White Collar Crime Terms

Created by mburger27 

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debunking motif

Peter Berger's concept of looking for levels of reality other than those given in the official interpretations of society

The Jungle

Upton Sinclair's expose on the meat-packing industry

Sherman Antitrust Act of 1890

forced companies to merge rather than collude

criminaloid

E. A. Ross's idea that a person that enjoys a public image as a pillar of the community and a paragon of virture, but has a persona only concerned with personal gain

Federal Trade Commission

measures identity theft only by victim reports

cross-sectional study

civil claims/lawsuits, victimization reports at one point in time

Most commonly victimized by

car/automobile industry and price scams

BALCO

doping company; started by Conte who was a bassist in a band

demoralization costs

society loses faith when they realize that a person or institution is caught in a scandal (social, political)

deregulation

Conservatives sought to reduce government intervention in the 1980s

Ponzi scheme

paying off early inventors with new investors' money, thereby attracting more and more investors

Ponzi scheme aka

pyramid scheme

songbird

sings praises of the arrangement/company involved in the crime

sheep, pigeon, or whale

investor that is scammed (and that has alot of money)

affinity

con mens use this (relationship, religion, race) to get an "in" with the victim

Big 3 of White Collar Crime

defense, savings & loan, and securities industries

white-collar crime percentage

represents 94% of the total monetary amount of crime

blue-collar crime percentage

represents 6% of the total monetary amount of crime

byproducts of white collar crime

environmental damages, medical costs, demoralization (society) costs, [Tobacco industry]

caveat emptor

buyer beware so that you don't get cheated because cops won't come help

telemarketing steps

front, drive, and close

the front

step 1. the pitch and the literature

the drive

step 2. constant pressure on the victim

the close

step 3. get your money

mathematics

the use of probabilities to catch someone by telling them "inside information"

4 types of consumer fraud

false advertising, price fixing, dangerous products, quackery

bait & switch

bring you in for a product that they no longer have, then charge you for a more expensive one

four-square technique

technique used by auto salesmen by finding the buyer's weak spot

dead peasants insurance

taking out life insurance policies on a company's low-level employees with the company, receiving all the benefits when they die

types of advertising

informative, puffing, deceptive

Insider

movie about the tobacco industry and how it does not want an educated public

customer for life

Big Tobacco's marketing ploy in which they gave out free cigarette boxes

Big Tobacco Industry (example of)

postponed violence

tobacco kills

1200 people each day

Joe Camel problem

attracts little kids to smoking & the subliminal sexual message: his face looks like a penis

Ford Pinto

$11 car click next to gas tank that the company refused to recall

Unsafe products in many industries

auto (cars that flip over, tires, GM windshield, seatbelts), baby products, pharmaceuticals & kitchen utensils

White-collar crime paradox

someone who probably wouldn't hurt you as an individual, but the corporate shield makes them perceive you as a number

Quackery victims

teenagers and elderly are very susceptible to worthless products; often desperate for a cure

3 main quackery industries

Nutrition (herbal life, monavie), Miracle drugs (penis pills), and magic devices (crystals)

Wholesome Meat Act of 1967

states were required to at least match federal inspection standards

federal meat inspections

sometimes occur only every 10 years

Food and Drug and the Meat Inspection Acts of 1906

came about from Upton Sinclair's The Jungle; not applied to meat sold in interstate commerce-processed and sold within a single state (about 25% consumed in the U.S.)

poultry

very pathogenic (salmonella); often inject it with growth hormones to plump them up

FDA

Food and Drug Administration; regulates pharmaceuticals, but not all meds are regulated under this

halcion

sleep medication with "no side effects;" George Bush took and past out in another country; many were committing suicide and undergoing personality changes

controversial medications

phenphen, bendectin, thalidomide, oraphlex

thalidomide controversy

fined $80,000 but made $18 million; aimed to reduce cholesterol

oraphlex controversy

fined $25,000; 15,000 exec

pharmaceutical misconduct

company puts product out ASAP, but government wants to do multiple tests, so company deliberately cuts corners, fabricates research results, and ignored risks

Rely Tampons

P & G; FDA didn't react until women died, experts didn't testify because P & G paid them to research, women got toxic shock syndrome

harmful female products

breast implants, birth control, tampons, Dalcon Shield-IUD

Dudley Leblanc

tonic to cure; King of Quacks

Mark Sevigny

Cardiff Giant

Cardiff Giant 1869 scam

workers dug a well and found fossilized 10ft man-not really a fossil, made out of gypsum rock (the farmer placed it there); charged people to see it, toured with it, no test could prove it was real; kept raising prices, religious leaders said it was legitimate

P. T. Barnum

bought the Cardiff Giant for $50,000; circus guy (The Greatest Show on Earth); the farmer said "a sucker is born every minute

"It is a capital mistake..."

"...to theorize before data"

Only stupid people steal with

guns; get less than $1,000; pen and paper gets so much more

"Con man" is short for

confidence/confidential

deception

violates trust

any crime can be done better and faster

on the Internet (as long as it doesn't require personal contact)

All frauds

are WCC, but not all WCC is fraud

Robert Citron

treasurer of OC (college dropout)

first thing to do on a fraud investigation

follow the money & watch the patterns

fraud investigation steps

organize and analyze evidence, clarify, and simplify the fraud

Postponed violence of environmental crime

don't get it from media or religion; toxins in the water or air

EPA determined environmental crime is

a crime of violence because people die; the motivation might not be violent, but the outcome is

1977 melted snow

dioxin and benzine seeped into basements; health problems in excess of statistical averages; the company knew in the 50s but kept it quiet to save money

WHO (World Health Organization) found

75% of human disease is waterborne; usually from underground water contaminated by fuel

Boston Harbor

medical waste hit public beaches

Types of contaminants

organic, inorganic, and radioactivity

organic contaminants

often lead to cancers

inorganic contaminants

metals that lead to developmental problems

radioactivity

leads to prenatal damage

Number 1 cause of environmental crime & the damages that people incur

criminal negligence

asbestos

asbestiosis & lung scarring

air contamination leads to

respiratory diseases

Hemloch, Michigan

DOW chemicals resulted in levels 6x higher than other places

teflon

used in frying pans, carpets, clothing, eye-glasses, electrical wires, and fast-food packaging; some is known to cause cancer and other problems in animals; DuPoint (producer); found in water, fetal cord blood, deformed children

PFOA

perfluorooctanoic acid, a waxy, soaplike chemical used to make Teflon that may cause cancer, birth defects, and other serious medical problems; substance in the blood of people worldwide (in more than 90% in US); exposure to even low levels could be harmful

Not in My Backyard concept (NIMBY)

toxic terrorism & environmental racism

toxic terrorism

exporting toxic waste to 3rd World countries and creating unsafe working environments

environmental racism

disproportionate amount of environmental damages in areas of minorities

Reagan's deregulation era

companies profit more; when something did happen and there wasn't overwhelming evidence of proof, it was a "good faith" accident

maquiladoras

construction of American-owned polluting factories that have crossed the Rio Grande because labor is cheap and environmental regulation is lax

1980 Superfund Act

(Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA); remedies for uncontrolled and abandoned waste sites; company that dumped it has to get rid of it or pay gov't to get rid of it; most ineffective piece of legislation-takes waste from one area to another

Walmart has paid

over $1 million dollars in environmental damages

Deterrence for environmental crimes

nontraditional sanction: $ to the community for betterment, and restitution: corporate probation

Asbestos creators

knew it was harmful: family workers of those who worked in the factor were affected, too; brown lung disease

whistleblowers of companies with radioactivity

had radioactive agents put on their clothing, or their mask would have a hole

Karen Silkwood

mysterious death of whistleblower

Beryllium

lightweight metal used for weapons, delayed violence (15-20 years later), dust causes diseases

industrial accident at Tyson Foods

two workers died in a vat of decomposing chicken parts; fined (slap on the wrist); fine was about 4cents in comparison to their profits

steelmaking industry

loss of limbs and lives

companies save money by

not maintaining machines' safety features

McWayne

untrained employees, unsafe machines; amputations and burns were routine

employees have been told to

work on machines while they're turned on, work in an unsafe area of the factory for higher pay (Brazil)

Companies often move hazardous plants

to other countries to save money and avoid litigation

Just deserts

the incarceration of environmental criminals-with the attendant loss of liberty and employment, and acute embarrassment

mens rea

sometimes isn't present with environmental crime, so it is difficult to prosecute

ringer or shill

placed in a broadcasted church audience to make it appear that people are being healed

social costs of WCC

become cynical, demoralizing costs, violates trust, and social disorganization

Some unethical church leaders

Benny Hinn, Schulers, Paul and Jan Crouch; often ordain family members & employees to avoid paying taxes

Robert Merton

white-collar crime mirrors American culture, with its strong emphasis on achievement and what has been termed the "fetishism of money"

Nineteen Percent

American Family's customers (Magazine) are over 65.

laissez-faire (page 46)

a doctrine opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights

Targeting of the elderly

According to a congressional subcommittee, senior citizens, who comprise about 12 percent ofour population, make up at least 30 percent offraud victims

The FBI estimates

there are 5,000 "boiler rooms" in Southern California alone.

"rip and tear" Scam (page 54)

Here,telemarketers call previous victims, posing as law enforcement agents. They offer to help recover some ofthe victim's losses ifthe victim will pay an official fee for the recovery effort.

Between 1995 and 1998 an FBI operation (PP 55)

"Double Barrel" produced criminal charges against nearly 1,000 telemarketers

Hundreds of thousands of homeowners have been victimized

Many are targets because they are old or illiterate. Others are vulnerable simply because they are poor

Three advertisement categories classified by the FTC

informative, puffing, and deceptive ads.

types of ads

"Informative" ads are probably the least visible. Far more ubiquitous is a second category—"Puffing" ads, featuring self serving ballyhoo or irrelevant celebrity endorsements. The third and most insidious category, "Deceptive" ads,is characterized by misleading or un-true claims

Pharmaceutical industry that shattered the record for antitrust fines

The Swiss pharmaceutical giant "Hoffman-LaRoche" paid a $500 million fine for its part in a global price-fixing conspiracy

Two frequent targets of major antitrust litigation (PP79)

Oil industry and the airline industry.

white-collar crime

Sutherland defined white-collar crime as "crimes committed by a person of respectability and high social status in the course of his occupation."

journalists known as "muckrakers (PP 4)

Began to write shocking accounts ofoutrageous corporate conduct

Since the 1930s

the FBI first began collecting crime statistics in its Uniform Crime Reports,the federal government has poured billions ofdollars into the creation ofdata bases that measure traditional, or "street," crimes.

"demoralization costs"

influential business executives, powerful politicians, and respected members of the professions are seen
flaunting the system, often suffering little or no punishment for their misdeeds, it weakens the average citizen's respect for the law

Brown & Williamson tobacco company declares: (pp 101)

"We are in the business of selling nicotine."

California company, DNA Plant Technology (DNAP)

Pleaded guilty to conspiring with Brown & Williamson to boost the nicotine level in tobacco. "DNAP illegally shipped and smuggled genetically altered seeds to Brazil, where Brown & Williamson grew a tobacco plant called Y-1 that contained twice the amount of nicotine

When Merrill Dow Pharmaceuticals began marketing Nicorette gum

Philip Morris retaliated by canceling chemical purchases from Merrill Dow's parent company

The most serious charge raised against the tobacco industry (pp103)

Involves its covert campaigns to addict teenagers to nicotine in order to create lifetime smokers.

Percentage of adult smokers that began as teens

90%, and the tobacco companies are well aware-lifelong customers

After lengthy negotiations, the tobacco industry agreed, in 1997, to a proposed settlement with the attorney generals of 40 states

Under the agreement, the tobacco companies would pay damages of $368 billion.

The tobacco industry symbolizes

"postponed violence" of white-collar crime.

Using automobile manufacturing as a model

Two basic elements of corporate disregard for consumer safety: (1) resistance against safety devices; and (2) defects in design.

What happens to products after they are found to be safety hazards?

1. They are simply sold again. 2. treated garments were
shipped overseas to be sold in the Third World following the domestic ban. This practice known as "dumping".

The poultry industry is considered especially pathogenic because of its susceptibility to

"Salmonella" bacteria—the leading cause of food-borne sickness

Campylobacter bacterium

Considered the leading bacterial cause of
foodborne illness; infects between 70 and 90 percent of all chickens.


The salmonella outbreak was blamed for at least eight deaths and 575 illnesses in 43 states.

An analysis conducted by two environmental groups in 1995found traces of pesticides

In 53 percent of the baby food tested.

antiobesity drug treatment fen-phen

. "American Home Products", which marketed the dangerous fenfluramine part of the fen-phen, American Home had pulled Pondimin off the market in 1997 at the request of the FDA, after a Mayo Clinic study linked it to potentially fatal heart valve damage.

Bendectin

Became the target of many tort lawsuits alleging that it caused horrible birth defects in the children ofsome mothers who took the drug.

Developed in Europe, "Thalidomide"

Was a sleeping potion for which the pharmaceutical firm of Richardson-Merrell. "Even so, Merrell continued to distribute free pills to doctors who gave them to patients, including pregnant women--A drug the FDA refused to approved in the USA.

Richardson-Merrell, the company that sought to bring thalidomide to the United States, had the ignominious distinction of marketing a second disastrous

"wonder" drug simultaneously. It was called MER/29, a cholesterol inhibitor intended for use by heart patients. It was used by nearly 400,000 Americans Merrell already knew that 25 out of29 rats in its own laboratories had incurred eye damage after being given the drug.The company falsified lab reports.

Eli Lilly, marketed a painkiller called Oraflex

Evidence later showed that Lilly had known that 26 deaths had been linked to the drug overseas.

An example of the types of cases included under this category would be that of an Indiana man who sold

Used "heart pacemakers". Some had been dropped on the floor during surgery; others had been determined to be faulty. The irresponsible entrepreneur, Michael M. Walton, was convicted offraud in 1994 and received a six-year sentence.

Boston company that made heart "catheters"

they were accused of using patients as "guinea pigs" to test new products. The tests resulted in the death of at least one patient.

The Dalkon Shield was an intrauterine birth control device. By the Robins Company . At a production cost of 35 cents per unit.

At least 20 women died as a result of the Dalkon Shield. In addition, hundreds of others who conceived while wearing the shield gave birth prematurely to infants with "grave congenital defects, including blindness, cerebral palsy, and mental retardation.

Rely Tampons

It identified 55 fatal cases and 1 ,066 nonfatal case of toxic "shock syndrome".

The fact that "80 percent ofAmerica's elderly

Have at least one chronic health problem that restricts them

"Quackery"

kills more people than those who die from all crimes of violence put together.

Chelation therapy is touted as a cure for arteriosclerosis

"No one has ever substantiated this claim." It is promoted for treating heart
attacks, as well as such conditions as colitis, Down syndrome, acne, radiation damage, senility

There are three basic forms ofquackery

1. Nutrition "Unsound nutrition claims are made on radio,television, in newspapers, books,and magazines. 2. Drugs The eternal dream ofdiscovering the Fountain of Youth has created a boom market
for fake antiaging drugs. 3. Devices There is a labyrinthine array of quack devises currently available to consumers. Some of them are merely incredible, such as the use of gemstones to "cure" a multitude ofmaladies.

EPA estimates that

Of the 100 billion tons of hazardous waste produced each year in the United states, 90 percent is disposed of in an environmentally unsafe manner.

of the 100 billion tons of hazardous waste produced each year in the United States.

90 percent is disposed of in an environmentally unsafe manner.

LOVE CANAL (Hooker Chemical corp) most compounds discovered:

1. Dioxin, the most toxic synthetic compound ever made. 2. Benzene, called "the most powerful carcinogen known. these
causes,multiple miscarriages, birth defects, cancer death, epilepsy, central nervous disorders, and more

Hyde Park, New York

The Hyde Park landfill contains 80,000 tons of chemical deposits—including over one ton of dioxin.

"black mayonnaise"

(San Francisco Bay or Boston Harbor) bay bottoms covered by a foul and toxic combination of sediment, sewage and petrochemical waste appropriately.

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