GENESIS AND UNDERSTANDING OF WHITE COLLAR CRIME

 
2.1 Introduction:
The concept of white collar crime has always been a phenomenon after the
colonialization and industrialization in the eighteenth century. But before
Sutherland, no criminologists used this term or took the concept of white collar
crime in the context of criminology. A white collar criminal belongs to upper
socio-economic class who violates the rules for economic gain while
performing his professional duties. White collar crime is also done by the
professionals by using the influence of his peer groups. The introduction of
white-collar crime was a relatively new issue to criminology at that time.

2.2 Genesis of white-collar crime (WCC):

The Genesis of white collar crime is not that ancient. The term white-collar
crime dates back to 1939. As said earlier Prof. Edwin Hardin Sutherland was
the first to coin the term, and hypothesize white-collar criminals attributed
different characteristics and motives than typical street criminals. Mr.
Sutherland originally presented his theory in an address to the American
Sociological Society in attempt to study two fields, crime and high society,
which had no previous empirical correlation. He defined his idea as “crime
committed by a person of respectability and high social status in the course of
his occupation”. Many denote the invention of Sutherland’s idiom to the
explosion of U.S business in the years following the Great Depression.
Sutherland noted that in his time, “less than two percent of the persons
committed to prisons in a year belong to the upper-class.” His goal was to prove
a relation between money, social status, and likelihood of going to jail for a
white-collar crime, compared to more visible, typical crimes. Although the
percentage is a bit higher today, numbers still show a large majority of those in
jail are poor, “blue-collar” criminals, despite efforts to crack down on corporate
crime.[1]
It must, however, be stated that Sutherland was preceded by other writers who
focused attention on the dangers to society from the upper socio-economic
group who exploited the accepted economic system to the detriment of common
masses. Thus Albert Morris refers to a paper entitled ‘Criminal Capitalists’
which was read by Edwin C. Hill before the International Congress on the
Prevention and Repression of Crime at London in 1872. In this paper the
learned writer underlined the growing incidence of crime as an organized
business and its evil effects on society. In 1934, Morris drew attention to the
necessity of a change in emphasis regarding crime. He asserted that anti-social
activities of persons of high-status committed in course of their profession must
be brought within the category of crime and should be made punishable.
Finally E.H. Sutherland through his pioneering work emphasized that these
‘upper world’ crimes which are committed by the persons of upper socio-
economic groups in course of their occupation violating the trust, should be
termed “White-collar Crime” so as to be distinguished from traditional crime
which he called, “Blue Collar Crime”. Thus he observed that if a broker shoots
his wife’s lover, that is not a white collar crime, but if he violates the law and is
convicted in connection with his business, he is a white collar criminal.[2]

There have been tendency to picture lower class people are more likely to
commit criminal acts, giving a misleading idea that upper class people are free
from criminal activities. But the practice of crime and corruption by people of
upper, echelon of the society is not uncommon and pointed from time to time.
The term “White Collar Crime” has been in frequent use in the literature of
American Criminology since December 1939 to indicate the practice of
chicanery and lotion of highly placed persons. In December, 1939 Edwin H.
Sutherland used the term “White Collar Crime” in his presidential address
before the American Sociological Society. There was no official or legal
definition, for that reason the term was a bit ambiguous and controversial.
Sutherland used “White Collar Crime” as the title for his remarks. He discussed
the issues relating to “White Collar Crime” and later on elaborated many of its
ramifications.[3]

Sutherland starred systematic research into the criminal practice of the elites
after the appearance of the first edition of his “Criminology” in 1924. In second
(in 1934) and third edition (in 1939), he changed the title of the book (Principles
of Criminology) and subsumed scattered comments on White Collar Crime. But
his 1939 presidential address was his first systematic formulation of the term,
which was subjected to criticism of different quarters. He responded to those
criticisms in his article “Is ‘White Collar Crime,’ crime?” published in 1945.
[4]He published a hook length study “White Collar Crime” in 1949, where he
accumulated the data which he collected during many years research.[5] He
systematically presented his arguments and discussed the implications of the
theory.

New Horizons in criminology by Barnes and Teeters was first published in

1943.This well-known text book started with a discussion of “revolution in the
nature of crime” and described questionable commercial transactions,
racketeering and organized crime as “White Collar Crime.” From that time
onwards, every textbook of Criminology contains a chapter having the title
“White Collar Crime.”[6]
2.3 Nature and Definition of white collar crime:
The concept of “white collar crime” found its place in criminology for the first
time in 1941 when Sutherland published his research paper on white collar
criminality in the American Sociological Review. He defined white collar crime
as a “crime committed by persons of respectability and high social status in
course of their occupation”. A white-collar criminal belongs to upper socio-
economic class who violates the criminal law while conducting his professional
qualities.[7]
White collar crime can be defined in many ways. It has been defined as crime
committed by one of respectable or high social status or in the course of one’s
occupation, as crime that involves deceit or a breach of trust, as nonviolent
crime undertaken for personal gain, as crime that involves a combination of
these factors, and simply as business crime.

According to Encyclopaedia, White-collar crime is financially motivated

nonviolent crime committed for illegal monetary gain. Within criminology, it
was first defined by sociologist Edwin Sutherland in 1939 as “a crime
committed by a person of respectability and high social status in the course of
his occupation”. Sutherland was a proponent of symbolic interactionism and
believed that criminal behavior was learned from interpersonal interactions.
White-collar crime is similar to corporate crime as white-collar employees are
more likely to commit fraud, bribery, Ponzi schemes, insider
trading, embezzlement, cybercrime, copyright infringement, money
laundering, identity theft, and forgery.[8]

According to Edelhertz defined white-collar crime as-

“An illegal act or series of illegal acts committed by non-physical means and by
concealment or guile, to obtain money or property to avoid the payment or loss
of money or property, or to obtain business or personal advantage.”

Barnes and Teaters quoted Lord Acton who said, power tends to corrupt and
absolute power tends to corrupt absolutely.” Whatever citizens of a particular
community become apathetic to the working of their Government, grafts,
corruption and alliance between public servants and the criminal world are
common phenomenon resulting into breach of trust, fraud and other
malpractices.[9]
Finally we can say that White collar crimes can be committed by persons in all
social classes.
 Characteristics of white collar crime: There are various Characteristics of
white collar crime, such as:[10]
1. Most WCCs are nonviolent
2. Deliberate acts motivated by profit
3. Corporate Culture: Criminogenic: Differential Association
4. Element of Learning, Peer support, Rationalization and Neutralization
5. Victimization: Diffuse
6. Lack of reporting and defining
7. Civil vs. criminal violations
8. Sociological category
9. Sanctions: small fines, big payoffs
10.Investigation: limited resources, problem of technology
11.Entail an abuse of power
12.Concealment

 Different types of white-collar crimes:

There are many types of white collar crime. Based on the definition of Clinard
and Quinney who divided white collar crime into occupational crime and
corporate crime, white-collar crime can be categorized as follows:

 Criminal misappropriation of property

 Criminal breach of trust
 Cheating /fraud
 Forgery/credit/ATM card fraud
 Counterfeiting currency or product
 Defamation
 Product piracy
 Cyber crime
 Offenses of communications and multimedia industries
 Offences of printing and publication
 Banking / financial fraud
 Loan sharking
 Securities fraud/ Listing offences/ Insider trading
 Money laundering
 Insurance fraud
 Maritime fraud
 Offences of company
 Tax evasion
 Customs and smuggling offences
 Immigration and human trafficking offences
 Bribery and corruption
 Exchange control violations
 Welfare Fraud
 Telemarketing Fraud
 Larceny/Theft
 Kickback
 Insider Trading
 Health Care Fraud
 Extortion
 Environmental Schemes
 Embezz1ement
 Blackmail
 Cellular Phone Fraud
 Computer fraud
Apart from the above mentioned activities many other activities are also
considered as white crime.[11]
 Features of White Collar Crime:
Although white-collar crimes are quite varied, most have several characteristics
in common Such as…

1. The crimes result in social injuries far greater than conventional crimes where
only individuals are affected.
2. A large number of these offenders are recidivists, though repetition is not
necessarily of the same type of crime.
3. The illegal activities (or white-collar crimes) follow more or less the same
modus operandi.
4. A white-collar criminal does not lose his status among associates because it is
not considered a violation of the business code. In fact, many successful
criminals of this category are hailed as dynamic and innovative leaders of
industry/society.
5. White-collar criminals feel and express contempt for law, for government, and
for government officials. In this respect, they are similar to many professional
criminals.
2.7 Causes of white collar crime:
In general, the causes of white collar crime are the economic difficulty and
greed. There are other causes such as opportunity to commit crime, situational
pressure on the individual and the issues pertaining to integrity. Many scholars
on the other hand believe that the greed is not main reason for white collar
crime, but the inherent characteristics of getting more than others are the main
causes of white collar crime.[12]However, there are various reasons for white
collar crime, such as:[13]
1. Not really crimes: Some offenders convince themselves that their actions are
not really crimes because the acts involved do not resemble street crimes. For
example a pharmacist who chisels customers on prescription drugs may
rationalize her behaviour by telling herself that it does not really hurt anyone.
2. Not understandable/realizable: Some business people feel justified in
committing white collar crimes because they believe that government
regulations do not really understand the business world or their activities or the
problems of competing in the free enterprise system.
3. Unawareness of people: One of the prime causes of white collar crime is
ignorance of people about this crime. As the nature of the crime is totally
different from traditional crimes, people rarely understand it though they are the
worst victims of such crime. The more awareness will increase among people
the less will be the numbers of white collar crime.
4. For Greediness: Rationalizing greed is a common trait of white collar
criminals. Some white collar criminals believe that everyone violates business
laws, so it is not so bad if they do so themselves. So greed is another motivation
for white collar crime.
5. Necessity: Greed is not the only motivation for white collar crime, need also
pays an important role. Executive may temper with company books because
they feel the need to keep or improve their jobs, satisfy their egos or support
their children. Women convicted in lower-echelon positions and their acts seem
motivated more out of economic survival than greed and power.
6. For Social and economical changes: The rise of white collar criminality in
many countries has coincided with the progress made in those countries in the
economic and industrial fields. It is hardly surprising that the two processes
should go together considering that most of the white collar crimes are, directly
or indirectly, connected with the production and distribution of wealth.
7. Scientific and technological development: The advance of technological and
scientific development is contributing to the emergence of ‘mass society’, with
a large rank and file and small controlling elite, encouraging the growth of
monopolies, the rise of a managerial class and intricate institutional mechanism.
The inability of all sections of society to appreciate in full this need results in
the emergence and growth of white collar and economic crimes.

2.8 White collar crimes are related to other types of crime:

 Blue-collar crime
 Corporate crime
 State-corporate crime
 Organized Crime
 Occupational crime
 Occupational Death

 
2.9 Conclusion:
In conclusion, white collar crime is as detrimental to the economic well-being
of a nation as is street crime and therefore requires stringent measures to uproot
it. Stamping out white collar crime must be the concern of all. The white-collar
offenses constitute an increasingly important part of our criminal law.

[1] http://www.white collar crime _ Law firms, drafts, and legal documents.htm

[2] Criminology and Penology By Dr. N.V. Paranjape-14thEidition
[3] 1. George B. Vold, Theoretical Criminology, Second Edition Prepared by
Thomas 3. Bernard. Oxford University Press, New York, 197g. pp. 359,360.
[4] 2. E.H. Sutherland. “Is ‘White Collar Crime” Crime?”American
Sociological Review, 10: 132-39 (April. 1945).
[5] E.H. Sutherland. White Collar, Crime, Dryden Press, New York. 1Q40.
[6] Supra note 1, pp. 359, 360.
[7] Criminology and Penology By Dr.N.V. Paranjape-14thEidition
[8] WHITE-COLLAR CRIME_FROM WIKIPEDIA, THE FREE
ENCYCLOPEDIA
[9]Ibid, p. 93.
[10] Criminology-second edition by Monjur Kader(Assistant Judge,Dhaka)
[11] Criminology-second edition by Monjur Kader(Assistant
Judge,Dhaka)&Md.MuajjemHussain(Judicial Magistrate,Sylhet).
[12]white collar crime _ Law firms, drafts, and legal documents.htm
[13]Rajshahi University law Review,Vol. VII,2007