Job Losses: Another Cost of White Collar Crime

Depiction from foreclosure.org]

We have discussed some of the serious costs of white collar crime before in this blog. Costs of fraud and corruption include not only the economic or financial costs, but also the social costs, including increased cynicism, or lack of trust, in our basic social institutions. But have you ever also considered that white collar crime can also, in some cases, cost jobs? Consider the following case.

According to the Atlanta Journal-Constitution, Peter DeSantis, of Engineered Architectural Systems in Alpharetta, Georgia, explained yesterday that he had to lay off employees during this recession due to recent thefts allegedly committed by a former employee. According to the news report, the former employee, Karalee Sciukas, was indicted this past month by a Forsyth County grand jury for allegedly stealing about $250,000.00, over several years, while employed as comptroller with the architectural company. According to the report, she allegedly wrote checks to herself and to other businesses which she reportedly controlled, and which were allegedly disguised as vendor payments.

Of course, Ms. Sciukas is presumed innocent and is entitled to her day in court. And the facts of that particular case are not the point of this post, anyway. The point is that white collar crime can have many serious costs and consequences, including lay-offs of employees during a bad economy.

As a former federal prosecutor, (and currently, as an Augusta, GA criminal defense lawyer), I have seen the devastating losses caused by fraud and corruption. I believe we can all agree that job losses are a serious problem and a serious cost of white collar crime.

"Queen For A Day" and Old Motels!

So, you might wonder, what do the old t.v. game show, "Queen For A Day" and old motels have in common, and what could they possibly have to do with white collar crime?!

Well, here is my explanation! There is a connection between the two, or at least I intend to try to make one! Have you ever heard of this old television game show which, according to Wikipedia, aired from 1956-1964? The premise of the game show was that several contestants would each offer their own personal sob story of their tragic lives. Then, the studio audience would vote on who deserved to be "Queen For A Day" and the winner got a crown and a new washing machine!

Being a "queen for a day" also has a special connotation today in criminal law. It is a term often used to describe a person who agrees to meet with government agents to discuss a possible deal. The government agrees that, during the off-the-record meeting, nothing you say will be used against you. You are, in essence, a "queen for a day!" (But you probably won't get a new washing machine!)

But THAT is not the connection I intended to make here! Instead, I want to make a different point: If I could be governor, or "king for a day," I would introduce legislation authorizing the state to purchase old motels around the state for use as diversion centers. In my opinion, diversion centers are a good, less costly alternative to prisons which offer judges an alternative place to send non-violent white collar criminals. There, the check forgerers, bad check writers, and drug users can stay, in a structured, but minimum security, environment at night, while they are required to work during the day, off-site, to help pay for the diversion center's costs, and to help pay on their restitution and fines. This is such a great idea. It is not only less costly, but also it means that our prisons, which are overcrowded, could then be used to keep violent, dangerous offenders even longer! But this is an idea which is not in vogue. In fact, in our state, they are closing down, not expanding, diversion centers everywhere.

So, that is my connection between "Queen For A Day" and old motels! If I could be "king for a day," I would buy old motels and convert them into diversion centers!

And now that you have heard my sob story, won't you please vote for me to be "King For A Day," so that we can open some more diversion centers?! And if you want to give me a new washing machine, that is okay, too!

What do you think about using diversion centers as an alternative sentencing measure for non-violent criminals?

Is White Collar Crime as Bad as Street Crime?

Is white collar crime as bad a problem as "street crime?" What do you think?

For years, in addition to prosecuting fraud and public corruption as a federal prosecutor, I have also taught a course, part-time, on white collar crime at a local university. All of the authors of the textbooks we have used in the course consistently sing the same refrain: that "crime in the suites" is generally as serious, or more serious, as "crime in the streets." For example, in "Profit Without Honor," Stephen Rosoff points out that the cost of bailing out just one financial institution has exceeded the combined costs of all bank robberies in the history of the United States. In addition, consumer advocate Ralph Nader has coined the term "delayed violence" to illustrate that, in many cases, such as a polluting plant which dumps cancer-causing chemicals into our air or water, the costs of white collar crime are very severe, but the public simply doesn't realize or see the problems until a number of years have passed.

So, maybe it's just a public perception problem. Perhaps white collar crime is more costly to our society in the long run, but its costs are often just more difficult to perceive, in contrast to a bleeding victim lying in the street. But what do YOU think?