The term ‘white-collar crime’ coined by Sutherland 1983 is defined as “a crime committed by a person of respectability and high social status in the course of his occupation.” This discourse examines white-collar crime in Trinidad and Tobago. The study utilizes data from relevant existing documents together with the evidence provided to the Commission of Enquiry which was set up to investigate the failure of CL Financial to examine and explain of the failure of the conglomerate. Even though the final report of the Commission of Enquiry into the failure of the CL Financial group remains outstanding to date, the study revealed that white-collar crime offences as defined by criminologists did in fact occur within the conglomerate. It found that the failure of the company was primarily due to poor accounting practices, corporate malfeasances, bad investments, payment of exorbitant bonuses and wages to top employees and other minor financial infractions.
Table of Contents
Chapter 1 Introduction
Problem Statement
Significance of the study
Chapter 2 LiteratureReview
Defining White Collar Crime
Theoretical arguments
Rational Choice
Strain and anomie control
Opportunity and Motivation
Violation of trust theory
Chapter 3 Methodology
Conceptual Framework
Data Collection Method
Chapter 4 Findings, Analysis and Discussion
Findings
Analysis
Accounting and Transparency
Excessive Inter-group Transactions
CIB account issues
Executive Flexible Premium Annuity
Corporate Governance
Oversight and Regulation
Discussion
Rational Choice
Strain and anomie control
Opportunity and Motivation
Chapter 5 Conclusion
Research Objectives and Themes
This study aims to examine the phenomenon of white-collar crime within the context of Trinidad and Tobago by investigating the reasons behind the collapse of the CL Financial group. Using a qualitative research approach, the study seeks to understand the contributing factors to this financial failure and analyze how criminological theories can elucidate the events, while highlighting the necessity for robust regulatory frameworks.
- The conceptualization and evolution of white-collar crime theories.
- The specific impact of the CL Financial collapse on the regional financial sector.
- The role of corporate governance, accountability, and transparency in financial stability.
- The critical importance of legislative oversight and regulatory mechanisms in preventing corporate malfeasance.
Excerpt from the Book
Introduction
At the dawn of the twenty first century, academics and policy makers experienced a significant shift in the way they viewed crime. Increasing attention was now placed on conceptualizing and understanding an emergent area in criminology, white-collar crime. Although not new, it represented a radical shift in the studies attempting to understand the criminal mind. To early criminologists, crime was associated with the activities of the lower class offenders who populated the courts and prisons (Croall 2001), rather than the elite classes.
The extant theories and research conducted at that time sought to identify the causes of crimes that presumably belonged in the pathologies of the offenders, that of poverty and deprivation. Criminologists and those investigating crime within biological, psychological or sociological traditions were more interested in studying street crime and delinquency than the crimes of those in business organizations (Paternoster and Simpson 1996). This concept was challenged by American criminologist Edwin Sutherland, who in 1939 at a presidential address to the American Sociological Association first coined the term ‘white collar crime’, by declaring that such crime was not an isolated phenomenon but a significant part of the landscape of criminal behaviour. (Shapiro 1990) argued that the concept of white-collar crime emanated from Sutherland’s attempt to liberate traditional criminology and the thinking from the “cognitive misbehaviour” reflected in the spurious correlation between poverty and crime.
Summary of Chapters
Chapter 1 Introduction: Provides an overview of the concept of white-collar crime and outlines the study's focus on the CL Financial collapse.
Chapter 2 LiteratureReview: Reviews existing criminological theories, including rational choice, strain and anomie, and violation of trust, to explain white-collar offending.
Chapter 3 Methodology: Details the qualitative, exploratory research design utilized, specifically focusing on document analysis of evidence from the Commission of Enquiry.
Chapter 4 Findings, Analysis and Discussion: Presents the findings regarding the collapse of CL Financial and analyzes these through the lens of the selected criminological theories.
Chapter 5 Conclusion: Summarizes the study’s findings and emphasizes the critical need for enhanced regulation and corporate governance to prevent future corporate failures.
Keywords
White-collar crime, CL Financial, Clico, Trinidad and Tobago, Criminological theory, Rational choice, Anomie, Corporate governance, Financial regulation, Commission of Enquiry, Accountability, Transparency, Oversight, Liquidity, Risk management
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on analyzing white-collar crime in Trinidad and Tobago, specifically examining the causes and systemic failures surrounding the collapse of the CL Financial (CLF) group.
What are the main thematic areas covered?
The work covers theoretical frameworks of white-collar crime, the application of corporate governance, the role of regulatory oversight, and the impact of the CL Financial collapse on the regional economy.
What is the central research question?
The study seeks to identify what factors contributed to the financial failure of CLF, how criminological theories explain these events, the potential role of the state in prevention, and the importance of financial sector regulation.
Which scientific methods are employed?
The research employs a qualitative exploratory design utilizing document analysis of existing materials, including evidence and reports from the Commission of Enquiry.
What does the main body of the work address?
The main body examines the literature on white-collar crime, provides a detailed methodology, and presents the findings, analysis, and discussion regarding CL Financial's accounting practices, governance, and regulatory shortcomings.
Which keywords characterize this work?
Key terms include white-collar crime, CL Financial, corporate governance, financial regulation, and criminological theories such as rational choice and anomie.
How does the "Violation of trust theory" relate to CL Financial?
The study applies this theory to highlight how directors failed in their fiduciary duties, essentially violating the trust of investors by engaging in misrepresentation and self-dealing.
What significance does the collapse of CL Financial have for the Caribbean region?
It represents the most glaring example of white-collar crime in the region to date, serving as a catalyst for recognizing the devastating effects of mismanagement and the urgent need for systemic regulatory reform.
- Citation du texte
- Alexia McKell (Auteur), 2014, White Collar Crime in Trinidad and Tobago. The Collapse of CL Financial Ltd, Munich, GRIN Verlag, https://www.grin.com/document/337834
