Overview
This lecture discusses white-collar crime, its types, notable examples, and its relationship to social class, particularly focusing on crimes committed by those in managerial or professional roles.
White-Collar Crime: Definition & Types
- White-collar crime is a term coined by Sutherland to challenge the idea that crime is mainly a working-class phenomenon.
- White-collar crimes are committed by individuals in managerial and non-manual occupations through their employment.
- Two main forms: corporate crime (on behalf of a company) and occupational crime (against a company or its customers for personal gain).
Types of Occupational White-Collar Crime
- Embezzlement: Illegally withdrawing company resources for personal use.
- Insider Trading: Using confidential information to gain unfair financial advantages in stocks or investments.
- Tax Evasion: Falsely declaring income or resources to avoid paying taxes.
- Bribery: Offering or accepting payments for contracts or confidential information.
- Expense Fraud: Falsifying expense claims for personal financial gain.
Notable Examples
- Bernie Madoff ran a Ponzi scheme, embezzling $50 billion and was sentenced to 150 years in jail in 2008.
- Martha Stewart was convicted of insider trading in 2001, selling shares before negative news became public.
- The Panama Papers (2016) exposed widespread tax evasion through offshore accounts, implicating public figures, including Leonel Messi and the father of David Cameron.
- The UK MP's expenses scandal (2009) revealed misuse of parliamentary expenses, leading to multiple MPs being jailed for fraud.
Key Terms & Definitions
- White-collar crime — Crime committed by professionals or managerial workers as part of their employment.
- Corporate crime — Crimes committed by employees on behalf of their company.
- Occupational crime — Crimes committed by employees for personal gain, often against their employer or clients.
- Embezzlement — Theft or misappropriation of funds placed in one's trust.
- Insider trading — Using privileged information to gain financial advantage in investments.
- Tax evasion — Illegally avoiding paying taxes owed.
- Bribery — Offering or receiving payments for illicit advantages.
- Expense fraud — Claiming false expenses for personal benefit.
Action Items / Next Steps
- Review examples of white-collar crime for exam preparation.
- Prepare for the next video/lecture on corporate crime.