Sociology

White-collar crime is based on the socio-economic status of the offenders.  Those that are wealthy or corporate business executives usually commit this type of crime they are usually first-time offenders that are now facing very long sentences (Podgor, 1).  This is a means of the courts and legislature to deter white-collar crime.  People think that because theyve never committed a crime that they will receive a lighter sentence. Typically, the crime is either fraud or a violation of regulations. They include anti-trust law violations, bankruptcy fraud, briberykickbacks, computerinternet fraud, counterfeiting, credit card fraud, embezzlement, environmental law violations, financial crimes, government fraud, health care fraud, identity theft, insider trading, insurance fraud, mail fraud, money laundering, public corruption, qui tam, securities exchange, tax evasion, telemarketing fraud and trade secret theft (Soto, 1). White-collar crime has existed for decades. The Enron scandal is a classic case of securities fraud.  The company was billions of dollars in debt.  As a result of the scandal, it was forced to file bankruptcy in December 2001 (Einstein Law, 4).

In June 2005, many corporate crooks were convicted. John Rigas, founder and former CEO of Adelphia Communications was convicted of fraud and conspiracy charges.  There were 50 million in cash advances and 252 million in margin loans (Feige, 1).  He was sentenced to fifteen years in prison.  Bernard Ebbers, former WorldCom CEO, was convicted of fraud worth 11 billion.  The former CEO of Tyco and his right hand man were convicted of 150 million in theft and stock sales of about 500 million dollars (Feige, 1).

Enron was the most famous and historical case of fraud.  It is an energy company that was based in Houston, Texas that dealt with both international and domestic energy trade.  Certain deals and contract caused Enron to fall into billions of dollars of debt.  Fraudulent accounting and illegal loans allowed the company to hide its debt from shareholders.  They were also profited from other companies that it partnered with such as RADR, Chewco, and Southampton (Einstein Law, 3).  The Securities and Exchange Commission investigated Enron when it announced that it was worth more than 1.2 billion dollars less that it previously reported. Many of the executives were charged with wire fraud, money laundering, securities fraud, mail fraud, and conspiracy (Einstein Law, 3).

Corporate crime can cost the nation billions of dollars. According to the Federal Bureau of Investigation (FBI) these types of crimes cost the United States more than 300 billiondollarsannually (Soto, 1). This usually affects shareholders and business partners. Insurance fraud accounts for about 40 billion.  In addition, family premiums rise (Soto, 1).  Identity theft has a very huge effect on society it can happen to anyone.  Thieves can rummage through trash to get consumers account numbers, social security numbers, and other information that they need to steal an identity. They can purchase homes, cars, and credit cars at the victims expense.  Many companies like Prepaid Legal have protection programs in which they can track ones credit report for unusual activity.  The person pays a monthly fee for Prepaid Legal to fix any problems in the event that his identification is stolen.  However, if a person does not have this type of protection, it can take years to fix.  In some cases, identity theft can be difficult to prove.

In conclusion, anyone can be a victim of white-collar crime. Offenders can hide behind their wealth and status only for a matter of time. Many agencies like the Federal Bureau of Investigations (FBI) and the Securities and Exchange Commission (SEC) are investigating and combating these types of crimes.  They provide ways that consumers can safeguard themselves.