Differentiation Between White Collar and Street Crimes - Research Paper Example

Abstract This paper seeks to examine prevalence of white collar crime. Technological advancements provide opportunities for an increase in white collar crimes. Frequent white collar criminals commit crimes without anyone ever knowing. The discrete nature of white collar crime is further thought to be a predictor of an increase in this form of crime. Yet sentencing differentiations between white collar and street crimes have demonstrated disparities based upon the type of crime committed. White collar crime does not have a clear definition. Instead many sociologists and criminologists provide differentiations between the definitions of white collar crime. Yet the various definitions employ similar characteristics. The term white collar crime was first used by Edwin Sutherland in 1939. Sutherland termed white collar crime as a “crime committed by a person of respectability and high social status in the course of his occupation (Cornell University, n.d.). Regardless of definition, white collar crime can best be defined as a crime against a person in order to gain financial means. Moreover, white collar crime maybe easier to employ as this form of crime strips the victim/s of their autonomy. The definition of white collar crime differs by occupation. However, white collar crime employs certain characteristics. In many cases of white collar crime the main motivation of the crime is financial gain. Often, this is done through fraudulent acts. The Federal Bureau of Investigation defines white collar crime as being “characterized by deceit, concealment or violation of trust and not dependent upon the application or threat of physical force or violence” (FBI, 2009, pp. 1). White collar crime can easily be done discretely. Many times other individuals working in the same office may have no idea a crime is being committed. Table 1.1 Depicts the amount of white collar crimes reported in comparison to street crimes Yet in comparison to street crime white collar crime differs in the implementation of the crime. Many street crimes can be committed by individuals with no prior knowledge or experience of the crime. However, white collar crime is more complicated in the implementation. Few individuals readily know how to steal an individual’s identity online. Moreover, this form of crime takes a plan and the relevant knowledge in order to succeed. Few people understand the main differentiations between white collar crime and street crime. Street crime in some circumstances may further involve white collar crime. This was best seen in regard to organized crime. Organized crime was notorious for racketeering and embezzlement. Moreover, many individuals involved with organized crime frequently committed tax fraud in regard to not declaring their assets. Yet organized crime often focused on financial gains did employ characteristics of street crimes. This concept is best viewed in regard to mafia ‘hits.’ Individuals that failed to pay their dues to organized criminals were punished with torture and often death as a means of compensation. Yet white collar crime may be perceived as easier to commit than street crimes. White collar criminals often do not know the person they are harming. Moreover, a white collar crime may have many victims. In comparison to a street crime; white collar crime is easier in terms of means to commit. However, white collar crime has changed quite a bit since first enacted with mafia in the 1920’s. Technological advancements have made the opportunity to commit white collar crime easier. White collar criminals often have advance knowledge of relevant methods to employ the crime. This knowledge may vary. However, many white collar criminals understand how to breech security features implemented on different websites and systems. According to the University of Missouri-St. Louis (n.d.), “white-collar crime tends to be made up of complex, sophisticated and relatively technical actions” (pp. 6). Although cyber crime frequently happens determining how to enforce proper punishment has become difficult. The internet is a device used globally. White collar criminals often do not know their victims. Moreover, their victims may be across the world. Determining how to punish the white collar crime when caught is difficult due to jurisdictional requirements. Some countries emphasis strong enforcement tactics to prevent white collar crime and further enforce laws. However, not all countries believe that white collar crime is a relevant problem. Moreover, these countries often focus their efforts in the prevention and enforcement of street criminals. The United States offers services to assist with the prosecution of these criminals. Often employed by the United States is Federal Bureau of Investigation. However, not all countries want the assistance of the FBI. In countries that do not seek the assistance of the FBI little enforcement measures can be provided by the United States. Unfortunately these countries have separate jurisdictions that may allow for their own enforcement of laws. Under these circumstances, there is little in terms of enforcement that the United States can provide. Although white collar crimes occur frequently through the use of technologies some forms of white collar crimes are committed through means of businesses. White collar crimes are frequently committed in the workplace. However, few know that white collar crimes are being committed. “In 2005, among 7,818 businesses 67% exhibited one cyber crime” (United States Department of Justice, 2005, pp. 6). Yet the past decade has demonstrated the harm white collar crimes can inflict when committed in a business environment. Perhaps the most notorious white collar criminals in the past decade were the executives involved in the Enron scandal. Kenneth Lay and Jeffrey Skilling managed to harm millions of Americans financially be misrepresenting the financial statements of Enron. Moreover these executives managed to hide the $618 million in losses to the company by falsely manipulating financial statements. Yet the Enron scandal further provides society with the notion that white collar crime does not have to have one specific offender. Instead many offenders can be involved in launching and enacting a white collar scandal in the work place. Over fourteen employees of Enron were charged and many convicted of various crimes that were related to the scandal (Nielsen, 2002). Moreover, some of these employees knew about the financial misrepresentation and losses incurred to the company and sold their stocks in order to prevent their own financial losses. Yet this scandal demonstrates the amount of harm that can be produced when white collar crimes are committed. Determining the victims that incurred the most harm in regard to this scandal is difficult. However, the executives at Enron managed to harm workers by stripping them of their jobs and pensions and stock holders by misrepresenting losses. According to the University of Missouri-St. Louis (n.d.), “victimization tends to be diffused. Harm is not always conceptualized o identifiable as such because it is usually spread out over a substantial number of victims” (pp. 9). Yet white collar crime does not have to involve a big company such as the Enron scandal. Instead white collar crimes are frequently committed in medical offices in regards to insurance fraud. In comparison to street criminals white collar criminals are subjected to different enforcement and punishment. However, the Federal Bureau of Investigations focuses efforts on the enforcement of laws in regard to white collar criminals committing “corporate fraud, securities and commodities fraud, health care fraud, financial institution fraud, mortgage fraud, insurance fraud, mass marketing fraud, and money laundering” (Federal Bureau of Investigations, 2009, pp. 5). The rise in white collar crimes has been evident within the past decade. In 2005 the FBI investigated 1,139 cases of white collar crimes. However, in 2009 the FBI investigated 1,510 cases of fraud (Federal Bureau of Investigations, 2009). Table 1.2 demonstrates the rise in white collar crime within the past four years. Information provided by the Federal Bureau of Investigations 2009. “White-collar crime is estimated to cost the United States more than $300 billion annually” (Cornell University, n.d., pp. 4).On average victims reported losing more than $10,000 per victimization. Many people acknowledge that white collar crime is illegal. However, the differentiation between white collar crime and street crimes are street crimes are more often viewed as criminal acts. In addition street crimes have a higher likelihood of being reported and proper laws enforced. Table 1.3 Demonstrates the number of arrests for 2005 in 100,000 (FBI, n.d.). Moreover, street crimes often carry heavier penalties than white collar crimes. In a post Enron period little changes have been made in regard to sentencing white collar criminals. Yet societal attitude towards the punishment of street criminals has increased. Table 1.4 depicts the median sentence of individuals guilty of fraud in 1995 and 2005. According to Weissmann & Block (2007), “the average sentence for such non-white-collar crimes increased six-fold during the same time period from 20.8 months to 126.7 months (pp. 9). In maintaining the differentiations of sentencing many scholars argue that white collar crimes do not involve violence and limit the harm to autonomy of the individual. Yet the financial burden to the individual and victimization appear to be presented as less enforceable in comparison to street crime. Moreover, white collar criminals have more avenues available to commit crimes. Current economic trends have demonstrated an increase in both street crimes and white collar crimes. However, the current state of the economy has led to an increase in both white collar crimes and street crimes. Yet the punishment for white collar crimes is less severe in comparison to street crimes. Perhaps these factors are strong contributors in the increase of white collar crime. Although the definition of white collar crime differs dependent upon occupation the effects of white collar crime are devastating. White collar crime can be best characterized by deception and financial harm. White collar crimes decrease trust and violate the individual’s autonomy. In comparison white collar crime presents more opportunities to be enacted than street crimes. Yet punishment in white collar criminals has been demonstrated to be significantly less than street criminals. References  Anonymous (n.d.) The Measurement of White-Collar Crime Using Uniform Reports. U.S. Department of Justice. Retrieved from: http://www.fbi.gov/about -us/cjis/ucr/nibrs/nibrs_wcc.pdf Anonymous (2010)., Reports and Publications. United States Department of Justice. Retrieved from: http://www.justice.gov/actioncenter/crime.html Cornell University. (2010). White Collar Crime. Retrieved from: http://topics.law.cornell.edu/wex/White-collar_crime Nielsen, J., (2002). Enron: Who’s Accountable? Time. Retrieved from: http://www.time.com/time/business/article/0,8599,193520,00.html Weissmand, A., Block, J., (2007). White-Collar Defendants and White-Collar Crime. The Yale Law Journal. Retrieved from: http://www.yalelawjournal.org/the-yale-law -journal-pocket-part/criminal-law-and-sentencing/white%11collar-defendants-and -white%11collar-crimes/ White Collar Crime., (n.d.). University of Missouri-St. Louis Retrieved from: http://www.umsl.edu/~keelr/200/wcolcrim.html Read More