Sutherland was Right about the Unique Fraud Risks Posed by Elite Corporate CEOs

• In Event: White-Collar Crime at 75: Elite Offenders, Fraud Victims, and Alternative Definitions

Abstract

Edwin Sutherland's famous 1939 presidential address announcing the concept of "white-collar crime" continues, 75 years later, to be amazingly prescient. His emphasis on the unique damage that frauds led by elite corporate CEOs cause continues to be proven true by our modern crises. Sutherland also emphasized the key roles of accounting and securities fraud in causing the greatest losses and the special role that seemingly legitimate firms play in causing losses that greatly outweigh all other forms of property crime. Sutherland was aware that most frauds were led by non-elites, but the overwhelming damages from fraud come from elites.

Author

• William Black, University of Missouri - Kansas City