Shanna R. Van Slyke and Leslie A. Corbo
Consumer fraud is the intentional deception of one or more individuals with the promise of goods, services, or other financial benefits that either never existed, were never going to be provided, or were grossly misrepresented. In contrast to ancient times when consumer fraud and other white-collar crimes were considered to be at least as serious as violence and other street crimes, today’s consumer fraudster tends to be viewed as less dangerous and deserving of harsh sanctioning. Despite several social movements against consumer fraud and a proliferation of popular and scholarly literature on the topic, contemporary U.S. society has maintained a relatively lenient stance toward white-collar crime—a “soft on crime” position that is inconsistent with conservative “tough on crime” approaches that have dominated U.S. penal policy since the 1960s.
Paul Jesilow and Bryan Burton
Healthcare fraud involves wide-ranging illegal behaviors. It includes such activities as individual physicians who bill insurance companies or the government for services that were never provided, as well as corporate behavior, such as pharmaceutical companies that falsify clinical tests in order to get unsafe drugs approved for use. Thousands die each year in the United States due to these behaviors, including deaths from incorrectly prescribed medications or from tainted drugs that were approved by the U.S. Food and Drug Administration based upon fraudulent testing and reporting. Thousands of additional patients likely are injured and killed by unnecessary surgeries performed by physicians who want to maximize their reimbursements. The illegal activities also add billions of dollars each year to the total healthcare cost in the U.S. Despite these costs, there is relatively little outrage as a result of the behaviors, largely because they remain hidden from public view.
Healthcare fraud, as with almost all white-collar crime, is rarely detected and that prevents the frauds from becoming known to victims, law enforcement, and policy makers, which in turn prevents analysts from compiling a complete picture of the behaviors and prevents policymakers and law enforcement from developing efficient enforcement strategies. Moreover, the lack of detection assures perpetrators that they will get away with their crimes and limits the potential preventative effects of punishment. Lack of detection and reporting has been a particularly strong problem for those trying to control healthcare fraud and abuse in the United States and elsewhere. The enforcement mechanisms that have evolved have been strongly influenced by the difficulties of detecting the illegal behaviors.
Carole Gibbs and Rachel Boratto
Environmental crime is a complex and ambiguous term for several reasons. It is sometimes used as an umbrella term for crimes related to biodiversity, wildlife, animals, natural resources, hazardous waste, banned substances, and environmental quality, but scholars have also developed typologies to capture the unique dimensions of each form of environmental crime. Disagreements regarding whether to distinguish violations of environmental laws (addressed via civil prosecution or administrative actions) from environmental crimes (criminally prosecuted), and whether to also consider environmental harms (legal activities that harm the environment) or environmental risks produce further confusion. The range of offenders also complicates this concept, as individuals, groups/networks, and powerful organizations commit environmental crimes. The degree of harm created by each actor may, or may not, be equivalent.
Given the complexities of this area of study, scholars have developed and/or tested a wide range of theoretical perspectives on and interventions to address environmental crime. Consistent with conceptual disagreements, these theoretical frameworks and corresponding interventions vary (arguably the most) based on whether the dependent variable is environmental crime (as defined by law), or environmental harm or risk defined using other criteria. However, multiple theoretical perspectives/interventions are also examined within research on these broad categories of environmental crime, harm, and risk. In order to capture the breadth of research on environmental crime, we narrow the focus of this article to pollution related crimes (e.g., hazardous waste, banned substances, environmental quality). In the following article, we offer further detail regarding conceptual discussions, legal complexities, types of offenders, types of crime, and research on this subset of environmental crimes.
American responses to white-collar crime, especially corporate wrongdoing, passed a turning point in 1991 with the enactment of the U.S. Sentencing Guidelines for Organizations, which adopted a “carrot and stick” approach to sentencing corporate offenders, including big incentives for companies introducing compliance programs. In the 2000s, this approach was enhanced by the enactment of the Sarbanes–Oxley Act of 2002 and the Thompson memo of 2003. In addition to the effects of the Thompson memo, federal prosecutors, learning from the fate of Arthur Andersen, came increasingly to rely on deferred prosecution agreements (DPAs) and non-prosecution agreements (NPAs) after 2005. However, the Yates memo issued in September 2015 may change Department of Justice policy on corporate wrongdoing dramatically, particularly regarding investigation and prosecution of individuals.
In thinking about and conceptualizing legal and political responses to white-collar crime, two main actors are meaningful: the corporation and the individual. Today, a corporation is criminally liable under the respondeat superior doctrine in federal criminal law, and corporate offenders are sentenced under the Organizational Sentencing Guidelines, which provide for fines, restitution, and probation as possible criminal penalties. In recent years, around 150–200 organizations have been sentenced under the Sentencing Guidelines annually.
An individual white-collar criminal may be personally liable for their unlawful acts even if the corporation itself is convicted too. Individuals may be convicted absent any showing of mens rea in rare cases (strict liability crime and “willful blindness”). In the last decade, more than 8,000 individuals were prosecuted and convicted, for around a 90% conviction rate. One effect of the Yates memo may be to shift the main target of legal and political response to white-collar crime from the corporation to the individual. New policies under the Yates memo also come with new problems, for instance, that companies may lose incentive to introduce a compliance program or may look for scapegoats to escape prosecution themselves.
Clayton Peoples and James E. Sutton
The state is responsible for maintaining law and order in society and protecting the people. Sometimes it fails to fulfill these responsibilities; in other cases, it actively harms people. There have been many instances of political corruption and state crime throughout history, with impacts that range from economic damage to physical injury to death—sometimes on a massive scale (e.g., economic recession, pollution/poisoning, genocide). The challenge for criminologists, however, is that defining political corruption and state crime can be thorny, as can identifying their perpetrators—who can often be collectives of individuals such as organizations and governments—and their victims. In turn, pinpointing appropriate avenues of controlling these crimes can be difficult. These challenges are exacerbated by power issues and the associated reality that the state is in a position to write or change laws and, in essence, regulate itself. One possible solution is to define political corruption and state crime—as well as their perpetrators and victims—as broadly as possible to include a variety of scenarios that may or may not exhibit violations of criminal law. Likewise, a resolution to the issue of social control would be to move beyond strictly institutional mechanisms of control. Criminological research should further elucidate these issues; it should also, however, move beyond conceptual dilemmas toward (a) better understanding the processes underlying political corruption/state crime and (b) illustrating the broader ramifications of these crimes.
Gerald Cliff and April Wall-Parker
As far back as the 19th century, statistics on reported crime have been relied upon as a means to understand and explain the nature and prevalence of crime (Friedrichs, 2007). Measurements of crime help us understand how much of it occurs on a yearly basis, where it occurs, and the costs to our society as a whole. Studying crime statistics also helps us understand the effectiveness of efforts to control it by tracking arrests and convictions. Analysts can tell whether it is increasing or decreasing relative to other possible mitigating factors such as the economy or unemployment rates in a community. Politicians can point to crime statistics to define a problem or indicate a success. Sociologists can study the ups and downs of crime rates and any number of other variables in the society such as education, employment rates, ethnic demographics, and a long list of other factors thought to affect the rate at which crime is committed. Property value is affected by the crime rates in a given neighborhood, and insurance rates are said to fluctuate with the ups and downs of crime.
Analyzing any criminal act’s prevalence, cost to society, impact on victims, potential preventive measures, correction strategies, and even the characteristics of perpetrators and victims has provided valuable insights and a wealth of useful information in society’s efforts to combat violent/index crimes. This information has only been possible because there is little disagreement as to exactly what constitutes a criminal act when discussing violent or property crimes or what has come to be grouped under the catch-all heading of “street crime”; this is decidedly not the case with crimes included under the white-collar crime umbrella.
Carole Gibbs and Rachel Boratto
Wildlife crime is an area of study typically defined from a legalistic perspective as an act in contravention of laws protecting wildlife. These crimes occur both within and across national borders and may include trafficking in wildlife or wildlife products. Internationally, wildlife crime is regulated by a series of conventions, with CITES being the most important for the regulation of trade. While these conventions are international in scope, they must be administered by signatory nations through domestic laws. Domestic laws are enacted within local contexts and are as varied as the crimes themselves, regulating hunting, transportation, use, and sale of wildlife. Several international organizations (e.g., INTERPOL) facilitate collaboration between countries, but these organizations do not have law enforcement authority, so enforcement occurs primarily at the domestic, state, and regional level, following the domestically enacted law.
Scholars have taken a variety of approaches to define and understand various types of wildlife crime and criminals. Some have used a stage-based approach to develop typologies of wildlife crime based on the location of the crime or the criminal within the supply chain, while other criminal typologies are based on underlying motivations. In addition to typological approaches, more general theoretical frameworks (e.g., opportunity theory) have been used to explain these motivations and drivers of crime. More broadly, wildlife crime can be situated and understood within overarching theoretical perspectives, including Green Criminology and Conservation Criminology. Green criminologists define wildlife crime in terms of harm to animals, regardless of whether the act was against the law, and examine how power and inequality produce these harms. Conservation Criminologists, on the other hand, advocate taking an interdisciplinary approach to systematically define and understand environmental risks, including those related to wildlife.
The diversity of perspectives and approaches has produced a wildlife crime literature that is extremely varied, ranging from research on hunting and poaching to trafficking and enforcement. The continued pursuit of novel theoretical perspectives and methodological practices is necessitated by persistent criminal threats to wildlife, particularly to endangered species. Scholar must therefore continue to develop, test, and refine theory and methodological approaches in order to empirically guide wildlife conservation strategy.
David Whyte and Steven Tombs
From the best estimates we have, workers die as a result of health and safety crimes at perhaps 70 times the rate of people who are murdered and perhaps 15 times the rate of people killed in car accidents. Yet health and safety crimes are not the typical subject matter for criminology simply because they are not interpersonal crimes. Yes, individuals are involved, but health and safety crime always requires us to look beyond individual actors playing out a criminal event in a self-contained crime “scene.” This chapter provides a detailed overview of how safety crimes might be regarded as crimes of violence, and explores in detail the way scholars have characterized the regulation of those crimes. It closes by providing a theoretical and empirical description of the “political economy” approach to understanding safety crimes with reference to the case of a young English worker, Simon Jones, who was killed at the hands of his employer.