White Collar Crime

DEFINING INTERNATIONAL WHITE COLLAR CRIME HISTORY OF WHITE COLLAR CRIME 1939 THE TERM "WHITE COLLAR CRIME" WAS SUPPOSEDLY COINED IN 1939 BUT THESE TYPES OF SCAMS AND FRAUDS REACH BACK MUCH FUR THER IN HISTORY HEGESTRATOS PLANNED TO SINK AN IN 300 B.C., A GREEK MERCHANT NAMED HEGESTRATOS TOOK OUT A LARGE INSURANCE POLICY KNOWN AS BOTTOMRY EMPTY BOAT, KEEP THE LOANED FUNDS AND SELL THE CARGO THAT ENABLES A MERCHANT TO BORROW FUNDS THAT ARE PAID BACK WITH INTEREST WHEN THEIR CARGO IS DELIVERED UNFORTUNATELY FOR HIM, HE WAS CAUGHT IN THE ACT BY HIS CREW AND DROWNED TRYING TO ESCAPE THE FIRST CASE OF FRAUD IN THE U.S. OCCURRED IN 1792 WHEN ASSISTANT SECRETARY OF THE TREASURY, WILLIAM DUER, USED INSIDER INFORMATION TO INVEST, ARTIFICIALLY DRIVE UP PRICES AND THEN SELL A CORRECTION IN THE MARKET LEFT DUER WITH HUGE DEBTS, LANDED HIM IN DEBTOR'S PRISON AND FORCED SECRETARY OF THE TREASURY ALEXANDER HAMILTON TO RESCUE THE NEXT MARKET IN THE EARLY 1820S, SCOTSMAN GREGOR MACGREGOR CONVINCED SCOTTISH CITIZENS TO INVEST IN AND MOVE TO AN ENTIRELY FICTIONAL COUNTRY HE NAMED "POYAIS" THAT WAS PURPORTEDLY LOCATED IN WHAT IS NOW MODERN DAY HONDURAS IN ADDITION TO THE 250 SETTLERS FILLING ALTHOUGH HIS LARGEST FACT THAT HE TWO SHIPS MADE IT TO FRAUD WAS ONLY CONVINCED EDUCATED, THE LOCATION OF THE FICTIONAL POYAIS, ONLY FOR 2/3 OF THEM TO DIE OF MALARIA, YELLOW FEVER £200,000, HIS LIFETIME TOTAL CAME TO EXPERIENCED PEOPLE TO INVEST IN THE £1.3MILLION (WHICH WOULD BE £3.6 BILLION TODAY) FICTIONAL POYAIS, HE CLAIMED TO BE A PRINCE OF THE COUNTRY OR MALNUTRITION 520% HE DEFRAUDED INVESTORS A TOTAL OF $1 MILLION (OVER $25 MILLION OF TODAY) AND WAS SENTENCED TO 10 YEARS IN JAIL, BUT ONLY SERVED 5 YEARS IN 1899, WILLIAM MILLER EARNED THE CHARLES PONZI WOULD LATER BECOME ASSOCIATED WITH THE SCHEME DUE TO HIS FRAUD IN 1919 NAME "520 PERCENT" FOR THE OUTLANDISH RATE OF RETURNS HE PROMISED INVESTORS TYPES OF WHITE COLLAR CRIME IN THE U.S., THE FBI INVESTIGATES OVER A DOZEN DIFFERENT TYPES OF WHITE COLLAR CRIME, SUCH AS MORTGAGE FRAUD, HEALTH CARE FRAUD, INSURANCE FRAUD, INTELLECTUAL PROPERTY THEFT, ETC. 0000000 CORPORATE FRAUD "WHITE COLLAR CRIME" MAY BE MOST ASSOCIATED WITH CORPORATE FRAUD, WHICH INVOLVES INSIDER TRADING, KICKBACKS, MISUSE OF CORPORATE PROPERTY, TAX VIOLATIONS AND FALSIFICATION OF FINANCIAL INFORMATION REGARDING CORPORATIONS COODD CD THE CRIMINALS PAID 242 241 IN 2011, THE FBI PURSUED COD CID CID CO CODO D $2.4 BILLION IN RESTITUTION 242 INDICTMENTS AND CDD CID CD ORDERS AND $16.1 MILLION 241 CONVICTIONS OF CORPORATE CRIMINALS DO D CO IN FINES THE MOST NOTABLE OF THESE CASES IS PROBABLY THE GALLEON GROUP GALLEONgroup 7 BILLION 11 YEARS INSIDERS IN SEVERAL CORPORATIONS THE FOUNDER OF THE HEDGE FUND, RAJ RAJARATNAM, WAS FOUND GUILTY OF 14 COUNTS RELATED RELEASED INFORMATION TO THE GALLEON GROUP HEDGE FUND, WHICH CAME TO MANAGE OVER $7 BILLION TO INSIDER TRADING AND SENTENCED TO 11 YEARS IN PRISON MONEY LAUNDERING MONEY LAUNDERING INVOLVES CONCEALING THE PROFITS OF CRIMES OR CONVERTING THE PROFITS INTO GOODS AND SERVICES, TURNING THE "DIRTY MONEY" INTO LEGAL ASSETS 303 37 45 IN 2011, THE FBI INVESTIGATED RESULTING IN 37 AND 45 CONVICTIONS INDICTMENTS 303 CASES $18.4M $809,414 $983,536 THERE WAS $18,4 MILLION IN RESTITUTIONS $809,414 IN RECOVERIES AND $983,536 IN FINES ................................ CREDIT SUISSE, A FINANCIAL SERVICES COMPANY, ILLEGALLY CONDUCTED TRANSACTIONS ON BEHALF OF CUSTOMERS FROM IRAN, SUDAN AND OTHER SANCTIONED COUNTRIES THAT ALLOWED THE MOVEMENT OF ILLEGAL FUNDS $536 MILLION CREDIT SUISSE FORFEITED $536 MILLION, THE LARGEST FORFEITURE EVER RELINQUISHED FOR MONEY LAUNDERING AT THE TIME IMPACT ON HEALTH & SAFETY ALTHOUGH WHITE COLLAR CRIME IS SOMETIMES ARGUED TO BE "VICTIMLESS", THESE CRIMES CAN HAVE A SIGNIFICANT IMPACT ON PEOPLE'S LIVES, HEALTH AND SAFETY LAST YEAR, THE CONSUMER PRODUCT SAFETY IMPROVEMENT ACT OF 2008 (CPSIA) BROUGHT FORTH ITS FIRST EVER CRIMINAL CHARGES ALONG WITH FEDERAL, STATE AND LOCAL AGENCIES THE CPSIA LIMITS THE AMOUNT OF LEAD (NO MORE THAN 100 PPM) AND PHTHALATES (LESS THAN 0.1%) ALLOWED IN CHILDREN'S PRODUCTS THE CHARGES WERE BROUGHT AGAINST MULTIPLE PEOPLE AND OVER THE COUR SE OF EIGHT YEARS, THE COMPANIES WERE GIVEN NOTICE OF THE HAZARDS AND THEIR TOYS WERE SEIZED, COMPANIES FOR THE ILLEGAL TRAFFICKING OF HAZARDOUS CHILDREN'S TOYS WITH LEAD, EXCESSIVE PHTHALATE LEVELS AND CHOKING HAZARDS ONLY FOR THE COMPANIES TO CHANGE IDENTITY ATLANTIC STATES CAST IRON PIPE CO. AND FOUR OF ITS MANAGERS WERE PROSECUTED FOR AN EIGHT-YEAR-LONG CONSPIRACY TO DISCHARGE OIL AND OTHER POLLUTANTS INTO THE DELAWARE RIVER, FALSIFY AIR POLLUTANT EMISSIONS TESTS AND CONCEAL SERIOUS WORKER INJURIES FROM HEALTH AND SAFETY INSPECTORS 8 MILLION THE COMPANY WAS SENTENCED TO PAY $8 MILLION IN FINES AND A FOUR-YEAR PROBATIONARY PERIOD THE FOUR MANAGERS WERE SENTENCED TO PRISON RANGING FROM 6 TO 70 MONTHS VIOLATION OF ENVIRONMENTAL LAW TO PURSUE PROFIT CREATED A DANGEROUS WORKPLACE THAT RESULTED IN SEVERE BURNS, BROKEN BONES, AMPUTATIONS AND EVEN DEATH OF EMPLOYEES "GREEN" COLLAR CRIME WHITE COLLAR CRIMES THAT INVOLVE ENVIRONMENTAL LAW OR IMPACT ARE SOMETIMES CALLED "GREEN" COLLAR CRIMES 30H 2MILLION 10,839 THE OWNER OF DISCOUNT COMPUTERS, INC. AND $10,839 IN RESTITUTION WHILE THE COMPANY HAD TO PAY A WAS SENTENCED TO $2 MILLION FINE 30 MONTHS IN PRISON AND A $10,000 FINE THE CRIME WAS TRAFFICKING IN WHEN DISPOSED OF IMPROPERLY, COUNTERFEIT GOODS AND SER VICES AND VIOLATING ENVIRONMENTAL CATHODE RAY TUBES DEPOSITED IN LANDFILLS CAN LEACH LEAD INTO LAWS RELATED TO THE FRAUDULENT THE SOIL AND CONTAMINATE EXPORT OF CATHODE RAY TUBES DRINKING WATER 4MILLION SCOTTS MIRACLE-GRO COMPANY, THE WORLD'S LARGEST MARKETER OF RESIDENTIAL USE PESTICIDES, WAS SENTENCED TO PAY A $4 MILLION FINE FOR 11 CRIMINAL VIOLATIONS RELATED TO THEIR PESTICIDES THE COMPANY ADMITTED TO SELLING OVER THE SALES HAPPENED FOR TWO YEARS UNTIL 70 MILLION UNITS OF BIRD FOOD THAT HAD MANAGEMENT WAS ALERTED TO THE ISSUE, AT WHICH POINT THEY CONTINUED TO SELL BEEN ILLEGALL Y TREATED WITH PESTICIDES TOXIC TO FISH, BIRDS, AND OTHER WILDLIFE THE ILLEGALLY TREATED FOOD FOR SIX MORE MONTHS SOLUTIONS MANY SOLUTIONS FOR REDUCING WHITE COLLAR CRIME HAVE BEEN SUGGESTED, INCLUDING: 9 INCREASED PRISON TERMS IF THOSE WHO ARE JAILED WHITE COLLAR CRIME IS OFTEN BELIEVE THE TERMS ARE NOT LOOKED AT AS A PROPERTY ENOUGH - EVEN IN SOME EXTREME CRIME AND THE CRIMINALS ARE CASES LIKE RAJ RAJARATNAM WHO STOLE $7 BILLION THROUGH INSIDER TRADING BUT RECEIVED RARELY JAILED ONLY 11 YEARS WALL STREET “STOP AND FRISK" THIS TYPE OF PLAN WOULD HELP TO CURB PONZI SCHEMES, SUCH THE U.S. SEC VOTED IN 2009 To INSTITUTE SURPRISE INSPECTIONS FOR INVESTMENT ADVISORS, AS THE LARGEST IN HISTORY PULLED OFF BY BERNIE MADOFF WHO SWINDLED $64.8 BILLION ALTHOUGH THE ULTIMATE NUMBER SUBJECT TO THE SURPRISE VISITS IS ONLY 1,600 MANAGERS FROM CLIENTS SITUATIONAL PREVENTION FOR INSTANCE, A THIRD PARTY AUDITOR SEPARATE FROM THE PROVIDING FEWER OPPORTUNITIES FOR PEOPLE TO COMMIT WHITE COLLAR CRIMES ARTHUR ANDERSEN CONSULTANTS WHO HAD BEEN PAID OFF BY ENRON CORP. MAY HAVE MADE IT HARDER TO COMMIT FRAUD SOURCES http://www.fbi.gov http://www.justice.gov/enrd/5471.htm http://www.environmentallawportal.com http://www.triblive.com/news/allegheny/5431279-74/collar-jail-criminals http://www.investopedia.com/articles/financial-theory/09/history-of-fraud.asp http://content.time.com/time/specials/packages/article/0,28804,2104982_2104983_2105000,00.html http://www.ibtimes.com/supeman-or-batman-which-superhero-closest-answer-combatting-white-collar-criminals-bernie-madoff http://www.economist.com/news/christmas-specials/21568583-biggest-fraud-history-warning-professional-and-amateur-investors USCUniversityof Southern California