WCC Exam #1 Review

What type of teaching approach to WWC does Payne use in our textbook about

WCC?

Systems Approach - committing crimes and responding to those crimes via the systems they exist in

The course textbook organizes white collar crime by systems (political, corporate, financial, etc.) rather than listing individual crimes

(Intro, Understanding, Sales Occupation, Health Care, Social Control, Political, Educational, Economic, Cyber, Corporate, Enviornmental, Judicial Proceedings, Corrections)

Who is the first researcher to provide a WCC definition and create the WCC concept in 1939?

Edwin Sutherland - “Crime committed by a person of a respectability and high social status in the course of his occupation”

What is NAFTA and what effects did it have on the US?

North American Free Trade Agreement. Lifted tariffs and opened trade with Mexico and Canada. Opened up commerce and white collar crime with the globe. 

What are several crime prevention strategies that can be used for retail theft?

Internal

 Policy

 Practices

 Training

 Random check of lockers

 Random audits

 Hire security experts

 Return item policy

 Supervisor monitoring employee

Technology

expensive – gps

 Cameras

 GPS tags

 Tagging expensive items with alarms

 Appliances in new houses not live in yet

Radio frequency identification

 RFID readers at all exit locations can trigger an alarm if someone tries to slip out the door with stolen goods.

 Electronic article surveillance (EAS) system

What is the purpose of the Better Business Bureau? Is it a profit or non-profit? Why would a business belong to it?

Nonprofit organization, See if businesses have been complained about. Not criminal investigations or government, used as a seal or stamp of approval for businesses.

Non-profit

 501(C)3

 Does not recommend a specific business

 A+ to F ratings

 Pay dues as a business

 Those in good standing can use the BBB logo

 North America

 400,000 plus businesses belong to it

 719 S. Shoreline, CC

What are some reasons given for why employees steal from restaurants?

 Younger workers

 Low wages

 Lack of theft prevention

 Lack of auditing

 Mistreatment by managers

 Mistreatment by customers

 No controlled exits

 Weak policies

 Lack of surveillance cameras

 Businesses big, small and in-

between – lack of resources

 High turnover

 Stealing from the loading docks or

using garbage areas outside to

conceal items

Hotels have the biggest percentage of thefts committed by who?

Employees (90%)

Charging cash customers higher rates and keeping difference

 Wild fluctuations in prices – supply and demand re: weekends, special

events etc.

 Theft – items from room

 Credit card abuse

 Theft of hotel items for room

 Theft of food, etc

What is the FTC and what does it do? Does it conduct criminal investigations?

Federal Trade Commission, enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The commission also enforces federal antitrusts laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices or less innovation.

What is the US Supreme Court case “Weeks v. United States” known as?

Gambling case, Weeks v US, exclusionary rule. Law enforcement must follow 4th amendment in order to protect evidence

exclusionary rule because it "excludes" illegally obtained evidence from a trial.

protected 4th amendment rights

Is there an agreed upon universal definition of WWC?

No universal definition, Has standards to meet, violating criminal law, business and financial and position involved, occupation, usually no violence but something in return for crime

What’s the difference between conducting experiments in social science & “hard”

sciences? Which is more difficult?

 Social sciences difficult to experiment, more than hard sciences

 Observation cause & effect

 Difficult to isolate a variable from others that affect behavior

 Behavior is complex

 Economics is anticipating choices

What is the top complaint about non-US companies? P. 43

Online Shopping, lots of scams and misrepresented merchandise

What are three major ways to form rules & laws?

1. Legislation

2. Case Law

3. Regulatory Rules

What is the difference between probable cause, reasonable suspicion, and proof

beyond a reasonable doubt?

Reasonable Suspicion - “A sufficient reason based on known facts to assume something is true.”

Probable Cause - Information that would lead a reasonable person to believe that a person has committed, is committing or is about to commit a crime. Higher standard than reasonable suspicon. Arrests, warrants, etc

Cant convict without prove beyond a reasonable doubt

How many days does an officer have to serve a search warrant? What are the “four corners” of a search warrant? What is the legal standard required to obtain a search warrant? Who has to approve a search warrant?

Five days, cannot serve an expired warrant and must be returned to the judge. Affidavit included in the warrant when it is presented

only consider the exact text written inside the four corners of the supporting affidavit. [1]

Probable cause is the legal standard

Must be approved by a magistrate/judge

What is an “affidavit”? Who is the “affiant”?

An officer arrests a suspect based on probable cause, then completes a digital arrest affidavit that includes the charges, the elements of the offense, and the basis for probable cause. A field supervisor reviews and approves the affidavit before the suspect is transported.

What are sone of the consequences Payne discusses as a result of WCC? P. 45

 Individual economic loss

 Societal economic loss

 Emotional consequences

 Physical harm

 Positive consequences

Ave. loss per victim much higher that street crime

 Criminal justice support and fees

 Business loss for employee theft

 Emotional issues – trust, public morale

 Physical harm – health problems, stress, sexual abuse, financial loss or ruin

 Positives

 Improving processes in response

 Others learn about crimes to avoid or not do them – prevention

 Bankruptcy

What is Interpol and what does it do? Does it make arrests?

(the International Criminal Police Organization) is an intergovernmental network that connects police forces across 196 member countries to help fight international crime, but it does not make arrests or have its own field agents

What did Martha Steward do that led to her conviction?

• Conspiracy to obstruct, obstruction of an agency proceeding, making false statements - felonies

• Insider Trading Allegations

• Shares lost 16% after she sold them

• Avoided a $45,673 loss, ended up loosing $85 million after conviction ($420m)

• 5 months federal prison 2004-2005

What are the differences between Level II, III and IV security guards? What is the ratio of security guards to police officers in the US?

Level II - beginning option when it comes to becoming a trained security guard. It is considered the “First Step.” To Reach this level you will need to take a course that consists of one six hour session that covers security basics. It goes through topics like ethics, prevention, offenses, report writing, emergency response and more.” (Flashlight, handcuffs, pepper spray, conductive energy weapon.)

Level III - This is the required level to be able to carry a firearm. There is a 45 hour class in which you must pass a written test to become certified to carry a gun. The class combines classroom time, physical instruction on handcuffing, holds and restraints, and weapon retention.

Level IV - Guards allowed to work as personal protection officers, the perform exceptional protection details such as working an even as VIP body guards and backstage security.

Nearly 2 to 1

What are several differences between WCC and street crime?

their level of violence, the setting where they occur, and the type of evidence used to prosecute them.

How many persons does it take to indict on a grand jury? How many serve on a grand jury? Can a grand jury meet multiple times for the same case?

• 9 out of 12 to indict on a grand jury

• DAO officials present to GJ

• yes they can meet multiple times

What 5 countries make up over ½ of all US imports?

Mexico, Canada, China, UK, Germany, Japan in this order

What is the crime triangle?

The Problem Analysis Triangle—also known as the crime triangle—is a framework used in environmental criminology and problem-oriented policing to analyze and stop recurring crime and disorder.

Offender/Victim/Location

What is the parsimony rule for researchers?

Researchers make explanations as simple as possible

 WCC quite complex

 Takes advantage of complex sets of policies, regulations or laws

What is procedural justice?

The principle that the process by which outcomes are reached is as important as the outcomes themselves

holds that the manner in which legal processes are conducted is as important as the final outcome. This means following case law, respecting constitutional rights, and ensuring that a reasonable person would view the handling of a case as fair and lawful. Mark used the Jeffrey Epstein case as an example of a procedural justice failure, where inadequate supervision of a high-profile inmate led to his death in custody and widespread public distrust.

Can a person be hired as a police officer if he/she has a Class B conviction?

Not for 10 years

What is the difference between micro level and macro level theories?

Microlevel - Study individual choices & draw conclusions about behavior

Macrolevel - Societal forces

What is legitimacy?

is the degree to which the public grants authority to government institutions, including police departments, to operate and enforce laws.

The public's acceptance of and trust in governmental and law enforcement authority

What are the four “elements of an offense” required by the Texas Penal Code? Is it legally required to prove the motive for a crime?

A) Forbidden Conduct

B) Required Culpability

C) any required result

D) the negation of any exception to the offense

No, it is not legally required for the prosecution to prove the motive for a crime to secure a conviction under Texas law

Who is the Texas Attorney General and what is unusual about him?

Ken Paxton, indicted federally and still running for senator

 Was under federal indictment

 Felony security fraud – years later, no trial

 Finally settled it

What service does the Texas Attorney General Offer for consumers?

by accepting complaints, filing civil cases in the public interest, and educating Texans on how to spot and avoid possible scams.

What are several ways to avoid being scammed by home service providers such as roofers or swimming pool contractors?

File complaints through the Federal Trade Commission under Deceptive Trade Practices

 Homeowner doesn’t know how to repair it

 Owner may not even know fraud was committed

 Older victims more at risk of being taken advantage of

 Victim unsure who to report offense to…

Deceptive Trade Practices - False advertising

 Saying a service is needed when it is not

 Altering odometer on vehicle

 Falsifying sponsorship by selling an item with an endorsement without

permission

 Using inferior products

What are various ways auto repair people can scam customers?

Don’t need repairs

 Charging for parts not used

 Charging for inferior parts but charging for appropriate part

 Unauthorized repairs

What is a catalytic converter and why are they stolen?

A catalytic converter is an emissions control device in a vehicle's exhaust system that turns toxic gases into safer compounds, and they are stolen because they contain expensive precious metals and can be removed in minutes. [1]

When the catalytic converter has been removed, your vehicle will make a loud roaring sound that'll get louder as you push the gas pedal. Your car might also make a sputtering sound as you change speed, or you'll notice it's not driving smoothly.”

 Less than $2,500 – ytd – 206 lytd – 55 = 275% increase

 More than $2,500 – ytd – 67 lytd – 19 = 252% increase

 New laws make them harder to sell in Texas

What is a normal distribution curve and why is it significant for social science

theories?

a symmetrical, mound-shaped graph where most data points cluster around a central average, while extreme values taper off equally on both sides.

It serves as a baseline for comparison. When social data—such as household income—fails to fit the bell curve and skews heavily to one side, it reveals structural economic inequality.

Is there a Texas Penal Code law titled “White Collar Crime”?

No, not in the federal system either. Embezzlement, fraud, mostly under THEFT in the state of Texas to describe WCC.

What is the purpose of the Texas Penal Code and the Code of Criminal Procedures?

TPC - Contains the general criminal statutes, including theft, assault, and murder.

COCP - Provides the procedural roadmap for how criminal cases are investigated and prosecuted — what steps must be taken, what standards must be met, and how evidence must be handled.

Health and Saftey Code - Houses all drug-related offenses in Texas.

Education Code and Family Code: Also referenced in law enforcement contexts, though less frequently.

What does the “rational choice theory” predict?

Benefits v. consequences

 Economic benefit v. control over your environment or both

What is the “classical strain theory” and what does it predict? Is it a macrolevel or microlevel theory?

Macrolevel forces influence behavior

 Theory focusses on one type of strain - inability to achieve conventional

success

 Strains on interactions between economic and social structures

 Individuals with stress either change goals, or means to achieve goals

 Describes why poor individuals commit crimes, but adapted to WCC also

What is general strain theory? Is it micro or macrolevel?

Psychological approach – broader approach to strain and what may cause criminal

behavior

 Microlevel – individual approach

Stress and frustration to:

 Achieve positive goals

 Not promoted

 Fair pay

Compensate for removal of positive stimuli

 Something of value to employee

 Pay raise

 Benefits

 Position – lost status

Expecting or confronting negative stimuli

 Negative work setting – caused by bosses or customers or both

What is the “conflict theory?

Macrolevel

 Power differential between upper and lower class

 Those with power “exert influence in order to use law as in instrument of

power”

 Over emphasis on street crime, e.g. “war on drugs”

 Deregulation is a transfer of power from government to corporations ( e.g

electrical grids and energy power industry)

 Those in power pass laws and regulations

What was the significance of the Citizen’s United v. Federal Election Commission case law?

Corporations allowed to give political campaigns unlimited funds

 “The Court noted that §441b’s prohibition on corporate independent

expenditures and electioneering communications is a ban on speech and

"political speech must prevail against laws that would suppress it, whether

by design or inadvertence." Accordingly, laws that burden political speech

are subject to "strict scrutiny," which requires the government to prove that

the restriction furthers a compelling interest and is narrowly tailored to

achieve that interest. ”

What does the “Intuitional Anomie Theory” predict?

 Anomie – lack of usual ethical and/or social standards

 Society produces values for financial success but not values for legitimate

attainment

 Regardless of social background, people always want more

 There is no limit to a person’s social status and wanting more

 Enron Corporation good example

What does the Self-control theory say about crime?

(also called the general theory of crime) states that criminal behavior is caused by a lack of individual self-control.

• Nature of Crime: Crimes provide quick, easy, and short-term gains with little planning or skill required. [1, 2]

• Traits of Offenders: People with low self-control tend to be impulsive, risk-seeking, short-sighted, and focused on physical instead of mental activities. [1]

What does the Control theory predict about crime?

crime occurs when an individual's bond to society is weak, broken, or absent.

Instead of asking why people commit crimes, control theory asks why people obey the law. It assumes that everyone naturally has the desire or impulse to break rules, but social ties and internal controls stop most people from doing so

Can a person who knowingly buys stolen property from another person be charged with a crime in Texas?

Yes, a person who knowingly buys stolen property can be charged with a crime in Texas.

Texas does not have a separate criminal charge called "receiving stolen property." Instead, the state prosecutes this act under the general theft statute (Texas Penal Code § 31.03). If you buy or take possession of property knowing it was stolen by someone else, the law treats it as unlawfully appropriating property, which is a form of theft

What is a Ponzi Scheme?

A fraudulent investment structure where returns are paid to earlier investors using funds from newer investors

What is CJIS and what agency is in charge of it?

Criminal Justice Information Systems, computer connecting CJ systems and information

FBI Division

The Criminal Justice Information Services (CJIS) Division is the largest division of the FBI. It serves as a central hub for national criminal justice databases, fingerprint records, and criminal histories

What term does the retail industry use to describe loss by theft?

1. Occurred during course of offender’ work

 2. Offender is a worker

 3. Offense occurred in workplace setting

 4. Selling goods or services

 Theft called “shrinkage”

Organized retail theft - a person commits an offense if the person intentionally conducts, promotes, or facilitiesar an activity in which the person recieves, possess, conceals, stores, barters, sells or disposes…

Who is Micheal Milken and what was he convicted of?

• Junk bonds -a high-yield, high-risk security, typically issued by a company

seeking to raise capital quickly in order to finance a takeover.

• “In 1989, Michael Milken was indicted by a federal grand jury and spent

nearly two years in prison for securities fraud. Milken was pardoned by

President Trump in 2020.”

• Made over one billion dollars in a 4-year period in late 1980s

• He worked for Drexel Burnham Lambert – major international investment

bank – bankrupt 1990

What are some characteristics of WCC suspects?

Prevention

 Probably no physical removal of

items by offender

 What physical location can be

safeguarded?

 No violence involved

 Convoluted means…

Transactions

 Lying

 Misrepresenting

 Bait and switch

 Encouraging crime the way you

supervise

 Organizational pressures to achieve

goals

 Organizational pressures to rise in

status

What agency person signs a grand jury subpoena for obtaining evidence? Can a

police officer sign it?

A prosecutor (such as an Assistant U.S. Attorney or a state District/County Attorney) or the court clerk signs a grand jury subpoena.

No, a police officer cannot sign a grand jury subpoena.

Why was Ford Corporation successfully sued for Pintos?

 Ford engineers knew the Pinto's rear-mounted gas tank was prone to catching fire in rear-end collisions. Rather than issuing a recall, the company conducted a cost-benefit analysis and determined it was cheaper to pay lawsuit settlements than to fix the defect. A subsequent class action lawsuit ultimately cost Ford far more than a recall would have.

What is the legal standard to make an arrest?

Probable Cause

What is classical strain theory?

Macrolevel forces influence behavior

 Theory focusses on one type of strain - inability to achieve conventional

success

 Strains on interactions between economic and social structures

 Individuals with stress either change goals, or means to achieve goals

 Describes why poor individuals commit crimes, but adapted to WCC also

 Conformists – accept goals and follow legitimate means

 Innovators – replace legitimate with illegitimate means

 Ritualists – do not accept goals but play along with system

 Retreatists – least common, show up but don’t work

 Rebels – replace agency goals with their own

Inchoate offenses

refers to a crime that is intitated but not completed.. allows for seperate charges of conspiracy and target offense

Culpability

Intentional (HIGHEST): Person has a concious objective or desire to engage in the conduct or cause the result

Knowingly: Person is aware of the nature of their conduct, that circumstances exist, or that their conduct is reasonably certain to cause the result

Recklessly: The person is aware of a substantial and unjustifiable risk, but conciously disregards it in a way that is a gross deviation from an ordinary standard of care

Criminal Negligence (lowest): Person ought to be aware of a substantial and unjustifiable risk. Failing to percieve a risk that an ordinary person would notice

Exculpatory Evidence:

 Evidence that can materially affect the determination of guilt or innocence in a case

White collar crime

broadly defined as the use of one's occupational position and authority to obtain money or financial gain without resorting to violence. The instructor noted that no single authoritative definition exists, as different authors and legal scholars define it differently. However, for the purposes of this course, the working definition centers on someone leveraging their professional role to commit financial crimes — such as an accountant stealing from clients — while committing a felony in the process.

Theft Classifications

• Class C Misdemeanor: Theft under $100; punishable by fine only (up to $500); no jail time.

• Class B Misdemeanor: Theft of $100–$750.

• Class A Misdemeanor: Theft of $750–$2,500.

• Felony: Theft above $2,500, with increasing severity at higher thresholds.

WCC Payne Defintion

“Any violation of criminal, civil,

or regulatory laws, or deviant,

harmful or unethical actions –

committed during the course of

employment in various

occupational systems…