Wednesday, November 12, 2014White Collar Crime and State Corporate Crime !!6 Features Aiding the Growth of ICOs!! 1. Economics of Production:!! ! - poor countries with few natural resources cant support their people legally as well as drug cultivation!! 2. International Ungovernability!! ! - Large areas of world are so remote or dominated by feudal clans of warlords that legitimate, governments cannot extend their reach into them!! 3. Immigration streams!! ! - During highly trafficked times of year (the Haj, or pilgrimage to Mecca) or border crossings (US-Mexico) people are recruited/disguised as innocuous travelers. !! 4. Border Porosity!! ! - Borders are hard to control ( terrain, area, or access)!!5. Trends in Technology!! ! - Law enforcement cannot keep up in purchasing and using the most current technological trends!! 6. Relative Disorganization of Law Enforcement!! ! - Territorial turf battles make coordination between agencies extremely difficult!! ! - They are turn battles between the FBI, CIA, DEA, NSA, Homeland Security, and local law enforcement. !!White Collar Crime !! - Legitimate persons and organizations may engage in deviant acts although these may be an occasional or "side" activity to their main activity!! - Crime that is directly related to those privileged persons and groups in a position to abuse financial, organizational or political power!! - Such deviance may be financial but may also extend to bodily injury and death... every in class associated WCC with financial crimes only!! - Can be divided into two main subsections: occupational and organizational crime !!! - Though frequently thought of as "less serious" statistics suggest otherwise!! ! * 19,000 murders vs. 56,000 on the job deaths from occupation related disease and accidents!! ! * $3.8 billion lost to burglary vs. $300-500 billion in health care fraud alone!! ! * Average sentence for bank robbery 7.8 years vs. 2.4 years for embezzlement!!Conceptualizing WCC!! 1. Occupational:!! ! - Pursued by persons acting on their own behalf!! ! ! - includes employees at all levels of organization who may steal from their companies, including embezzlement and computer crimes!! ! . Corporate executives at firms looted their compainies, shareholders and employee retirement plans through fraudulent accounting offshore and dummy corp. to live in high style!1Wednesday, November 12, 2014! ! ! - EX: Enron, Tyco, and WorldCom!!! 2. Organizational:!! ! - Crime committed with support of a legitimate formal organization and designed to advance goals of the firm or agency!! ! - EX: Environmental crimes, false advertising, fraud, antitrust violations, corruption pertaining to govt contracts.!! ! - EX: Unsafe products represent another area: drugs, auto and tire industry, medical products. !!! Important Concepts and Theories:!! !! ! 1. Differential Opportunity Theory!! ! ! -some individuals are structurally located to have the opportunity to commit crime!! ! ! ! -EX: insider trading --> im not in the position to commit crime but I know others that are. !! ! 2. The Power Elite ( C. Wrights Mills) and the "revolving door"!! ! ! - Wrote about who really runs this country!! ! ! - Key concepts : revolving door!!WCC: State Corporate Crime !! - interactions between the policies/ practices of political governance in collaboration with corporations involved in economic production and distribution!!!1. State-facilitated corporate crime!! ! ! - govt institutions fail to establish regulatory institutions capable or restraining deviant activities by business !!!2. State-initiated corporate crime: !! ! ! - businesses employed by the govt undertake deviant or illegal actions at the direction of, or with the tacit approval of govt. !!Dawn Rothe: War Profiteering: Iraq and Halliburton !! - Profit warlords have made from wars. !! - Halliburton = company !! - Made billions of $ from US tax payers in 2007 and then moved head quarters to Dubai !! - Halliburton - Cheney Connections!! ! - relationships goes back before cheneys admin. = awarded many private contracts to study army logistics ( $5mill)!! ! - Cheney become SOD (1995 - 2000) doubled $ defense contracts !! ! - Cheney held stock in Halliburton through 2002!! ! ! - Made CEO of Halliburton !! ! ! - Halliburton bought $23,900,000.00 in oil from Saddam Hussein!!!!!!!!2Wednesday, November 12, 2014War Profiteering : State Facilitation of Corp. Crime!! - State Facilitated: failure of govt to regulate contracts, prices and performance!! - State initiated: repeal of regulation no. 65 FR 80255!! - Specific Corporate Crimes!! ! 1. Illegal foreign trade!! ! 2. Systematic over-charging!! ! 3. Utilizing bribes!! ! 4. Using foreign subsidiaries to avoid U.S.