NCJ Number
115313
Date Published
1987
Length
9 pages
Annotation
The decision to impose a regulatory structure to prevent and prosecute economic crimes is ultimately a political one, which should rest on an analysis of factors such as the size of the industry, the potential for harm to the public from the operation of the industry, the potential effectiveness of the proposed regulatory structure, and the cost of regulation.
Abstract
Prosecutors should also consider several positive factors, including the enhanced ability to deter and detect economic crime and screen cases, the provision of additional means to gather evidence and prosecute cases of economic crime, and enhanced flexibility in defining the activities that warrant criminal sanctions. In the United States, the first regulatory response to economic crime occurred nearly 100 years ago with the establishment of the Interstate Commerce Commission. More recent developments have included the enactment of securities laws in 1933 and 1934, the establishment of the Securities and Exchange Commission, and the establishment of other regulatory bodies. Nearly all regulatory bodies are also charged with referring criminal violations to the Department of Justice for prosecution. One of the main benefits of the regulatory process is its ability to enable society to respond more quickly and effectively to the changes that arise from advances in communications and technology, despite the accompanying substantial costs.