ALTHOUGH THE PRESIDENT OF THE UNITED STATES HAS EMPHASIZED THAT WHITE-COLLAR CRIME CONSTITUTES A SERIOUS PROBLEM, THE GOVERNMENT HAS NOT INCREASED ITS INVESTIGATIONS AND PROSECUTIONS IN THIS AREA. TAX FRAUD IS NOT PROSECUTED DILIGENTLY BECAUSE THE TREASURY DEPARTMENT IS AFRAID TO ALIENATE POWERFUL POLITICAL OR ECONOMICS SEGMENTS OF THE POPULATION. WHITE-COLLAR CRIMINALS UTILIZE MORE SUBTLE AND MANIPULATIVE METHODS THAN STREET CRIMINALS AND THUS ARE MORE DANGEROUS TO A COUNTRY'S INTEGRITY. THEY ALSO CAUSE DEATHS ON A LARGE SCALE AS EVIDENCED BY NEGLIGENCE IN THE ASBESTOS INDUSTRY. PENALTIES ARE MINIMAL OR EVEN NONEXISTENT IN CASES WHEN A VICTIM IS COMPENSATED OUT OF COURT OR A CORPORATION MERELY PROMISES NOT TO COMMIT THE OFFENSE AGAIN. IT IS DIFFICULT TO PLACE RESPONSIBILITY FOR WHITE-COLLAR CRIME WHEN LARGE CORPORATIONS ARE INVOLVED, FOR THESE GROUPS HAVE LEARNED TO AVOID COMMUNICATIONS WHICH COULD BE USED AS COURT EVIDENCE. AN ONGOING INDIANA CASE INVOLVING THE FORD MOTOR COMPANY'S PINTO AUTOMOBILE IS CITED FOR ITS NOVEL APPROACH TO THE PROBLEM OF CORPORATE RESPONSIBILITY. MEDICAL WHITE-COLLAR CRIME, SUCH AS OVERCHARGING AND PERFORMING UNNECESSARY SURGERY, IS ALARMINGLY HIGH, EVEN THOUGH DOCTORS EARN SUBSTANTIAL SALARIES. THE ARTICLE DISCUSSES UNDERLYING ASSUMPTIONS AND PROCEDURES ESPOUSED BY RALPH NADER AND HIS ASSOCIATES, CITING A SURVEY OF FOOD AND DRUG ADMINISTRATION ACTIVITIES. WHITE-COLLAR CRIME CHALLENGES THE TRADITIONAL EXPLANATIONS FOR CRIMINAL ACTIVITY, SUCH AS POVERTY. IT ALSO REFLECTS THE DISTRIBUTION OF POWER IN A SOCIETY WHICH VIEWS UPPER CLASS CRIME AS LESS MALEVOLENT THAN LOWER CLASS CRIME. THE MODERN CORPORATION PROVIDES MORE OPPORTUNITIES FOR CRIME BECAUSE OF ITS SIZE AND COMPLEX ORGANIZATION. ADDITIONAL PROBLEMS ARE CAUSED BY THE FACT THAT NEITHER WHITE-COLLAR CRIMINALS NOR THE PUBLIC VIEW THESE VIOLATIONS AS SERIOUS. THE ARTICLE PROPOSES STIFFER PENALTIES AND A PUBLICITY CAMPAIGN TO AROUSE PUBLIC INTEREST AND INDIGNATION. COMMENTS ARE MADE COMPARING WHITE-COLLAR CRIME IN AUSTRALIA WITH THE U.S. AND NOTING SIMILAR PROBLEMS. A BRIEF ANNOTATED BIBLIOGRAPHY IS INCLUDED. (MJM)