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ENTERPRISE CRIME:

White Collar, Cyber Crime & Organized Crime


Criminology 2009

Enterprise Crimes
Defined at crimes of the marketplace. Offenders twist the legal rules of commercial enterprise for criminal purposes. 3 types of enterprise crimes:
White Collar Crime Cyber Crime Organized Crime

White Collar Crime Bribery Price Fixing

Online securities fraud

Cyber Crime Identity Theft Computer Crime

Illegal dumping of pollutants; money laundering

Enterprise Crimes
Internet pornography

Organized Crime Extortion Loan Shark Gambling

White Collar Crime:


Definition: Originally defined as a crime committed by a person of respectability & high social status in the course of his occupation (1930s)

Cost of white collar crime is greater than common theft offenses.


White collar offenses breed distrust in economic & social institutions, lower public morale & undermine faith in business & government.

Stings & Swindles:


Definition: Type of white collar crime in which people use their institutional or business positions to bilk people out of their money. Examples: fraud involving door to door sale of faulty merchandise to passing millions in counterfeit stock certificates Stings & swindles are usually prosecuted as EMBEZZLEMENT or FRAUD.

Chiseling:
Definition: Cheating an organization, its consumers or both on a regular basis Professional Chiseling: short-weighting scales Securities Fraud:
Churning Front running Bucketing Insider trading

Churning: Repeated, excessive, and unnecessary buying & selling of a clients stock. Front Running: Brokers place personal orders ahead of a large customers order to profit from the market effects of the trade. Bucketing: Skimming customer trading profits by falsifying trade information Insider Trading: Using ones position of trust to profit from inside business information.

Type of Chiseling: Securities Fraud

Individual Exploitation of Institutional Position


Definition: When individuals exploit their power or position in an organization to take advantage of other individuals who have an interest in how that power is used. Example: Fire inspector who demands payment for operating license to be granted.

Influence Peddling & Bribery:


Definition: Using ones institutional position to grant favors and sell information to which ones coconspirators are not entitled. Example: Influence peddling in Government & Influence peddling in Business

Embezzlement & Employee Fraud:


Definition: When individuals use their positions to embezzle company funds or appropriate company property for themselves. The company or organization is the victim of the crime. Examples: Pilferage (systemic theft of company property), management fraud

Client Fraud:
Definition: Theft by an economic client from an organization that advances credit to its clients or reimburses them for services rendered. Examples: Insurance fraud, credit card fraud, welfare fraud, tax evasion & health care fraud.

Type of Client Fraud: Health Care Fraud


Definition: When doctors violate their ethical vows and engage in fraud in obtaining patients and administering their treatment. Examples: Ping-ponging (referring patients to other physicians in the same office), gang visits (billing for multiple services) and steering (directing patients to particular pharmacies).

Type of Client Fraud: Bank Fraud


Definition: When individuals cheat their banks. Examples: check forgery, false statements on loans applications, sale of stolen checks, bank credit card fraud, unauthorized use of automatic teller machines, auto title fraud and illegal transactions with offshore banks.

Type of Client Fraud: Tax Evasion


Definition: When errant taxpayer to whom the government extends credit by allowing the taxpayer to delay paying taxes on money earned, cheats on their payment.

Corporate or Organizational Crime:


Definitions: Powerful institutions or their representatives willfully violate the laws that restrain these institutions from doing social hard or require them to do social good. Targets of crime can be general public, the environment, or even their companies workers.

Types of Corporate or Organizational Crime:


Illegal Restraint of Trade: a contract or conspiracy designed to stifle competition, create a monopoly, artificially maintain prices or otherwise interfere with free-market competition. Price-Fixing: a conspiracy to set and control the price of a necessary commodity.

Types of Corporate or Organizational Crime:


Deceptive Pricing: when contractors provide the government or other corporations with incomplete or misleading information on how much it will actually costs to fulfill the contracts they are bidding on or use mischarges once the contracts are signed.

False Claims & Advertising: knowingly and purposely advertise a product as possessing qualities that the manufacturer realizes it does not have.
Worker Safety/Environmental Crimes: intentional or negligent environmental pollution caused by many large corporations.

White Collar Crime Outline:


I. II.
I. II.

Stings & Swindles Chiseling


Professional Chiseling Securities Fraud

III. Individual Exploitation of Institutional Position IV. Influence Peddling & Bribery
I. II. Influence Peddling in Government Influence Peddling in Business

White Collar Crime Outline:


V.
I. II.

Embezzlement & Employee Fraud


Blue Collar Fraud Management Fraud

VI.

Client Fraud
I. Health Care Fraud II. Bank Fraud III. Tax Evasion

VII. Corporate Crime


I. II. III. IV. Illegal Restraint of Trade & Price-Fixing Deceptive Pricing False Claims & Advertising Worker Safety/Environmental Crimes

Political Cartoon Assignment:


Purpose: To create a political cartoon for your assigned type of White Collar Crime and have the rest of the class guess the type of w.c. crime.