This is fascinating. Essentially William K. Black is modifying out concepts of White Collar Crime (The Lord knows it needs it!).
White collar crime is a concept still burdened by its original definition. These kinds of crimes are no longer centered on such things as embezzlement but on subverting entire nations.
Here Black explains what he means by the concept –
Here’s a fuller treatment by the author.
When Fragile becomes Friable: Endemic Control Fraud as a Cause of Economic Stagnation and Collapse
Individual “control frauds” cause greater losses than all other forms of property crime combined. They are financial super-predators. Control frauds are crimes led by the head of state or CEO that use the nation or company as a fraud vehicle. Waves of “control fraud” can cause economic collapses, damage and discredit key institutions vital to good political governance, and erode trust. The defining element of fraud is deceit – the criminal creates and then betrays trust. Fraud, therefore, is the strongest acid to eat away at trust. Endemic control fraud causes institutions and trust to become friable – to crumble – and produce economic stagnation.
- William Black Needs to Jail 1,000 Bankers AGAIN !!! (2012patriot.wordpress.com)
- The Real Reason the SEC Has Been Shredding Documents For Decades (ritholtz.com)
- CEA Annual Reports 2005-07: No Crisis Here (ritholtz.com)
- Five facts about fraud (telegraph.co.uk)
- Council Of Economic Advisors’ Annual Reports 2005-2007: No Crisis Here (businessinsider.com)