OFF WITH THEIR HEADS! Does White Collar Crime Warrant Execution?

Even though Al Capone was known to have perpetrated many heinous, violent crimes, in addition to what we today would consider white collar crimes, he was finally nabbed by a forensic accountant , and sent to prison (for years, but not for the rest of his life).  But in some parts of the world, those in power who bilk others out of their money may be incarcerated for life, or even executed. 

Think Twice Before Any Vice - If You're in China

China has been executing those found guilty of many types of crime, including those we would classify as white collar.  There was a crime crackdown campaign in the mid-1990s called "Strike Hard" that included execution for minor theft of under $10,000.  This has been known to happen for over 20 years, and further details are kept secret by the government.  The justification is that it is used as a deterrent, and it's hard to argue that knowing you may face the firing squad could keep some folks from taking home extra Post-It notes.  I know I'm thinking twice about that now! 

Righting the Wrong, or Getting Revenge

Everyone has their own idea of justice.  The punishment fits the crime, or a victim gets compensated for both the loss of the actual crime, and additional pain and suffering.  The victim wants to show mercy on the perpetrator, or wants to exact revenge.  Victims of financial crime like fraud sometimes cannot be paid back, like all of those bilked by Bernie Madoff.  Do we try to make Madoff's punishment geared toward getting as much money as possible back into victims' accounts, or do we want him to suffer mental anguish that we hope will make us feel better?  Or even have him executed to show him and others like him that we're mad as hell, and we're not going to take it anymore?

Perhaps there are plenty in the US who would like to see Madoff executed, or at least put in some type of physical pain.  But how about the average fraudster?  Like the typical perpetrator of non-profit fraud: a woman in her mid-40s with above-average education, a strong work ethic overall,  and no previous criminal record.  Would society think it's appropriate to execute her for bilking the local Boosters club of $40,000?  Surely she would become a social pariah in her neighborhood once word got out, but the odds of extreme castigation would be small.

Punishment, Correction, Prevention - How to Handle Fraud

There are no easy answers, just as everyone has their own point of view.  Insurance against this type of crime can only mitigate a bit of the risk, but obviously unless everyone pays more in insurance than is actually stolen can this cover losses, and then how do we cover the loss of paying so much in insurance?  Unless the money is returned in its entirety, there will be red on someone's books.  For some, the community response and humiliation may be enough to correct the bad behavior and prevent future missteps, but not for all.  An awareness of stiff penalties and other repercussions could serve as purely preventative, but not everyone who commits these crimes is brilliant, and they may not think before they act. 

What would you do if this happened in your business?  How would you want the perpetrator to be treated?  Do you think the law is too strict, or too lax? 

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