If you have issues viewing or accessing this file contact us at NCJRS.gov. ,-;;------ --,-----,-- ---c--------c.~~--~-~~· WHITE COLLAR/INSTITUTIONAL CRIME­ Its Measurement and Analysis Office or the Attorney General California Department of Justice Division of Law Enforcement Criminal Identification and Information Branch Bureau of Criminal Statistics and Special Services I ! ", State of California lDefPartmefi1~ off Justoce JOHN K. VAN DE KAMP, Attorney General ..' I.. WHITE .. COllAR/IINISTITUT!ONAl CR~ME .. Us Measurement and Analysis Co-Sponsored by the Office of the Attorney General and the University of California, Berkeley NELSON KEMPSKY, Chief Deputy Attorney General G. W. CLEMONS, Director, Division of Law Enforcement FRED H. WYNBRANDT, Assistant Director, Criminal Identification and Information Branch Prepared by Division of Law Enforcement Criminalldentification and Information Branch BUREAU OF CRIMINAL STATISTICS AND SPECIAL SERVICES 4949 Broadway P. O. Box 903427 Sacramento, CA 94203-4270 8S073 3i8B 4.0M - -- --- ~--------------~---------....,-------.........----.------- Message from the ATTORNEY GENERAL ~~_t_ ~~ Sociologist Edwin Sutherland coined the term "white-collar crime" in the late 1930s, stressing that too little attention was paid to this particular array of offenses. Debate over the defInition of this category of crime has intensifIed over the past half-century. Amid concerns that the rates of offenses such as fInancial institutions fraud and unfair business practices may be rising sharply, little progress has been made in measuring white-collar crime. In September 1987. the University of California at Berkeley and my office convened the Symposium 87: White-Collarl Institutional Crime - Its Measurement and Analysis. Our purpose was to unite academicians and policy makers in discussion towards a workable definition of white-collar crime, a structure for measuring the extent of harm and analyzing the data to guide our future responses. We are publi&hing LlJ.ese proceedings to share the Symposium's results with a broad audience. To enhance their clarity, the transcripts were edited with the assistance of panel members. We hope this publication will serve as a John Van de Kamp source document, a foundation for future exploration into the field of white-collar crime. 112969 U.S. Department of Justice Nationallnstllute of Justice This document has been reproduced exactly as received from the person or organization originating it. Points of view or opinions stated in this document are those of the authors and do not necessarily represent the official position or policies of the National Institute of Justice. Permission to reprodur.e this copyrighted material has been granted by Ca1ifor~D~~artroent of Justjce to the National Criminal Justice Reference Service (NCJRS). Further reprodUction outside of the NCJRS system requires permis­ sion of the copyright owner. ,~ -.~.~, ~ :<~}~~ I N M E M o R I A M --------~--------- Symposiunl Planning Committee SYJuposium Staff Support Symposium Proceedings --- ----------:c~--. ~.. ~~- TABLE OF CONTENTS Page E:x:ECUTIVE SUMMARY ............................................................................................................ 1 SYMPOSIUM TRANSCRIPTS Welcome ...................................................................................... ,........ , ....... ,........... ,. ......... ,... 15 Keynote ......................... _..... "...................... ,., ........ ,........ ,............... ,............................... ,....... 17 Pane11 - IIistory and Status ................................................................................................ 21 Panel 2 - Status of Prosecution ............................................................................................ 43 Panel 3 - Problems and Means of Measuring ..................................................................... 73 Case Discussion - Silver Shadow Mortgage Corporation .................................................. 93 Panelists' Vitae .~ .. ,....... ,.. t •• , •• , ••••••••••••••••••••••••••••••••................................................................... , •••• 133 Attendees ................................................................... ,.................................. ,.............. ,................. ,143 TIlE FORMAT ~ Symposium 87: was held on September 17-18, 1987 at the University of California, Berkeley. Day One consisted of three panels centering on the topics introduced by moderators, presenters and respondents. The panelists then opened the discussion to all attendees, who participated in "round-table" fashion. Day Two featured a discussion of a hypothetical fraud case. Twelve participants, each designated a specific role, enacted trial scenes and engaged in dialogue on the "Silver Shadow" case. ~ DAY ONE: PANEL DISCUSSIONS Panel! - History and Status ofWhite-CollariInstitutional Crime Moderator: Troy Duster, U.C. Berkeley Presenter: Gilbert Geis, U.C. Irvine Respondents: Jo1m Braithwaite, Australian National University Peter Yeager, Boston University Panel 2 - Status of Prosecution of White-Collar/Institutional Crime Moderator: Steven V. Adler, Attorney General's Office Presenters: Jo1m C. Coffee, Jr., Columbia University Richard Gruner, Whittier College William J. Maakestad, Western Illinois University Respondents: Ed Clark, Atlantic Richfield Company Richard E. Drooyan, U.S. Attorney's Office - Los Angeles Harry M. Snyder, West Coast Consumer's Union Panel 3 - Problems and Means of Measuring Incidence, Prevalence and Costs of White-Collar/Institutional Crime Moderator: Sheldon L. Messinger, U.C. Berkeley Presenter: Albert J. Reiss, Jr., Yale University Respondents: Stanton Wheeler, Yale University Franklin E. Zimring, U.C. Berkeley DAY TWO: CASE DISCUSSION - "SILVER SHADOW MORTGAGE CORPORATION" Moderator: John Kaplan, Stanford University Principal: Jerome Skolnick, U.C. Berkeley Regulator: William K. Black, Federal Home Loan Bank Victim: Gil Westoby, Victims' Advocate Accountant: Arthur Brodshatzer, C.P.A. Defense Attorneys Judge: D. Lowell Jensen, U.S. District Court. S.F. Criminal: Patrick Hallinan, Esq. Referee: Melvyn J. CoB en, Esq. Civil: Mark Topel, Esq. Investigative Prosecutor: Judith F. Hayes, Attorney General's Office Reporter: Stanley E. Cohen, Retired Journalist State Attorney: Richard D. Martland, Attorney General's Office ••• --~~-~--------------------------------- Welcome white-collar crime is a sociological entity Welcome as well as a legal entity. Such a discovery would reveal that one class of crime in criminal behavior is different from other classes in causal process. The Constitution, of course, provides a framework within which many of the I guess one of the things that we're issues with which we're going to be attempting to do during this seminar is concerned over these two days arises. to look at white-collar/institutional crime The drafters were not totally unfamiliar as a legal phenomenon, as a sociological with investment scams or consumer fraud phenomenon, trying to understand its or South Sea Bubbles or things of this unique characteristics and, as our title nature. suggests, look at its measurement and analysis. They, of course, in no way could have anticipated the types of opportunities for So much for introductory comment. white-collar/institutional crime, given the It's now my pleasure to introduce my expansion of technology, the nature of colleague, Professor Roderic Park, who instantaneous financial markets, just all is the Vice Chancellor of the University the things that we have in an advanced and will be presenting the greetings of the industrial society and the range of University. He is not either a lawyer, a activities that are appropriate within the sociologist, a practitioner, nor a white­ scope of what we are concerned with collar criminal- that's an article of here. faith. Edwin Epstein Also, in terms of our topic and its He is a professor of botany. I guess PROFESSOR EPSTEIN: If everyone is germaneness, I was rather struck in botanists are always concerned about seated, let us open up this morning's picking up my mail just this morning that taxonomies of, if not behavior, at least of proceedings. two publications I received, two rather plant life and existence. Some of what we different ones - one was Fortune and the are going to be doing here is taxonomic My name is Ed Epstein, Professor in the other one was the AmeriCan Journal of in character. So, here I'd like to present School of Business here, and I have the ,S,pciology - each had features dealing Vice Chancellor Park to extend the pleasant responsibility of opening this with aspects of white-collar crime. One greetings of the campus. two-day conference on White-Collar/ was an article in Fortune dealing with the Institutional Crime - Its Measurement subject of Dennis Levine. Thank you for being with us, Rod. and Analysis. The second in AJS was an article, ~CECHANCELLORPARK: Good My primary function is to introduce the Towards a Theory of White-Collar morning and welcome to the Berkeley Vice Chancellor, Roderic Park. I will Crime, something to which we have been campus. Our Chancellor, Michael have an opportunity to speak with you in aspiring as scholars and as practitioners Heyman, would have loved to be here. a more substantive vein tomorrow. I'm for a period of time. But today is an important Regents starting you off and finishing you up as meeting for him in which the Berkeley far as the program is concerned. Last comment has to