AutoRecovery save of White Collar Crime a Form of Occupational Fraud.doc

White collar crime 15 jordan belfort used his

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WHITE COLLAR CRIME 15 Jordan Belfort used his charisma and verbal dexterities to move through the jungle of investing, Kenneth Lay focused on his education earning a PhD in Economics. At age 26 Belfort is the head of his own brokerage firm Stratton Oakmont making $49 million of dollars per year. A better way to analize the difference of these two fraudsters is through an analysis led by David Weisburd who reported that “The fate of organizational success and failure, or the changing nature of the economy in their line of work, may put them at least temporarily under great financial pressure, where they risk losing the lifestyle they have achieved.” Hence Weisburd suggest that white-collar criminals, while generally incautious and driven by ambition. Some are charismatic, energetic promoters while others are reserved, calculating embezzlers. There is no doubt that Belfort is an extravagant individual and with no reservation he stated that “money does not just buy you a better life, gives you better food, allow you to drive better cars. Money almost makes you a better person. You can give generously to the church, support a political party of your choice, and do what you want with money. I always wanted to be rich and I began when I was 22”. On the other hand Coleman suggests, “A particular personality orientation will facilitate criminal activities in one occupational situation and discourage them in another, so that no single set of characteristics is conducive to crime in all situations. For example, nonconformists might well be more likely to become involved in an occupational crime directed against an employer but less likely to go along with an organizational crime demanded by the employer” while a strict conformist would tend in the opposite direction.”
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WHITE COLLAR CRIME 16 Most notably, the components of trust played an enormous role in both cases and allowed them to pursue their white-collar crime undetected. For instance one of Jordan Belfort’s quotes stated “ the easiest way to make money is to create something of such value that people would pay anything to get it and the money will come automatically” . Similarly, Jeffrey Skilling was the critical component for creating a market willing to buy bandwidth as a commodity and Enron sold the illusion and the money “came automatically”. Oakmont Stratton was responsible for the initial public offering (IPO) of 35 companies, including Steve Madden Shoes. It was reported that Steve Madden Shoes earned Belfort $23 million in less than 3 minutes. By the age of 34, Belfort had earned a fortune, amounting to hundreds of millions of dollars. Belfort’s staff, comprised of young brokers, were given the duty to find investors and sell them legitimate stocks and pressuring them to buying shares in worthless stocks. Belfort’s Stratton Oakmont brokerage firm ran a pump and dump operation similarly to Enron’s traders where brokers inflated stock prices through false and misleading positive statements, to sell the low cost purchased stock at a higher price.
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  • Fall '13
  • white collar, Enron Corporation

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