CRIME COERCIVE SYSTEMS, IDENTIFIED WITH THE AUTOMOBILE AND LIQUOR INDUSTRIES, COMPEL THEIR MEMBERS TO COMMIT ILLEGAL ACTS AS THE PRICE OF SUCCESSFUL SYSTEM MEMBERSHIP. EMPIRICAL STUDIES DESCRIBE TIGHT CORPORATE WORLDS IN WHICH THE INDIVIDUAL SYSTEM MEMBER IS ESSENTIALLY A PAWN WITH FEW CHOICES OR DEFENSES AGAINST CRIMINOGENIC PRESSURES. THE SYSTEM'S POLICYMAKERS DELIBERATELY SET LEGAL AND ECONOMIC CONDITIONS THAT HAVE THE EFFECT OF DRIVING THEIR SUBORDINATES INTO CRIME. INDICATIONS ARE THAT THIS COERCIVE MODEL IS NOT WIDESPREAD AND ADMITS TO EXCEPTIONS AND VARIATIONS, INCLUDING RESISTANCE TO CRIMINAL COERCION. MOREOVER, THE COERCIVE MODEL MAY BE APPLICABLE TO RELATIVELY FEW OF THE CORPORATE SYSTEMS WHOSE STRUCTURES PROMOTE CRIME. IN CONTRAST, THE CRIME-FACILITATIVE SYSTEM COVERS ORGANIZATIONS WITH LOOSER, MORE COMPETITIVE MARKET STRUCTURES; IN THIS SYSTEM, CRIME MAY BE ENCOURAGED WITHOUT DIRECT BENEFIT TO THE SYSTEM ITSELF AND PRACTICED BY OUTSIDERS WHO INVADE THE SYSTEM FOR SUPPORT AND COLLUSION FROM INSIDERS. UNLIKE THE CRIME-COERCIVE SYSTEM, WHERE CRIMINAL ACTIVITY REPRESENTS AN ESSENTIAL PART OF DOING BUSINESS, THE CRIME-FACILITATIVE SYSTEM INVOLVES CRIMINAL ACTIVITY AS AN UNWELCOME BUT UNAVOIDABLE COST OF DOING BUSINESS. FOR INSTANCE, IN THE SECURITIES INDUSTRY, WORTHLESS SECURITIES ARE INTRODUCED INTO THE STREAM OF LEGITIMATE FINANCIAL COMMERCE, CIRCULATING WITH THE COOPERATION OF SYSTEM MEMBERS. LIMITED LEGAL LIABILITY FACILITATES THIS CRIMINAL PRACTICE, SINCE THE RISKS OF AIDING AND ABETTING FRAUD ARE MINIMAL. STRONGER CONTROLS WOULD IMPEDE THE FREE FLOW OF COMMERCE, WHICH THREATENS BUSINESS MUCH MORE SERIOUSLY. MOREOVER, TRADITIONS OF THE COMMERCE, SUCH AS CONFIDENTIALITY AND PROFESSIONAL SOLIDARITY ALSO CONTRIBUTE TO THE UNCHECKED PRACTICES OF FRAUD WITHIN THE INDUSTRY. THESE CRIME-FACILITATIVE MODELS CAN BE ALTERED TO BECOME CRIME RESISTANT WITH THE HELP OF MORE EXTENSIVE RESEARCH. REFERENCES ARE INCLUDED. (MRK)