Introduction to White Collar Crime (DLE1043) Course Notes

Course Information and Administrative Requirements

• Subject Name: White Collar Crime.

• Subject Code: DLE1043.

• Department: School of Social Science.

• Course: Diploma in Law Management / Enforcement Management.

• Credit Hours: 3 Credit Hours (typically involving sessions such as two-hour lectures).

• Academic Institution: Goode International College.

• Instructor: Miss Charmani (referred to as Miss Char).

• Platform Logistics:

  • Learning Management System (LMS): All assessments, including tests, assignments, and presentations, must be submitted through the LMS.

  • Student Email Requirement: Students must join the LMS and attend classes using their official college student email rather than personal email accounts. Attendance is automatically generated by the system; failing to use the student email may result in attendance not being recorded.

  • Tutorials: Tutorials are provided on the LMS for each chapter. Students are expected to complete these progressively (Chapter 1, then Chapter 2, etc.) rather than waiting until the end of the semester. Tutorials are not handwritten; students type answers directly into boxes provided in the system.

  • Course Duration: The syllabus is structured over 14 weeks.

Learning Outcomes and Assessment Structure

• Primary Learning Objectives:

  • Understand the historical development of corporate crime, corporate responsibility, and the types of corporate crime existing within the country.

  • Describe common types of corporate crime in detail, including corruption, Criminal Breach of Trust (CBT), misappropriation of property, fraud, forgery, counterfeiting currency, and money laundering.

  • Identify methods to reduce, prevent, and detect white collar crime, alongside understanding challenges and opportunities in responding to corporate crime issues.

• Assessment Breakdown:

  • Test 1: $10\%$ of the total grade.

  • Test 2: $10\%$ of the total grade.

  • Assignment: $15\%$ of the total grade.

  • Presentation: $15\%$ of the total grade.

  • Final Examination: $50\%$ of the total grade.

  • Total: $100\%$.

Syllabus Overview (11 Chapters)

• Chapter 1: Introduction to Corporate Crime.

• Chapter 2: Corporate Crime Responsibility.

• Chapter 3: Types of Corporate Crime Offenses in the Nation.

• Chapter 4: Corruption.

• Chapter 5: Criminal Breach of Trust (CBT).

• Chapter 6: Misappropriation of Property.

• Chapter 7: Counterfeiting Currency.

• Chapter 8: Money Laundering.

• Chapter 9: Reducing and Preventing Corporate and White Collar Crime.

• Chapter 10: Detecting Corporate and White Collar Crime.

• Chapter 11: Challenges and Opportunities in Responding Towards Corporate Crimes.

Chapter 1: Foundations of Corporate and White Collar Crime

• Terminology and Definitions:

  • Corporate Crime: Also known as "organizational crime" or "business crime." It is defined as an illegal or unethical act committed by a company or individuals within a company for the purpose of gaining profit, benefit, or power, or to reduce corporate costs.

  • White Collar Crime: In Malay, referred to as jenayah kolar putih. It specifically involves crimes committed by respected persons of high social status in the course of their occupation.

• Key Characteristics of White Collar Crime:

  • Involved Parties: Typically committed by business organizations or their agents, including directors, employees, executives, senior managers, and junior managers.

  • Nature of the Offense: It is a non-violent crime. While it does not cause physical harm, it results in large-scale financial, social, and environmental impacts.

  • Methods: Often involves deception, fraud, or the misuse of authority.

  • Complexity: These crimes are difficult to detect and prosecute due to complex corporate structures and the influence of the high-status individuals involved (e.g., VIPs or VVIPs).

Historical Development of Corporate Crime

• Early Period (Pre-20th Century):

  • Corporations were recognized as legal entities created primarily for trade and economic activity.

  • During this time, only individuals were recognized under criminal law as being capable of committing crimes.

  • Corporations were viewed as "artificial entities" and were well-protected from criminal responsibility. Punishment was directed at individuals through imprisonment, fines, or personal liability.

• Industrial Revolution (18th and 19th Centuries):

  • This era saw the growth of corporate entities along with negative outcomes such as workplace accidents, long working hours with low pay, and poor safety standards.

  • These issues prompted the development of corporate crime law and the introduction of concepts like corporate responsibility and negligence.

• 20th Century (Recognition of Corporate Liability):

  • Corporate criminal liability became widely accepted. Companies could now be held legally responsible for crimes.

  • Edwin Sutherland (1939): Introduced the concept of "White Collar Crime," defining it as crimes committed by respected and high-status persons (e.g., those in top positions with significant power and money).

  • An example of a case mentioned in this context is the MDT case.

• Modern Era (21st Century):

  • The scope of crime expanded to include cybercrime, offline offenses, environmental violations, money laundering, and data privacy/information breaches.

  • Emphasis shifted toward ethical business practices as a primary (though not sole) solution to prevent corporate crime.

Corporate Crime Responsibility Models

• Individual Responsibility: Only the specific individual (e.g., a manager, PA, or employee) involved in the illegal act is punished.

• Vicarious Liability: A situation where both the company and the employee are held responsible. The company is liable for the wrongful acts committed by its employee during the course of employment.

• Corporate Liability: The corporation itself is treated as the entity committing the offense.

  • Punishments for Corporations: Fines, compensation, suspension of operations, cancellation of business licenses, or disqualification of the company.

Factors Contributing to the Growth of White Collar Crime

• Global Businesses: Companies operating across many countries make it difficult to catch illegal activities as money moves across international borders (money laundering).

• Technology: The rise of the internet and computers makes committing crimes (hacking, online scams) easier. Law enforcement often lacks the specific skills, resources, or equivalent technology to detect and punish these criminals.

• Pressure to Make a Profit: The intense drive to reach high targets and profits can lead employees to cheat or act unethically (e.g., in insurance sales).

• Public Trust: Societies often trust large companies implicitly due to their marketing, branding, or background, making them susceptible to being misled.

• Legal Loopholes: Gaps or weaknesses in the law allow influential individuals (politicians, VIPs) to use their power and money to escape legal responsibility.

Questions & Discussion

• Student Introductions:

  • Kamini: A student who recently returned from Australia to Malaysia.

  • Sharanya: An 18-year-old full-time student from Ipoh.

  • Tanishwarin: A 19-year-old from Johor Bahru (JB) who is currently working as a trader.

  • Tibyashree: An 18-year-old full-time student from Malacca.

• Student Question: "Is the tutorial handwritten?"

• Miss Char's Response: No, everything is typed. Questions and text boxes are provided in the LMS for students to type their answers and submit.

• Student Interaction: Miss Char requested a student (Christina) to create a WhatsApp group for the class and shared her phone number for that purpose.