Introduction

There are certain professions that offer lucrative opportunities for criminal acts and unethical practices which often go unnoticed by public. There have been crooks and unethical persons in all kinds of businesses and they tend to become unscrupulous because of their neglect at school, home or at other social institutions where people get trained for “character building and social values.” These deviant individuals have no regard for honesty, loyalty and every other social value. Therefore, they carry on their illegal activities without the fear of loss of social status and prestige. Lord Acton has rightly quoted that power corrupts, and absolute power tends to corrupt absolutely. Whenever citizens become apathetic to the working of government, corruption and alliance between public servants, politicians and criminal, the world becomes rampant resulting in crimes such as breach of trust, fraud, tax evasion and other such malpractices. The crimes of this nature are called “white-collar crimes.”

Definition of White Collar Crime

The concept of “white collar crime” found its place in criminology for the first time in 1941 when Sutherland published his research paper on white collar criminality in American Sociological Review. He defined white collar crime as a “crime committed by a person of responsibility and high social status in course of their occupation.” Hence,  a white collar criminal belongs to upper socio-economic class who violates criminal law while conducting professional qualities.

Sutherland also stated that white collar crimes are more harmful to society than ordinary crimes because the financial losses to society from such crimes is far greater than the financial losses caused by burglaries, robberies and larcenies.

Sir Walter Reckless says that white collar crime represents the offences of businessmen who are in a position to determine the policies and activities of business.

Classification of white collar crime

Various white collar crime can broadly be divided into four major categories:

1. Ad hoc crimes – they are also known as parsonage crimes because in this category of white collar crimes, the offender pursues his own individual objective having no face- to- face contact with the victim. Some common types of ad hoc white collar crimes includes hacking on computers,  credit-card fraud, tax evasion, etc.
2. White Collar Crimes involving breach of trust or breach of faith bestowed by individual or institution on the perpetrator. Insider trading, financial embezzlement, misuse of funds, fictitious pay rolls are some common examples of such crimes.
3. Individual occupying high position or status who commit crimes incidental to, and in furtherance of their organizational operations. People occupying high position commit such crimes, not because it is there central purpose, but because they incidentally find an opportunity during the course of their employment to gain quick-money or gain undue advantages by using power or influence.  Some of the most well-known examples of such crimes are the 2G Spectrum Scam, Coalgate Scam, Commonwealth Games Scandal.
4. White collar crime may also be committed as a part of business itself. Violation of trademark and copyright, patent law or competition law falls under such category of crime

Factors contributing to white collar crimes

The economic and industrial growth throughout the world has been the most potential cause for invest in white collar crimes in recent years. The changing socio-economic scenario of the society coupled with increase in wealth and prosperity has furnished opportunities for such crimes.

The Law Commission on its twenty-ninth report observed that modern scientific and technological developments and monopolistic trends in business world have led to an enormous increase in white collar crimes in India.

One more reason for multiplicity in white collar crimes is relatively high socio-economic status of such criminals. They belong to influential group which is powerful enough to handle their occupation tactfully and persons affected thereby hardly know that they are being victimized.

Marshal B. Clinard has said that the problem of white collar criminality has its roots in competitive business community which tries to oust their rivals and competitors in order to earn huge profits. Sometimes such crimes are committed merely for the sake of retaining existence in the marketplace. For example, though there is a prescribed code of ethics for practicing lawyers, but since their nature of profession involves the spirit of combat they often resort to unlawful tactics and unethical practices such as concealment or misrepresentation of facts,  which if detected, is punishable by law.

White Collar Crime in certain Professions

Professions involving technical expertise and skill provide sufficient opportunity for white collar crimes. They include medical profession,  engine,  legal practice etc.

Medical Profession

White Collar Crime in this profession includes issuance of false medical certificates, helping illegal abortions, secret services to dacoits by giving expert opinion leading to they acquittal and selling sample drugs and medicines to patients or chemist. Dilatory tactics adopted by the members of medical profession for treatment of their patients with a view of extracting huge sum of money has now become a common practice.

Another way by which white collar crime is carried out is by fake and misleading advertisements. They make misleading and illegal claims of medical cute through advertisements in newspapers, magazines and all other modes of advertising, thus adding to a patients misery.

Engineering

In this profession, underhand dealing with contractors and suppliers, passing of sub-standard work and material are some common examples of white collar crimes. Using sub-standard material for construction of road, buildings and bridges not only endangers public safety but also results into huge loss to public exchequer.

Legal Profession

The instance of fabricating of false evidence, engaging professional witnesses, violating ethical standard of legal profession and dilatory tactics in collusion with ministerial staff of courts are some of the common malpractices followed by legal professionals. Perhaps it is the peculiar nature of their profession that the lawyers and advocates have to resort to unethical tactics in order to survive in the profession.

Fake Employment Placement Rackets

The sol called manpower consultancies and employment placement agencies deceive youth with false promises of providing them white collar jobs on payment of huge amount ranging from 50 thousand rupees to two lakhs or more. The modus operandi of these placement rackets operators is simple, they issue advertisements in leading dailes offering jobs in blue- chip companies and when a highly educated person approaches them, the person running the placement office convinces him that he is in good books of the management of some reputed firms. They then collect a “registration fee” and later contacts them at their residence claiming himself to be a company’s representative or they conduct interviews via telephone. Once they have gained the candidates confidence, they extract money from them and issue fake appointment letters.

Scams in India

In recent years there have been many big scandals in India, some of them are:

Satyam Computer Scam (2009) involving manipulation of accounts by Chairman Ramalinga Raju of Satyam Computer company to the extent of US $ 1.47 Billion

2-G Spectrum Scam (2008-10) involving 175 thousand crore rupees allegedly at the behest of  the then Tele-com Minister A. Raja.

Commonwealth Games Scandal (2010) involving large scale misappropriation of money by politicians and bureaucrats estimated to be 70,000 crore rupees.

Robert Vadra Land Scam (2018) land deals with crores was purchased on a throw-away price in Bikaner and Haryana by Robert Vadra. The general security of Congress Party and brother-in-law of Congress’s President Rahul Gandhi.

Vijay Malya’s Loan Default (2018) of over Rs. 9000 crores to twenty banks.

Punjab National Bank Scandal  (2018) dwindling over 1200 crore rupees by jeweler Nirav Modi and Mehul Choski who fled away to USA to avoid arrest.