Unit 1
Changing Awareness of Crime Task 1
AC1.1 analyse different types of crime
- Crime is an action or omission which constitutes an offence and is
punishable by law.
White collar crime
- White Collar Crime is crime usually committed by people usually in the
upper-middle class, and are usually non-violent crime usually for financial
gains
- (3 main types are Organised, Corporate and Professional)
- Corporate= Crime committed on behalf of a company (Tax evasion)
- Organised = Large organisation committing a crime (Mafias or Cartels
- Professional= Crime committed by professionals (accountants stealing
client funds or a person with specialist skills (online hacker)
- Sutherland defined white collar crime as “a crime committed by a person
of respectability and high social status in the course of their occupation
- Bribery, Corruption, fraud, embezzlement, professional misconduct and
fiddling expenses
- Bernie Madoff is a real life example. He scammed people with the stock
market and all their money he took and trusted them to invest he put it
into a bank account and when the economy crashed all the money was lost.
From Charities, celebrities and normal people (usually around 10%)
- White Collar Crimes tend to be under reported in comparison to other
Crimes and its usually got a business cover front but has illegal parts doing
these aspects of crime.
, Stats:
- The most recent white-collar crime statistics show that the UK is losing
around £190 billion to fraud per year.
- This includes: £140 billion for the private sector. £40 billion for the public
sector.
- London sees the most fraud involving online shopping, ticketing and
investment
- The average embezzlement scheme lasts 4.7 years.
- Typically, an individual found guilty of embezzlement may be jailed for up to
five years. They are also often served with a fine.
- 2,666,000 cases of bank and credit card fraud (a rise of 17% since the previous
year)
- 962,000 cases of consumer and retail fraud (a 4% rise)
- 47,000 cases of advance fee fraud (a drop of 43%)
- 188,000 cases of other types of fraud (a 183% rise)
(ENRON COLLAPSE)
With revenues exceeding $100 billion and the distinction of being named by Fortune
as “America’s Most Innovative Company,”
Enron was a seemingly indestructible energy giant during the beginning of the
2000s.
However, even during its rise in the ’90s, rumors swirled that it was involved in
illegal accounting procedures with its accounting firm Arthur
Anderson, then one of the “Big Five” accounting firms. Jeffrey Skilling, who served as
president COO and CEO, along with a staff he assembled, hid billions of dollars of
debt through poor financial reporting, accounting loopholes and the use of special
purpose entities. Andrew Fastow, COO, deceived the board of directors about the
company’s accounting practices and convinced Arthur Anderson to go along for the
ride.
Changing Awareness of Crime Task 1
AC1.1 analyse different types of crime
- Crime is an action or omission which constitutes an offence and is
punishable by law.
White collar crime
- White Collar Crime is crime usually committed by people usually in the
upper-middle class, and are usually non-violent crime usually for financial
gains
- (3 main types are Organised, Corporate and Professional)
- Corporate= Crime committed on behalf of a company (Tax evasion)
- Organised = Large organisation committing a crime (Mafias or Cartels
- Professional= Crime committed by professionals (accountants stealing
client funds or a person with specialist skills (online hacker)
- Sutherland defined white collar crime as “a crime committed by a person
of respectability and high social status in the course of their occupation
- Bribery, Corruption, fraud, embezzlement, professional misconduct and
fiddling expenses
- Bernie Madoff is a real life example. He scammed people with the stock
market and all their money he took and trusted them to invest he put it
into a bank account and when the economy crashed all the money was lost.
From Charities, celebrities and normal people (usually around 10%)
- White Collar Crimes tend to be under reported in comparison to other
Crimes and its usually got a business cover front but has illegal parts doing
these aspects of crime.
, Stats:
- The most recent white-collar crime statistics show that the UK is losing
around £190 billion to fraud per year.
- This includes: £140 billion for the private sector. £40 billion for the public
sector.
- London sees the most fraud involving online shopping, ticketing and
investment
- The average embezzlement scheme lasts 4.7 years.
- Typically, an individual found guilty of embezzlement may be jailed for up to
five years. They are also often served with a fine.
- 2,666,000 cases of bank and credit card fraud (a rise of 17% since the previous
year)
- 962,000 cases of consumer and retail fraud (a 4% rise)
- 47,000 cases of advance fee fraud (a drop of 43%)
- 188,000 cases of other types of fraud (a 183% rise)
(ENRON COLLAPSE)
With revenues exceeding $100 billion and the distinction of being named by Fortune
as “America’s Most Innovative Company,”
Enron was a seemingly indestructible energy giant during the beginning of the
2000s.
However, even during its rise in the ’90s, rumors swirled that it was involved in
illegal accounting procedures with its accounting firm Arthur
Anderson, then one of the “Big Five” accounting firms. Jeffrey Skilling, who served as
president COO and CEO, along with a staff he assembled, hid billions of dollars of
debt through poor financial reporting, accounting loopholes and the use of special
purpose entities. Andrew Fastow, COO, deceived the board of directors about the
company’s accounting practices and convinced Arthur Anderson to go along for the
ride.
