Detailed Contents

Preface xv Acknowledgments xvii

Chapter I. Introduction and Overview of White-Collar Crime: A Systems Perspective 1 Why Study White-Collar Crime? 3 Researching White-Collar Crime 5 Survey Research and White-Collar Crime 5 Archival Research and White-Collar Crime 7 Field Research 10 Experiments 10 Case Studies 11 Studying White-Collar Crime From a Scientific Perspective 12 Objectivity and White-Collar Crime 13 Parsimony and White-Collar Crime 14 Determinism and White-Collar Crime 14 Skepticism and White-Collar Crime 15 Relativism and White-Collar Crime 15 The Student Role in White-Collar Crime 19 Plan for the Book 21 Summary 22 Key Terms 23 Discussion Questions 23 Web Resources 24 Chapter II. Understanding White-Collar Crime: Definitions, Extent, and Consequences 25 White-Collar Crime: An Evolving Concept 26 Modern Conceptualizations of White-Collar Crime 29 Extent of White-Collar Crime 34 Consequences of White-Collar Crime 37 Public Attitudes Toward White-Collar Crime 42 Characteristics of White-Collar Offenders 43 Summary 44 Key Terms 45 Discussion Questions 45 Web Resources 46 Chapter III. Crimes in Sales-Related Occupations: A Systems Perspective 47 Employee Theft in the Retail System 48 Crimes in the Entertainment/Services System 51 Fraud in the Sales/Service System 52 Home Repair Fraud 53 Auto Repair/Sales Fraud 55 Crimes in the Insurance System 56 Types of Insurance Crimes by Professionals 56 Consequences of Insurance Crimes 58 Insurance Crime Patterns 59 Summary 60 Key Terms 60 Discussion Questions 61 Web Resources 61 Chapter IV. Crimes in the Health Care System 62 Introduction 62 Fraud by Doctors 64 Unnecessary Surgery 69 Medication Errors 71 General Offending by Doctors 71 Fraud by Pharmacists 72 Drug Use by Pharmacists 74 Sexual Abuse 75 Elder Abuse by Health Care Workers 76 Home Health Care Fraud 79 Medical Malpractice 80 Summary 82 Key Terms 83 Discussion Questions 84 Web Resources 84 Chapter V. Crime in Systems of Social Control: White-Collar Crime in Criminal Justice, Political, and Religious Systems 85 Introduction 85 Crimes in the Criminal Justice System 86 Police Corruption 87 Attorney Misconduct 88 Judicial Misconduct 91 Prosecutorial Misconduct 96 Correctional Officer Misconduct 97 Crimes in the Political System 99 Election Law Violations 100 Campaign Finance Violations 100 Political Corruption Related to Extortion and Bribery 101 Apolitical White-Collar Crime 102 Crimes in the Military 102 State-Corporate Crime 104 Crimes by Officials in the Religious System 106 Financial Offenses in the Religious System 106 Deception in the Religious System 107 Catholic Church Sexual Abuse Scandal 107 Summary 111 Key Terms 112 Discussion Questions 113 Web Resources 113 Chapter VI. Crimes in the Educational System 114 Introduction 114 Crimes by Professionals in the Educational System 116 Research Misconduct by Professors 116 Ghostwriting 121 Pecuniary-Oriented Offenses 121 Embezzlement 122 Textbook Fraud 122 Double Billing 123 Engaging in Unapproved Outside Work 124 Sexual Harassment 125 Disciplining “Bad” Professors 129 Crimes in the Educational System by Students 132 Summary 135 Key Terms 136 Discussion Questions 136 Web Resources 137 Chapter VII. Crime in the Economic and Technological Systems 138 Introduction 138 Crime in the Economic System 140 Investment Fraud 141 Market Manipulation 143 Broker Fraud and Embezzlement 144 Hedge Fund Fraud 144 Insider Trading 144 Futures Trading Fraud 146 Foreign Exchange Fraud, High-Yield Investment Schemes, and Advanced-Fee Fraud 147 Ponzi and Pyramid Schemes 147 Bernie Madoff’s Ponzi Scheme: From Armani Suits to a Bulletproof Vest 148 Patterns Surrounding Investment Fraud 152 Crimes in the Technological System 157 Types of Computer Crimes 158 Theft as a Computer Crime 158 Unauthorized Access as a Computer Crime 160 Virus Introduction as a Computer Crime 160 Software Crime as a Computer Crime 161 Internet Crimes 162 Explaining Computer Crime 162 Problems Responding to Computer Crimes 163 Students and Computer Crimes 165 Preventing Computer Crime 166 Summary 167 Key Terms 168 Discussion Questions 169 Web Resources 169 Chapter VIII. Crimes in the Housing System 170 Introduction 170 Mortgage Fraud 172 Types of Mortgage Fraud 174 Straw Buyer Fraud 174 Short Sale Fraud 175 Appraisal Fraud 176 Equity Skimming/Equity Fraud 177 Reverse Mortgage Fraud 178 Fraud During Closing/Settlement 179 Foreclosure Rescue Scams 179 Builder-Initiated Fraud 180 Flipping 180 Qualifications Fraud 181 Real Estate Agent/Investor Fraud 182 Consequences of Mortgage Fraud 182 Patterns Surrounding Mortgage Fraud 183 Slumlords as White-Collar Criminals 185 Consequences of Slumlord Behaviors 186 Responding to Slumlords 189 Summary 190 Key Terms 191 Discussion Questions 191 Web Resources 192 Chapter IX. Crimes by the Corporate System 193 Introduction 193 Conceptualizing Corporate Crime 194 Types of Corporate Crime 196 Antitrust Offenses 196 False Advertising 202 Deceptive Sales 204 Unfair Labor Practices 207 Unsafe Work Environments 210 Harmful Consumer Products 217 Harmful Treatment of Consumers 222 Dynamics of Corporate Offending 224 Public Concern About Crimes by the Corporate System 225 Summary 226 Key Terms 227 Discussion Questions 228 Web Resources 228

Chapter X. Environmental Crime 229 Introduction 229 Conceptualizing Environmental Crime 232 Varieties of Environmental White-Collar Crime 234 Illegal Emissions 234 Illegal Disposal of Hazardous Wastes 235 Illegal Dumping 237 Harmful Destruction of Property/Wildlife 238 Environmental Threats 239 Environmental State Crime 240 International Environmental Crimes 240 Consequences of Environmental Crime 241 The U.S. Environmental Protection Agency (EPA) 243 EPA as an Enforcer of Criminal and Civil Laws 245 EPA as a Protector of Public Health 246 EPA as a Deterrent 249 EPA as a Fund Generator and Cost Savings Entity 250 Criticisms of EPA 252 Problems Addressing Environmental Crimes 254 Media Portrayals of Environmental Crime 254 Evidentiary Issues and Environmental Crime 255 Empirical Issues and Environmental Crime 256 Summary 257 Key Terms 258 Discussion Questions 258 Web Resources 259 Chapter XI. Explaining White-Collar Crime 260 Introduction 260 Culture and White-Collar Crime 262 Deterrence Theory/Rational Choice Theory and White-Collar Crime 264 Strain Theory and White-Collar Crime 265 Classical Strain Theory 265 Institutional Anomie Theory 267 General Strain Theory 269 Learning Theory and White-Collar Crime 270 Neutralizing and Justifying White-Collar Crime 271 Neutralizations and White-Collar Offending 272 Accounts and White-Collar Crime 274 Purposes of Rationalizations and Accounts 275 Control Theory and White-Collar Crime 276 Self-Control Theory and White-Collar Crime 277 Routine Activities Theory and White-Collar Crime 280 Conflict Theory and White-Collar Crime 282 Explaining Corporate Crime 283 Organizational Structure and Corporate Crime 284 Organizational Processes and Corporate Crime 284 Dynamic Organizational Explanations and Corporate Crime 285 Theories Ignored in the White-Collar Crime Literature 286 Life Course Theories and White-Collar Crime 286 Social Disorganization Theory and White-Collar Crime 287 Gender Theories and White-Collar Crime 288 Labeling Theory and White-Collar Crime 288 Integrated Efforts to Explain White-Collar Crime 289 Systems Theory 290 Summary 292 Key Terms 293 Discussion Questions 293 Web Resources 294 Chapter XII. Policing White-Collar Crime 295 Introduction 295 Agencies Involved in Responding to White-Collar Crime 297 The FBI and White-Collar Crime 300 Law Enforcement Strategies and White-Collar Crime 303 Stages of the White-Collar Crime Investigation 304 Evidence Gathering Strategies 305 Problems Addressing White-Collar Crime Through a Law Enforcement Response 311 Suggestions for Improving the Law Enforcement Response to White-Collar Crime 317 Self-Policing and White-Collar Crime 319 Loss Prevention Strategies 319 Compliance Strategies 321 Audits 322 Forensic Accounting 323 Regulatory Policing and White-Collar Crime 323 Regulatory Officials as Police Officers 324 Regulatory Policing Styles 326 Criticisms of Regulatory Policing 328 The Global Police and White-Collar Crime 328 Summary 329 Key Terms 330 Discussion Questions 331 Web Resources 331 Chapter XIII. Judicial Proceedings and White-Collar Crime 332 Introduction 332 Types of Judicial Proceedings Responding to White-Collar Misconduct 333 The Role of Judges in Addressing White-Collar Crime 335 The Role of Prosecutors in Addressing White-Collar Crime 337 Deciding Whether to Prosecute a White-Collar Crime Case 337 Deciding Charges 340 Deciding About Plea Bargains 342 Deciding Whether to Charge Corporations 342 Deciding Whether to Defer Prosecution 346 The Role of Defense Attorneys in White-Collar Crime Cases 347 Other Actors Involved in White-Collar Judicial Proceedings 350 Jurors 350 Witnesses 351 The Role of White-Collar Defendants 352 The Role of Victims in White-Collar Judicial Proceedings 354 Civil Lawsuits and White-Collar Crime 355 Issues in White-Collar Judicial Networking and the Judicial Process 358 Networking and the Judicial Process 358 Class Bias 358 The Use of Parallel Proceedings 359 Conceptual Ambiguity Surrounding Corporate Crime Prosecutions 360 Summary 361 Key Terms 362 Discussion Questions 363 Web Resources 363 Chapter XIV. The Corrections Subsystem and White-Collar Crime 364 Introduction 364 Sentencing Dynamics and White-Collar Offenders 365 Sentencing Practices and White-Collar Offenders 366 Sentencing Policies and White-Collar Offenders 367 Sentencing Patterns 368 The Prison Experience for White-Collar Offenders 370 Depression and the White-Collar Offender 371 Danger and the White-Collar Offender 372 Deprivations and the White-Collar Offender 373 Prison Deviance and the White-Collar Offender 374 Doldrums 375 Adjusting to Prison Life 375 The Probation and Parole Experience for White-Collar Offenders 376 Monetary Fines and White-Collar Offenders 378 Alternative Sanctions and White-Collar Offenders 383 House Arrest and White-Collar Offenders 383 Community Service 385 Shaming 386 Loss of Job 387 Punishing Corporations for White-Collar Crime 387 Fining Corporate Offenders 388 Probation and Corporate Offenders 389 Issues Surrounding Corporate Sanctions 390 Reasons for Punishing White-Collar Offenders 390 Retribution and White-Collar Offenders 390 Specific Deterrence and White-Collar Offenders 391 General Deterrence and White-Collar Offenders 391 Rehabilitation and White-Collar Offenders 391 Just Deserts and White-Collar Offenders 392 Summary 392 Key Terms 393 Discussion Questions 394 Web Resources 394

Glossary 395

References 405

Credits and Sources 431

Index 437

About the Author 453