case of the day barry minkow
ZZZZ: best cleaning restoration company; in reality ponzi like scheme with 90% of company being fraud (insurance fraud, steal their stationary, create fake jobs, etc). 1981: came crashing down since numbers didn't add up. resigned at 22 and in 1988 was charged with 57 counts of fraud and 25 years in prison, 26 million. released after 2 years and became preacher and fraud investigator. 2011: brought down stock price deliberately
who explained that white-collar crime was a product of conflicting positions of trust held by businessmen
offer changes to reduce crime
white-collar crime explanations must do what?
structural variables and macro level features
what two things musts be considered if we are to understand white-collar crime?
culture of competition
industrial capitalism promotes a "______ __ ________" which offers different opportunities for crime
greed, ego seeking, fear of poverty
what are the 3 cultural factors in white-collar crime?
doesn't, more
culture does/doesn't cause white collar crime. otherwise more/less people would offend
deterrence theory
theorized that punishment can stop individuals from offending if: punishment is swift, certain, and outweighs positive benefits of the crime committed. not enough to prevent wcc.
underlying assumption of the deterrence theory is that the offender is _______.
rational choice theory
offenders will weigh positive benefits and negative consequences of offending
corporate crimes are committed to gain ____ over environments that are uncertain or irrational according to rational choice theory
workplace, absence, control
under rational choice theory, albrecht and searcy assert that white-collar crime is linked to failure to identity crimes in _________, _______ of formal responses to fraud, inadequate _______ mechanisms
classical strain theory
strains are due to interactions between social and economic structures. macro level theory to examine individual behavior. focuses on why poor people commit crimes
conformists, innovators, ritualists, retreatists, rebels
what are the 5 modes of adaptation that describe how individuals meet goals according to classical strain theory
accept both means and goals
accept goals but not means (ex: embezzlement)
accept means but not goals
deny both means and goals
reject and replace both means and goals
case of the day russell erxleben
football punter; university of texas and then saints for 10 years. switched to real estate and then invested money (international; foreign exchange market). president of foreign exchanging company that was so profitable that there was a 20000 min for clients, which is too good to be true. people would put a ton of money into this. ends up being a ponzi scheme where he did not trade at all and only paid new investors with old money. 1988 it shut down and he was sued by investors. russell made false statements and lied to investors but he claimed he wasn't malicious. 1 million dollars, 7 years of prison (only did 5), and 28 mil in restitution. sentence again for ponzi scheme in 2013
institutional anomie theory
american society promotes financial success but does not emphasize values that are consistent with the legitimate means of achieving that financial success. american values that are key to crime include achievement, universalism, individualism, materialism
general strain theory
crime is an adaptation to stress and frustration. three sources of strain include failure to achieve goals, removal of positive stimuli, confronting negative stimuli
case of the day roger dunavant
mane n' tail: shampoo used on people and horses (this man decided to sell to humans). 1/2 million then 44 million in sales after him. became celebrity in manufacturing world; represented sole owner. hype product with lies (grow faster, help bald). fraud: personal expenses, took straight arrow funds for self, ect.=civil suits and lost job
differential association theory
people learn how to commit crimes from their peers. learn how and why to commit crimes, as well as why laws against those crimes are inappropriate. criticized for lack of explanation revolving around the "first collar criminal"
who created the differential association theory
neutralization theory
argues that individuals are not committed to a criminal lifestyle and must neutralize their conventional beliefs prior to committing crime
denial of injury, denial of victim, denial of responsibility, appeal to higher loyalties, condemnation of condemners
what are the 5 techniques of neutralization in the neutralization theory
statements made to explain away and individuals misconduct or criminal involvement, occur after the commission of a criminal act. ex: denials, justifications, excuses
control theory
asks why people don't commit crimes. suggests that bonds to society prevent people from committing crimes
attachment, belief, commitment, involvement
what are the four elements of social bonds in the control theory
lasley's theorems of white-collar offending
executives with stronger attachments to company have lower offending rates. executives with stronger commitments for lines of actions will have lower offending rates. executives with strong involvement in corporate activities are less likely to offend. executives who believe in workplace rules are less likely to offend
self control theory
all types of crime stem from lack of self-control. fails to focus on the nature of the occupation. low self-control also increases risk of victimization. operates differently based on circumstances and situational factors. theory has concerns with conceptualization issues, empirical issues, and problems with logical consistency
white-collar criminals exhibit ____ self-control than tradition criminals do
routine activities theory
a structural theory that explains how changes in society influence crime rates. suggests that crime occurs when elements merge in time and space. helpful in analyzing specific occupational situations to determine likelihood of workplace crime
presence of motivated offender, absence of capable guardians, availability of suitable targets
what are the 3 elements that must merge in time and space for crime to occur according to routine activities theory
conflict theory
macro-level theories that focus on how those in positions of power exert influence in order to use the law as in instrument of power. these theories highlight the power differences between members of the upper and lower social classes. concerned with how crime is defined, perceived, and addressed by criminal justice officials
quinney's propositions
delineated six propositions that explain how the powerful in society exercise their power to define particular behaviors as criminal or deviant
definition of crime, formulation of criminal definitions, application of criminal definitions, development of behavior patterns in relation to criminal definitions, construction of criminal conceptions, the social reality of crime
what are the six propositions that explain how the powerful in society exercise their power to define particular behaviors as criminal or deviant
definition of crime
one of the six propositions by quinney. created by agents of law, making criminals by making laws.
formulation of criminal definitions
one of the six propositions by quinney. interest groups influence criminal definitions. ex: madd
construction of criminal conceptions
one of the six propositions by quinney. the media
the social reality of crime
one of the six propositions by quinney. summary of propositions. in summary, crime is not inherent in people it is socially constructed
organizational structure
explaining white collar crime: size, complexity, and growth rate of organizations affect crime rates
organizational processes
explaining white collar crime: pressures from employers to succeed may encourage wrongdoing
dynamic organization explanations
explaining white collar crime: explore ties between societal factors, organizational processes, and individual motivations. calls for integration of theories to provide stronger explanations. theorized that less successful firms might engage in misconduct in order to become more successful
cycle of corporate crime
...employee hired->learn rules->engage in behaviors->rewarded->continue behaviors->caught->fired->...
integrated efforts to explain white-collar crime
combines multiple perspectives to explain wcc. misconduct/crime is not a one-dimensional phenomenon, therefore no one theory on its own can predict compliance rates. personality characteristics, social controls, and personal controls also play a rile in wcc
systems theory
provides a foundation from which wcc can be addressed and explains how various systems influence misconduct (does not explain crime on an individual level). changes in one system lead to changes in another system and influence wcc rates. for example, the political system is tied to changes in the health care, social, educations, and technological systems
how many wcc offenders serve prison time but serve slightly shorter sentences than conventional offenders but have longer probation. some say too harsh punishments for wcc.
sentencing reform act of 1984
aimed at reducing the sentencing disparity between wcc and street. created us sentencing commission. increased likelihood of imprisonment of wcc and lengthened sentences
sarbanes oxley act of 2002
suggested more restrictive strategies to thwart wcc offending. doubled prison time for managers guilty. called for improved ethics training, improved corporate governance strategies, and better understand of internal control efforts