The essay explores theories, consequences and effects of white-collar crimes with the purpose to provide possible solutions. Complex character creates difficulties of theoretical definition and practical investigation of this kind of crimes. Due to this reason public does not pay attention to the white-collar crime. These circumstances create a possibility to conceal this type of crime avoiding prison. The essay includes backgrounds, effects and possible solutions of the problem dealt with white-collar crime. In order to clarify issues hereinabove the particular case, which concerns fraud actions committed by Executive Chief Officers of medical device company, is considered in context of causes, effects and offers to resolve the problem.
Keywords: white-collar crimes, case study, White-Collar Crime
White-collar crime is defined in theory as a nonviolent crime that has financial motives. The persons committing this kind of crimes are professionals of business and government. Example of this kind of crime illustrated in McWane/Tyler Pipe cases illustrates that in spite of nonviolent character, these crimes may create violent consequences. Notwithstanding that crime was committed without any violence, consequences as loss of life and limb were certainly violent. These circumstances create problem with definition of white-collar crimes and lead to incertitude in criminological researches. It is relevant to observe particular case dealt with white-collar crime in order to clarify this uncertainty.
Summarize of the Corporate Crime
In corporate crime called “A case of Corporate Greed”, the charged person was sentenced for $750 Million Fraud Scheme. Two former executives of medical device company ArthroCare were sentenced for wire fraud and securities fraud. It was a fraud scheme defined as channel stuffing. Chief Executive Officers Michael Baker and Michael Gluk obtained distribution in order to purchase more products for the company needs. The company sales and revenue indicators increased. On the contrary, there were created documents on sales that did not exist.
The crime was being continued from 2005 to 2009. There were series of transactions where distributors obtained fee for medical devices. They agreed to provide the ArthroCare with shelves for the products. Consequently, the stock price climbed. Moreover, the medical company bought one of its distributors to avoid legal problems with accountancy. The result of this long-drawn-out scheme was that price of shares of the company decreased influencing loss under $400 million. The total material loses were estimated in $750 million. Long-running corporate fraud performed by Chief Officers of ArthroCare Company affected not only shareholders, but also investors, banks and investment funds.
Causes of Corporate Fraud
Techniques of neutralization problem of white-collar crimes is lack of public attention to this kind of offence. To illustrate, cases dealt with rape or burglary provide more public resonance than cases dealt with white-collar crimes. Public apathetic attitude to financially motivated crimes committed by business or government professionals leads to little attention from overriding this issue from the public authority. There is a causal connection in situation with white-collar crimes. There are many factors creating these conditions. One of them is complex character of …