Regulatory Enforcement

EDWIN SUTHERLAND, the noted sociologist who coined the term white-collar crime, observed that not only were the criminal activities of business persons less likely to be subject to criminal penalties, but the corporate and business person was likely to be subject to less severe penalties imposed by a regulatory agency. The use of regulatory agencies and administrative measures to punish white-collar criminals is the most marked distinction between white-collar and other criminals. The involvement of agencies other than the police underlines these distinctions.

The term, regulation, generally used to describe the structure of law, enforcement, and sanctions surrounding most offenses, is accompanied by different language from that used in conventional crimes. Fraud and financial offenses are more readily regarded as criminal, subject to criminal law and sanctions and more likely to be subject to police investigations.

Laws are enforced by a variety of enforcement agencies, whose main role is the maintenance of standards and public protection. What is often called social regulation is therefore associated with a distinct set of laws and procedures and regulations. Many scholars have distinguished activities that threaten the interests of capital as fraud and theft and ultimately are likely to be subject to[Page 676] stronger criminalization than those that do not threaten the pursuit of profitability.

Traditionally, criminal justice scholars assumed the less severe nature of white-collar crime reflected the influence of high-status and powerful offenders. More recently, scholars have found it difficult to substantiate direct class bias in the regulatory enforcement of white-collar crimes. Others also dispute that regulation is less stringent, arguing instead that the differences between white-collar and other crimes necessitate different laws and enforcement. In turn, however, these arguments have been strongly criticized for accepting the ideological distinction between white-collar crimes and other crimes. Regulation has been subject to considerable research, theorizing, and academic and political discussion. Studies in the sociology of law have examined the nature and development of regulatory law along with the activities of enforcers and the role of class and powers. Discussions have also focused on the most appropriate means of preventing white-collar crime.