| White-collar crime is skyrocketing! Tough economic | | | | staggering $100,000,000,000 in 1990. With all the |
| times and the advent of hi-tech computer technology | | | | advances in technology and the Internet since 1990, |
| coupled with Wall Street fraud is proving tough times | | | | experts predict an exponential growth of white-collar |
| for all Americans. Who are the white-collar criminals? | | | | crime in the future. |
| What is White-collar crime? How do these individuals | | | | In an effort to combat this rapid rise in white-collar |
| arrive at a position of trust? What is law | | | | Internet crime, law enforcement officials including the |
| enforcement doing? Who will be affected next? Will | | | | Federal Bureau of Investigation, Secret Service, |
| you be next? | | | | Postal Inspection Service, Securities and Exchange |
| A white collar crime is many times defined as a | | | | Commission, and Customs officials have stepped up |
| non-violent crime involving deception and/or trickery, | | | | their efforts in fighting these crimes. Special units |
| typically committed by a business person, public | | | | such as the National White Collar Crime Center, |
| official, or someone of high stature, trust, or | | | | Internet Fraud Complaint Center, National Cybercrime |
| authority. Evidence in a white collar crime usually | | | | Training Partnership, and the Coalition for the |
| involves a paper trail of evidence that investigators | | | | Prevention of Economic Crime have been formed to |
| use to prosecute the case. Although this definition | | | | specifically fight white-collar crime. |
| may be true, it is hotly contested within the | | | | This has certainly stepped up the investigation and |
| community of experts that try to define | | | | prosecution of white-collar crimes and white-collar |
| "White-Collar Crime". Many experts feel there are | | | | criminals. White-collar crimes can be prosecuted both |
| three main characteristics that categorize a | | | | at the state and federal level, depending on whether |
| white-collar criminal. Some experts believe that | | | | a state or federal law was broken. If convicted, |
| white-collar crime should be defined by the high | | | | these crimes usually result in long prison sentences, |
| socioeconomic status and/or occupation of trust that | | | | large fines, and restitution to the victims of the crime. |
| the offender has. Others believe that white-collar | | | | Many times the restitution is so large that it never |
| crime should be defined by the type of offense | | | | gets paid back. The days of a slap on the wrist, |
| committed i.e., fraud, counterfeiting, forgery, | | | | probation, a trip to Club Fed, and/or home |
| embezzlement, bribery, larceny, price fixing, | | | | confinement are over for white-collar defendants. |
| racketeering, computer fraud, obstruction of justice, | | | | New laws, stiffer penalties, and more vigorous |
| and perjury. Mixed in with these offenses is the | | | | prosecution of white-collar crimes all combine for |
| increasingly popular securities fraud as typified by the | | | | longer sentences and higher security designations for |
| recent cases of Bernard Madoff and New Jersey | | | | white-collar criminals. |
| fund manager James Nicholson. Madoff allegedly | | | | Due to current prison overcrowding and the large |
| confessed to his employees that he perpetuated a | | | | number of white-collar defendants being incarcerated, |
| massive fraud scheme which could cost investors an | | | | white-collar defendants are finding it more and more |
| unbelievable amount in excess of $50 billion. | | | | difficult to be designated close to their families and to |
| Forty-two year old James Nicholson is accused of | | | | be designated to a lower security federal prison. |
| defrauding his investors of as much as $900 million | | | | More and more white-collar defendants are being |
| since 2004. Finally there are those that confine the | | | | designated to geographically removed federal prisons |
| definition of white-collar crime to strictly economic | | | | far from their homes and families. Many white-collar |
| crimes or corporate crimes. | | | | defendants are also being designated to a higher |
| The Federal Bureau of Investigation defines | | | | security level federal prison. |
| white-collar crime only in terms of the offense. The | | | | Most white-collar offenders are ordinary people who |
| Bureau has defined white-collar crime as ". . . those | | | | got into financial difficulty and who saw their way out |
| illegal acts which are characterized by deceit, | | | | of it through illegal and fraudulent measures. |
| concealment, or violation of trust and which are not | | | | Unfortunately, it used to be only the small fish that |
| dependent upon the application or threat of physical | | | | get caught and sentenced to a long federal prison |
| force or violence. Individuals and organizations commit | | | | term of incarceration, not the big fish that got away. |
| these acts to obtain money, property, or services; to | | | | The big fish used to be able to insulate themselves |
| avoid the payment or loss of money or services; or | | | | from the crime. There are so many people working |
| to secure personal or business advantage." (USDOJ, | | | | at the small fish level that upper management can |
| 1989, p. 3.) | | | | structure and direct the company so that the small |
| In the years 1997 through 1999, white-collar crime | | | | fish are actually the individuals receiving the pressure |
| accounted for less than 4.0 percent of the incidents | | | | to break the law, many times unknowingly. Upper |
| reported to the FBI. The majority of those offenses | | | | management didn't even have to get their hands |
| were frauds, counterfeiting, and forgery. Currently, | | | | dirty. This all combined for more and more |
| one in three American families is a victim of | | | | white-collar small fish criminals being investigated, |
| white-collar crime, yet very few are actually reported. | | | | prosecuted, and sentenced to long terms of |
| Of those reported only 21% made it into the hands | | | | incarceration in federal prisons. But the current trend |
| of a law enforcement agency. This translates into | | | | is changing all this. Federal prosecutors, in a large part |
| less than eight percent of all white-collar crimes | | | | due to public outrage, are now going for the big fish |
| reaching the proper authorities. These are very | | | | as well as the small fish. Enron, Martha Stewart, |
| unsettling statistics for both consumers and | | | | Bernard Madoff, James Nicholson, and the current |
| businesses alike. The growth of the information age | | | | economic crisis in banking, foreclosures, and Wall |
| and the world wide use of the Internet have | | | | Street securities fraud have played a major role in |
| significantly changed the manner in which economic | | | | this change. Now, when it comes to conviction and |
| crimes are committed, the frequency of their | | | | sentencing, the higher the socioeconomic status of |
| commission, and the difficulty in the apprehension of | | | | the offender, the stiffer the sentence juries vote |
| the persons responsible. White-collar crime has | | | | for. Thus both the small fish and big fish white-collar |
| certainly invaded our new, high-tech society. Statistics | | | | criminals are receiving harsher, stiffer, and longer |
| show that white-collar crime has skyrocketed from a | | | | federal prison sentences. |
| national cost in 1970 of $5,000,000,000 to a | | | | |