The Crime Book

(Wang) #1

99


that serial killers devastate
families, while white collar
criminals destroy societies.
Nonetheless, punishment for white
collar crime tends to be more
lenient than for violent crimes.

Apportioning the blame
Criminologists identify two broad
categories of white collar crime:
“individual” and “corporate” (also
known as “structural” crime).
Individual white collar crime
occurs when a person or persons
working within a political or private
organization exploits their position
without the knowledge of the
institution, and profits through their
illegal activities. They may be in
league with other members of the
organization, or suppliers, or clients,
but it is a small minority of
employees that are corrupt rather

than the entire organization. The
case of Albert Bacon Fall – who, in
1922, was convicted of conspiracy
and bribery while working as US
Secretary of the Interior in what
became known as the Teapot Dome
scandal – typifies this behaviour.
More troubling are the corporate
crimes such as the Enron scandal,
Siemens scandal, and the Bhopal
Disaster. Here, criminality is
located, motivated, and enacted
at an organizational level.
In cases like these, individuals
may benefit from the wrongdoings
of their company, but they are
players in a larger conspiracy.
Criminal activity is initiated or
condoned at an executive level,
often after a cost-benefit analysis.
For example, if savings from illegal
activities outweigh the cost of the
possible fines, then breaking the

law can be perceived by some
unscrupulous executives as a
perfectly rational business decision.
In a situation when virtually
everybody in the company is
complicit in either illegal activity or
a conspiracy of silence, it becomes
extremely difficult to establish
individual culpability beyond
reasonable doubt – especially when
the company can afford to employ
accomplished defence lawyers.
In cases such as Jérôme
Kerviel’s, the official narrative of
a lone wolf operating within an
otherwise law-abiding company
has been met with outright
scepticism from many quarters.
Critics argue that others higher
up in the organization simply had
to know, believing that not being
aware of such systemic crimes
would be functionally impossible. ■

WHITE COLLAR CRIME


2001


2007–08


2008


2008


2013


2015


US authorities fine German
engineering giant Siemens for
using bribery to win
overseas contracts.

Wall Street investment
advisor Bernie Madoff's
Ponzi scheme collapses
and bankrupts thousands
of people.

Russian malware
developer Aleksandr
Panin is arrested
for hacking millions of
online bank accounts.

In France, rogue trader
Jérôme Kerviel makes a
number of unauthorized
trades at Société Genérale
and nearly brings down
the bank.

US energy company
Enron is exposed
for a massive
and systematic
accounting fraud.

The US Environmental
Protection Agency
uncovers emissions
fraud by the German
car maker Volkswagen.

098-099_Timeline_3.indd 99 13/01/2017 15:10

Free download pdf