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

In terms of trust they placed their trust in outside

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trusting the offender as part of his investment scheme. In terms of trust, they placed their trust in outside agencies to protect them from the offender. In addition the merger allowed Enron to enter the newly deregulated market of California Status Gaining The author disagree that Sutherland’s theory of ‘differential association’ applies to the subjects of this discussion. As stated by Wells (2013) Sutherland proposed that through the
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WHITE COLLAR CRIME 12 interaction with others, individuals learn the values, attitudes and motives for criminal behavior. Because the theory focuses on how individuals learn to become criminals, the author of this paper notice that neither Lay nor Skilling were influenced to follow each other footsteps. However, the label Sutherland used to define white-collar crime most definitely portrays Jeffrey Skilling and Kenneth Lay profiles. Originally, Sutherland coined the term to distinguish the non violent nature of fraud from the violent nature of robberies or assaults. Furthermore, Sutherland’s noticed that most people in a position to commit white-collar crimes were executives, managerial or employees within an organization. Hence Skilling and Lay used their social and cultural background as well as their specialized knowledge and skills to their advantage and they were adept at bending others at will for financial gain, as Sutherland posited (Wells, 2013. Pag. 16). Therefore based on these observation the author rejects Sutherland’s theory of differential association, but it can be concluded that one characteristic that equate these two individuals involves the “status-gaining” category as implied by Cressey’s Hypothesis and included later in the discussion. Pump and Dump scheme According to the U.S. Securities and Exchange Commission (SEC) “Pump-and-Dump and Market Manipulation schemes involve the touting of a company’s stock through false statements to mislead the marketplace. Similarly, Enron’s traders’ job was to increase demand, price and trading volume of the company’s stock (pump). Once the price of stocks reached the highest peak, traders would sell (dumped) their shares and stopping the promotion would cause the price to plummet hence leaving investors with stocks that were worth less than what they paid for. Another example of Enron’s Pump-and-Dump scheme was during the two days energy
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WHITE COLLAR CRIME 13 shortages of California assisted on June of the year 2000. According to officials the energy crisis was the direct result of manipulative energy schemes orchestrated by Enron’s traders. But how could they move power in and out an entire state? Enron’s traders knew all California imports and loads of electricity and using this inside information traders could overbook the transmission lines or create ‘artificial shortages to manipulate the stock price of electricity. Like a Pump-and- Dump scheme, with only 30% to 35% of their power capacity left, the state of California was forced to pay as much as Enron requested. A commodity that normally trades between $35 to $40
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