Types2 - could be trusted to conduct business on the honor...

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Types ( more ) Individual deviance: Crimes against the corporation Embezzlement ($27 billion per year- Thio 1998) Misappropriation of resources Management Neutralize: (Cressy, 1971 in Thio 1998) o Unshareable financial problem o Opportunity through position of trust o rationalize: temporary loan Collective embezzlement Crime by a corporation yet on behalf of a corporation. Savings and Loan Scandal o The largest monetary theft in history. The total amount of money stolen was six to seven hundred times that which is taken in all the robberies that occur in the United States each year. What happened? o The Garn-St. Germain Act of 1982 failed to take into account the human factor of greed. It made the assumption that the entrepreneurs, who borrowed money from savings and loans, and the officers of the thrift institutions themselves, were honest and
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Unformatted text preview: could be trusted to conduct business on the honor system. The savings and loan scandal is an excellent example of "heads I win, tails you lose" collective embezzlement. It entails the officers of a corporation looting that self-same corporation. The corporation might appear to be the financial institution itself, but in fact, as it turns out, the officers who run and profit from the corporation constitute the corporation. The institution's small investors and depositors are simply unwitting instrument dupes in the creation of a dummy of shell corporation that is set up only to be drained of its assets. Enron : (1998-2001): False and misleading statements, concealed debt, earnings inflated: "Cooked the books" o 29 executives charged o Accounting firm (Authur Anderson) convicted of obsructing justice--$500,000 fine...
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This note was uploaded on 11/09/2011 for the course SCIE SYG2000 taught by Professor Bernhardt during the Fall '10 term at Broward College.

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