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Methodology in the Uncovering of White-Collar Crime

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Methodology in the Uncovering of White-Collar Crime Notes Introduction This is taken from the title of Gilbert Geis’s seminal explication on the state of white-collar crime today. See Geis (1992). 1 . This is according to the Heritage Foundation’s Index of Economic Freedom. For details, go to: http://www.heritage.org/index/explore 2 . See Hong Kong government’s Brand Hong Kong campaign leaflet entitled ‘Safe City’ published August 2013. Available online at: http://www.brandhk. gov.hk/en/facts/factsheets/pdf/12_safe_city_En.pdf 3 . Anon, ‘HK Among World’s Safest Cities – UN Survey.’ China Daily , 2006, October 7. 4 . Liu, ‘Rents for City’s Cage Homes Rising.’ South China Morning Post , 2010, April 28. 5 . Leung, ‘Stifling Heat Piles on Misery in Cage Homes.’ South China Morning Post , 2010, August 2. 6 . Ng, ‘Cage Homes Fuel Tuberculosis in Sham Shui Po.’ South China Morning Post , 2011, August 8. 7 . Poon (2011: 29–44). 8 . Tirole (1988, ch. 6). 9 . Chiu, Karen. 2014. ‘HK Homes Still Least Affordable.’ The Standard, January 22. http://www.thestandard.com.hk/news_detail.asp?pp_cat=1&art_ id=141777&sid=41377698&con_type=1 (Accessed July 25, 2014). 10 . The poor consumer welfare is demonstrated in Chapter 4. ‘Asia’s world city’ is the government’s Brand Hong Kong slogan. 11 . Messner and Rosenfeld (2007: x–xi). 12 . Goodstadt (2009, Introduction, para. 8). 13 . Pontell and Geis (2007: 118). Pontell and Geis explain that a structural cloak is a bias in the social structure that diverts attention away from white-collar crimes and turns them into non-issues. 1 No Smoking Gun: Methodology in the Uncovering of White-Collar Crime 1 . Jupp, Davies, and Francis (2000: 57). 2 . McCusker (2005). 3 . This has been kept necessarily vague. 4 . Aldrick, ‘G20 Summit: Blacklisted Tax Havens Face Sanctions.’ The Telegraph , 2009, April 3. 5 . Ma, ‘China Not to Be Pushed Around.’ The Standard , 2009, April 6. 6 . Hughes (2000: 242). 7 . The issue of there being two understandings of white-collar crime is discussed at the end of Chapter 2 and reasons for staying with the sociological defini- tion are given at the end of Chapter 3. 162 Notes 163 8 . Shover (2007: 81). 9 . Green (2004). 10 . Wand (2009: 20). 11 . Green (2004: 501). 12 . Harmfulness and wrongfulness are not the same things. As Green, in a sepa- rate work, argues: harmfulness is best understood as how much an act intrudes on an individual’s personal interest, while wrongfulness is how much an act violates a moral standard. For more, see Green (1997: 1549–1552). 13 . Green (2004: 502). 14 . Green (2004). 15 . Hong Kong Legislation. Chapter 571: Securities and Futures Ordinance. 16 . Ibid.: 303. 17 . As a manner of demonstration, I have opted not to explain both the concept of the free market and the efficient markets hypothesis because it underscores the point that those who know what I am saying already know why insider trading is wrong and those who do not, still will not under- stand. For those interested in a basic rundown, an Internet search on those terms will produce substantial resources that will help in understanding the concept. 18 . Green (2004: 506). 19 . Green (2004). 20 . Ibid.: 508. 21 . Ibid. 22 . Hasnas (2005: 591). 23 . He is writing under a pseudonym, hence the rather curious name. 24 . Alanson, ‘The Vital Art of Ignoring Daft Company Rules.’ South China Morning Post , 2009, September 27. 25 . Alanson was discussing the rather bizarre case in Hong Kong in which a nurse, in following hospital regulations, asked the son of a man suffering from a heart attack to call for an ambulance despite both the man and his son already standing at the entrance to the hospital. As if in a bizarre tragic comedy, the ambulance arrived 26 minutes later because of traffic trying to get around the hospital’s perimeter to rush the man to the emergency room behind that same hospital. He was pronounced dead on arrival. For more on the fallout of the story, see Ng, Maggie. 2010. ‘Receptionist Denies Lack of Concern Over Man’s Collapse.’ South China Morning Post , May 4. http:// www.scmp.com/article/713323/receptionist-denies-lack-concern-over-mans- collapse (Accessed August 1, 2014). 26 . Green (2004: 516). 27 . Ibid.: 517. A scandal along these lines in Hong Kong occurred when inter- national public relations firm, OMD, represented the Mass Transit Railway Corporation (MTRC) in releasing a letter to warn the press that if they were to publish negative stories on MTRC, the company will pull their advertising. Both OMD and MTRC apologized when the press published the letter to good measure. For more information, see Tam, Maggie, and Ng, Kang-chung. 2011. ‘MTR Corp Apologises over Threat to Media.’ South China Morning Post , April 23. http://www.scmp.com/article/965831/mtr-corp-apologises-over- threat-media (Accessed August 1, 2014). 28 . Green (2004: 515). 29 . Ibid.: 519. 164 Notes 30 . This argument is elaborated on in Chapter 3. Essentially, white-collar crime was first conceived as a sociological concept, not a legal one. Using either defi- nition presents unique challenges in Hong Kong but, whereas the legal defini- tion has made some headway, the sociological one has yet to see the light of day. 31 . Chapter 3 provides the justification for this definition. 32 . Pontell and Geis (2007: 114). 33 . Interestingly, in regards to the upper class, there was a tendency to speak of these abuses as a point of criticizing peers or demonstrating the extent to which they are able to influence circumstances. This is starkly different from discussions with individuals from middle and lower classes who tended to consider the issue as something distant and beyond their means to influence. Speaking with individuals from different levels, it became increasingly clear that there was a class subconsciousness of their place in society and their ability to influence its structure as well as events. I say ‘subconsciousness’ as opposed to ‘false consciousness’ because I am not speaking of them being driven by capitalist or societal goals that they blindly and universally reach out for (though that certainly exists in Hong Kong), but rather of a deep sense of identity from their roles in society, and a surrendering to the destiny of those roles. It is subconscious because it is never expressed outright, but always implied in conversation, and the implication tends to allow for cate- gorization of an individual’s social position. It was remarkable how clearly these expressions come through if one listens carefully when conversing with people from different walks of life. 34 . Osborne and Rose (1997: 100). 35 . The case-study method is a method that focuses on using information and viewpoints about a case that are already in the public sphere. 36 . Flyvbjerg (2011: 303). 37 . Osborne and Rose (1997: 98). By ‘thinkable,’ Osborne and Rose are speaking of something not only making sense to a person’s mind but also that it can even occur in the mind of a person engaged in its study. By this under- standing, thought itself is discovered and ideas revealed as we advance our methodologies, and methods develop as we further explore those unveiled thoughts. 38 . Flyvbjerg (2011: 303). 39 . Campbell (1975: 191). 40 . Campbell and Stanley (1966: 6–7). 41 . Flyvbjerg (2011: 305). 2 Against White-Collar Crime 1 . A second sociologist, trained in the law,, Robert Caldwell is noted in Geis, ‘White-collar crime,’ White-Collar Crime Reconsidered , (1992: 36) – though most texts highlight Tappan’s objection, perhaps because his article was contemporaneous with Sutherland’s while Caldwell’s comes 11 years after. 2 . Geis (1992: 36). 3 . See Tappan (1947: 99); and Caldwell (1958: 32–33). 4 . Tappan (1947: 97); Caldwell (1958: 32–33). Notes 165 5 . This statement is made in the introductory lecture of the course at the University of Hong Kong. I sat in on these lectures in 2009 and 2010, and heard it made on both occasions. 6 . In saying this, it should be acknowledged that this has been a point of debate in this field for some time. 7 . For a comprehensive version of that story, see Geis (1992). 8 . The US Federal Bureau of Investigation’s website basically links white-collar crime to fraud and leaves it at that. Find out more at: http://www.fbi.gov/ about-us/investigate/white_collar/whitecollarcrime 9 . This is in reference to the term ‘white-collar crime’ as conceived for use in sociological and criminological discourse. White-collar crime as a behavioral conduct has been around for much longer. 10 . Tappan (1947: 101). 11 . Ibid. 12 . This was in 1947, so times have changed quite a bit, and deviance studies is now a large part of criminology. 13 . Tappan (1947: 98). 14 . Ibid.: 97. 15 . Ibid. 16 . This may sound odd because it appears as though he is opposing the study of deviance but, in 1947, anti-social behavior did not signify deviance. Instead, it meant behavior that did not make a person too popular with other people. This is therefore extremely concerning since it takes the ‘crime’ completely out of ‘criminology.’ 17 . Tappan (1947: 97). 18 . Ibid. 19 . Ibid.: 99. 20 . Ibid.: 98. 21 . Ibid.: 99. 22 . Ibid. 23 . Ibid.: 96. 24 . Ibid.: 99. 25 . Ibid. 26 . Ibid. 27 . Ibid.: 96. 28 . Caldwell (1958: 35). 29 . Ibid.: 36. 30 . Ibid.: 31. 31 . Ibid. 32 . Ibid.: 32. 33 . Ibid. 34 . Ibid.: 33. 35 . Ibid. 36 . Ip, ‘Gay protester takes police chief to court,’ South China Morning Post , 2011, June 4. 37 . Caldwell (1958: 32). 38 . Ibid.: 33–34. 39 . Ibid.: 34. 40 . Green (2009).
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