Today, worldwide, there are several thousands of crimes being committed. Some don’t necessarily require a lethal weapon but are associated with various types of sophisticated fraud, this also known as a white-collar crime. These crimes involve a few different methods that take place within a business setting. While ethical business practices add money to the bottom line, unethical practices are ultimately leading to business failure and impacting the U.S. financially.
The forms of bribery and embezzlement have been around longer than dirt. The earliest white-collar crime, that was documented, dates back to the 15th century in England. The law was forced upon society in 1473 in response to embezzlement, or also recognized as the Carrier’s Case. In this situation, a wool representative gave a man his trust in transporting. Unfortunately, the man ended up attempting to steal some of the wool for himself. Although, these terms were known around this time, the concept of the crime wasn’t well understood until around the 20th century ("History of White-Collar Crime”).
Most people consider this crime to consist of CEO’s manipulating their way to making a large fortune. This of course, is true most of the time in high-profile cases. For example, in late 2001 Enron Corporation executives confessed to overstating the company’s earnings. This lead to artificially inflating what the company was worth and deceived the investors. It took some time to unravel all the fraud put behind this devious act but shows how sophisticated white-collar crime can be. Although it’s usually associated with upper management of corporations, people from all different levels and occupations can perform this crime ("How White-collar Crime Works").
Soon after Enron’s case, there were several outbreaks of similar scandals over the U.S. Around 2002 congress took action by passing the Sarbanes-Oxley Act (SOX) to improve corporate governance. It wasn’t long until nations across the world recognized this act and instituted laws as well. For instance, Poland passed anti-money-laundering legislation among others (“The Evolution of White-Collar Crime”).
High-profile white-collar crime has a few complicated financial terms and violations. The first is insider trading, which is referring to buying or selling a company’s stock while knowing or possessing non-public information. For instance if the employee was to tell a friend important company information and the friend trades that corporations stock, both will be indicted. The next is securities fraud, which involves deceit of a company’s performance. This dishonesty manipulates the market, which results in people making bad investments. The third violation is antitrust, which is also considered as monopoly values. For example, abusing the power of price fixing, or artificially raising prices beyond competitive market values. The last crime is bribery; quid pro quo plays a huge role in this specific violation. For instance, where...