Law Commons^™

Testimony Before The Financial Crisis Inquiry Commission, Miami, Florida September 21, 2010, William K. Black

Faculty Works

"Control frauds" are seemingly legitimate entities controlled by persons that use them as a fraud "weapon." (The person that controls the firm is typically the CEO, so that term is used in this testimony.) A single control fraud can cause greater losses than all other forms of property crime combined. Neo-classical economic theory, methodology, and praxis combine to optimize criminogenic environments that hyper-inflate financial bubbles and produce recurrent, intensifying financial crises. A criminogenic environment is one that creates such perverse incentives that it leads to widespread crime. Financial control frauds’ "weapon of choice" is accounting. Neoclassical theory, which dominates law …

Rehabilitation Of Islamist Terrorists: Lessons From Criminology, Samuel J. Mullins

Faculty of Law - Papers (Archive)

There is continued investment and attention being paid to programs of disengagement and deradicalization (D&D) for Islamist terrorists. Whilst there is some evidence of positive effects of different programs, it is widely acknowledged that rehabilitative efforts with terrorists are in their infancy and that there is a great deal of potential for learning, development and refinement. The present article examines rehabilitation programs for Islamist militants in light of the literature on rehabilitative interventions for “ordinary” criminal offenders, which have been in development now for more than 50 years. Principles of best practice as well as challenges in the field of …

Wall St. Fraud And Fiduciary Responsibilities: Can Jail Time Serve As An Adequate Deterrent For Willful Violations?, William K. Black

Faculty Works

The answer to the question posed by the title of this hearing is: only prison sentences can deter the violations that caused the debacle. We should, however, never rely solely on prosecutions to constrain crimes. The criminal justice system needs to work with regulation not only to make regulation more effective, but also to prevent “private market discipline” from becoming a “criminogenic” oxymoron. To understand the vital role that the criminal justice system must play if we are to avoid the recurrent, intensifying financial crises that have beset this and many other nations for nearly three decades we must begin …

Echo Epidemics: Control Frauds Generate White-Collar Street Crime Waves, William K. Black

Faculty Works

“Control fraud” drove the crisis. Control fraud occurs when those that control a seemingly legitimate entity use it as a “weapon” to defraud. In finance, accounting is the “weapon of choice.” Regulators, criminologists, and criminologists have documented the pervasive role of control fraud in causing the second phase of the S&L debacle. That crisis was followed by the accounting control frauds of Enron and its ilk.

Top economists, criminologists, and the S&L regulators agreed that lenders engaged in accounting control fraud optimize through a four-part recipe that is a “sure thing” – it produces guaranteed, record (fictional) near-term profits and …

Pragmatism, Originalism, Race And The Case Against Terry V. Ohio, Lawrence Rosenthal

Lawrence Rosenthal

Perhaps no decision of the United States Supreme Court concerning the Fourth Amendment’s prohibition on “unreasonable search and seizure” has come in for more criticism than Terry v. Ohio, in which the Supreme Court concluded that even absent probable cause to arrest, a brief detention and protective search of an individual comports with the Fourth Amendment “where a police officer observes unusual conduct which leads him reasonably to conclude that criminal activity may be afoot and that the person with whom he is dealing may be armed and presently dangerous . . .” Terry is frequently denounced as granting the …

The Moral Politics Of Social Control: Political Culture And Ordinary Crime In Cuba, Deborah M. Weissman, Marsha R. Weissman

Deborah M. Weissman

The Cuban revolution has been described as “the longest running social experiment” in history, and one not well-received in the United States. The U.S. government responded to the revolution first with suspicion, and then hostility. Even while the current administration has acknowledged the failure of U.S. policy, few substantive changes have been announced and the narrative of Cuba in the United States continues to dwell almost exclusively on political repression and economic failure. The Cuban revolution, however, is a complex process, one that defies facile explanations. This article subscribes to the perspective offered by social scientists who urge “a more …