White Collar Crime and Whistle Protection in the USA - Research Paper Example

White Collar Crime and Whistle Protection al Affiliation) Introduction White-collar crimes and business ethics play handin hand with one another and often cross the line with one another into criminal behavior. White-collar crimes have played a very instrumental part in our downward economy over the past five years, and the level of trust given by society to corporations and employers entrusted with their life earnings has changed dramatically (Ostrow, 2006). In order to understand White Collar Crimes, one must first understand criminality, what makes individuals, or organizations commit White Collar Crimes. The other thing that needs to take place is we must explain the crime, or the event itself that constitutes a White Collar Crimes. Criminal behavior has been treated as both an individual or organizational propensity and as an event. Among the elements named to describe criminal behavior are inspiration as this is the will of one to stray, liberty from social restraints impunity connecting to losses, skill, and occasion (Ostrow, 2006). The factors may interrelate in several ways, but the part of occasion is central too much White Collar Crimes Chances have both personal and objective scopes. The last issue that must be clarified is that corruption, the procedure whereby specific activities, objects, and individuals come to be definite as criminal (Ostrow, 2006). This approach of the study focuses on the roots of White Collar Crimes laws in given examples, their identifications, and guidelines and on the examination, prosecution, and judgment of white-collar crimes. Examples of white-collar crimes Two attorneys on trial for allegedly defrauding state tax credit program In a recent white-collar crime, two lawyers were charged together with a spouse of one of them as they acted as business partners. In the crime, they acted as business partners as they exploited every person that they could to defraud a program in Louisianan tax system where they intended to encourage expansion of the film industry. A federal prosecutor a New Orleans jury reported this. Michael Arata who is a defendant and a businessperson and a New Orleans lawyer reported a huge cost which were not honest to the state for rehabilitating a broken-down city house into a post-production facility so that they could obtain one million in tax credit. Through a mail, he joked to one of his friends on how he was charging bogus legal fee for fraudulent tax credits. Chendra Menon, the assistant United States Attorney, reported this to the jury. In the case, both Arata and those who produced the movie, Peter and Susan Hoffman were charged with conspiracy. In the case, the evidences, which were submitted, were those of mail fraud concerning misleading and false statement and other documents that they allegedly submitted. In addition, other charges were given to the defiant. Arata was also charged with false statement that he presented to federal investigators. The statements were found to be false according to advocate of New Orleans and New Orleans Times-Picayune. Lawyers who defended the case said there was nothing wrong in the actions that were carried out by their clients. They spent some four million to build a post-production facility as t was in their stating and the lawyers thought they did not go against any action they promised to undertaken and were not responsible for any charge. Former asset advisor charged with deceiving JP Morgan Chase client of twenty million dollars In another recent case of white-collar crimes, a deal adviser for one of his wealthy clients whom they have worked with for a long time was arrested facing state charges after apparently deceiving the federal of twenty million dollars for a period of three years. The adviser’s client was J.P Morgan Chase whom he had worked for a long period. The defaulter, Michael Oppenheim with the age of 48 lost the most almost immediately after the fraud to the United States to what was referred to as highly unprofitable option trading by securities and exchange commissions in a related civil lawsuit. Reuters gave out this report. The suit seeks disgorgement of any assert which was remaining. In another accusation, he was accused of using funds that belonged to the client. He used the funds for the client to pay for personal expenses after persuading his clients to let him withdrawal of funds from the clients’ account for low –risk municipality bond investment. The place of prosecution was not considered as Oppenheim lives in New Jersey and his prosecution is done in New York. In a statement, which was provided by the bank to Reuters, the bank was angry with the person violating the trust that the clients had in place for them. Oppenheim allegedly was working for Chase from 2002 until close to a month ago and was holding the position of a private adviser and vice president working with about five hundred bank clients. Chase said it alerted authorities to the claimed fraud and has been cooperating with investigators. In the case, Oppenheim did not have any response to the messages that were sent to him from the news agency seeking comments. Whistle blowers protection This policy seeks to define and create the position of different companies and their subsidiaries on the outline for reporting instances of immoral and inadequate conduct and actions of suitable steps to examine and precise the same. Accordingly, this Whistle blowers protection details the different aspects for its actions. The policy details procedure to disclose any supposed wrong and practices which are thought to be improper which takes place in the operations of a company (Ostrow, 2008). The policies also avails protection to the person making such disclosure in good faith Mechanism for auctioning and reporting on such disclosures to the relevant authority within the company and also relevant authority and its powers to review disclosures and direct corrective action relating to such disclosures. This policy is applicable to different people who operate in a company. Those exposed to the policy are all employees of the company, all directors of the company, all customers of the Company and all vendors interacting with the company. The policies formed for protection have different objectives. The Company seeks to maintain the highest ethical and business standards in the course of conduct of its business. In doing so, the Company has articulated and published its Code of Conduct, which is applicable to all employees of the Company. This was important to regulate and build a strong culture of corporate governance, by promoting transparency and ethical conduct in its business operations, along with providing the framework within which the company expects its business operations to be carried out (Ostrow, 2008). The Whistleblower policy is an extension of the Companys Code of Conduct through which the company pursues provision of a mechanism for its Employees, Directors, vendors, or customers to reveal any unprincipled and improper exercises taking place in the company. Through this procedure, companies always provide the essential safeguards to all Whistle Blowers for making revelations honestly. There is importance that is associated to the policies and protection. All instances of disclosures noted as part of this policy, including results and status of all the inquiries and inquiries made against such revelations shall be recognized and a last report prepared for the Office of the Chairman of the Audit Committee on quarterly intervals. The Chairman of the Audit Committee may direct the Head of Internal Audit, Head of Legal, the Company Secretary, or any other person of the Company that he may deem fit for the preparation of such report (Simon & Hagan, 2009). The report shall be presented before the Audit Committee, highlighting different situations and specifications. The first issue is on the nature of reported disclosures made under this policy for the present quarter and the proposed action thereon. The next issue s on the status of prior and current period reported disclosures and the action taken after that. Results and status of any investigations and enquiries in reference to the disclosure are also addressed and any other matter, as the Audit Committee Chairman may deem fit. The Chairman of the Audit Committee in turn shall also recommend to the Management of the Company, the necessary actions to be taken, which may include revision of the necessary Company rules and actions, action to be taken against the personnel concerned and any other procedure, which the Audit Committee Chairman thinks is appropriate. There are reasons that make white collar offenders not go to jail. The reasons include their ability to hire good lawyers because they have funds and can therefore afford the best legal advice; there are advantageous laws that generally come about in favor of white-collar criminals (Simon & Hagan, 2009). Those who involve in white-collar crimes are occasionally the same people who are in a place to see to it that their crimes are not defined too negatively and there is the case of individual perception of white-collar crime. The impact of white-collar criminals on the nation is great, but the cost to each individual is small. White-collar crimes do not affect individuals with the same intensity as when one individual is victimized by a petty criminal. References Ostrow, N. (2006). Defending white-collar crimes. New York: Practising Law Institute. Ostrow, N. (2008). White-collar crimes, 2008. New York: Practising Law Institute. Simon, D., & Hagan, F. (2009). White-collar deviance. Boston: Allyn & Bacon. Sutherland, E. (2003). White-collar crime. New Haven: Yale University Press Read More