victimization

          When we talk of crime and victimization, we usually refer to street crime, as in individual acts by individual persons, such as rape and assault. However, corporations perform the most major forms of criminal victimization. The causes of large scale white collar crime can often be more devastating than those of physical assault and robbery, but remains hidden and ignored. The classes of corporate fraud victims are diverse, but there are some themes in common across these groups. Shareholders, employees in the corporations, investors and tax payers are the main victims of corporate crime. Even though it is very difficult to prevent corporate crime, there are some ideas that can be used to limit corporate fraud.

        Share holders and investors are affected largely by corporate fraud because of the amount of investment that was made by them. Many shareholders invest a large amount of money in the corporation and they expect the corporation to use the money properly and invest it in a right manner. However many corporations mishandle their funds and use it for their own purposes. For example, Mr. Charbonneau started an insurance company with investor’s money promising that a 10 per cent annual return rate was guaranteed by the Quebec government and Hydro Quebec. “After he used investors' capital to pay investors interest in 1999, the province's financial regulation agency caught up with him” (CBC, 2001). He eventually declared bankruptcy and nearly all investors lost their money.

        One couple lost more than $350,000 in life savings. Many of these victims were elderly and near retirement. As per Dr. Downing’s lectures investors can essentially lose everything when fraud results in collapse of shares. In the case of Mr. Charbonneau the investors lost all of their life savings. Also tax papers are greatly affected due to the expense of costly remedies that re often necessary after acts of large scale corporate fraud. Tax money is used towards prevention programs and restoring victim’s loss. Employees of the corporation that committed the crime are also affected due to loss of jobs and countless investigations projected towards them to see if they had shared a part in the crime.

           Corporations have more social and political power than most people (CBC, 2001). Victims of corporate crime are overlooked by the government because it would lead to an apparent rise in crime rates. “The Centre for Crime and Justice Studies (CCJS) suggested there was also little incentive for the Government to document the true scale of corporate fraud because it would lead to an apparent rise in crime rates” (CBC, 2001). Many victims are emotionally, psychologically, and financially affected by these corporate crimes. Dr Basisa Spalek of Univeristy of Brimingham stated that the large are of social injustice therefore remains hidden and is largely bypassed by government (CBC, 2001).

        Also white collar crimes remain largely undocumented and ignored by policy makers because many crime surveys exclude white collar crimes as frauds. An example of victims of corporate crime is when the Luxembourg based bank BCCI collapsed in 1991 it led to thousands losing their savings, with hundred millions of pounds stolen and many pensioners were left with uncertain financial future. (CBC, 2001). Many corporations victimizing people legally because they have the money to lobby and control the government (CBC, 2001). “For example, consider all the money the military industries, oil industries, and private-owned prison industries have stolen from taxpayers by using some of their money to buy politicians. Or consider the corporations that steal people’s land via the government with eminent domain” (CBC, 2001).

Many corporations often get away with victimizing people. Corporate crime offenders usually have the highest paid lawyers that help fight cases against them and corporate crime rarely results in criminal prosecution and jail time. The offender usually gets to pay a fine. Many investors and tax payers are victims of corporate crime due to lack of attention put towards white collar crimes by the government. Also the public do not express nearly the same degree of outrage over it as they do over street crime. For example, in Toronto gun crime polices are revised very often and changes are made to it to reduce victims of gun crime.

        However, little attention is paid towards corporate crime and to find polices that can help reduce them. If the government focuses on the causes of corporate crimes and vulnerable victims it can be educated to the public. The public will be more aware of corporate crime and they would pay attention when investing in corporations. To prevent victimization government should focus more on corporate crime and criminal surveys should be conducted to narrow down corporations that are committing these crimes.

Reference

CBC. Corporate Crime Victims Ignored.(2008). Retrevied on March 10, 2009, from http://www.channel4.com/news/articles/business_money/corporate+crime+victims+ignored/697457