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Quick and the Debt: Avoiding Losses Through Deception (From Combating Commercial Crime, P 6-18, 1987, Rae Weston, ed. -- See NCJ-115833)

NCJ Number
115834
Author(s)
R Pitchforth
Date Published
1987
Length
13 pages
Annotation
Based on two examples of commercial losses through deception, one from England (the Slater empire) and one from Australia (Shrian Oskar), this paper discusses statutory controls and managerial controls as means of preventing such losses.
Abstract
This Slater empire involved unbridled investments in companies whose stock prices were not true reflections of their earning power, producing huge debt and losses after a short-term profit. Oskar was also involved in huge business losses that promised returns to investors. Statutory controls have some effect in preventing financial exploitation, but they are ambivalent about the distinction between civil and criminal violations, the oversight of various government departments for a multiplicity of financial endeavors and the conflicting jurisdictions of these agencies, and the unwillingness of victims to report their victimization. Competition between professional investigatory agencies and government agencies in obtaining evidence is also a significant problem. Business managers must not rely on the State to prevent business losses due to improper commercial activity. Managers must protect their own companies' interests. Managerial controls must start at the top. Boards should have proper control over senior executives and provide moral leadership for employees. 10 references.