization

Employee Theft
Occupational Crime
Crimes by Individuals
Medicine
 Fee Splitting
 Ping-Ponging
 Caesarean baby deliveries

Finance
Law
 Ambulance Chasing
 Overconcentration of lawyers

Other Professions
Education Scandals
Corporate Crime
Clinard & Yeager (1979)
Crimes by Organizations/Corporations Against
Individuals
Multinational Bribery
 Bribe Payers Index (2011)
Corporate Fraud
 Equity Funding Scandal
 Chrysler Corporation
 Hertz
 Defense Firms
 The Revolving Door
Corporate Crime
Corporate Fraud
Medical/Insurance Fraud
 Blue Shield of California
Price Fixing
 The Great Electrical Industry Conspiracy
 Plumbing

Sale of Unsafe Products

 Ford Pinto
 Ford Explorer/Firestone Tires
 B.F. Goodrich
 U.S. Tobacco companies
Corporate Crime
Environmental Crime
Silent Spring by Rachel Carson (1962)
Three Mile Island
 Radioactivity released into the surrounding area
 Owners faked safety test records

Toxic Criminals
 Times Beach, Missouri
 Hazardous Dumpsites
 Investigations
 Corporate Dumping
 Radiation Leaks
 Corporate Violence
Corporate Crime
Crime by Organizations Against Employees
Purposely violating health and safety laws
Asbestos Industry
Role of government regulators
Whistle-blowers
Karen Silkwood Case
 Potential whistle-blower
 Car accident, 1974
 Disappearance of sensitive documents
 Whistle-blower protection, 1986
Corporate Crime
Crimes by Organizations Against Organizations
Wartime Trade Violations
 International structure of multinational corporations

Industrial Espionage
 Intelligence agencies, Competing firms, Disloyal employees
 U.S. Economic Espionage Act of 1996
Criminal Careers of Occupational &
Organizational Offenders
Do not view themselves as criminal
Commitment to conventional norms
Parallels to professional criminals
Corporate concentration
Rationalization
Violations are viewed as part of work
Regulation of business interferes with free enterprise
Regulation is unnecessary
There is little criminal intent in corporate violations
Violations are standard business practices
Societal Reaction
Growing pressure for more severe punishment
Why the leniency?
Most acts were not illegal until the 20th century
American business philosophy
Public concern is a recent phenomenon
Media attention is recent
White-collar criminals share a socioeconomic status
with those that make and enforce laws
Political pressure
 Chapter 11:
White-Collar Crime: Occupational &
Corporate
CCJ 3014 – Crime in America
Dr. Matthew Matusiak