IN 1977, REVCO DRUG STORES, INC. WAS FOUND GUILTY OF A COMPUTER-GENERATED DOUBLE-BILLING SCHEME THAT RESULTED IN THE LOSS OF OVER $1/2 MILLION IN MEDICAID FUNDS FOR THE OHIO DEPARTMENT OF PUBLIC WELFARE. REVCO REPRESENTATIVES RATIONALIZED THEIR ACTIONS BY EXPLANING THAT THE FALSE BILLINGS WERE THE MOST COST-EFFECTIVE WAY OF OBTAINING MONEY OWED THEM AS A RESULT OF THE DEPARTMENT'S REJECTION OF IMPROPERLY FILED LEGITIMATE CLAIMS. THIS CASE HAS YIELDED INFORMATION THAT REVEALS THE INADEQUACY OF TRADITIONAL VICTIMOLOGY FOR UNDERSTANDING ORGANIZATIONS AS VICTIMS. THE TRADITIONAL APPROACH TO THE STUDY OF VICTIMS HAS EMPHASIZED MICROANALYSIS, USING 'VICTIM-PRECIPITATION' AS AN ANALYTICAL CONCEPT. HOWEVER, THIS APPROACH TO UNDERSTANDING CRIME BETWEEN ORGANIZATIONS IS INAPPROPRIATE BECAUSE OF THE NATURE OF THE OFFENDER AND THE COMPLEXITY OF THE CRIME. A MACROLEVEL EXPLANATION IS REQUIRED WHICH MOVES BEYOND THE CONCEPT OF VICTIM-PRECIPITATION. STRUCTURAL FACTORS SUCH AS ORGANIZATIONAL CHARACTERISTICS, ENVIRONMENTAL CONDITIONS, AND ORGANIZATIONAL IDEOLOGIES THAT PRECIPITATE OFFENDING BEHAVIOR MUST BE EXAMINED AS CONDUCIVE TO CRIME BETWEEN ORGANIZATIONS. ANALYSIS OF THE REVCO CASE REVEALED THAT VICTIMIZATION AT THE ORGANIZATIONAL LEVEL IS BOTH DIRECT AND INDIRECT, WITH THE IMPACT DIFFUSED AMONG MULTIPLE VICTIMS. THE VICTIM ORGANIZATION EMERGES AS A SURROGATE VICTIM, WHILE THE REAL VICTIMS ARE AFFECTED INDIRECTLY IN THAT THEY ARE INCAPABLE OF RECOGNIZING HARM OR TAKING ACTION. THE NEED TO BALANCE INTERESTS OF VARIOUS OTHER CATEGORIES OF ACTORS COMPLICATES THE IMPOSITION OF SANCTIONS. HENCE, THE MAJOR CONSEQUENCE OF MULTIPLE VICTIMS IN CRIME BETWEEN ORGANIZATIONS IS THE LESSENING OF THE DETERRENT IMPACT OF SANCTIONS. (AUTHOR ABSTRACT MODIFIED--RCB)