International Handbook of White-Collar and Corporate Crime

The International Handbook of White-Collar and Corporate Crime Edited by Henry N. Pontell, University of California, Irvine Gilbert Geis, University of California, Irvine Insider trading. Savings and loan scandals. Enron. Corporate crimes were once thought of as victimless offenses, but now—with billions of dollars and an increasingly global economy at stake—this is understood to be far from the truth. The International Handbook of White-Collar and Corporate Crime explores the complex interplay of factors involved when corporate cultures normalize lawbreaking, and when organizational behavior is pushed to unethical (and sometimes inhumane) limits. Featuring original contributions from a panel of experts representing North America, Asia, Europe, and Australia, this timely volume presents multidisciplinary views on recent corporate wrongdoing affecting economic and social conditions worldwide. * Criminal liability and intent * Stock market and financial crime * Bribery and extortion * Computer and identity fraud * Health care fraud * Crime in the professions * Industrial pollution * Political corruption * War crimes and genocide Contributors offer case studies, historical and sociopolitical analyses, theoretical and legal perspectives, and comparative studies, featuring examples as varied as NASA, Parmalat, the Italian government, and Watergate. Criminal justice responses to these phenomena, the role of the media in exposing or minimizing them, prevention, regulation, and self- policing strategies, and larger global issues emerging from economic crime are also featured. Richly diverse in its coverage, The International Handbook of White-Collar and Corporate Crime is stimulating reading for students, academics, and professionals in a wide range of fields, from criminology and criminal justice to business and economics, psychology to social policy to ethics. This powerful information is certain to change many of our deeply held views on criminal behavior. front-matter1......Page 1 Title Page ......Page 2 Copyright Page ......Page 3 Table of Contents ......Page 5 Preface......Page 8 Acknowledgments......Page 13 front-matter2......Page 15 1 Beyond Macro- and Micro-Levels of Analysis, Organizations, and the Cultural Fix......Page 16 Causes of Individual Crime and Deviance: The Covert Debate......Page 18 Situated Action: Institutions, Agency, and the Macro–Meso–Micro-Connection......Page 19 Situated Action: The Empirical and Conceptual Foundation in White-Collar Crime ......Page 21 The Cultural Fix and The Normalization of Deviance......Page 23 The Connection Between Causes and Strategies for Control......Page 26 Endnotes......Page 30 References......Page 34 2 Understanding Corporate Lawbreaking: From Profit Seeking to Law Finding......Page 38 Matters of Method......Page 39 Causes and Conditions of Corporate Lawbreaking......Page 40 Business Rationality and Legal Compliance......Page 41 Corporations, Culture, and Choice......Page 44 Law and Lawbreaking......Page 49 Endnotes......Page 53 References......Page 58 3 Attributing Responsibility for Organizational Wrongdoing......Page 63 Lessons from the Pinto and Challenger Cases......Page 64 Willfulness and Organizational Wrongdoing......Page 69 A Four-Step Model of Attributing Responsibility for Organizational Wrongdoing......Page 72 Step 1: The Social Construction of Facts and Norms......Page 73 Actor Characteristics......Page 76 Organizational/Institutional Context of Action......Page 78 Step 3: Audience Characteristics......Page 79 Conclusion......Page 81 Endnotes......Page 82 References......Page 85 04......Page 91 Definitional Nets......Page 92 Class and Respectability......Page 94 Interpersonal and Cultural Correlates......Page 96 Class, Culture and Criminogenesis......Page 99 Competition......Page 100 Entitlement......Page 103 Crime Constructions......Page 104 Beyond Generative Worlds......Page 105 References......Page 106 2 Because They Can Motivations and Intent of White-Collar Criminals......Page 109 League of Gentlemen: Business Crimes as “SOP” (Standard Operating Procedure)......Page 112 Condemning the Condemners: The Van der Valks Take on the Regulators......Page 113 Opportunistic and Predatory Deviance: The Savings and Loan Scandals......Page 115 Mega-Fraud at the Top......Page 116 Lone Trader: Sliding Down the Slippery Slope at Barings......Page 118 EyesWide Shut: The “Split Personality” Company......Page 121 When Corporate Strategy Kills: Great Western Railways and the Southall Train Crash ......Page 122 Pushing the Boundaries: The Guinness Affair......Page 126 Conclusion......Page 129 Endnotes......Page 130 References......Page 132 07......Page 134 Introduction: “Knowing” About Corporateand White-Collar Crimes......Page 135 Taking the University to Market......Page 137 Criminology and “Power”......Page 140 Researching Corporate and White-Collar Crime in an Era of Neo-Liberalism? ......Page 143 Regulating Funding: The Construction of Feasible Enquiry......Page 144 Regulating “Access”: Power, Control, Exclusion......Page 145 Disseminating Research on the Crimes of the Powerful......Page 147 Conclusion: Researching Corporate and White-Collar Crime in an Era of Neo-Liberalism ......Page 149 Endnotes......Page 151 References......Page 153 2 An Age of Miracles?1......Page 158 Endnotes......Page 166 References......Page 170 E. H. Sutherland and the Discovery of White-Collar Crime: Traditional Roots and a Modern Context......Page 173 Contemporary White-Collar Crime Criminologists and a Globalized Framework ......Page 174 On the Concept of White-Collar Crime and a Typology of White-Collar Crime......Page 175 White-Collar Crime in a Postmodern World......Page 176 White-Collar Crime in a Globalized World......Page 178 The Role of the World Bank in a Global Economy......Page 180 The World Bank and Crimes of Globalization......Page 181 The Significance of the Global Justice Movement for White-Collar Crime ......Page 183 Concluding Observations: New Challenges for White-Collar Crime Scholars......Page 185 Endnotes......Page 186 References......Page 189 11......Page 195 Can a Corporation be a Criminal?......Page 196 Frequency......Page 197 A Short History of Corporate Crime in America......Page 198 Waves of Disclosures, Reforms, and Backsliding......Page 199 The U.S. Sentencing Commission......Page 201 Sarbanes-Oxley Act of 2002 (SOX)......Page 203 Education as a Preventive Measure......Page 204 Endnotes......Page 206 References......Page 207 Power and Crime in Historical Context......Page 209 Crime and Criminological Consciousness......Page 211 Elite Crime and Criminology......Page 212 State-Corporate Crime: Origins And Development......Page 216 Toward a Theory of State-Corporate Crime......Page 218 Conclusion......Page 221 Endnotes......Page 222 References......Page 224 14......Page 229 1 A Normative Approach to White-Collar Crime......Page 230 Three Kinds of Moral Content......Page 231 Some Generalizations About the Moral Content of White-Collar Crime......Page 233 The Harms and Victims of White-Collar Crime......Page 234 The Concept of Fraud......Page 236 Fraud as a White-Collar Crime......Page 238 The Deceit Element in Fraud......Page 239 Insider Trading......Page 240 Assessing the Moral Content of Insider Trading......Page 241 Insider Trading as Cheating......Page 244 Conclusion......Page 245 Endnotes......Page 246 References......Page 251 Cases cited......Page 253 Legislation cited......Page 254 The Argument......Page 255 The Legal Architecture of the Corporation I—Romance and Reality......Page 258 Romance......Page 259 Reality......Page 262 The Legal Architecture of the Corporation II—Incentives and Deviance......Page 268 Summary and a Question......Page 274 The Question......Page 275 Endnotes......Page 277 References......Page 281 Statutes......Page 285 Injecting Organizational Culpability into Federal Criminal Law: A Brief History......Page 286 Increasing Corporate Penalties......Page 287 The Impact of Organizational Culpability on Corporate Fines......Page 288 Extending the Impact of Organizational Culpability to Prosecutorial Discretion ......Page 291 Shaping Criminal Investigations Through Prosecution Referral Standards......Page 292 Implementing Corporate Culpability Assessments Through Deferred Prosecution Agreements......Page 293 Criteria for Recognizing Low Organizational Culpability: Features of a Reasonable Compliance Program......Page 294 General Criteria for an Effective Program......Page 295 The Nature of Due Diligence in Organizational Law Compliance Efforts......Page 296 Corporations as Public Trustees Regarding the Prevention and Detection of Internal Crimes......Page 297 An Agency Analysis of Criminal Law Enforcement Through Corporate Trustees......Page 298 Demands for Private Policing in Corporate Organizations......Page 299 Altered Managerial Relationships Following Internalization of Corporate Law Enforcement......Page 300 Limits on Corporate Criminal Liability......Page 303 Cultural Impediments to Compliance Program Features......Page 304 Corporate Compliance Systems......Page 305 Developing Compliance Program Criteria Based on General Management Tools......Page 306 Conclusion......Page 307 Endnotes......Page 308 References......Page 311 18......Page 314 1 Gold-Collar Crime The Peculiar Complexities and Ambiguities of War Crimes, Crimes Against Humanity, and Genocide......Page 315 A Catalog of Necessary Questions......Page 316 International Crimes and the Analogy with White-Collar and Corporate Crime......Page 318 Superior Responsibility......Page 322 Joint Criminal Enterprise......Page 324 Corporations, the State, and Commercial Enterprises......Page 325 Conclusion......Page 327 Endnotes......Page 329 References......Page 330 Cases......Page 332 1. Prosecuting Private Corporations as Social Entities......Page 333 2.2.1 The Social Movement Against Pollution at the Ashio Copper Mine......Page 334 2.2.3 The Movement During World War II......Page 335 3. Reactions to Damage Caused by Corporate Activities in the 1960s......Page 336 4.3. Finding the Cause of Minamata Disease......Page 337 4.5. The Victims’ Movement against Chisso......Page 338 4.8. Corporate Criminal Responsibility......Page 339 4.10. Severe Sentence by Supreme Court......Page 340 5. Regulation of Environmental Pollution under Laws Enacted Since the Late 1960s......Page 341 6. Present Sanctions for Environmental Crimes......Page 342 7.2. Rescue and Research Immediately After an Accident......Page 343 7.5. Government Reaction to Kansai Electric Power......Page 344 8. Conclusion......Page 345 Endnotes......Page 347 References......Page 351 Art Theft......Page 353 Fraud in the Art Market......Page 355 The Illicit Traffic in Plundered Antiquities......Page 357 References......Page 362 Digital Technology as the Instrument of Crime......Page 364 Digital Technology as Incidental to the Crime......Page 365 White-Collar Crime Defined......Page 366 Computer Crime That Is Not White-Collar Crime......Page 367 Computer Crime That Is White-Collar Crime......Page 368 Organizational Complicity in Employee Crime......Page 370 Motivation......Page 372 Guardians......Page 373 Motivation......Page 374 Guardianship......Page 376 Cyber Trust......Page 377 References......Page 379 23......Page 382 1 From Pink to White with Various Shades of Embezzlement: Women Who Commit White-Collar Crimes......Page 383 Challenging Masculine Theory and Practice......Page 385 The Queen of Mean......Page 387 Prisoner of Park Avenue......Page 390 The Domestic Diva......Page 391 Political, Professional, and Corporate Crime......Page 395 Pink and White Embezzlers......Page 397 Conclusions......Page 399 Endnotes......Page 400 Cases Cited......Page 408 2 The Itching Palm: The Crimes of Bribery and Extortion......Page 409 The Background......Page 410 Lobbying......Page 415 Transnational Bribery......Page 416 The Victimology of Bribery......Page 418 Empirical Inquiries......Page 420 Public Integrity Section Data......Page 421 Conclusion......Page 423 Endnotes......Page 424 References......Page 425 Characteristics of Legal Services in Japan......Page 428 Crimes by Lawyers......Page 429 Formal Sanctions for Crime and Misconduct by Lawyers......Page 430 Jurisprudential Aspects......Page 433 The Basis of the Criminal Responsibility of Professionals: The Case of Japanese Law......Page 434 Illegal Activity......Page 435 Culpability......Page 437 Endnotes......Page 438 Statutes Cited......Page 439 27......Page 440 1 Corruption Kills......Page 441 Narrative Defenses of Corruption: Euphemisms and Minimization......Page 442 Corruption Kills: Half Forgotten American History......Page 447 Corruption Kills Thousands in China’s Mines......Page 448 Corruption Kills Thousands of Turks: The Building as Weapon......Page 449 Chechen Terrorists Exploit Russian Corruption......Page 452 Illinois: Safe Truck Drivers Don’t Need To Bribe To Get a License......Page 454 Endnotes......Page 455 References......Page 456 Comparative Criminology: Necessity and Promise......Page 458 Defining Corruption......Page 460 Two Definitional Issues......Page 461 The Need for a Legal Standard......Page 462 Victimless Crime?......Page 463 Varieties of Corruption......Page 464 A Tale of Two Potentates......Page 465 Complexity and Corruption......Page 466 Complexity and Types of Corruption......Page 468 Corruption and Other Crimes......Page 469 Corruption and the Problematics of White-Collar Crime......Page 470 Conclusion......Page 472 References......Page 474 3 Corporate Corruption in the New Economy......Page 476 Crimes of the New Economy......Page 477 Scope and Consequences......Page 478 Swapping/Round-Tripping......Page 479 Creative Accounting......Page 481 IPO Allocation Schemes......Page 482 Criminogenic Market Structures......Page 484 Criminogenic Institutional Frameworks......Page 486 Future Issues......Page 487 Conclusion......Page 488 Endnotes......Page 489 References......Page 490 I. Beccaria and Public Harm......Page 492 Edwin H. Sutherland......Page 494 Recent Research......Page 495 Definitions of White-Collar Crime and Implications of Harm......Page 496 Elusiveness and Double Standards......Page 497 III. Corruption and Its Tangles......Page 498 IV. Italian “Systemic” Corruption......Page 499 1. Rationality......Page 500 3. Feedback......Page 501 V. The Harm of Corruption......Page 503 Endnotes......Page 506 References......Page 508 32......Page 513 Cause......Page 514 Negligence......Page 515 Co-optation and Complicity......Page 516 Cure......Page 519 Endnotes......Page 521 References......Page 522 2 Crime? What Crime? Tales of the Collapse of HIH1......Page 524 HIH: Two Tales of a Corporate Collapse......Page 525 The Criminological Problem of HIH......Page 528 White-Collar Crime and Context: Common Elements......Page 529 Unique Aspects of HIH: Insurance and Australia......Page 532 Conclusion......Page 534 Endnotes......Page 535 References......Page 538 Information: The Common Denominator......Page 541 Parmalat......Page 542 Creditors......Page 543 The Work Force ......Page 544 Schemes, with a Focus on Enron......Page 545 The Cuiaba Project......Page 546 The Grayhawk Project......Page 547 Revisiting the L&H Case......Page 548 An Idol and Groupies......Page 549 The External Auditor......Page 550 Conclusion......Page 551 References......Page 552 Brief History of S&Ls......Page 553 Unlawful Risk-Taking......Page 554 Outline of “Jusen” Housing Loan Company......Page 555 Japan Housing Loan Co. Case......Page 556 Packard Commission and DII......Page 557 Outline of Japan Defense Agency......Page 558 Sentencing......Page 559 The Defect and Legal Reaction......Page 560 Mitsubishi Motors Co. Case......Page 561 Reaction of Criminal Justice System......Page 562 Corporate Criminal Liability......Page 563 Grand Design of Strategy for Fighting White-Collar Crime......Page 564 Endnotes......Page 565 References......Page 566 Japan......Page 568 37......Page 569 1 Policing Healthcare at the Dawn of the New Millennium......Page 570 Torts and Medical Licensing......Page 571 Government Regulation of Medicare and Medicaid......Page 573 Enforcement Efforts......Page 577 Conclusion and Discussion......Page 580 Endnotes......Page 582 References......Page 583 2 Policing Financial Crimes......Page 587 Policing Fraud: The Contexts of Police Undercover Work......Page 590 Covert Investigations of White-Collar Crime in America......Page 591 Covert Policing of White-Collar Crime in Britain......Page 593 Prosecution and Relationship to Policing Fraud......Page 599 The Future of Fraud Investigation......Page 600 Endnotes......Page 601 References......Page 603 40......Page 606 Abstract......Page 607 The Origins of Situational Crime Prevention......Page 608 Features of White-Collar Crime......Page 609 Focus on Highly Specific Forms of Crime......Page 612 Immediate Environment......Page 613 White Collar Crime and Situational Prevention: A Summary of General Considerations......Page 614 Increasing the Effort......Page 615 Increasing the Risk of Detection......Page 617 Reducing the Rewards......Page 618 Reducing Provocations......Page 619 Removing Excuses......Page 620 Final Thoughts......Page 621 References......Page 622 2“ This Time We Really Mean It!”......Page 625 History of Securities Regulation in Canada......Page 627 Developments Since 1980......Page 629 The New Crackdown......Page 631 Enforcement......Page 633 Change, or Regulatory Status Quo?......Page 635 Endnotes......Page 638 References......Page 642 The General Criminal Law: Corporate Manslaughter......Page 646 Occupational Health and Safety Laws......Page 647 Experimenting with a New Offense: “Industrial Manslaughter”......Page 649 The Australian Capital Territory Experiment......Page 650 Other Australian Developments......Page 651 United Kingdom......Page 652 Canada......Page 653 The Arguments for and Against Industrial Manslaughter Laws......Page 654 Conclusion......Page 655 Endnotes......Page 656 References......Page 659 The Development of China’s Modern Corporation......Page 661 Corporation Business......Page 662 Corporation Types as Defined by Ownership......Page 663 Definition......Page 664 Trends in Chinese Corporate Crime......Page 665 Definition of a Criminal Perpetrator in Corporate Crime......Page 667 The Principal of Punishment for Corporate Crimes......Page 668 The Basis of Punishment for Corporate Crime......Page 669 Methods of Punishment for Corporate Crime......Page 670 Non-Criminal Punishment for Corporate Crime......Page 671 Guidelines for Different Types of Non-Criminal Punishment......Page 672 Administrative Punishment......Page 673 Other Types of Non-Criminal Punishment......Page 674 Conclusion......Page 675 Endnotes......Page 676 References......Page 677 About the Authors......Page 678 Index......Page 688 Explores the complex interplay of factors involved when corporate cultures normalize lawbreaking, and when organizational behavior is pushed to unethical limits. This volume presents multidisciplinary views on corporate wrongdoing affecting economic and social conditions worldwide. Insider trading, savings and loan scandals, Enron - Corporate crimes were once thought of as victimless offenses, but now - with billions of dollars and an increasingly global economy at stake - this is understood to be far from the truth. "The International Handbook of White-Collar and Corporate Crime" explores the complex interplay of factors involved when corporate cultures normalize lawbreaking, and when organizational behavior is pushed to unethical (and sometimes inhumane) limits. Featuring original contributions from a panel of experts representing North America, Asia, Europe, and Australia, this timely volume presents multidisciplinary views on recent corporate wrongdoing affecting economic and social conditions worldwide. It covers such aspects as: Criminal liability and intent, stock market and financial crime, bribery and extortion, computer and identity fraud, health care fraud, crime in the professions, industrial pollution, political corruption, war crimes and genocide. Contributors offer case studies, historical and sociopolitical analyses, theoretical and legal perspectives, and comparative studies, featuring examples as varied as NASA, Parmalat, the Italian government, and Watergate. Criminal justice responses to these phenomena, the role of the media in exposing or minimizing them, prevention, regulation, and self-policing strategies, and larger global issues emerging from economic crime are also featured. Richly diverse in its coverage, "The International Handbook of White-Collar and Corporate Crime" is stimulating reading for students, academics, and professionals in a wide range of fields, from criminology and criminal justice to business and economics, psychology to social policy to ethics. This powerful information is certain to change many of our deeply held views on criminal behavior

The International Handbook of White-Collar and Corporate Crime

Edited by Henry N. Pontell, University of California, Irvine

Gilbert Geis, University of California, Irvine

Insider trading. Savings and loan scandals. Enron.

Corporate crimes were once thought of as victimless offenses, but now—with billions of dollars and an increasingly global economy at stake—this is understood to be far from the truth.

The International Handbook of White-Collar and Corporate Crime explores the complex interplay of factors involved when corporate cultures normalize lawbreaking, and when organizational behavior is pushed to unethical (and sometimes inhumane) limits. Featuring original contributions from a panel of experts representing North America, Asia, Europe, and Australia, this timely volume presents multidisciplinary views on recent corporate wrongdoing affecting economic and social conditions worldwide.

• Criminal liability and intent
• Stock market and financial crime
• Bribery and extortion
• Computer and identity fraud
• Health care fraud
• Crime in the professions
• Industrial pollution
• Political corruption
• War crimes and genocide

Contributors offer case studies, historical and sociopolitical analyses, theoretical and legal perspectives, and comparative studies, featuring examples as varied as NASA, Parmalat, the Italian government, and Watergate. Criminal justice responses to these phenomena, the role of the media in exposing or minimizing them, prevention, regulation, and self- policing strategies, and larger global issues emerging from economic crime are also featured.

Richly diverse in its coverage, The International Handbook of White-Collar and Corporate Crime is stimulating reading for students, academics, and professionals in a wide range of fields, from criminology and criminal justice to business and economics, psychology to social policy to ethics. This powerful information is certain to change many of our deeply held views on criminal behavior.