While U.S. defense contractors are regularly accused of overpricing, delivery of shoddy goods, and payment of bribes and kickbacks, the European defense industry is guilty of these transgressions as well as the regular sale of arms and lethal goods to countries subject to embargoes because they pose an anti-Western security threat or because they are guilty of massive human rights violations. These corporate scandals usually have political ramifications because European governments are often directly involved in the affairs of major firms. By the standards of white collar and corporate criminality, the European defense industry operates in a highly criminogenic environment: manufacturers are dependent on a few products that are expensive to produce, legitimate markets are scarce, and opportunities abound for illicit trafficking in weapons. A long tradition of official acquiescence has led to widespread contempt for legal restraints. In Europe, the defense industry are wholly nationalized or are closely linked to the State, which often possesses major shares in defense firms through holding companies. In the case of the Gulf War, most of the European countries had severe restrictions against trading with either Iran or Iraq, but these sanctions were duly ignored through widespread cooperation between major arms manufacturers. These arms scandals represented an economic crime of the first order according to this author. 2 notes and 92 references