INTRODUCTION

Crimes traditional and white collar have two traits, namely, 1) an objective and 2) a modus operandi. The difference lies in the fact that the white collar criminal has a grandiose plan and also the ability, knowledge and technology to execute it. Traditionally a criminal would rob a bank by using brute force to steal cash. On the other hand a white collar criminal uses technology, mass communication and appeals to greed to steal huge sums of money. Securities Fraud, Insider Trading, Bank Fraud, Tax Fraud, and Money Laundering are all examples of white-collar crime. It is believed that the white collar crimes are much easier to rationalise. Committing such a crime doesn't require a gun or a knife. You may not see an apparent victim. It's easily covered up. It can secure your financial future for life and you may have plenty of opportunities. There has been an increase in the number of white collar crimes in India over last two decades. The earlier crimes can be traced back from the time of Harshad Mehta scam to the current Reebok incident. The multicrore fraud in a private banking division of an MNC bank is a classic example of white collar crime. According to newspaper sources, it has all the ingredients of a new age white collar crime, the use of technology to manipulate or recreate instructions to transfer funds and the promise of greater returns to appeal to the element of greed. The Indian banking and financial services sector has witnessed exponential growth in the last decade. This growth has not been without its pitfalls as incidents of fraud in the industry have also been on the rise. Deloittes survey India Banking Fraud Survey 2012 shows that banks have witnessed a rise in the number of fraud incidents in the last one year, and the trend is likely to continue in the near future. The survey points to the increased difficult scenario for banks with increased fraud incidents and low recoveries, thereby directly affecting their bottom-line.

TYPES OF WHITE COLLAR CRIME IN INDIA Bank Fraud: To engage in an act or pattern of activity where the purpose is to defraud a bank of funds.

Blackmail: A demand for money or other consideration under threat to do bodily harm, to injure property, to accuse of a crime, or to expose secrets.

Bribery: When money, goods, services, information or anything else of value is offered with intent to influence the actions, opinions, or decisions of the taker. You may be charged with bribery whether you offer the bribe or accept it.

 Cellular Phone Fraud: The unauthorized use, tampering, or manipulation of a cellular phone or service. This can be accomplished by either use of a stolen phone,or where an actor signs up for service under false identification or where the actor clones a valid electronic serial number (ESN) by using an ESN reader and reprograms another cellular phone with a valid ESN number.

Computer fraud: Where computer hackers steal information sources contained on computers such as: bank information, credit cards, and proprietary information.

Counterfeiting: Occurs when someone copies or imitates an item without having been authorized to do so and passes the copy off for the genuine or original item. Counterfeiting is most often associated with money however can also be associated with designer clothing, handbags and watches.

Credit Card Fraud: The unauthorized use of a credit card to obtain goods of value.

Currency Schemes: The practice of speculating on the future value of currencies.

Educational Institutions: Yet another field where collar criminals operate with impunity are the privately run educational institutional in this country. The governing bodies of those institutions manage to secure large sums by way of government grants of financial aid by submitting fictitious and fake details about their institutions. The teachers and other staff working in these institutions receive a meager salary far less than what they actually sign for, thus allowing a big margin for the management to grab huge amount in this illegal manner.

Embezz1ement: When a person who has been entrusted with money or property appropriates it for his or her own use and benefit.

Environmental Schemes: The overbilling and fraudulent practices exercised by corporations which purport to clean up the environment.

Extortion: Occurs when one person illegally obtains property from another by actual or threatened force, fear, or violence, or under cover of official right.

Engineering :In the engineering profession underhand dealing with contractors and suppliers, passing of sub-standard works and materials and maintenance of bogus records of work-charged labour are some

of the common examples of white collar crime. Scandals of this kind are reported in newspapers and magazines almost every day in our country. Fake Employment Placement Rackets: A number of cheating cases are reported in various parts of the country by the so called manpower consultancies and employment placement agencies which deceive the youth with false promises of providing them white collar jobs on payment of huge amount ranging from 50 thousands to two lakhs of rupees.

Forgery: When a person passes a false or worthless instrument such as a check or counterfeit security with the intent to defraud or injure the recipient.

Health Care Fraud: Where an unlicensed health care provider provides services under the guise of being licensed and obtains monetary benefit for the service.

The white collar crimes which are common to Indian trade and business world are hoardings, profiteering and black marketing. Violation of foreign exchange regulations and import and export laws are frequently resorted to for the sake of huge profits. That apart, adulteration of foodstuffs, edibles and drugs which causes irreparable danger to public health is yet another white collar crime common in India.

Insider Trading: When a person uses inside, confidential, or advance information to trade in shares of publicly held corporations.

Insurance Fraud: To engage in an act or pattern of activity wherein one obtains proceeds from an insurance company through deception.

Investment Schemes: Where an unsuspecting victim is contacted by the actor who promises to provide a large return on a small investment.

Kickback: Occurs when a person who sells an item pays back a portion of the purchase price to the buyer.

Larceny/Theft: When a person wrongfully takes another person's money or property with the intent to appropriate, convert or steal it.

 Legal Profession: The instances of fabricating false evidence, engaging professional witness, violating ethical standards of legal profession and dilatory tactics in collusion with the ministerial staff of the courts are some of the common practices which are, truly speaking, the white collar crimes quite often practiced by the legal practitioners.

Money Laundering: The investment or transfer of money from racketeering, drug transactions or other embezzlement schemes so that it appears that its original source either cannot be traced or is legitimate.

Medical profession: White collar crimes which are commonly committed by persons belonging to medical profession include issuance of false medical certificates, helping illegal abortions, secret service to dacoits by giving expert opinion leading to their acquittal and selling sample-drug and medicines to patients or chemists in India

Racketeering: The operation of an illegal business for personal profit.

Securities Fraud: The act of artificially inflating the price of stocks by brokers so that buyers can purchase a stock on the rise.

Tax

Evasion:

When

person

commits

fraud

in

filing

or

paying

taxes.

The complexity of tax laws in India has provided sufficient scope for the tax-payers to evade taxes. The evasion is more common with influential categories of persons such as traders, businessmen, lawyers, doctors, engineers, contractors etc. The main difficulty posed before the Income Tax Department is to know the real and exact income of these

Professionals. It is often alleged that the actual tax paid by these persons is only a fraction of their income and rest of the money goes into circulation as black money.

Telemarketing Fraud: Actors operate out of boiler rooms and place telephone calls to residences and corporations where the actor requests a donation to an alleged charitable organization or where the actor requests money up front or a credit card number up front, and does not use the donation for the stated purpose.

Welfare Fraud: To engage in an act or acts where the purpose is to obtain benefits (i.e. Public Assistance, Food Stamps, or Medicaid) from the State or Federal Government.

 Weights and Measures: The act of placing an item for sale at one price yet charging a higher price at the time of sale or short weighing an item when the label reflects a higher weight.

White Collar Crime in India White collar criminality has become a global phenomenon with the advance of commerce and technology. Like any other country, India is equally in the grip of white collar criminality. The recent developments in information technology, particularly during the closing years of the twentieth century, have added new dimensions to white collar criminality. There has been unprecedented growth of a new variety of computer dominated white collar crimes which are commonly called as cyber crimes. These crimes have become a matter of global concern and a challenge for the law enforcement agencies in the new millennium. Because of the specific nature of these crimes, they can be committed anonymously and far away from the victims without physical presence. Further, cyber-criminals have a major advantage: they can use computer technology to inflict damage without the risk of being apprehended or caught. It has been predicted that there would be simultaneous increase in cyber crimes with the increase in new internet web sites. The areas affected by cyber crimes are banking and financial institutions, energy and telecommunication services, transportation, business, industries etc. in India

Reasons For Growth Of White Collar Crimes In India # White collar crimes are committed out of greed. The people who usually commit these crimes are financially secure. # Financial or physical duress. # White collar crimes are estimated to cost society many times more than crimes such as robbery and burglary. The amount of death caused by corporate mishap, such as inadequate pharmaceutical testing, far outnumbers those caused by murder. # The emergence of cutting edge technology, growing businesses, and political pressures has opened up new avenues for these criminal organizations to prosper. # This increase is due to a booming economy and technological advancement such as the Internet and fast money transfer systems. Law enforcement is sometimes reluctant to pursue these cases because they are so hard to track and investigate. # It is very difficult to detect as white collar crimes always committed in privacy of an office or home and usually there is no eyewitness. # But naturally a question arises that if we have specific legislations to trace out White Collar Criminality then why these offenders go unpunished. Main reasons for which these white Collar

criminals or occupational criminals go unpunished are

i) Legislators and the law implementers belong to the same group or class to which these occupational criminals belong; ii) Less police effort; iii) Favorable laws; iv) Less impact on individuals.

The judiciary is equally, if not more, guilty of delaying justice. With white-collar crimes on the rise, it is necessary for the judiciary and police to distinguish between white-collar crimes, petty crimes and acts of homicide and violence. Sending everyone to the same jail is also unfair. India needs different detention centers for different kinds of criminal misconduct. At this present juncture what we need is the strengthening of our enforcement agencies such as Central Bureau of Investigation, the Enforcement Directorate, The Directorate of Revenue Intelligence, The Income-tax Department and the Customs Department. Concentration and distribution of national wealth must be done in a proper manner. Speedy trial should be arranged by appointing more Judges. Central Vigilance Commission must keep a constant vigil on the workings of the top ranking officers. General public must not avoid being engaged themselves in the prosecution of the White-collar criminals as the offence in general is directed towards them. Lastly if they are traced and proved guilty then Deterrent Theory of punishment is an option one. http://legalservicesindia.com/article/article/white-collar-crime-and-its-changing-dimensions-in-india1378-1.html CONTROL POLICIES TO BE UNDERTAKEN IN ERADICATING WHITE COLLAR CRIMES As has been studied so far, white collar crimes are not consequences of any drive of necessity. It is simply greed for multiplying wealth and to retain so called meaningless status in the society by pursuing rivalry with the competitors. These people indulging themselves in these activities are to be considered to the leeches, sucking blood of the society and in turn creating grave hindrances to the progress of the society. Since their acts rarely affect an individual directly, these are often ignored of by a common mass and thereby no single individual takes the pain of prosecuting against the offender. But it must not be forgotten that these crimes and criminals are slowly and steadily spreading their wings towards the society at large and much wrong has already done by now. Therefore, there is an immense need to curb it making no waste of time; otherwise it might totally paralyze and ultimate ruin the society.

The biggest hindrance that lays in the prevention of white collar crimes is the lack of public awareness. Since the individuals involved in these acts, do not generally affect a single individual, an urge of eradicating them, do not usher. Moreover, white collar crimes are yet not considered to be as grave as that of traditional crimes, so to its certain characteristics as mentioned earlier. Though they are likely to take shape of heinous crimes in times to come, yet there lie certain obstacles in considering them at par with traditional crimes. The acts coming under the purview of white collar crimes cannot be termed as crimes in the strict sense of term. Therefore apart from having the stringent penal or regulatory laws for deterring the persons involved in them, there is a first and foremost need of raising public awareness regarding the issues. The government has a comprehensive role to play in doing so through media or by initiating task forces who would act as watch dogs. Proper and methodical string action should be used randomly so as to catch the individuals involved in the white collar crimes red-handed. http://jurisonline.in/?p=1840

FIVE ETHICAL DILEMMAS OF WHITE COLLAR CRIMES

These alterations to the workings of the criminal law significantly changed the environment within which corporate officers make managerial decisions. Most significantly, they changed the legal rewards and punishments associated with the way organizations treat their employees. If ethics were coextensive with obedience to law, this would not constitute a problem. Acting in accordance with the law and its incentives would be equivalent to acting ethically, and organizations need have no qualms about treating their employees in whatever way the law demanded. But, ethics is not coextensive with legality, and responding to legal incentives does not guarantee that an organization is acting ethically.

A. Organizational Justice Questions of justice are not limited to the realm of the law. Although justice may be the cardinal virtue of a legal system, legal justice is not all of justice. Justice is the general virtue that requires the fair treatment of individuals in all interpersonal relationships.209 Because business organizations consist of networks of interpersonal relationships, questions of justice necessarily arise in the context of organizations as well. Organizations have an ethical obligation to treat their employees justly. Managers are faced with conflicting legal and ethical obligations that require them to make extremely difficult decisions. If the law demands cooperation, does that make it ethical to help the government prosecute those who are or might be innocent or to deny organizational due process to these employees? On the other hand, is it ethical to put the stockholders mone y and the well-being of the organizations other stakeholders at risk merely to give a fair hearing to those who may well have broken the law and put the organization in jeopardy?

B. Privacy Like justice, privacy has both a legal and an ethical dimension. The constitutional right to privacy protects individuals against state and federal government interference with certain intimate decisions and conduct, and the common law right to privacy protects them against certain invasions of their private space and unwanted revelations of private facts by their fellow citizens. But these legal protections do not necessarily exhaust the amount of privacy that individuals are morally entitled to enjoy. The moral right to privacy refers to a wider realm of protection against intrusion into ones personal affairs, the public dissemination of ones secrets, and the type of constant supervision and monitoring. Employees of private business organizations have little legal protection against their employers invasion of their privacy in the workplace.

Because constitutional provisions do not apply to private actions, employers legally can, and sometimes do, subject their employees to intense monitoring. Ethical requirements to respect individuals privacy do apply to the workplace, however, and limit the extent to which business organizations may legitimately spy on their employees. From the stakeholder and social contract perspectives, employees rights to privacy in the workplace flow either from the organizations obligation to respect the dignity of their stakeholder groups, which include employees, or from an implicit term in the social contract between society and business organizations.226 Further, even from the stockholder perspective, organizations have an ethical obligation to respect employees privacy because, like the maintenance of organizational justice, doing so produces a workforce that performs better and is more committed to the organizations success.

C. Confidentiality There is good reason to believe that organizations are ethically obligated to maintain the confidentiality of certain internal communications. Like organizational justice and privacy, this obligation derives from both principled and practical considerations. The principle involved is the basic ethical obligation to keep ones word. If one party reveals information to a second only because the latter promises to keep the information confidential, the promise ethically binds the second party to do so. This is equally true when the second party is an organization that is promising confidentiality to an employee or other stakeholder. To obtain information under a promise of confidentiality and then disclose it under circumstances not agreed to by the confiding party is essentially to obtain the information by means of a false promise on which the confiding party relied in revealing the information. Such action is ethically indistinguishable from fraud. On the practical level, confidentiality is necessary to facilitate the flow of information through the organization. Employees (and outsiders) will often be unwilling to reveal information when they believe they will suffer adverse consequences if it becomes known they have done so. This is especially true with regard to information indicating that they, their colleagues, or their superiors are involved in unethical or illegal behavior. Thus, only by promising confidentiality can organizations guarantee that their management will receive the information necessary for them to run not only efficiently, but ethically and legally as well.

D. Trust Unlike organizational justice, privacy, and confidentiality, trust does not embody an ethical principle. Although ethicists have argued that corporate managers who actively encourage their subordinates to trust them are thereby invested with positive moral obligations for the subordinates wellbeing, there is

no independent moral obligation to trust others. Trust is nevertheless inextricably linked to ethical concerns because its existence in the workplace is dependent on the ethical behavior of corporate management. That is, unless corporate management meets its ethical obligations to its stakeholders and is perceived by them as doing so, no relationship of trust will develop or be maintained between the organization and its stakeholders. And because the maintenance of such a relationship of trust is essential to the success of the organization, trust serves as a necessary link between corporate performance and ethical behavior. An organizations employees are one of its most important stakeholder groups. However, the personal interests of individual employees often diverge from the corporate interest of the organization. Consequently, businesses must expend resources to overcome the resulting commitment problems, that is, to align the incentives of its individual employees with the achievement of the organizations goals.

E. Ethical Self-Assessment It is possible that the different normative approaches to business ethics yield distinct sets of ethical obligations for managers. Although the stockholder, stakeholder, and social contract approaches coincide in prescribing the obligations to provide organizational justice, respect privacy, and maintain promised confidentiality, they may prescribe widely differing obligations in other respects. But whatever the precise configuration of managers ethical obligations, managers are obviously required to make good faith efforts to honor them. This requires, at a minimum, that managers know what is going on within their organization. Organizations usually go about fulfilling this duty in the ways touched upon in connection with the discussion of confidentiality. To learn of potential ethical problems, organizations set up alternative, usually confidential, channels of communication that allow employees to voice ethical concerns without fear of damaging their careers. By utilizing employee hotlines, ombudsmen, or ethics officers, organizations seek to circumvent both organizational blocks and the informationdistorting effects of bureaucracy and personal interest. To learn of potential legal problems, organizations authorize their corporate counsel to gather information and conduct internal investigations under the protection of the attorney-client privilege. This allows organizations to avoid organizational blocks by going directly to the source of the information and to overcome the obscuring effects of self-interest by assuring employees that their statements to counsel will not be used against them at a later time. These mechanisms allow corporate managers to gather the information necessary to prevent or correct ethical lapses or legal violations.

ETHICAL ISSUES RELATED TO WHITE COLLAR CRIMES

THEORIES EXPLAINING WHITE-COLLAR CRIME Theories concerning top management white-collar crime have considered the personality characteristics of offenders, societal values, industry expectations, and the corporate climate. A distinction has been made between occupational crimes, such as embezzlement, that are committed against a corporation by an individual for personal gain and corporate crimes, such as concealment of the true financial situation, that are committed largely for the perceived benefit of the firm. Even with corporate crime there can be significant benefits to the individual in the form of promotion, bonuses, or other defined perks of the business world. There are situations in which only the offender profits and the firm is victimized; others in which only the firm benefits, largely at the expense of victims in the community; and yet other criminal schemes in which both the offender and the corporation profit, leaving a victimized public. Several other characteristics of the offense and the offender are also considered when studying the motivation of top management to commit fraud. The position of the offenders within the managerial hierarchy is an important concern and their role as either an active or a passive participant is another factor. In crimes of obedience, there is a choice between carrying out an unethical or criminal request of a supervisor or facing the ramifications of refusal. Negligence and errors of omission may also occur and lead to legal prosecution. Societal, industry, and company-level pressures that contribute to top management fraud have been identified. The institutional anomie theory (IAT) provides a societal-level explanation for crime and suggests that a high crime rate is related to a society's strong emphasis on the individual's material success at the expense of noneconomic institutions that exert social control, such as family, education, and commitment to the public welfare. This theory has been applied even to the highly successful whitecollar offenders, because these individuals can be viewed as being motivated by the fear of losing their high-status positions and their economic security. On the other hand, these corporate offenders may harbor unrealistically high expectations of power, material success, and individual wealth; experience strain; and be unable to relieve the strain without resorting to crime. Schoepfer et al. used data from the 1991 FBI Uniform Crime Report (UCR) and the 1990 U.S. Census Bureau to investigate whether a white-collar crime such as embezzlement could be explained by IAT and found inconsistent support for this theory. Industry-level pressures have been identified as influencing factors. Industries that face stiff competition may favor and encourage an aggressive approach from employees that produces rapid results, rather

than thoughtful, strategic action. When the gains cannot be realized in the desired time frame, there is a temptation to implement short cuts, resulting in fraud. When there is a culture of collaboration, there is less pressure on the individual to resort to fraud. The manner in which an industry pays its executives can have an effect. Compensation packages, promotions, and bonuses may be linked to company or stock performances. In industries with long investment horizons, there can be less pressure, while in industries expecting short payback periods, there may be more emphasis on short-term performance. Fraud may in this context be seen as a method of ensuring that the announced corporate earnings match analysts' forecasts. Industry concentration can result in less scrutiny and discourage oversight. This lack of control may act to discourage employees who may want to question a path that seems to minimize any ethics-related concerns. A hostile environment within an industry can also encourage fraud. Success in a weakening industry is rewarded, with few questions asked. When a firm is failing, communication concerning earnings can be restricted, resulting in less oversight by outsiders. This centralization makes it easier for the senior members of the firm to commit fraud with less risk of exposure. The environmental dynamism can affect the risk of fraud.27 Industries that invest heavily in new ventures risk lower short-term profits, which may fuel efforts to hide downturns. Environmental heterogeneity may require reliance on the decisions of managers in each of the multiple specialized businesses making up the parent organization. Because of this diversification, control may be ceded to each business. Less central oversight can lead to greater opportunity to conceal fraudulent behavior. It has been suggested that there are several organization-specific pressures that contribute to the incidence of white-collar crime. In particular, for high-level white-collar crime, organizational factors have been considered to be operative. Executives are more prone to inflate estimates of earnings when contracts are tied to short-term performance. Protective factors include a reliable auditing system, a strong independent board of directors with monitoring functions, outside qualified directors and working committees, an organizational culture stressing ethical conduct, strict enforcement of ethics, a rigorous corporate compliance program, and senior leadership commitment to ethical conduct. Although white-collar crime occurs in the context of societal and organizational pressures, it still comes down to an individual's choice and the influence of multiple factors such as age, experience, education, and certain personality characteristics. Younger managers are considered the most susceptible group as they seek advancement. Older executives may remain vulnerable if there is a concern about retaining a position, but, in general, age is seen as a protective factor associated with more thoughtful decision-

making. There are complex relationships with the level of experience and education. Males are considered to be more willing to engage in criminal conduct. Certain personality characteristics are considered to be associated with white-collar criminals, including a competitive personality. Other personality factors have been considered. The combination of high levels of extroversion coupled with low levels of self-control is viewed as a risk factor for offending. In addition, profiles of the disagreeable businessman and the neurotic have been advanced to explain how other types of personality traits can be linked to white-collar crime. The General Theory of Crime postulates that selfcontrol is an important factor in explaining white-collar crime. STUDIES OF CHARACTERISTICS OF WHITE-COLLAR CRIMINALS There has been much speculation regarding the personality characteristics predisposing to white-collar crime, but there have been few recent studies concerning the personality characteristics of white-collar criminals. It has been theorized that they are charismatic, have a need-to-control, have a tendency to bully subordinates, fear losing their status and position, exhibit narcissistic tendencies, and lack integrity and a social conscience. Bucy et al. conducted comprehensive interviews with 45 nationally recognized experts in the area of white-collar crime, including defense counsels and prosecutors, to determine their perceptions concerning personality characteristics of white-collar offenders. Over three-fourths of respondents characterized white-collar offenders as generally falling into two groups, leaders and followers, with each group having distinguishing personality characteristics. Leaders were described as being arrogant, feeling entitled, and engaging in rationalization. Greed was identified as the primary motivation for leaders. Additional motivations for leaders included opportunity and competiveness. There was less agreement about followers, who were described as passive, nave, less confident, and nonaggressive. There was speculation that in contrast to the leaders, the followers may have been deterred from engaging in criminal conduct had they been exposed to a different corporate climate one with leadership stressing ethical conduct and education, providing monitoring in the workplace, and enforcing controls through strong oversight. There have been several studies that have directly measured the demographic and personality characteristics of white-collar offenders. Wheeler et al. reviewed 1,342 presentencing reports of whitecollar criminals. The white-collar criminals were distinguished from subjects convicted of other federal crimes on several variables. They were more likely to have been employed, to have attained a higher educational level, to be male, white, and older. In addition the white-collar criminals were financially more secure and less likely to have prior convictions. When compared with the sample from the general public, white-collar criminals again were more likely to be employed, better educated, and older.

However, the white-collar criminals were found to have more prior convictions and were less likely to be financially well off. There has been speculation that not all groups of white-collar criminals share the same personality and motivational factors. In a 1986 study of 62 persons convicted of embezzlement, the profile that was developed was that of a white woman in her mid 20s with a high school education and an annual income of less than $10,000 who cited debt as the motivation. Poortinga et al., in a retrospective chart review, compared 70 defendants charged with embezzlement who were referred to the evaluation unit of the Michigan Center for Forensic Psychiatry with 73 defendants charged with nonviolent theft. The whitecollar defendants were more likely to be white and have more years of education and less likely to have a substance abuse problem. Fraboni et al. reviewed the MMPI profiles of 67 men who had been admitted to a psychiatric hospital forensic unit for pretrial assessment. They were classified as violent or nonviolent offenders. Violent offenders included those with charges of assault, robbery, sexual assault, and all degrees of homicide. Nonviolent offenders were those charged with breaking and entering uttering threats and fraud. Collins and Schmidt used personality scales, a personality-based integrity test, and homogenous biodata scales to compare 365 male federal prison inmates incarcerated for white-collar offenses to 344 control subjects who occupied positions of authority in business. They found large and measurable psychological differences between the white-collar offenders and the control subjects. White-collar criminals showed a greater tendency toward irresponsibility, lack of dependability, and a disregard for rules and social conventions. They noted that these differences were measures of social conscientiousness, defined as the ability to make prosocial decisions. The most significant indicator of this difference was a personality-based integrity test. A 1995 study comparing female shoplifters with offenders involved in fraudulent behavior found that offenders in both samples exhibited high rates of depression and unresolved mourning. More recently Blickle et al. used scales measuring hedonism, conscientiousness, narcissism, social desirability, and behavioral self-control to compare 150 managers currently active in German corporations to 76 white-collar criminals who formerly held similar positions. The sample included white-collar criminals who had functioned as corporate managers, high-ranking technical specialists, official representatives of corporations, or corporation owners. Their crimes included bribery, counterfeiting, embezzlement, forgery, fraud, fraudulent bankruptcy, smuggling, and tax evasion. Business white-collar crime was associated with being male, low behavioral self-control, high

hedonism, high narcissism, and high conscientiousness after controlling for social desirability. The unexpected finding of a correlation with high conscientiousness was viewed as being consistent with the rationally calculating business person pursuing both private interests and the interests of the corporation.

Discussion
White-collar criminals commit crimes that have victims whose lives are significantly affected and at times destroyed by these acts. The public no longer views these high-profile offenders as esteemed citizens who should be excused from the appropriate sanctions for their criminal behavior. There is little or no tolerance for offenders who seek to excuse their actions by blaming them on the orders of their superiors or the culture of the work environment. Many view these individuals as self-centered and motivated by their own greed, without regard for ethics or fiduciary duty to the public. While a comprehensive theory of high-level white-collar crime should consider societal and organizational contributions, there is value in understanding the personal traits that may place an individual at high risk for offending and continuing to offend. Forensic psychiatrists are in a key position to study and to learn more about the individual characteristics of this offenders group. Much of the recent research literature regarding this population has been done by the international community. Is there more that we in the United States can learn about this group that will be helpful to the judiciary? We note that this is an important area for future study. When medically indicated, psychiatric treatment may offer help for those offenders who have major mental illnesses. We opine that for significant change to occur within American institutions and organizations, there must be accompanying recognition from society of the need to change the culture in which the operational mores of these businesses have long thrived.

http://www.jaapl.org/content/37/4/538.full

CRIMINOLOGICAL PERSPECTIVE ON BUSINESS ETHICS

White-collar crime has a strong influence on business ethics. Joseph Heath uses a criminological perspective to help illuminate some traditional questions in business ethics in his paper: Business Ethics and Moral Motivation: A Criminological Perspective Heath starts off with the premise that the ethics scandals in the early years of the twenty-first century was not a business ethics failure. What really took place at companies like Enron, Worldcom and Parmalat was high-level, large-scale white collar crime. Their illegal acts were probably surrounded by unethical conduct. But their core actions all involved a failure to comply with the law. The bulk of the paper is spent looking at the techniques of neutralization that offenders use to deny the criminality of their actions. When white collar crime is viewed from the perspective of techniques of neutralization you can see why bureaucratic organizations such as large companies and the market, might constitute peculiarly criminogenic environments. These are institutional contexts that generate a very steady stream of rather plausible (or plausiblesounding) excuses for misconduct. This is the result of a confluence of factors: first, corporations are typically large, impersonal bureaucracies; second, the market allows individuals to act only on the basis of local information, leaving them in many cases unaware of the full consequences of their actions; third, widespread ideological hostility to government, and to regulation of the market in particular, results in diminished respect for the law; and finally, the fact that firms are engaged in adversarial (or competitive) interactions gives them broader license to adopt what would otherwise be regarded as antisocial strategies. Denial of responsibility The offender claims that conditions of responsible agency were not met: it was unintentional; he was insane, he was provoked, he had no choice but to do it, it was all an accident, etc. In a company, an employee can blame his boss for telling him to do something wrong. The boss can pass the blame back down to the worker saying they acted independently. The competitiveness of the marketplace and the workplace means that if one individual refuses to perform an illegal act, he may feel that he could simply be replaced by someone else who would.

Denial of injury The offender seeks to minimize or deny the harm done. Most white collar criminals never meet or interact with those they harmed. In many cases they wouldnt even know how to find their victims. In these cases, there is potential confusion as to the identity of the individuals who are harmed by the criminals actions. In other cases, the mere fact that there is diffusion of the harm over a very large number of persons is appealed to as grounds for denial that anyone was injured by the persons actions. Denial of the victim The offender acknowledges the injury, but claims that the victim is unworthy of concern because he deserved it. The underpayment inequity is common. Its hard to find an employee who believes that an enhancement of justice in society would require a reduction of his compensation package. On the other hand workers may feel undercompensated, ignoring the difference between the ease with which they can be replaced that determines their wage rate, and their contribution to the company. It is really easy for workers to convince themselves that they are not stealing. Instead they believe they taking what they are owed, or they are punishing the company for treating employees poorly. Condemnation of the condemners The offender attempts to turn back the charges by impugning the motives of those who condemn his actions. The classic examples in corporate crime are the charges fired back at Eliot Spitzer during his time as Attorney General when he exposed a wide range of practices in the financial services industry. His political ambitions were often discussed side-by-side with his prosecutions. Appeal to higher loyalties The offender claims that the action was done out of obedience to some moral obligation that conflicted with the law.

You often hear I did it for my family. The offender can see the company as a proxy and serve as an object of higher loyalty. One theory with Ken Lay and Jeffrey Skilling at Enron is that they misled investors for the sake of the company, insisting that it was a great company. There is also the more common business ethics excuse that it was done for profit and the benefit of the shareholders. Everyone else is doing it The mere fact that others are breaking the law is used to suggest that it is unreasonable for society to expect compliance. This is an excuse for all kinds of crime, but it is very common in a business context because of the competitiveness of the business environment. Claim to entitlement An offender claims he was acting within his rights and that the legal prohibition of his conduct constituted unjust or unnecessary interference. One of the big differences between corporate crime and street crime is how often white collar criminals deny the authority of the laws that they have broken. The argument is that the government should not regulate certain forms of private transactions. Folk Tales of Moral Motivation Heath argues that the focus on these techniques of neutralization are more effective in addressing business ethics and corporate crime than theories of moral motivation. The field of criminology has largely discredited those theories as folk tales. Its not about character, greed, and values. A criminologist does not think its mysterious that some people commit crimes. They find it mysterious that more people do not commit crimes. Only a small percentage of people chose to advance their interests through criminal activity. Even though criminal activity is punished, the chances of getting caught are usually small and the threat of punishment distant. There are lots of lessons to be learned from this paper by compliance professionals.

http://www.compliancebuilding.com/2011/02/03/a-criminological-perspective-onbusiness-ethics/

ETHICAL SOLUTIONS TO WHITE COLLAR CRIMES

The law of white collar crime, then, is that portion of the criminal law that has been significantly divorced from the laws internal morality. The essential purpose of white collar criminal law is not the punishment of morally culpable conduct, but the effective enforcement of congressionallycreated rules of behavior and regulations. To the extent that these rules and regulations prohibit conduct that is not clearly morally blameworthy, it is reasonable to expect the requirements of compliance with the law and the demands of ethics to diverge. And this is precisely what has happened. As long as the imposition of criminal sanctions on organizations and individuals who commit white collar offenses remains a priority, there is no way out of the dilemma this situation creates. Effective criminal enforcement requires the type of measures that create ethical dilemmas for conscientious business people. Structuring the law to allow business people to honor their ethical obligations would be equivalent to restoring the liberal characteristics of the traditional criminal law that render the law of white collar crime unenforceable. But before simply accepting this state of affairs, it is worth considering whether the criminal punishment of those who commit white collar offenses should remain a priority. For it is not clear how much is gained by such punishment. White collar criminal offenses consist in regulatory violations and deceptive or dishonest business practices not already punishable under the traditional criminal law. If the defendant is an organization, it can only be punished financially. If the organizations offense consists of a breach of a regulation, it is already subject to a civil penalty for the violation. In thiscase, a criminal conviction serves only to increase the amount of the money the organization must pay. But if a greater financial penalty is appropriate,the obvious thing to do is to increase the size of the civil penalty, not create a duplicative criminal offense. If the offense consists in deceptive or dishonest behavior by one of the organizations employees that results in a loss to the organizations stockholders or any other party, the organization is subject to civil lawsuit and the payment of compensatory and, if the conduct is intentional or reckless, punitive damages. Once again, criminal punishment can only increase the amount of money the organization must pay. And because this additional purely punitive amount is paid by the organizations shareholders who are innocent of wrongdoing rather than by the actual guilty parties, it cannot be justified on retributive grounds. It can be argued that forcing organizations to pay an additional amount beyond the compensatory and punitive damages resulting from civil lawsuits is justified by its deterrent effect. The claim is that threatening the organization with additional monetary losses will make it more vigilant in

supervising its employees to ensure that they do not engage in dishonest or deceptive behavior. There is reason to doubt this claim, however. Because the threat of civil liability already provides organizations with adequateincentives to properly supervise their employees, additional criminal liability can only be over-deterrence. Organizations are already strictly liable for the torts of their employees committed within the scope of their employment. Should an organization fail to exercise proper oversight to prevent deceptive or fraudulent practices by its employees, it can be made to pay not only compensatory damages, but also potentially massive punitive damages. Further, because civil plaintiffs are not subject to the restrictions that the criminal law imposes upon prosecutors, it is easier for them to establish liability. The type of complaints civil plaintiffs may bring are not limited by the principle of legality; plaintiffs efforts at discovery cannot be thwarted by a Fifth Amendment privilege; the defendant is not vested with a presumption of innocence that the plaintiff must overcome; and the plaintiff is not required to prove the elements of his or her case beyond reasonable doubt. It is difficult to see how the threat of additional criminal liability, which is more difficult to establish and, hence, less likely to be imposed, can increase the organizations vigilance. When the offense is a public welfare offense that requires no mens rea, or an offense that requires only ordinary negligence, it is unclear how incarceration, or punishment of any kind, advances either end. Because the defendant has not acted in a morally blameworthy manner in committing such offenses, punishment cannot be justified on retributivist grounds. Further, because it was not the defendants conscious plan to violate the regulation, the threat of punishment can have no deterrent effect. In cases such as these, the defendant may owe others or society compensation or the disgorgement of wrongfully acquired gains, but no legitimate end is served by his or her criminal punishment. And if a monetary payment is appropriate, this can be attained through the imposition of a civil penalty for the violation. But what about individuals who intentionally violate regulations or engage in deceptive or dishonest business practices? In such cases, the defendants have both acted culpably, meriting punishment, and can be deterred by the threat of incarceration. But here is where the perfect becomes the enemy of the good. Keep in mind that white collar offenses consist of regulatory violations and deceptive or dishonest behavior that is not punishable under the traditional criminal law. The campaign against white collar crime is not a campaign against actual fraud, which is already subject to punishment, but against the type of behavior that does not amount to actual fraud but is nevertheless unfair, deceptive, or dishonest. In essence, then, the purpose of the campaign against white collar crime is to raise the ethical level of business behavior above the baseline supplied by the traditional criminal law.

Individuals who unfairly violate regulations or engage in deceptive or dishonest business practices do so for financial gain. If they are discovered, they will probably be discharged from their jobs and have their careers destroyed. If their conduct amounts to actual fraud, they will be subject to prosecution under the rules of the traditional criminal law. If it does not, they will be subject to civil lawsuits that will cause them to at least give up all ill-gotten gains and probably will impoverish them. Hence, the market and civil liability sanctions against such individuals are considerable. Because the imposition of additional financial penalties on such individuals would be pointless, the effort to subject them to the criminal sanction can only be for purposes of incarceration. Such punishment can be justified on retributive grounds if the market and civil liability sanctions are truly insufficient relative to the defendants culpability. It can also be justified on deterrent grounds if the threat of imprisonment would deter at least some individuals who would not be deterred by the prospect of the loss of their careers and wealth. It must be conceded, however, that the gain in either retributive or deterrent value, although real, is relatively small. But at what cost are these gains purchased? The answer to this question has been the subject of this article. The cost of this crusade to achieve perfect justice is the abandonment of the internal morality of the criminal law and the ethical dilemmas it imposes on the business community. It appears that in order to utilize the criminal law to raise the ethical level of business behavior among those given to unscrupulous action, we must incentivize unethical behavior on the part of those who are conscientious. This is a textbook example of a Pyrrhic victory. Here truly is a game that is not worth the candle. Given this situation, let me conclude this article with the thought that the solution to the problem of white collar crime might not consist in more vigorous federal enforcement efforts, but in no such enforcement efforts at all.

SOCIAL CONTROL OF WHITE COLLAR CRIME White collar crime is difficult to control because it occurs in so many forms and in so many different professions. It is not spread evenly across industries or occupations. Sure, there are some commonalities. For example, all businesses rely upon accounting and other common undertakings, but the differences outweigh the commonalities. For example, one would not expect to find the exact same offense patterns in the healthcare industry as one would expect to find in the clothing industry. This "diversity" of white collar crime creates an enormous burden upon any government attempting to control it. Witness the variety of agencies which have the authority to initiate a federal prosecution by bringing some matter to the attention of the Department of Justice or a U.S. Attorney. The more prominent agencies are:

Food and Drug Administration (FDA) Falls under the Department of Health and Human Services. They regulate, inspect, monitor, test, and develop guidelines for food, drugs, cosmetics, and medical devices. The FDAs effectiveness has been stifled by its focus on small companies (rather than on powerful, major corporations) and by their reviewers taking bribes from drug companies.

Federal Trade Commission (FTC) An independent regulatory agency that polices financial transactions. They monitor trusts and attempt to prevent unfair competition and anticompetitive mergers. Most notable, they address deceptive advertisements or offers. The FTC has been knocked for providing ineffective protections to consumers and for interfering with legitimate operations of various businesses and professional groups.

Securities and Exchange Commission (SEC) An independent regulatory agency that regulates and polices the securities market. It has been criticized by some as unnecessary and by others as not aggressive enough. Considering these five commissioners police hundreds of billions of dollars, it could be said they are under funded and under staffed. Plus, they have limited legal and investigative powers.

Environmental Protection Agency (EPA) An independent executive branch agency that sets standards and monitors practices relating to air quality, water quality, and the disposal of various forms of hazardous waste. In recent years the EPA has weakened as the energy industry and other businesses had complained about the costs of environmental measures.

Occupational Safety and Health Administration (OSHA) Develops and enforces procedures and standards for workplace health and safety and to compensate for limitations in workers compensation, civil tort suits, and criminal prosecutions. OSHA has been criticized as being a symbol for labor forces instead of a consequence of the governments commitment to improve

workplace conditions. It has also been criticized for not adopting stronger standards to protect workers.

Consumer Product and Safety Commission (CPSC) They monitor the enforcement of consumer product standards and protect the public from dangerous products they evaluate, set standards, and investigate suspect products.

Federal Bureau of Investigation (FBI) While WCC has not always been the focus of the FBI, their expertise to continues to grow and evolve in this area. They have dealt with various white collar and government crimes as well as the savings and loan and healthcare frauds.

The Inspector General This office investigates the submission of false records by contractors, bribery, and nepotism. They also investigate healthcare fraud and ensure that programs run by their department are not abused.

U.S. Postal Inspection Service They have jurisdiction over embezzlement, identity frauds, lotteries, mail frauds, money laundering, workers compensation frauds, and electronic frauds; all that have a postal element to them.

U.S. Secret Service Investigates WCC that includes counterfeiting or forgery of federal currency or warranted financial instrument U.S. Customs Service Investigates money laundering, falsified import or export documents, illegal product dumping, and foreign corrupt payments U.S. Marshalls Pursue and capture white collar crime fugitives. Internal Revenue Service Criminal Investigation Division Investigates aspects of WCC that involve tax fraud or misrepresentation involving corporations, businesses, and individuals.

Beyond the creation of more government agencies and/or expanding the powers of existing agencies, there are few ideas that seem to be promising for the control of white collar crime, or at least represent the field of criminology on the subject. Let's review a few of them first. THE OPPORTUNITY PERSPECTIVE Benson & Simpson (2009) argue that control efforts should target the opportunity structures. What they mean by opportunity structures are really the occupational mobility structures -- the things which allow privileged white males (for the most part) to rise to the top of their professions. It's a solution which begs the question of whether females or minorities can do a better job at running organizations while engaging in lower rates of white collar crime. There is, unfortunately, little to no research on this subject, and it is also unknown to what extent occupational discrimination (in the form of "glass ceilings" and racial barriers) might be a causative factor in white collar crime. It is possible, although

highly speculative, that privileged white males who regularly discriminate against women and minorities might have the same set of psychological characteristics as white collar crime offenders. But, again, we don't know, and it seems just as likely that white collar criminals would be clever enough to avoid any appearance of sexism or racism. The following table presents what we do know about race and gender in the study of white collar crime: Race and Gender and White Collar Crime It is well known what the statistics are for African American overrepresentation in conventional "street" crime (e.g., one in five black children born any year are likely to wind up incarcerated), but it is less well known what the white collar rates are (or would be) for this demographic group. Gottfredson and Hirschi (1990) suggest that they would be as

proportionately represented as whites, but this speculation is based on counting the FBI rate of welfare fraud among blacks (30%) as a white collar crime. Weisburd et al. (1991) are the ones who have probably studied the issue most thoroughly, and they conclude that African Americans would likely be "well represented" among certain low-level white collar crimes such as embezzlement and fraud. They also speculate about such offenders being more easily detected and prosecuted.

There is mixed and/or contradictory evidence about women. Some commentators are argued that women bring a more ethical perspective to the workplace, but feminist scholar Kathleen Daly (1989) long ago pointed out that lower-level clerical and administrative wrongdoing by women (so-called "pink collar crime") is quite prevalent. Dodge (2009) has recently tried to sort out any motivational differences, if they exist. It may be that female white collar crime will continue to follow the same "masculine" pattern followed by women such as Leona Helmsley, Martha Stewart, Diana Brooks (of Sotheby's), Lea Fastow (of Enron), and the 27 women involved in the Savings & Loan scandal (the worst financial disaster of the 20th century). THE SHAMING PERSPECTIVE Braithwaite (1989) argues that social controls from both within and outside the organization can reduce white collar crime. Social controls from within can be accomplished by strengthening internal controls against illegal behavior. Examples include promoting pro-social values, socializing members of the organization to these values, and creating strong internal control units to monitor compliance with the law. This is, frankly, a solution which would create overly legalistic organizations, and a number of "bad apples" might be weeded out, but deviant subcultures, climates, or cultures might continue to exist. No one has ever yet come up with a good way to permanently change organizational climates and

cultures. Sure, a lot of "process" can be documented (in the form of meetings with consultants, etc.), but everyone knows that such "changes" have a fading life history. Braithwaite (1989) then introduces the idea of shaming imposed on offenders by the larger society. Shaming is usually carried out by a regulatory agency or the police in those media spectaculars known as "perp walks." However, the key, according to Braithwaite (1989), is to administer the shame ritual in a way which maintains bonds of respect with the offender (shame the evil deed; not the evil doer). This is called reintegrative shaming, as opposed to stigmatizing shaming which would likely push offenders (and potential offenders) deeper into deviant thinking which glorifies the evil-doer. Frankly, this theory of differential shaming is quite convoluted, and relies upon untestable assertions about labeling and anti-labeling, backlash, effects. Nonetheless, it appears in recent years that authorities are doing more "perp walks," but probably not because they are applying the theory, only showing off big time offenders they've caught. A more sophisticated version of these ideas might involve some sort of large-scale Information Operations (IO) which uses shaming in some way to strategically communicate society's displeasure with white collar crime and its ilk (but this is pure speculation). A lot of people also don't like the notion of "reintegration" because it smacks of putting ex-offenders back to work "guarding the chicken coop" so to speak. Nonetheless, the practice of a "perp walk" has gained some notoriety, as the following closeup details: The Theory and Practice of "Perp Walks"

Ken Lay (pictured at left) of Enron did the walk in 2004 on his way to face 45 years in prison (but died before sentencing). One of America's highest-paid CEO's (earning about $42 million a year), Lay (interestingly enough) worked as an energy regulator for the government before entering private business. His perp walk was almost as bad as Martha Stewart's (not pictured). It's somewhat curious who the government decides to walk and who it doesn't (Rush Limbaugh, e.g., didn't get one because he turned himself in, and Wesley Snipes didn't get one because he was too much of a celebrity; however WorldCom execs tried turning

themselves in, but got a perp walk anyway). Theoretically, perp walks serve three (3) purposes: to deprive a person of privacy; bolster the image of law enforcement; and humiliate a suspect. In practice, they are unconstitutional, per Caldarola v. County of Westchester (2003), if staged for any purpose other than to boost the transparency of normal law enforcement action such as transport of a prisoner.

THE CULTURE OF COMPETITION THESIS Coleman (2005) is a widely-acclaimed authority on white collar crime, and he argues that all the neutralizations offenders use are rooted in a "culture of competition." This refers to a set of beliefs common to capitalistic societies that hold the pursuit of wealth and success are the central goals of life (i.e., the values of competitive individualism). Getting ahead and being successful is an adults-only, noholds-barred game. It is the American dream on steroids. However, other than formulating the causes and motivations, Coleman (2005) is interested in discovering what can be done to control white collar crime. He proposes four (4) reforms: ethical; enforcement; structural; and political. Ethical reforms involve things like required ethics courses in business school. Enforcement reform involves increasing criminal penalties. Structural reform involves increasing the pay for employees in regulatory agencies.

Coleman (2005) is somewhat sketchy on political reform, but it would most likely involve things that reduce the perceived selfishness of political leaders. As naive as it sounds, the only one of the above reforms which has actually been tried are ethics courses in business schools, and even that hasn't fared all too well, as the following in-depth examination explores: Ethical Reform in Business Schools The idea of ethics courses in B-Schools hasn't caught on very well. After all, these are professional graduate institutions, so the notion of wasting time on ethics is about as foreign as the idea of teaching scientific research methods in law school. Sure, a few places have experimented with "applied" or "business" ethics and even made the subjects mandatory (like at Harvard and Columbia), but most have simply given up (Weber 1990). Friedrichs (2010) reports that most research shows business students have already formed a hardened ethical mindset by the time they get to business school, and any attempt to reshape their high levels of tolerance for "unethical business practices" or "getting ahead by any means" is doomed to have short-lived benefits. In fact, study after study has shown higher levels of cheating and plagiarism in business school more than any other kind of academic institution (Yu & Zhang 2006; Powers 2007).

One promising development, however, is the MBA Oath Movement, a student-led, grassroots initiative launched in 2009 to help professionalize the managerial profession, especially in wake of the 2008-2009 financial downturns. Similar to efforts within some corporations to establish codes of ethics, ethics committees, ethical ombudsmen, and ethics judiciary boards, the Oath Movement aims to help minimize exposure of unethical business practices by discouraging unethical behavior itself. Reasonable doubt exists, of course, whether such efforts represent a serious commitment or are just "window dressing" designed to curry favorable public opinion. Presumably, the Oath is given in a solemn, ceremony-like occasion, and goes as follows:

I will act with utmost integrity and pursue my work in an ethical manner I will safeguard the interests of my shareholders, co-workers, customers and the society in which we operate

I will manage my enterprise in good faith, guarding against decisions and behavior that advance my own narrow ambitions but harm the enterprise and the societies it serves

I will understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my enterprise

I will take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly

I will develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the well-being of society

I will strive to create sustainable economic, social, and environmental prosperity worldwide I will be accountable to my peers and they will be accountable to me for living by this oath

POSITIVE AND NEGATIVE SOCIAL SANCTIONS Positive sanctions tend to have more effect than negative sanctions. This may be because powerful egomaniacs tend to respond better to praise and flattery, or it may be that it is simply true, psychologically, that people in general prefer rewards for good behavior than punishment for bad behavior. What limited research exists on the subject has dealt with nursing home supervisors (Braithwaite et al. 1994) or those involved in tax evasion (Smith & Stalans 1991). Nonetheless, there are some possible applications for this line of research. Public administrators who work in government regulatory agencies could "soften" the way they deliver bad news to some regulated entity while at the same time "play up" or celebrate the good news. A whole series of "exemplary programs" or "model agency" awards could be manufactured and given out, much like how such programs helped jump-start the police agency accreditation movement in the 1980s and 90s. Nor has the value of positive incentive been lost on the Internal Revenue Service, who has time and time again softened their operations in numerous ways, such as increasing the number of private letter rulings as well as tolerance of taxpayer abuse. In fact, at a 2007 Senate hearing, one IRS witness-employee stated: "If the public only knew the number of taxpayer abuses "covered up" by the IRS, there would be a tax revolt." Negative sanctions range from imprisonment to fines to occupational disqualification, and in the case of organizations as a whole, from loss of charter to fines to adverse publicity. The most frequently used negative sanctions are fines, and corporations (as well as rich people in general) have always found it less costly to pay a fine than fix the hazard they've created in the first place, the Ford Pinto case (Cullen et al. 2006) being a prime example of this. Nonetheless, citizen advocates such as Ralph Nader have long argued for an increase to sky-high fines and sterner punishment for white collar criminals, and such ideas appear to merit strong public support (Cullen et al. 2009). Fines can be issued either in civil court or criminal court, and are the only clear alternative for corporate crime because corporations per se cannot be incarcerated (it also being questionable whether a corporation's assets can be completely taken away from them via asset forfeiture). The criminal justice

purpose of a fine (as a punishment) is to both deter and rehabilitate at the same time. Conceptually, a fine is just supposed to be so much that it is uncomfortable to pay for it. However, as Friedrichs (2010) points out, there is a great debate in this area over whether the appropriate amount of a fine ought to be based on: (a) losses to society; or (b) gains to offenders. Some countries, like England, have vastly increased the amounts of a corporate fine (as well as toyed with the idea of establishing a "corporate manslaughter" offense). In a globalized world, excessive fines force businesses to move overseas; and those who stay simply pass on the costs to customers or shareholders. Corporations often indemnify their chief executives, anyway (except when they have a "fall guy" or "Vice President in charge of going to prison"), and stash away money, anyway for just such occasions, so paying fines simply becomes a cost of doing business. In fact, some companies regard it as a badge of honor to join the $10 million club (the typical penalty for an antitrust violation); a few companies adding a little more to the amount in order to ensure their place in the club. A typical large corporation earns that kind of money back in about nine days. In the long run, as Croall (2001) demonstrates in so many ways, excessive fines are unproductive as a method of social control. A far better idea is community service. Whole businesses can be subjected to this kind of punishment, and it has the added benefit of allowing the offenders to rationalize that something other than a crime was involved. A corporation is normally required to perform community service that is directly related to its crime somehow, as in service to underprivileged neighborhoods or community cleanup projects. While those are noble activities, in other cases, it might be a waste of corporate talent and skill, which would be better put to use helping government agencies operate more efficiently. The possibility of cross-contamination by criminality would be minimized if community service were closely monitored, as it ought to be. Incarceration is a relatively infrequent sanction. Few white collar criminals are sent to prison. However, it is something they fear, and this penalty rests as the strongest deterrent. It is, again, wasteful to put highly competent, skilled, and well-educated people in prison. They are not "dangerous" in the sense of being predatory. Club Feds (where such offenders are likely to go) anyway, are an additional waste of taxpayer dollars. A few parties have suggested the death penalty (admittedly a disproportionate punishment) ought to be on the table. For the foreseeable future, the problem of figuring out which kind of punishments ought to be considered is likely to be with us for some time. http://drtomoconnor.com/4220/4220lect08.htm

EXAMPLES
THE ENRON CASE It was 10 years ago this month that the collapse of Enron precipitated what would become the most complex white-collar crime investigation in the FBIs history. Top officials at the Houston-based company cheated investors and enriched themselves through complex accounting gimmicks like overvaluing assets to boost cash flow and earnings statements, which made the company even more appealing to investors. When the company declared bankruptcy in December 2001, investors lost millions, prompting the FBI and other federal agencies to investigate. The sheer magnitude of the case prompted creation of the multi-agency Enron Task Force, a unique blend of investigators and analysts from the FBI, the Internal Revenue Service-Criminal Investigation Division, the Securities and Exchange Commission, and prosecutors from the Department of Justice. Agents conducted more than 1,800 interviews and collected more than 3,000 boxes of evidence and more than four terabytes of digitized data. More than $164 million was seized; to date about $90 million has been forfeited to help compensate victims. Twenty-two people have been convicted for their actions related to the fraud, including Enrons chief executive officer, the president/chief operating officer, the chief financial officer, the chief accounting officer, and others. The Enron Task Forces efforts resulted in the convictions of nearly all of Enrons executive management team, said Michael E. Anderson, assistant special agent in charge of the FBIs Houston Division, who led the FBIs Enron Task Force in Houston. The task force represented a model task forcethe participating agencies selflessly and effectively worked together in accomplishing significant results. The case demonstrated to Wall Street and the business community that they will be held accountable.
MADOFF's fraud

PREET BHARARA, the United States Attorney for the Southern District of New York, announced the filing of an amended civil Complaint seeking the forfeiture of a total of more than $5.1 million in assets from ANNETTE BONGIORNO. BONGIORNO had spent more than 40 years working for Bernard L. Madoff Investment Securities LLC (BLMIS), the fraudulent investment advisory business owned and operated by BERNARD L. MADOFF, and the assets allegedly subject to forfeiture constitute property traceable to proceeds of MADOFF's fraud.

Today's amended verified Complaint follows the filing of two civil forfeiture Complaints on June 22, 2010, seeking the forfeiture of various assets controlled by BONGIORNO and another long-time MADOFF employee, JOANNE CRUPI. According to the verified amended Complaint filed in Manhattan federal court today, the U.S. Attorney's Office for the Southern District of New York has been able to trace more than $2 million in additional assets under BONGIORNO's controlincluding houses in Florida and New Yorkto her allegedly knowing participation in the massive Ponzi scheme operated through the investment advisory business of BLMIS. The amended Complaint seeks to forfeit property directly traceable to the BLMIS fraud, or property traceable to such property, including the following: 1. A house in Manhasset, New York, for which BONGIORNO paid approximately $1.4 million. 2. A house in Boca Raton, Florida, for which BONGIORNO paid approximately $862,000. 3. Approximately $1.1 million currently or formerly held in accounts at Citibank, Morgan Stanley Smith Barney, and HSBC; 4. A 2005 Bentley Continental, for which BONGIORNO paid approximately $182,605; 5. A 2007 Mercedes Benz, for which BONGIORNO paid approximately $90,000; 6. Another 2007 Mercedes Benz, for which BONGIORNO paid approximately $66,000; and 7. Approximately $1.3 million paid towards a luxury condominium. The United States Attorney's Office for the Southern District of New York will ask that property forfeited in the civil case announced today be liquidated and used to compensate victims of the BLMIS fraud. According to the amended Complaint, a number of former BLMIS employees have already been charged criminally. No criminal charges have been filed against BONGIORNO. Mr. BHARARA praised the work of the Federal Bureau of Investigation; the Internal Revenue Service; the U.S. Department of Labor's Employee Benefits Security Administration and Office of the Inspector General; and the United States Marshals Service. Mr. BHARARA also thanked the Securities and Exchange Commission and the Securities Investor Protection Corporation Trustee for their assistance. This case was brought in coordination with President BARACK OBAMA's Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as a co-chair of the Securities and Commodities Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working

together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

http://www.fbi.gov/about-us/investigate/white_collar
Rider Hosts Business Ethics and White Collar Crime Workshop In order to provide students with a greater understanding of ethics and corporate responsibility in business, the College of Business Administration brought in the experts a CEO, a county prosecutor, a criminal defense attorney and a convicted felon. About 50 EMBA, MBA and undergraduate students attended the Business Ethics and White Collar Crime Workshop on October 13, 2012 in Sweigart Auditorium on the Lawrenceville campus. Dr. Ira Sprotzer and Dr. Susan OSullivan-Gavin of the Marketing, Advertising and Legal Studies department organized the workshop. Guest speakers included Ralph Izzo, chair and CEO of Public Service Enterprise Group Incorporated; James Scott, assistant Mercer County prosecutor; John Furlong, Criminal Defense Attorney; and Sam Antar, a convicted felon who helped mastermind onetime consumer electronics giant Crazy Eddies 20-year run of deceit. Since joining PSE&G in 1992, Izzo was elected to several executive positions within PSEGs family of companies, including PSE&G senior vice president utility operations, PSE&G vice president appliance service, PSEG vice president - corporate planning, Energis Incorporated senior vice president finance and information services, and PSE&G vice president - electric ventures. In these capacities he broadened his experience in the areas of general management, strategic planning and finance. Izzo is a well-known leader within the utility industry, as well as the public policy arena. He is frequently asked to testify before Congress and speak to organizations on matters pertaining to national energy policy. Scott has served as the assistant prosecutor of Mercer County since 2002. Previously, he was an associate at Drinker Biddle & Reath LLP. Furlong is a criminal defense attorney for Furlong and Krasny. His practice areas include criminal defense, white collar crime, and civil rights and first amendment cases.

Antar is a former certified public accountant and chief financial officer of Crazy Eddie, a consumer electronics retailer. The Brooklyn-based chain profited by its practice of baiting and switching customers, bringing them into stores for one product before convincing them to purchase higher-margin items. But, at the same time, the retailer was also reaping millions of dollars illegally by skimming money off of its cash sales, money it would never have to report in sales to the government. In the years since the demise of Crazy Eddie, Antar has spend the bulk of his time speaking to various student, corporate and government groups about fraud and white-collar crime from the perspective of a convicted felon.

http://www.rider.edu/news/2012/10/16/hosts-business-ethics-and-white-collar-crimeworkshop

CASE STUDY
E-Governance and White Collar Crime Control White collar crime has proliferated in the modern civilization due to lack of information availability. It has led to financial loss, social loss, and declining moral ethics. E-governance will achieve the crime control by democratizing information, making the government schemes effective and efficient, and introducing transparency. This case study covers the drivers of the white collar crime and how egovernance can help curb the crime. A case in point of Land Records in India helps illustrate the benefits of the e-governance and its applicability to curb white-collared crime by making the process transparent, accountable, and citizen-friendly. Finally, the case study discusses on how to measure the effectiveness of e-governance initiatives from the white collar crime reduction perspective.

Introduction White collar crime has proliferated in the modern civilization due to lack of information availability. It has led to financial loss, social loss, and declining moral ethics. e-Governance can achieve white collar crime control by democratizing information, making the government schemes effective and efficient, and introducing transparency. White collar crime is a crime of privileged class who cause irreparable damages by exploitative tactics, which is omnipresent i.e. its a global phenomenon. e-Governance has made significant contributions in the fields of economic growth, sustainable development and good governance. Following case study focuses on the drivers of white collar crime, how e-Governance can eliminate it and the risks associated with use of e-Governance and its mitigation or monitoring. This is supported by a case study of Land Records in India.

White Collar Crime in various Domains in India Legal System in India: Currently numbers of cases are pending in High courts and Supreme Court which can be checked online using e-Governance, also the dates for next hearing are available to the parties. E.g. Telgi Scam of bogus stamp papers was having impact of Rs. 80,000 crores, yet no effective remedies are done and the matter is dangling in legal system. Also, in some countries provisions are made to make hearing using Webcam, wherein the terrorists are in Jail, where they were, and no risk and extra cost incurred for carrying them to court. In trade and industry: Santanam committee gives detailed report of criminal behavior of so called respectable men, e.g. big business tycoons, industrialists, public servants etc. Main point is "Corruption exists if there is someone willing to corrupt and capable of corrupting which is found in industrial and

commercial classes, they indulge in evasion and avoidance of taxes, accumulate large black money, dirty money by various methods. For instance, suppressing profits by manipulation of transactions of immovable property by liason or men who live and spend and entertain beyond their means of income disproportionately Financial Institute Fraud: Financial institution fraud (FIF) continues to be a significant white collar crime problem throughout the country. After the deluge of 26/7 in Mumbai, the CBI has refocused its program for the same and is now investigating higher-priority cases to a much greater degree. Large-scale mortgage fraud and identity theft operations, many perpetrated by organized criminal enterprises, also continue to plague India. Corruption in government and politics: This is global phenomena. Prevention of corruption act 1947 amended in 1988 is in practice. Yet, unscrupulous public servants amass wealth and possess disproportionate assets to their known sources of income. E.g. A encounter specialist police official, ordinary sub inspector of police of Mumbai Crime Branch amassed Rupees 225 crores of property in India and abroad. An officer attached to Psychotropic Narcotics Substances Act implementation amassed 250 crores of rupees assets and now settled in USA. One of the best examples of e-Governance is that the Central Vigilance Commissions famous case when it published on its website the names of 34 IAS officers against whom, charges of corruption were proved. The information percolated to millions on the net and led to the social outcaste of those corrupt officers. Public servants have meager salary and they have pressing needs of life and greed for modern luxury are reasons for corruption which is epidemic and found nearly in all public offices. Only its magnitude, degree and proportion vary. Similarly political corruption includes grafts right from stage of giving ticket to election, abuse of political offices i.e. 1 dozen MPs (Members of Parliament) were punished for asking question in Parliament, at cost, proven by sting operation. There is rampant violation of election laws (representation of people act) Tul MohanRam Episode, Mundra Sirajuddin affairs involve high ranking officials like cabinet ministers etc. In short, it can be said that the criminal justice system is not delivering and there is serious erosion of peoples faith in its efficacy. It is commonly accepted that corruption is dysfunction to the system of governance and to society as a whole. Forgery: Another growing form of white collar crime. It includes all sorts of forgery, varying from land record papers to Supreme Court judgments. Violations of Foreign exchange regulations and import export act: This is more prevalent among businessmen who do under invoicing of export goods and over invoicing of import goods thereby harming National economy. This can be avoided by adding transparency to the process which is the key to the problem. Violation of tax laws: Tax evasion and tax avoidance, demarcation line is thin i.e. non-payment of

tax which is to be paid and spreading of total income in such a manner that it does not incur tax liability legally, respectively. The loss incurred to state exchequer due to violation of tax is tremendous. Actual tax paid is only a fraction of total income, remaining of which goes to black money. Santhanam Committee report gives flow-sheet of tax evasion by various groups of several crores of rupees. Tax regulatory acts enforcement is in full swing. However, black money is converted to white money by various methods which adversely hamper economy of the country.

White collar crimes in various professions in India: Legal Profession: Preparing false and fabricated claims , fabricating evidence delaying litigation by colluding with opposite party, adopting unscrupulous tactics, violation fo ethical norms of legal profession i.e. Advocate act 1961, converting criminal lawyer to lawyer criminal Engineering: The underhand dealing in getting tenders passed for contractors, suppliers showing oversight of the use of sub-standard materials for constructions and thereby buildings are collapsing prematurely say within 25 years. Falsification of records, frauds, if the original tender of a lowest bidder is X the completion cost of the project is usually 3X/4X which proves there are totally time-overrun and cost-overrun of the project though there is project monitoring on paper through PERT charts. This leads to multicrores of rupees losses in every project and social cost of delay of project are very huge. Educational Institutes: Private educational institutes e.g. not even approved by Delhi AICTE, run private engineering colleges admission to which is given without merit, also institutes running on government aid make fake and bogus enrolment of students, give meager salary to teachers while getting signature for full salary defrauding large sums of government grants. Large sums of Government grants, issue of fictitious bogus manipulative certificates, collection of unauthorized donation in the name of bldg funds, issuance of fake degrees and diplomas by unrecognized institutes even professors are taking bogus PhDs at cost and getting enhanced salaries. Money laundering techniques: Black/dirty money converted into white. Black money means not obtained from legal activities i.e. obtained by corruption/ held in secrecy to avoid income tax liability and circumvent restrictions by laws of the country and dirty money is obtained thru completely illegal means i.e. it can be hidden in Swiss banks but cannot be used by the holder until there is special scheme declared by government like amnesty scheme thus its converted to clean money e.g. trafficking illegal drugs generate enormous qty of dirty moneys. Concealing its origin, ownerships and other potentially embarrassing factors by investing it to benami properties (unfortunately legitimate in India)

What Drives a White Collar Crime? Firstly, let us know what white collar crime is? White Collar Crime is a term that has been coined by

Sutherland as crime committed by a person of respectability and high socioeconomic status. i.e. its illegal act characterized by quite deceit and concealment without single drop of blood or violence. Edelhertz further adds to it that it is committed by neophysical means and by concealment/guile to obtain money or property, to avoid payment, or loss of money or property or to obtain business or personal advantage. The drivers of White Collar Crime are: Greed: A primary driver of white collared crime is greed for pursuit of money, wealth, power, food, or other possessions. Greed also breeds corruption which is inherent in any public sector services and government services in India. We need to deter greed, for which e-Governance increases transparency and hence reduces greed. Control and Power: The white collar criminals want to exercise the complete control and power of the system in their hands and enjoy benefits of it (by both, good and bad means). Job Security: People want to make sure that their future life is secure until they are on the job. Following are the repercussion of these crimes: Financial Loss: Financial loss by the white collar criminals is greater than financial loss from burglaries, robberies, and larcenies is minimized using e-Governance. Social Damage to morale & institution: White collar criminals destroy the moral and promote social disorganization. Since crimes are violations of trust, they create and extend feeling of distrust. EGovernance keeps government a trustworthy body for people. Privileged class deviance: Misuse of official power, favoritism, change in land use pattern, undervaluation of house and land price, etc. are generally done with cooperation of government officials or the relevant parties in absence of e-Governance.

Role of E-Governance to Reduce White Collar Crime E-Governance is improved communication between the government and the citizens i.e. Governments have been putting out vast amounts of material on the Internet. A fair number of these would be available in hard copy. It is advantageous on the part of the governments to provide information online because of quick communication and reduction in printing and stationery costs. The internet connects citizens together and also connecting them to government. Such lobbying may be done through e-mail, listserv, discussion board and the like. Again, this role encroaches into the medias traditional role as a window for lobby groups. Electorates can be hooked directly to enable them to vote or voice their opinion on a wide range of issues. Voting online, touch-tone telephones, voice signatures and digital signatures can become real and

people can shape opinion from their homes or nearby Internet kiosks. Some countries have already gone in for online referenda to settle specific issues. e-governance can also help fight corruption. The fact that it brings in a much-needed measure of transparency can act as a check against corruption. Aided by the political and administrative will, e-governance can definitely battle corruption. But the traditional role of the media as a watchdog against corruption will not disappear in a digital democracy. e-Governance makes its possible to maintain a think-tank for government and for country and for society at large, and to avail prizes of 20% amount to establish disproportionate assets of corrupt officials and burden of proving innocence should be on the alleged corrupt officials It also avails fast track courts to establish criminality of the corrupt officials on day to day basis. The properties of the corrupt officials should be attached at the first instance and to be released iff he is proven innocent in the court. Similarly, all the bank accounts in his name and in the name of his relatives/friends of suspicious nature must be frozen till proceedings is pending. With e-Governance, we can anticipate trends in technology, in international economic relations etc. and advice government about the measures which can be taken to put the trends to work. We must create awareness in people about steps to be taken and thereby prepare them for hard decisions like social boycott on white collared criminals and attach stigma to them for the lifetime. Encourage public interest litigations against white collared criminals for bringing them to books immediately. At the same time, false allegations should be deterrently penalized. Easy monitoring of all projects and schemes so as to minimize cost and time over-runs and makes them more productive and effective. Evaluating impacts of projects and schemes, and thereby make changes required in them becomes easy. This is obtained using Impact Assessment Table which has the priority of components of the Risk factors i.e. Process, Cost, Schedule and Support. Along with e-Governance, following points are recommendations for its effective utilization: There should be expert advisor to Prime Ministers office in all such matters and there should be commission which should make finding public in all probe cases against white collared criminals and there should be public notification in all leading newspapers in all languages at the cost of white collared criminal. There should be midyear review of the economy of assumptions made in the budget and policies set out in it are faring in practice and take corrective measures and its assessment of states. Mechanism must be devised for commission to make presentations on policy issues periodically,

monthly, quarterly and yearly to: Prime Minister personally and The Cabinet Committee on economic affairs. The structure of organization and staffing of commission must be of stainless character i.e. Ceasers wife should be above all suspicions and they must be tested periodically to check their stainless character by intelligent methods and proper surveillance on them under direct control of Prime Minister. Investment planner: Commission should be transformed to body, the principal functions of which are: To frame policy options for government on specific issues which it has to confront and management for maintaining govt funds with performance auditing. E.g. Chronic disease control, waterborne diseases, AIDS, etc, the technologies which can be deployed/developed to contain management for these. Foreign collaboration if required can be taken.

Case Study: Computerization of Land Records- Social Impact Maintaining the records of land and subsequent updation and modifications reflected at Tahsil or Circle or block or subdivision level registrars, being approved by competent authority. Later the master copy at district head quarter is subsequently updated. The subsequent changes in land records due to sale-deed, mortgage, lease, acquisition, partition, availability of irrigation, crops grown, change of land types, etc. Are known as mutation. Any physical change of land plot due to various possible causes i.e. erosion, earthquake or otherwise is reflected in its cadastral data and in map. This will make land records foolproof, so that lowest level Revenue Dept official cannot play any mischief. Which otherwise leads to chronic trouble to the owner of the land. As its a rampant corrupt practice in the manual land record system, with many lacuna. E.g. lack of standardization, hand written sometimes, difficult to retrieve data from land registers, the wear and tear further creates chronic difficulties. Its susceptible to manipulation, large chunks of land belonging to government, reserve land, forest land protected areas are manipulated by mischief mongers. E.g. On forest lands Mumbai buiders have encroached and it lead to historical agony of the flat purchasers ie. Innocent victims of the crime are 5, 00,000 citizens in Mumbai. The poor and underpriviliged are the worst sufferers as they have little idea of Records of Rights (ROR) and ownerships are diverted to private owners by land mafias, in league with corrupt revenue officials i.e. marshy lands adjoining to link roads in Mumbai are grabbed by land mafias in western suburbs. E-governance is of major significance because it uses computers in processing information in which speed is an inherent component. A single computer can process the information within seconds, which cannot be done by hundreds of employees for years together. It enables us to simplify the rules. Example: Bhoomi Project of Karnataka Government, which computerized the twenty million land

record containing about 1billion data fields. It addresses the concerns of 7 million farmers families or 35 million rural populations. Nine thousand village accountants were maintaining these records manually in earlier system. In the new system, 177 Bhoomi kiosks distribute computerized land records, 750 Village Accountants maintain its backend. Rs. Eighty million user charges have already been collected as against total investment of 180 million in the first two years itself.

Problems addressed by e-Governance for Land record system in India: Unmanageability: Due to population explosion, rise of mutation, maintenance of land records becomes unmanageable, manual compilation of records is time consuming and cumbersome. Revenue staffs are already overloaded and also engaged in other activities e.g. Conduct of elections, relief and rehabilitations, medical gains, implementation of government schemes, issue of certificates. Difficulty to inform Land reform act: Ceiling surplus land act, ownership right to tenants, prevention of alienation, and restoration of aliented tribal lands etc. Delay in updation: Inconsistency in various hierarchies leads to chaos, so delay in delivery of land records. So, Record of Rights is nightmare for public. Cumbersome mutation process: No reporting mechanism about pendancy Land Resource Management: There is no record of lands available after mountains are reduced to ground level after stone querrying which are easily encroached by land mafias with help of corrupt revenue official, which is eliminated if there is transparency in process. No link with other institution: It leads to great inconvenience due to non-availability of land data in e-form, increasing litigations, due to defective records at Sub Registrars office. Encroachments on Government land: It goes abated and is difficult to arrest. Expansion of Mafia Raj: It leads to lack of maintenance of law and order.

Advantages of e-Governance in Land Records: Easy access to record of rights and quick delivery. Increase public awareness Transparency Increasing Credit Flow: Since ROR is vital document to acquire financial loan, it helps flow fo credit fund to households and further leads to growth of economy increasing of land sales and purchase. After computerization, it will facilitate quick buy-sell of land resulting growth of economy and revenue to government by stamp duty.

Reduction of disputes Quicker mutation process Enforcement of Land reforms Linkages with other institutes in many states: Judicial Financial Development departments, NGOs etc can have access to land record database. Creation of jobs for local youths Encroachment can be easily controlled and detected and transparency and government / public can easily be admitted. Transparency due to e-Governance: Lack of transparency and accountability in public dealings, are the major reasons of rampant corruption. There should be public participation, where state and central functionaries have to serve or support even correct the citizens else there are violent agitation leading to massacre as experienced at Nandigram near Calcutta in land acquisition stage itself. This means software has to be written to codify rules, procedures and other related government functions and public access should be through IT which leads to success for bringing transparency in administration and management through E-commerce and e-business leading to e- Governance which is definitely possible. Appropriate legal instruments empowering government enable such interactions should be done simultaneously.

Disadvantages of computerization of Land records: Delay in delivery: Unexpected delay in delivery due to frequent load shedding (power cuts), technical snags, and lack of infrastructure causes great inconvenience to public. Non-Conventional Energy can tackle any crisis of energy. Delay in update: A mutation entry is time consuming to update in land register. It should be improved for remote update through mobile technology.

Risks Involved Majority of our population are people who will not be in a position, at least not in the foreseeable future, to search for and access e-Governance services on their own. This in turn emphasizes the need of a mediator (human or machine or a combination of both) who can deliver these services through channels that reflect citizens preferences. The other risks are as under: Structure of government Importance of government identity Structure of economy

Stability at political level The risk mitigation and monitoring must involve: A Sustained Development Approach: Though various projects are going on at various levels yet a future oriented mechanism is required. It can be planned as under: _ Proper planning and working out of each section of the plan related with a project. _ Efforts to find out the relative cost and impact of the selected way of working. _ Networking of government departments. _ Encouraging utilization of electronic means of communication between Government and citizens. _ ICT training to the decision-makers and workers as e-Governance can be initiated through technology but it can be sustained only through e-literate employees. _ Establishing information management standards. _ Raising efficiency levels through cost management and process improvements. So, we must begin any e-Governance project with Project Planning with Management Information System concepts. Initially, in any project, goal identification and its feasibility prediction is to be done. Technology to be used is to be determined. Then, we must decide who will do what work. The risks arising of the above disadvantages can be mitigated by sustained development and good systems architecture design and implementation using PERT (Project Evaluation and Review Techniques) & CPM (Critical path Method) techniques to evaluate the risk and mitigate it when necessary and monitor it when needed. Risk identification and Risk projection are major parts to avoid disadvantages of e-Governance. Anticipating problems, determining the probability of problems occurring, evaluating the potential impact and repairing solutions in advance requires considerable effort. Further, it is necessary to develop a contingency plan a course of action for each potential problem identified in the project risk profile. Carefully examine each problem and develop one or more alternative solutions. Contingency planning is a form of insurance and comes with a price. The tradeoff is that a problem that has been identified, with a solution developed in advance, is far simpler and cheaper to resolve than one that occurs unexpectedly.

Areas where E-governance can control white collar crimes Legal System in India: e-Governance will enhance the working of judiciary as the status of the cases pending in High courts and Supreme Court can be checked online, also the dates for next hearing and many more. Election ID and e-Governance: There must be a single citizen ID card for all govt schemes. There

should be integration of IT based government services and their e-delivery. E.g. Gyandoot in Madhya Pradesh, e-Seva in AP, Friends in Kerala, in Maharashtra, Rajasthan, and Tamil Nadu now provides online registration of property transactions. In Mumbai there is registration of births and deaths by BMC. In Karnataka, totally computerized land records under Bhoomi project. There should be computerized transactions of treasury in all districts and Taluka. There should be monitoring of public grievances and disaster mgmt systems under control of Chief Minister. E-documents: Forgery is major part of white collar crime which takes place by bribing corrupt official, with partnership. Forgery can be avoided by matching the documents with original by means of PKI. Moreover, many employees, in an organization, know about the corrupt practices and want to complain but do not do so due to the fear of wrath from senior officers. For the fear of disclosing their identity, they do not report it to the vigilance department. E-Governance renders golden opportunity to such people to alert concerned officials through Email, E-forms, and Ecomplaints. Right to Information: The right to information envisaged by electronic governance presupposes decentralization in power structure and decision-making. E-governance is a tool for connecting people and sharing information. It will result in improved transparency, speedy information dissemination, higher administrative efficiency and improved public services in sectors such as transportation, power, healthcare and local administration.

Concluding Remarks White Collar Crime erodes the faith of the general public in the legitimacy of the politico-administrative system and eventually saps the idealism of those in public service and thus destroys the moral fabric of society. It is the main reason for social unrest in any society. In many countries the Governments have toppled down on the charges of corruption. In short, corruption-ridden governance is termed as Bad Governance. E-government can lead to transparency provided that the legal framework supports free access to information. E-governance initiatives have played a key role in achievement of developmental and social objectives in many countries. We discussed applicability of e-Governance to curb whitecollared crime by making the process transparent, accountable, and citizen-friendly and how to measure the effectiveness of e-Governance initiatives from the white collar crime reduction perspective. Thus, eGovernance provides opportunities to move forward in the 21st century with high quality, cost effective government services delivery and the creation of better relationships between the people and government. But little work has been done to find if e-governance has had an impact at the grassroots. Whatever be the case, even a small provision for downloading application forms has helped eliminate the tyranny of middlemen.

CONCLUSION
In my concluding words I would like to say that if everyone at a particular business or company would keep an eye out for anything suspicious that alone would detour potential thieves. The real solution to this problem is going to have to come from the people who are being affected by it. They are the most likely to stop it. They cannot let anyone take advantage of them anymore. Most do not give white collar crimes much thought because they are only things that they read about in newspapers and hear on the news. If these crimes continue to grow at the present rate, they will be out of control before we know it. Therefore, to conclude, it can be inferred that whatever reasons of justifications are there for the methods used for the control of white collar crimes, the ambivalence of the social response to this sort is so related to wider social factors which have both objective and subjective dimensions. As has been so mentioned a more subjective source of ambivalence in the social response to white collar crimes is the assumption that there is less public concern about these behaviours so termed as white collar crimes, and therefore there is a less support for severe sanctions than in the cases of crimes which are traditional street crimes. But even if there was greater public ambivalence towards white collar crimes in comparison to the traditional crimes, writers such as Box has regarded this as a further challenge to sensitize people to not seeing processes in which they are victimised disasters or accidents. Therefore, the motto should always be prevention is better than cure. Since the acts involved defrauding public faith and belief, public as a whole mass should come forward to protect the whole society from these greedy people who are destroying the ethics and morality of the society slowly and slowly for their sole aim of pursuing narrow self interest.

Benson, M. & Simpson, S. (2009). White collar crime: An opportunity perspective. NY: Routledge. Friedrichs, D. (2010). Trusted criminals, 4e. Belmont, CA: Thomson Wadsworth.