Prosecution of White-Collar Crime on Downswing

Even though the Securities and Exchange Commission is investigating more than 100 companies concerning allegations that the companies had falsified dates on stock-option grants in order to boost profits, a recent study shows that white-collar prosecution has dropped. The Transactional Records Access Clearinghouse at Syracuse University analyzed federal data and determined that white-collar prosecution has fallen 28 percent over the last five years.

The decline is attributable to a shift in the government’s focus. Due to the events of September 11, 2001, the federal government has been spending more money and manpower on tracking terrorism cases and immigration violations.

Another reason for the decline is that over the years white-collar crime cases have become more complicated. In a Christian Science Monitor article published on August 31, 2006, Page Perry senior partner Boyd Page was quoted as saying, “Those cases are very, very complex, document intensive cases.” Mr. Page said referring to a large WorldCom litigation case in which his firm was involved, “The documents that were made available for our review were something like 1,250 boxes packed one end to the other.”

The question remains: Will this shift in the government’s attention cause a rise in white-collar crime?

As Boyd Page said, “People steal a much greater amount of money with a pen than they can with a gun. If we don’t take a stand and say, ‘Look, this is wrong’ . . . then we turn our head, and it results in a lot of people thinking it’s OK.”

Christian Science Monitor, August 31, 2006, Prosecutions drop for US white-collar crime; They’re down 28 percent from five years ago, as homeland security cases rise in popularity