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Q ) Discuss the concept of white-collar crime, what are the remedies to curb the

white- collar crime?

History
What is the White-Collar Crime?
Examples of White Collar Crimes
Classifications of white-collar crime
What are the contributing factors in white-collar crime?
How the white-collar crimes different from other crimes?
Types of white-collar crime
Fraud
Computer and Internet Fraud
Security fraud
Tax evasion
Money laundering
Placement
Layering
Integration
White-collar crimes in certain professions
Medical profession
Engineering
Legal Profession
Judicial Response
Remedial Measures

History

The concept of white-collar crime was firstly introduced by E.H. Sutherland. His work in the
field of this area attracted the attention of criminologists. He said that there are anti-social
activities that are being carried by the persons of upper strata besides traditional crimes such
as robbery, dacoit, murder, theft, rape, kidnapping, etc.  These activities for a long time were
accepted as the necessary tactics used by the professionals for the success of their business.
Thus, if any person wants to file the complaint against such activities, the complaint was
remaining unheard.

After the analysis of Sutherland, in 1934, Morris drew the intention that anti-social activities
that are being used by the high-status persons in the course of their business or profession
must be brought within the category of crime and these activities should be punishable.

Classes and powers of criminal court

E.H. Sutherland emphasized that the “upper world crimes” which are done by the high-status
person in the course of their profession should be termed as “White Collar Crimes” and the
traditional crimes should be termed as “Blue Collar Crime”. The distinction could be based on
the extent of presumed respectability.

For example, if a person belongs to the respectable class and possessing good reputation in
the society, sells shoddy goods to another person, he is committing the White Collar Crime,
but if a person who is unknown to their victim, do the same thing, he will not be doing the
white-collar crime. 

What Is The White-Collar Crime?


White-Collar Crime is a nonviolent crime which is committed by a person of high status for
financial gains. The motive behind the whiter collar crime is to obtain or avoid losing the
money, property, services, or to secure the business. 

Examples Of White Collar Crimes


White-collar crimes include securities fraud, tax evasion, and embezzlement, money
laundering, and corporate fraud.

Classifications Of White-Collar Crime


Broadly the white-collar crimes can be classified into four major categories, such as:-
Ad hoc– The offender pursues his objective having no real contact with the victim. For
example, hacking on the computer, credit-card frauds, etc.
White-collar crimes including the breach of trust or faith. Example, misuse of funds,
embezzlements, etc.
The use of the high position to commit crimes also comes in the category of white-collar
crime. Example, 2G scam, Coalgate Scam, etc.
Violation of trademark or copyrights also comes under this.
 
What Are The Contributing Factors In White-Collar Crime?

Under the 29th report of the Law Commission, it was observed that the modernization and
technological developments and monopolistic trends in the business world are the major
factors in white-collar crimes.

How The White-Collar Crimes Different From Other Crimes?

The major keyword to differentiate between white-collar crimes and other crimes is
“invisibility’ ‘trust’ ’insider’ ‘knowledge’ ‘expertise.

Types Of White-Collar Crime

There are various types of white-collar crime

Fraud
Fraud is one of the most widely recognized kinds of white-collar crime. It works by plotting
confusion and duplicity to secure financial or data gain however unlawful methods. It typically
happens when an individual pays for goods or services yet doesn’t get what he has paid for.

Computer And Internet Fraud


Computer and Internet fraud is characterized as unauthorized access to PC and Internet
services. The access is taken for the misinterpretation of the facts which leads to initiate the
loss. It can be done by many methods like alteration of the documents, putting the viruses,
rewrite the software codes, etc.

The punishment for cyber fraud is two years of imprisonment and a fine of 10 lakhs.

Security Fraud
It is part of the White-collar crime and also known as stock fraud or investment fraud. This
fraud can be done in many ways. Under this fraud, the person will give you false information
about the service which he is providing to the victim. Security fraud can be done in the name
of stockbroker, brokerage firm or organization, etc. This crime mainly includes fraud
information, withholding the key information, bad advice, etc.

Tax Evasion
This is an illegal activity where the person or the company hide their original tax liability and
avoid paying the true taxes. Tax evasion is subject to the criminal offense. It can be both
ways, the person can pay more than his actual tax or less than his actual tax. Tax evasion is
essentially a resistance of tax-paying policies or maintaining a strategic distance from
payment by unlawful methods.  This is more common in the categories of persons such as
traders, lawyers, doctors, contractors, etc. The Income Tax department feels difficult to know
about the real income of the professionals because it is very rare that the person shows his
original income. It is also said that the actual tax paid by these professionals in only a fraction
of the total income. The rest of the money goes into circulation in the form of “Black Money”.

Money Laundering
It is an illegal process to convert black money into white money by concealing the origin or
black money by passing through bank transactions.

In simple words, money laundering is the process of taking the cash earned from illegal ways
like selling the drugs, gambling, and making the cash appears like it is earned from legal ways.
The process which converts the black money into white is called money laundering.

The money laundering is done in three steps placement, layering, and integration.

Placement
It is the process to move the dirty money into legitimate money and away from its source.
People use to send money abroad. Placement of money can be done in many ways like
exchange currency, placing the money into offshore organizations, etc.

Layering
It is the second stage of money laundering. In simple words, it is the process to move the
country through multiple countries so fast that banks fail to detect it.

Integration
It is the final stage of money laundering where the money is successfully put back into the
economy. People usually buy property from this money because it is a very simple way to use
that money.

White-Collar Crimes In Certain Professions


There are also some professions which provide sufficient opportunities for the white-collar
crime: 

Medical Profession
The making of false medical certificates, helping illegal abortions, manufacturing of fake
drugs, etc. comes under the white-collar crimes.

Engineering
The passing of the substandard work and maintenance of bogus records of work-charged
labor are examples of white-collar crimes.

Legal Profession
The instances of fabricating false evidence, professional witnesses, etc. are examples of
white-collar crimes.

Judicial Response
Section 197 of the CrPC 1973 provides an umbrella for the corrupt public officers who were
accused of any offense alleged to them while acting in the discharge of their official duty.

Remedial Measures
In India where large scale starvation and illiteracy, is very crucial problems for the
administration of criminal justice. However, there are some remedial measures which should
be used against the white-collar crimes-

Creating public awareness through the media, press, or other audio-video aids against white-
collar crimes.
Constitution of special tribunals with powers to award the sentence in the cases of white-
collar crimes.
There should be drastic punishment for these crimes. It may help to reduce white-collar crime.
A separate chapter should be added for white-collar crime in the Indian Penal Code.
The punishment for white-collar crimes should be prescribed keeping in view the gravity of
the injury caused to the society because of these crimes.

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