FPSYC3900: Economically Motivated Crime (Definitions)

Lecture 9

White Collar Crime

A crime committed by a person of respectability and high social status in the course of their occupation

• Crime that occurs in a workplace setting

• Not a specific Criminal Code offence

• Does not preclude violence

Theft

Taking something that belongs to someone else

Theft - section 322 of the Canadian Criminal Code

everyone commits theft who fraudulently and without colour of right takes, or fraudulently and without colour of right converts to his use or to the use of another person, anything, whether animate or inanimate, with intent

• indictable or summary offence

Fraud

Using deception to take something that belongs to someone else

• Under $5,000 and over $5,000 (s. 380 of Criminal Code)

• Some frauds are white-collar crime

Organized Crime Groups (OCGs)

More than 3 persons; exist for commission of serious offences in order to derive material benefit (s.467.1 of Criminal Code)

Mass Marketing Fraud

Organized crime groups in Canada target Canadians and consumers in other countries, including the United States and Australia. Top mass-marketing fraud schemes include prize/sweepstakes/lottery and gift schemes, Internet auctions, and vacation giveaways. Canadian mass-marketing fraud grosses over $500 million annually. Canadians are also targeted by foreign fraudsters from approximately 105 countries.

Mortgage Fraud

Organized crime groups operate a number of schemes involving fraudulent mortgage applications that contain false information about the prospective buyer or property through the use of false appraisals and employment records. Organized groups may recruit family members to submit fraudulent mortgage applications to avoid detection.

Payment Card Fraud

Information is transferred from point-of-sale terminals to vehicles nearby and almost instantly transferred to “card factories” (locations where payment cards are manufactured illegally), which can be located anywhere in the world. This presents a lucrative market for organized crime.

Contraband Tobacco

Illegal cigarettes are primarily supplied by organized crime groups based in Ontario and Quebec. It is estimated that approximately 22% of the cigarettes smoked in Canada are illegal. Of these, some are legitimately manufactured, smuggled, and illicitly sold through Aboriginal reserves.

Intellectual Property Rights Crime

Organized crime groups are involved in the illegal import of counterfeit goods into Canada, mainly from China. Sometimes these fakes are difficult to detect and make their way into the legitimate market without the supplier or customer knowing. Counterfeit goods are sold on the Internet and through classified ad sites.

Vehicle-Related Crime

Primarily in Toronto and Montreal, organized crime groups are involved in the theft of vehicles, changing VIN numbers once obtained. These cars can be exported or disassembled, and the parts resold. Few vehicles are exported internationally. Some organized crime groups are involved in staging collisions for insurance fraud

Identity Theft and Fraud

This area is a highly profitable endeavour for organized crime groups with low potential for detection. Not all identity theft and fraud are committed by organized groups, however; some fraud occurs independently. Lower-level criminal groups are usually involved in activities related to identity theft, and mid-to higher-level groups are generally involved in identity fraud.

Sex Work

providing sexual services in exchange for money

• Canada v. Bedford (2013)

• Bill C-36

Human Trafficking

Recruitment, transportation, transfer, harbouring or receipt of persons, by means of threat, use of force or other forms of coercion; abduction; fraud; deception; abuse of power; or giving or receiving payments, for the purpose of exploitation (UN trafficking in persons protocol)

Drug Trafficking and the Drug Trade

The cultivation, manufacture, distribution and sale of substances that are subject to drug prohibition laws

Fraud Triangle

opportunity to commit fraud, pressure to commit fraud, rationalization of fraud

Fraud Diamond

opportunity, pressure/incentive, rationalization, capability (traits and abilities to commit fraud)

Sex Trade

systematic evidence into the reasons for entering, staying in (or returning to) the sex trade voluntarily is scarce

• Anecdotal evidence suggests opportunity and economic necessary play key roles

Interaction Theory

breakdown of positive bonds with society leads to delinquent behaviour and seeking similar peers

Strain-based Theories

OCGs use illegal means to obtain conventional success (wealth) due to blocked access to legal means