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Victims of corporate crime - such as the Maxwell pensions scandal and the collapse of the Bank of Credit and Commerce International - are largely overlooked by officials because they do not fit government targets, it is claimed today.
The effects of large-scale white-collar crime can often be more devastating than those of robbery or physical assault, but remain “hidden and ignored”, according to a report by the Centre for Crime and Justice Studies.
The think-tank suggested that there was little incentive for the Government to document the true scale of corporate fraud because it would lead to an apparent rise in crime rates. “This large area of social injustice . . . is largely bypassed by government,” said the report by Basia Spalek, from the University of Birmingham.
Richard Garside, the director of the centre, said: “If the real cost and impact of white-collar crime on its victims was properly documented it would raise big questions about the willingness and ability of the State to protect the population from serious harms.”
Thousands lost their savings when BCCI collapsed in 1991, while the theft of millions of pounds from the Mirror pension fund by Robert Maxwell left 30,000 pensioners with an uncertain financial future.
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Victims of white collar crime are often reluctant to come forward. If it is a minor event and they realize they have been duped they may be embarassed. If it is a major life-altering event it takes time for them to rationalize the event and even then may not be aware they have been victims of a crime but because they trust our society may believe they are victims of events.
It is time that Governments realize the impact of white collar crime and that in particular seniors and those less able to look after their own interests are most susceptible to white collar predators.
Stan Buell
Small Investor Protection Association
www.sipa.ca
sipa@sipa.ca
Stan Buell, Markham, ON, Canada
Policing by targets is farcical. A detective chief inspector, of some quality in my opinion, was en route to a murder. Over the local radio a PC said that, in the case of an assault between two lovers he had been sent to, no offences were disclosed. The DCI came on the air and ordered the PC to take all details so as it could be 'resulted' correctly: ie, go down as a solved crime.
The murder was solved. Both offences, the argument and the brutal killing, were as valuable as each other in the targets.
Whilst we made the DCI suffer, he was doing that most difficult of tasks: being a police officer and servicing the targets.
If it not counted it's not policed.
Derek Smith, Brighton, UK
We and 30 other clients lost their lifes savings when a habitual con man and convicted fraudster was licenced by the FSA as a financial advisor.
The FSA bear no responsibilty for their obvious blunders and we are left in poverty for the rest of our lives.
Ray Nipper, Portbail, France
Another area of white collar fraudulent behaviour which is often overlooked is where insurers through their loss adjustors blind their customers with reports by their "experts" which are not founded on proper analysis or evidence. These reports enable those insurers to avoid paying out on potentially valid claims. An insurance contract is assumed to be "a contract of the utmost good faith", and the customer tends to trust the insurer to play fair. However if the insurer is not acting in good faith, the customers usually do not have the energy or resources to fight back. Even if the case is taken to the Financial Ombudsman Service, for adjudication the customer may be asked to "prove their case", which is not as easy for the insured with limited resources as for the insurer. The situation is not a level playing field, and favours the insurer. The insurer therefore has a duty of care towards the insured, but how often and on what scale is this abused? The consequences can be devastating
Tim Tiley, Bristol, England