Are white collar crime & blue collar crime treated equally? - By David Jenson

Hillary Transue was a good student with a cleanConsider the recent cast of villains. There's Allen
record, so she never imagined she'd hear a judgeStanford (the Texas billionaire who allegedly crafted
sentence her to three months in juvenile detention.his own Ponzi scheme), Enron's Ken Lay, former
What heinous act did this young Bonnie Parker do tosenator Ted Stevens, lobbyist Jack Abramoff and
invoke the court's wrath? The 15-year-old merelyformer governor Rod Blagojevich. Even with
spoofed her assistant principal on MySpace. (If Skinnersomething as tragic as Hurricane Katrina, there were
only knew it could be that easy to lock up Bartcountless dirt bags juicing FEMA with fake charges
Simpson.)and pocketing money that was raised for victims.
Tragically, this is not an isolated incident. In this particularFor every white-collar crime, there are also ethically
Pennsylvania county, a 14-year-old got nine months forgray acts that technically don't break any laws. Richard
lifting change from unlocked cars and a 13-year-old gotFuld helped drive Lehman Brothers into the ground as
put away for trespassing in an empty building. Whathe raked in nearly $500,000,000. While that's merely a
did all these delinquents have in common? Judgesmoral crime, selling his $14 million house to his wife for
Michael Conahan and Mark Ciavarella sentenced them$100 might be something more. There's also the military
and about 5,000 other teens in a scam involving cashanalysts on cable news networks that supported the
for kids.war without disclosing they're lobbyists for contractors
The scheme dates back to 2002, when Conahanthat ultimately made out like bandits. Sadly, the spotlight
exercised his judicial authority to shut down thehas even turned to nonprofit companies.
government-run youth facility and use tax dollars toIn a study of nearly 500 nonprofit hospitals, the IRS
redirect teens to privately owned detention centers.discovered that top executives make nearly $500,000
For their efforts, the judges received $2.6 million inyear, while 20 of these so-called nonprofit execs
kickbacks. While it's hard to believe that Albertomake nearly $1.5 million. Gloria King of the United Way
Gonzales never tapped these guys for DOJ, it's evenof Central Carolinas rakes in about $1.2 million as the
more remarkable how little time the judges will serve.Chief Executive, and she's just one of eight
The total time served by the kids they sentencedcharity-based execs making seven figures. According
could add up to centuries, but Conahan and Ciavarellato Charity Navigator, there are over a hundred others
will serve only 87 months in federal prison. Mid Atlanticmaking $500,000-plus.
Youth Services, who own and operate the centers,In the late 19th Century, the Gilded Age started during
face no punishment at all.Reconstruction as wealth rocketed to the top with
When the government hires Halliburton to build prisonshelp from questionable politicians (e.g. Boss Tweed)
and spends nearly $50 billion a year on corrections, it'sand financial manipulations. This era, featuring opulent
no surprise that America incarcerates the highestwealth displays by the upper class, eventually led to
percentage of its citizens. While these numbers arethe Panic of 1893, when the railroad bubble burst and a
ridiculously high, white-collar criminals like these twocredit crisis sunk the country into an economic
judges make up just a fraction of the inmates.depression. It certainly sounds familiar (except that the
Many researchers have argued that there's a double1890s crisis ironically gave tax-raising Republicans a
standard when it comes to white-collar crimes. Sociallylandslide victory over the free market Democrats).
upward criminals are wealthier and more connected,Today, America has its own panic. While there is much
and they can hire the best lawyers and preemptivelyto be done, there's a populist outcry for a level playing
influence lawmakers to imploring focus on streetfield. America needs to prosecute criminals regardless
crimes. That's why a whistleblower like Harryof their social status and political contributions and
Markopolos can spend a decade the SEC to stopenforce white-collar crimes with the same zeal that
Bernie Madoff, and the government acted only afterthey tackle blue-collar offenses. Whether it's Ponzi
the loss of tens of billions of dollars. Maybe he'd haveschemers or corrupt judges, there needs to be real
gotten a quicker response if he reported two guysenforcement and punishment for financial misdeeds.
trying to get married or a 13-year-old file-sharing theThe white collars need to become too afraid to take
new Metallica album.the risks.
I am not suggesting that we pardon the people whoAmerica has the honor of being history's great
steal our cars or break into our homes, but we shoulddemocracy where all men are created equal. To
treat the inside trader who stole $100,000 fromcontinue fulfilling that promise, we must shake off the
shareholders with the same scales of justice as theshackles that bind Lady Liberty's hands and truly start
guy who steals your wallet.treating all men equally.