White-Collar Crime - Public Corruption

A broad definition of public corruption includes a public employee asking for money, gifts, or services in exchange for doing something such as giving a city contract or voting in a certain way. This abuse of public trust may be found wherever the interest of individuals or business and government overlap. It ranges from the health inspector who accepts a bribe from a restaurant owner or the police officer who "shakes down" the drug dealer, to the councilman or legislator who accepts money to vote a certain way. These crimes are often difficult to uncover, as often few willing witnesses are available.

Of the 27,283 people indicted for offenses involving the abuse of public office between 1973 and 2001, 11,687 (42.8 percent) were federal officials, 2,182 (7.9 percent) were state officials, and 6,526 (23.9 percent) were local officials. The rest of those indicted, 6,888 (25.2 percent), were not employed by the government. (See Table 7.4.)

Bribes, Kickbacks, and Racketeering

In May 2000 former Louisiana Governor Edwin Edwards was convicted of racketeering, extortion, mail fraud, and wire fraud in connection with a scheme to extort bribes from applicants for riverboat casino licenses. Edwards was convicted on 17 counts and his son, Stephen, was convicted on 18 counts involving the extortion of some $3 million. Two of the charges for which former FIGURE 7.4
Employee theft by retail market segment, 2002 Governor Edwards was convicted carried prison terms of up 20 years and fines of up to $250,000.

In April 2002 U.S. Representative James A. Traficant was convicted of taking bribes and kickbacks from businessmen and his office staff. The nine-term Ohio Democrat was found guilty of 10 federal charges, including racketeering, bribery, and fraud, and was ordered to forfeit some $96,000 acquired as the result of illegal activities. As a result of the felony conviction, Traficant faced the possibility of being expelled from the U.S. House of Representatives. Expulsion would require a two-thirds vote by House members. The only such expulsion in recent history was in 1980, when Representative Michael Myers, a Democrat from Pennsylvania, was expelled for accepting money from undercover FBI agents posing as foreign dignitaries looking to buy influence in Congress.

The charges against Traficant included filing false tax returns, receiving gifts and free labor from business persons in return for political favors, and taking cash kick-backs from members of his staff. During the trial, prosecutors also accused Traficant of lobbying for contractors in exchange for free work, including paving a barn floor, fixing a drainage system, and removing trees at Traficant's farm.

In June 2002 Providence, Rhode Island, mayor Vincent A. Cianci Jr., was found guilty by a federal jury of conspiring to run a criminal enterprise from City Hall, although he was acquitted of 11 other charges against him. Cianci's conviction for racketeering conspiracy carried a maximum penalty of 20 years in prison and up to $250,000 in fines, or both. Two co-defendants in the case were also found guilty of racketeering conspiracy.