White-collar crime

Economic crime is the term for crimes with economic compensation. As in Germany, there is no legal definition of economic crime, the Federal Criminal Police Office ( BKA) engages in the assignment of crimes to white collar crime ( see next section ) back to the catalog of § 74c para 1 No. 1 to 6b Judicature Act ( GVG ). The criminal acts may thereby be directed against individuals, other companies or the state.

Around the middle of the 20th century examined Donald R. Cressey causes white-collar crime. He developed one of the best known to date explanations of the causes underpinning fraudulent acts, the fraud triangle. The presented approach of Cressey is also called the Strategic Triangle, doloses triangle, triangle Fraud or crime risk model and is based on interviews with convicted offenders economy.

Relevant German penal provisions are inter alia the Tax Code, the Penal Code, the Law against Unfair Competition, the Money Laundering Act and the Securities Trading Act.

The economic development since the turn of the 20th to the 21st century and especially newly available technologies have led to a new dimension of economic crimes. In the literature they are referred to on the one hand still with economic crimes or white collar crime, on the other hand as well as new terms are as identify financial fraud among others.

Examples of White Collar Crime

• Fraud
• Misrepresentation
• Money laundering
• Insider Trading
• Insolvency offenses
• Industrial espionage
• Corruption
• Piracy
• Tax offenses
• Subsidy fraud
• Embezzlement
• Infidelity

Even unauthorized speculation as the cases of Nick Leeson and Jerome Kerviel belong to the category -collar crime.

For white-collar crime in Germany

Number of cases

According to National Situation collar crime in 2012 from the Federal Criminal Police (BKA ) 81 793 economic crimes were registered in the police crime statistics ( PKS); representing nearly 3% less than in 2011 thus the number of cases at the lowest level since 2007 -. due to the conclusion of a major procedure in the field gang- fraud with 14,589 deeds 2010 in Lower Saxony. The proportion of white-collar crime cases was only 1.4 % (2011: 1.7 %) of the total number of crimes.

In contrast to the BKA, KPMG said in its latest study on economic crime in Germany in 2012: "Every year, nearly 675,000 cases of economic crime committed and known in the company in Germany. " Is not given in the study A basis for this number. Of the 30 respondents of the top 100 enterprises in Germany (selection by number of employees and turnover ) were 18 (56 percent ) are affected in the past two years of economic crime. According to the impugned companies - according to the study - was the number of cases overall economy 308 Nearly a quarter (24 %) of the SMEs surveyed (300) have been adversely affected by economic crimes.

2013 report in a PricewaterhouseCoopers / University Halle- Wittenberg (PwC / UHW ) led survey 45% (2011 52%) of the consolidated companies (603 large companies) at least one claim, under In the study of the public sector in 2010 states that in the last two years, " almost every third authority (29 %) was shown to be affected by at least one criminal offense " and that the involvement of specific suspected cases (? dV ) the likely burden ratio increased to 52 %.

Damage

According Situation 2012 BKA recognized in the police crime statistics economic crimes with 3.751 billion euros in 2012 is about half of the German Police crime statistics reported by crime total damage. This is the amount of loss by approx. 9% lower than in the previous year ( 4.106 billion euros ).

Laur PwC / UHW Study 2013 " amounts the average for all offenses damage to 3.19 million euros, the company most harmed by competition offenses ". For the public sector PwC / UHW has made an extrapolation to the total damage. In the 2010 study, it literally says: "We are ... even at a conservative estimate, assuming that the direct financial damage for the management in Germany are likely to exceed EUR 2 billion annually significantly. " These were, however, not only as the basis of calculation - as usual, and in contrast to the extrapolation of 2007 for the private sector - used the reported crime cases, but also taken the suspected cases as a further basis, so that the dark field was taken into account twice. In an extrapolation to the dark field is only to begin with the fact discovered cases ( cf. extrapolations in the federal or state elections on the basis of counted votes already, not suspected votes ) - but suspected cases are undiscovered acts. Therefore, the amount recognized for the authorities loss amount will be much lower, at most about half of 2 billion €, ie approx. € 1 billion, total.

Problem of BKA statistics and corporate figures

According BKA President Zierke give " the police data ... the actual extent of economic crime is limited again. Primarily, it is the interests of the victims, who have the consequence that only a portion of the committed economic crimes to law enforcement authorities will be displayed. Affected companies fear image and reputation losses. 's internal damage control is often still in the first place. "

In addition, the police crime statistics, the basis of the BKA - able images, only the police reported cases contains. The displayed directly in the public prosecution fraud offenses are, since no reporting requirement, not registered in the PCS.

In addition, neither the not yet discovered the unreported crimes, so-called dark field, are included in the damage numbers, so the actual number of cases is likely to be much greater than the figures given in the bright field of the BKA.

The BKA points out that "the loss amounts recognized in the PKS actually caused by the economic crime overall damage but only partially reflect ", since " be considered in addition to the resulting monetary displayable damage also caused by the criminal acts of moral damages " must and further that " these damages are statistically difficult to quantify and related estimates differ greatly from one another " and therefore " a robust conclusion this is not possible". " Undisputed, however, that just are essential factors for evaluating the damage potential of economic crime are not quantifiable non-material damage ".

On the problematic nature of the projections in terms of case numbers and damage business by incorporating the suspected cases have already been discussed. In terms of damage, there is another other unusual: In section 2.2 of the damage speech, which businesses are caused by criminal activity. None of the studies listed the possible resulting benefits are mentioned, pull the company from its own white-collar crime. This is not surprising when you know that those issued by auditing and consulting firms investigations mainly serve the purpose of obtaining new jobs for detecting, other special or final examinations to establish compliance departments to illuminate the internal control system, to conduct a risk analysis, in-house to carry out anti-corruption training and what are the like similar work financially attractive.

For this reason, such marketing -oriented studies of PwC, KPMG, as well as Ernst & Young, Deloittre, Mummert, Euler Hermes, etc. are to be considered particularly with respect to any projections, the number of cases or the damage with caution. Nevertheless, some figures were used in the article because the BKA makes economic crime (as well as corruption) no extrapolations and therefore otherwise no points of reference for the assessment of the damage potential of economic crime.

Economic crime in the U.S.

" The prosecution of economic crimes ( 'white -collar crime ') subject in the United States to different laws than in Germany. Several reasons for this. Firstly, there is a corporate criminal law., The company makes is accordingly liable to prosecution. In Germany there can be only for willful omission or negligent supervision of employees to a fine in accordance with the Code of Administrative Offences ( OWiG ) be condemned.

Second, the determination of practice is another. Here in Washington, the guidelines of the Ministry of Justice play an important role. You agree that the authorities a discretion to drop the case against or even without payment of a fine or to limit the charges ( ' plea bargain ').

Relevant factors include: the severity of the crime, the proliferation of criminal activities in the company and its involvement. Moreover, the question whether it is lawful to date behave and a compliance program was set up to prevent crimes. Is to consider also the extent to which the company is willing to learn and adopt measures to prevent future violations, and whether there are alternative sanctions. And last but not least important, the extent to which it is cooperating with authorities during the investigation. "

As part of the investigation into the biggest fraud case since the collapse of Enron in 2001 was arrested Bernard L. Madoff by the FBI in December 2008. Overall, the goal in the decades conducted snowballing around 50 billion U.S. dollars, around € 38 billion (as of January 2009). The SEC has been criticized for indications of irregularities ignored for years. On 16 December 2008, the SEC acknowledged in an official statement a failure.