White Collar Crime Discussion 2-15-12

What exactly is white collar crime?

White collar crime is a criminal activity that is easily accessed and done by white collar workers. It is a violation of legalistic norms, non-violent and involves acts of fraud, theft or other acts of violations while employed.

Examples of this criminal activity:

Money Laundering
Embezzlement
Price Fixing
Insider Trader
Anti-trust Violation
Tax Evasions
Commercial Bribery
Racketeering
Identity Theft

False Advertising
Manipulation of Business Records for Financial Gain
Stock Manipulation
Bribery
Dishonest Business Schemes
Elaborate Ponzi Schemes
Fraud
Copyright Infringement
Forgery

Is there a difference between the earlier scandals of Enron and WorldCom that led to Sarbanes Oxley and the financial meltdown?

Yes, there is a difference between the earlier scandals of Enron and Worldcom that led to Sarbanes Oxley and the financial meltdown as follows:

• Enron had fraudulent activities that occurred that may have been halted if the Sarbanes Oxley had been established.

• Worldcom suffered financial difficulties which led to protective bankruptcy to continue running and Sarbanes Oxley will assist to keep records with accuracy (longevity) to ensure no fraud occurs.

• The financial meltdown is not connected to either Enron or Worldcom – it is the effect of a breakdown in the financial economy (e.g., housing market downslide, foreclosure, and prolonged unemployment, collapse of large financial institutions, bailout of banks by the government, failure of businesses and decline in consumer wealth).

http://searchcio.techtarget.com/definitions/Sarbanes-Oxley-Act
http://www.nytimes.com/2002/07/22/us/worldcom-s-collapse-the-overview-worldcom-file
http://finance.laws.com/enron-scandal-summary

Is the sentencing of Bernie Madoff an indication that stiffer sentences can be expected?

Yes, the trial and conviction of Bernie Madoff is an indication that stiffer sentences can be expected for massive fraud that subsequently brings a company to its knees and finish it and because of this it leaves devastating chaos in its death.

Find an article on a white collar crime and tell the class about it.

Raftery, T. & Lemire, J. (2004, Feb. 20). She’s charged in Embezzlement at Nonprofit. NYDaily News Boroughs.

Retrieved from:
http://www.nydailynews.com/archives/boroughs/charged-embezzle-nonprofit-article-1.656665

Scenario

Three culprits.

Two females employed at a non-profit guidance center in Nassau County. Embezzled funds in the form of three checks ($3,000, $3,500 and $19,000) from the coffers of the agency. One female worked in the Payroll Department and the other a co-worker (female) and a male accomplice - all three checks were cashed by the female that was apprehended and the other two at large (Guyana and Long Island – possible locations). The female was apprehended at home.