Assignment 1
Relationship between trust, respectability, risk, and white collar crime, and how the relationship differ when crime involved is conventional, rather than white collar.
White collar crimes are in most instances committed by people of high authority, and who command higher respect in societal set up. These people, in most of the occasions come from successful businesses either as owners, managers, or in a senior position able to make command, and decisions regarding the business. Government personnel have also in the recent past been involved in white collar crime, and this trend has been on the increase not only on the United States but also in the world (Friedrichs 12). From the two stated examples of the context and scenarios that white collar crime happens in most of the occasions, there is a great relationship that exists between trust, risk, respectability and white collar crime. The public and most business stakeholders have received a lot of trust to those in leadership position and management, to conduct affairs on their behalf without any hidden intention or fault that is against the law.
The trust given to them touches on a lot of risky activities that the managers and those in authority have to handle such as important documents, financial data and responsibilities that empowers such kind of people in position of authority to make, including hiring and firing personnel that will work for such organizations or institutions (26). Such kind of people command a great respect in the society, and have great influence concerning decisions made. From the above stated conditions, it has led to an increase in white collar crime due to the fact that those in position and authority of command, exploit opportunities and abuse their responsibilities, and as a result engage in white collar crimes. Such kind of crimes have also been tricky to detect and prevent because very few people in the society can access data, facts and information relating to transactions and decisions made by those in authority.
The relationship, trust and respectability when it comes to conventional crimes differs a great deal in the senses that there is no respect bestowed to such people in the society, and most have no authority and ability to make decisions that affect most people in the society, unlike in white collar crime. They are also not in a position to make and take risky decisions, and steps for the society or businesses that have large impact in a big population. Most of the public cannot trust such kind of criminal offenders with sensitive documents and responsibilities, not only because of the possibility that they do not have qualifications required to be in those offices and positions, but also their personal character and competencies. It is imperative to note that those involved in white collar crimes in many cases have worked for a longtime in their respected areas, and have vast experience, and as a result, have earned public trust and confidence.
Definition of white collar crime
White collar crime has been defined and described differently by different scholars and professionals in the related or similar fields. However, there are key and critical elements that are similar in most of the definitions. The use of non- violence measures, and people in authority, or of great influence in the society. Therefore, white collar crime can be defined as those crimes that intend to produce financial gains that use some form of deception, lying, cheating, and stealing, done by people in business and government positions and authority (Friedrichs 2). White collar crime it is asserted does not involve violence, drugs related or any other illegal activities, and in most instances it takes a long time before it is discovered as fraudulent.
Advantages and disadvantages of following terms used to describe crime. “White collar crime”, “crimes of the powerful” and “elite deviance”
There are several terms coined in relation to the whole issue to crime, especially involving white collar law. “White collar crime” as a term, has been used for many decades, from early 1930s in trying to explain high level of crime that involved people of authority and command in the society. Just like there is the term “White collar jobs”, for describing jobs that are highly paying and done in a an office set up, that commands a lot of respect from the society, and uses less physical energy but embraces technology and innovation, “white collar crime” as a term has made it easy for the public and those concerned in matters relating to crime to better and easily understand the kind of criminal cases being addressed. The term has also made work easier for attorneys and federal agents to conduct their business since from the term they can already know what to expect that results from such criminal cases, for instance they know non-violent measures were used, and this determines the direction that the case takes.
On the contrary, the term has also created a wrong perception in the mentality of most civilians, in the sense that most relate the respect that is bestowed to people who have authority and command in the society, and think that their criminal cases will be treated with leniency, which in reality is not true. The tern has also been criticized for influencing continuation of related crime because it tends to encourage and portrays the crime as a higher level or “smart” kind of crime, therefore, those in position would want to engage and involve them. Another term related to the crime is “crimes of the powerful”. This term portrays the picture that only those in authority or with great influence in the society are to be involved in such kind of crimes (Friedrichs 28). This has made it look like it is justifiable for those in position of authority and power to involve themselves in such kind of acts. The term has made the public to believe that such kind of crimes are done only by those in power and authority, which in reality has not been true. It has been witnessed that other offenders who are not powerful and do not command positions of authority have also involved themselves in such kind of crime. With increased use of technology in the contemporary world, people who are not in authority have been involved in such kind of crimes, for instance cyber crime.
On the other hand, the term has also helped those in the legal and law enforcement disciplines to execute their responsibilities with ease, since the term simplifies many issues. Lastly, a similar and related term “elite deviance” presents more or less related arguments. Elite depicts people who have gone to school and attained higher recognition in terms of education achievements, and have the ability to understand and relate happenings and developments in the contemporary world with a lot of ease. Deviance on the other hand, presents an opposite position from the norm, which is accepted in the society, that is, going against what is right and has been agreed in the society. The term therefore has encouraged those with high education levels in the society to involve themselves in such kind of activities because the term creates a perception that such kind of crimes are justifiable if done by such kind of people, that is, the elite class in our society. But to the professionals in related fields, it has made their work easier in terms of interpreting and making decisions because background information about the crime and conditions involved is already known.
Why have white collar crime offenders traditionally received lighter crimes than conventional crime offenders?
Assignment 2
Wilson’s case study
Insider trading - Wilson has agreed in his discussion to exchange prices on certain contracts so as not to undercut one another prices. This is against the stipulated rules guiding tendering and trading between and among contractors and governments.
Embezzlement - By Wilson accepting payment for metal sling hoist assemblies sold at collusive and non competitive prices, and selling the metal sling, is equivalent to using funds in a wrong way. This is because such funds have been manipulated and compromised, and therefore, do not reach the initial or genuine target that could have resulted from such transaction if all due process was followed.
Fraud - When Wilson agrees not to compete on certain contracts with the navy by not submitting prices or bids on those contracts or submitting intentionally high prices or bids on those contracts. This is fraud because it is the public money that is going to be used, and high bids and prices is intended to steal from the public, and benefit a few. Fraud is also noted by Wilson altering winning bids on those contracts. This is presented as fraud of the highest order, and it has severe punishment under the law. Those companies that their bids were altered can take up legal measures that can result to great impacts on the whole process.
Tax evasion - In submitting bids for contracts and stating prices, there are certain amount of money paid in the form of tax, that goes either to the national or federal government, and therefore when Wilson knowing fully that failing not to compete on certain contracts with the Navy will deny government to collect tax from such kind of transaction, is equal as evading to pay tax, and more so, this was done illegally.
Money laundering - When Wilson fails intentionally to present bids and prices for tenders, making them evade tax that could have resulted from such transactions. Many countries in different places treat such instances as money laundering
Possibility of Wilson suffering repercussions for Tyler’s termination is high due to the fact that it was Wilson who ordered Tyler to be fired. Tyler, by alerting the federal agents about the developments, and action of the manager, Wilson, did a good thing that is recognized in the law and encouraged. The public interests were protected as result of bold measures that Tyler took, and by Wilson ordering his dismissal is adding more problems to those already that he has committed. There are laws that have been passed both at national and federal governments, which require protection of those people in the society who have reported crime of any nature, that intends to protect public, and private entities from losing their hard earned resources that include finance and money. For instance, president Obama in the recent days signed the Whistleblower Protection Enhancement Act, which expands protection of federal workers who report and bring to public notice the fraud, illegality and misconduct of people not only in public offices but also private organizations. Such kind of law applies in Wilson and Tyler’s case, and therefore in addition of the white collar crime that he has been involved in, adifferent charge sheet will be presented protecting Tyler and punishing him further.
Assignment 3
White collar Crime issues presenting themselves from the International Criminal Court (ICC) excerpts relating to Omar al-Bashir
White collar crime, as it has been observed and discussed above, is mostly presented and done by those people who are in authority, high position and command, as it is presented in the case. From the case, the person being accused of the stated crimes is a president, and whose regime and government does not recognize the international body that is responsible for addressing such big crimes done by people in authority who have power. Power as a key element, has made it possible in most white collar crime to be manipulated directly or indirectly. Power can make it hard for justice to be realized to victims of such crimes. From the case, the president has the ability to use state resources and institutions to manipulate white collar issues presenting themselves. From the case, it can be argued that the regime has involved itself in many white collar crimes as well as conventional crimes. Therefore, it is noted that proper structures and institutions need to be put in place so that white collar crimes can be addressed without any compromise, or influence from the authority, to ensure that justice is realized to those affected.
The challenge in finding justice in white collar related cases has been mostly influenced due to decisions and position that most accused people have had. For instance, most people have apolitical influence and affiliation as they relate to those in power directly or indirectly. In some instances, those involved in such kind of crime entails bigger groups with a lot of influence in the society, and therefore such kind of crimes attracts a lot of attention both from the political class and parties. It has been observed that in some instances governments have come out and defended those involved in such kind of crimes simply because they are bureaucrats working for the government, and who have influence and interests from such kind of cases. This also has caused a lot of concern and determined what measures and steps are taken to address the issues. With stronger institutions in any part of the world, that are independent and free, it can play a great part and role in addressing white collar crimes, and overcoming the challenges that white collar crimes face especially resulting from political pressure and influence.
In conventional or white collar crimes at the local level, the federal agents are involved in investigating crimes of such nature and are empowered to do so by the constitution. But when it comes to the international arena, as has been presented from the case, it lacks its own law enforcement agencies and this has made it difficult and challenging for such body that tries to seek international justice such as the International Criminal Court (ICC). As much as warrant of arrests has been issued as it was the request of the chief prosecutor Moreno Ocampo, executing and implementing the arrests have been tricky and challenging. This is because the court or organization lacks its own force that can implement such requirements and therefore relies on other governments to act on their behalf. This has raised concerns in the international scene and it has been pointed out as a barrier in fighting and preventing white collar crimes and other conventional criminal activities.
Assignment 4
Racketeer Influenced and Corrupt Organizations (RICO) Act
RICO Act works under the following rules and conditions that have made federal agents raid your office and seized assets worth $4.2 million. RICO has a provision that allows one to seek a pre-trial restraining order or injunction to temporarily seize defendant’s assets, and prevent the transfer of potentially forfeitable property, as well as require the defendant to put up a performance bond. The provision was placed in the law because owners of mafia-related corporations often absconded with the assets. An injunction and performance bonds ensures that there is something to seize in the event of a guilty verdict. Therefore, federal agents acted within the law because your activities fall under crimes stipulated in RICO Act. The law intends to eradicate organized crime by establishing strong sanctions and forfeiture provisions.
Be informed that federal agents might come up with more charges as well as those who have been affected or have been victims of your racket. If more people turn up and prove that from your action they have been affected drastically and have lost their assets and resources, the federal agents might come and seize more assets.
Assignment 5
White Collar crimes that might have contributed to the current subprime mortgage mess that led to financial meltdown of 2008.
The subprime activities was a major cause for the 2008 financial crisis, which then led to the worst recession since the great depression. As a result, it flattened the real estate market, creating the 2007 banking crisis and finally leading to the global recession. There are a lot of people and groups that are involved in the subprime mortgage case, that were affected either directly or indirectly. Financial institution, brokers, investment managers, appraisers as well mortgage lenders that were involved. This broad spectrum of people involved has increased possible white collar crime that might be related to the incidence either directly or indirectly. Fraud, especially security fraud is presented from Mr. Lorenzo case where it is pointed out that he misled investors by promoting the strength of their company’s mortgage, and underwriting standards, while he was aware that increasing lax lending was pushing countrywide towards disaster. Mozilo is also accused of insider trading for selling blocks of countrywide stocks that gave him gross profits of more than $140 million, while not revealing the deterioration in the company mortgage operation.
Home appraisers it is also alleged to have inflated home values and this amount to fraud. Misrepresentation of quality in their loans in filling of the Security and Exchange Commission (SEC) by mortgage lenders presents a possible white collar crime of fraud. Investment managers it is also said to have misled investors about the riskiness of their investment in subprime related mortgage, and related securities. Loan brokers and lenders have been accused of fraud and embezzlement as well as money laundering because they exaggerated borrowed income and overstated home values. Credit ratings agencies caved to pressure, and as a result went ahead and issued top ratings to security backed by what has been described as shaky mortgages. The subprime mortgage involved a lot of people that each played a role or two that lead to possible white collar crime, which affected many people directly or indirectly.
Angelo Mozilo was the former chief executive of Countrywide Financial, has been accused two alongside two other senior people in what has been termed and described as “cases against the executives”. This presents a clear example of how white collar crime happens and affects mostly those people who command a higher and bigger respect in the society. It is noted that the subprime mortgage mess produced a clear example of white collar crime where business practice produced opportunities for industry insiders to profit at the expense of home buyers and investors. Experts have further pointed out that several factors led to making subprime mortgage market an easy place for industry insiders to exploit and it resulted to affecting the lives of many people negatively. Legislation expanded pool of borrowers and structured incentives for lenders that assumed risks involved. As a result, it transformed high risk loans into mortgage-backed securities that were I demand not only by domestic investors but also foreign investors. The y point out by edging out competition, it resulted to high risk loans to unqualified borrowers, which later brought the subprime mortgage crisis.
Works Cited
Friedrichs, David O. Trusted Criminals: White Collar Crime in Contemporary Society. Belmont, CA: Wadsworth Cengage Learning, 2010. Print.
