SYSK Selects: How White-collar Crime Works
And since you put the two of US couple of microphones in an ice cocaine of refreshing Qua-, mineral water together you have something called stuff you should know it's a podcast. PODCAST I'm looking to see who makes us actually. No. I thought it was GONNA say coca-cola smaller Zillah. Now it's Sundance Beverage company Oh. Yeah. They're huge from Minnesota I. think that's perfect. That is a perfect sponsor for stuffy know a little guy that's producing a great product agreed look what. So Chuck yes I've got an intro today. Awesome a MRIs. Stop criticizing me no I mean. So, very recently a trio of Brits economists British economists. Try like walking saltines on the very exciting. But, anyway, these guys did something pretty cool. They studied bank robberies. And their study was published in a journal called significance. It's actually kind of a cool journal it takes statistics and applies to real world stuff. So it's an interesting statistics journal. There is such a thing I in if there is this your and what these guys found was that bank robbery is actually a really terrible way to make a living. Yes I would agree with that morally economically. It's a terrible way to make a living to sure they they office no good, right yes. They looked at looked at a lot of variables like the number of people involved and they found that the bigger, the gang, the more the bigger the hall I guess, but it also meant that's one extra mouth to divide up amongst unless you're like one of those bank robbers just kills everybody afterward. Yeah. You don't WanNa get in bed with one of of those guys like Ben Affleck or like in heat when there are a lot of can. Heat Yeah. In the town Ben Affleck recent heist movie. Killing going on I was GONNA. Let that one walk by but you brought it up twice. I enjoyed a really. and okay. So anyway, there's a lot of variables involved but what they found is no matter what in the UK you can make off with about thirty one gram that's not bad her. Yes. In on average that's what that's what the take was. So in the UK, it's not so bad but at the same time thirty, one grain, what are you going to do with that? Yeah I mean if you WanNa live the highlife you gotTa Rob like four or five banks a year easy right or right okay or. If you're in the US, you have to rob a lot more than that. So the UK suffers about one hundred and six bank robbers a year in the US There's twelve thousand. And of those two thousand, the average take is like four grand. They only have how many a year England hundred, six God that's amazing. Really stiff stiff gun laws and I think that probably Detroit robbery because you kind of have a gun or a note in your pocket says something well, these guys figured out that the presence of a firearm increase your take. Okay. but anyway so forty three, hundred bucks. Yeah. That's not much at all. No, and about a third of bank robberies I guess in both countries yield nothing. Zero Zero. Wow. So it's a lot of hard work a lot of risk for very little gain. The real money is in white? Collar Crime Oh. Yes. You WanNa make some cash quick maybe one good heist. It's going to set you for the rest of your life and even if you're caught even if you're caught the chances are you will have a mild if any penalty levied against you well, white collar is the way to go. Yeah. We're talking guys who tell people that. They are financial investors and get friends and family and parents of the Little League coach to give them nine hundred grand There's other guys who have little penny stock companies that pump up there stock prospects called stock touting and dump all of their shares. Sure. that's investor fraud. They make hundreds of thousands if not millions of dollars, it's where the real money is an. Historically speaking it has really low risk. Yeah. All. Right. So we're endorsing white collar crime. We're not endorsing it. I was being facetious. Okay. I thought you met up with white collar crime in two thousand twelve. No. No. As a matter of fact, it's going down. The Times are definitely changing. There's a big struggle going on right now is to figuring out the just the right amount of punishment with white collar crime because there's a lot of factors involved it's different from blue collar crime eeg stealing a car robbing a bank church. There's a lot of differences that differentiate it. That's separate the two. And one of those now is the sentencing for him is probably stiffer, which is a total reversal from how it used to be before, and they've also close a lot of the club beds down that got so much press. Yes. Well, the change them they're still there there are a lot more shutdown period. Oh, really. Yeah. Just to ship them to Real Federal Penitentiary penetentiary penitentiary century. Senator. That reminded me of of word that will definitely be hearing at some point in this podcast. What? It's a Ponzi. Oh Yeah. Because that's definitely white collar part of the problem with white collar crime? Josh is you know from reading this is that it's hard to come up with an exact definition of what constitutes it. So that's why they have a hard time getting great statistics on punishment and fines levied and how many they're catching, but I'm GONNA go with. Non Violent Crime Yeah that typically involves. Typically because it's kind of all over the map, right typically involves deceit and fraud. Given by perpetrator because of their occupation. Yeah. For there is a lot of times it's called occupational Crime Yeah. And if you look at it through that view, which is a very broad view of white collar crime or it's not just the exects in the three thousand dollar suits who perpetrating this it's the guy who stealing pencils from work. Yeah or violent. Especially somebody asked him if he did it and he says no, and it's because you are you're you're granted this opportunity through your. Occupation. Actually I would call that petty theft. It's but I'm saying like a very, very broad definition of collar crime that that definitely counts. But for the most part when you think of white collar, you think about the CEO's you think about. Investor fraud embezzlement that kind of stuff exactly feds have been after it in the United States in earnest since nineteen seventy four as far as a a dedicated division the. Yeah, and that's because the Nixon I read and then despite that about three, hundred, billion dollars a year and that's a pretty rough estimate was the two, thousand, ten, two, thousand, ten. Yeah so. Let's talk about a few ways you can commit white collar crime. Yeah. Because the definition you gave us like beautiful it's pretty good and there are some that just like I said, investment fraud or embezzlement or. prototypical. Wash your other crime insider trading is one that's a big one now, which falls under securities fraud right? Yeah.