White Collar Crimes and Organized Crimes: A Comparative Analysis

With the increase in firms and corporate sectors, there is also a huge hike in White Collar crimes, i.e. financial crimes by deceptive means. This term is often confused with Organized crimes. This articles talks about a comparative, in lay man's terms and also legal terms.

The two most interchangeably used terminologies in the legal world yet similar looking for a layman are White Collar Crime and Organized Crime. This article would provide for the actual meaning, the similarities, and the differences between both these terms. Both these categories of crime attracted the U.S Justice system in the 20th century which imposed larger costs on society than the usual street crimes. Both these categories of crime were committed through the enterprises.

White Collar Crime

White collar criminals seek to profit from the legal businesses in non-violent ways. The term white-collar crime was first used by Edwin Sutherland in 1939 as “a crime committed by a person of respect and high social status in the course of his occupation”. The term in itself means crime committed by people wearing fancy suits professionally. White collar crime can be committed by one person or a group of individuals.

White collar crime is a standout amongst the most exorbitant violations to society. Close to the finish of the 20th-century White collar crime was costing U.S organizations some $400 billion a year, or around 6 percent of aggregate income in the country. White collar crime is an illicit movement led inside what are regularly legitimate business exchanges. They can include managing an account, Stock exchanging, Insurance claims, Embezzlement, Ponzi schemes, bribery, and fraud.

Organized Crime

Organized criminals extract profit from illegal businesses which may further include violent and physical intimidation. It can also include the formation of groups active for terrorism motivated by political rather than financial gains.

Organized crime is generally committed by a large number of people having higher positions and numerous members under them. It is carried out in the ambit of illegal activities such as drug trafficking or smuggling. Organized criminals usually use extortion to get something, particularly cash, through force or threat. The organization commonly exploits companies and individuals by stealing their vehicles (to either trade or take apart or sell its parts), theft, misrepresentation, falsifying cash and rigging public projects. These criminals use violence as a permanent means to achieve what they want. The real damage or bodily injury is caused to person those who do not follow or the members themselves who do not do their part of work sincerely or do not comply with the tasks assigned.

Also Read  Whether Fundamental Rights can be restricted by an Ordinance?

The organized criminals use illegal businesses to gain financial assets which are again not possible to be placed in the banks for which the money laundering process is done which is again against the morale of the society. Other than money laundering these criminals use the illegal money to invest it in real estate or vehicles or any other tangible assets.

Similarities between White Collar Crime and Organized Crime

While there are a bunch of contrasts between the two, similarities do exist between the two categories of crime. Both terms allude to wrongdoings that are submitted inside the appearance of a lawful operation, whether as a company or a lawful cover business, for example, garbage hauling. Both terms incorporate wrongdoings that might have singular casualties like cheating organizations or stealing government financing. And both these terms by and large allude to an amplified arrangement of violations conferred together in promotion of benefit, for example, a blend of blackmail, extortion, and theft.

Differences between White Collar Crime and Organized Crime

There are vast differences between white-collar crime and organized crime. White-collar crime does not include violent offences while organized crime often includes violent offence. White-collar crimes are generally punishable individually and not as a whole while organized crimes are punishable separately as well as together as racketeering which is a legal term for certain illegal acts carried out as a major aspect of a continuous criminal endeavor. Racketeering is punishable under the government law by the Racketeer Influenced and Corrupt Organizations Act, known as RICO. Lastly, white-collar crimes are generally veiled under corporations or other high-level business while the organized crimes are hidden under less esteemed fronts such as garbage hauling, licensed gambling, and auto repair shops.

Also read Crime Victims and Victimology