ipl-logo

Goldman Sachs Model Of Criminal Behavior

1319 Words6 Pages
bulb-icon

Recommended: How media influence the behaviour of society

In the present paper the author analyzes the case of Rajat Gupta, a member of the Goldman Sachs board, who was found guilty of insider trading. The crime will be viewed from the perspective of social strain and social learning theories. The author will also look at how crime control and due process models of criminal justice are applied to the present case. Mr. Gupta supplied inside information about Goldman Sachs to Mr. Rajaratnam, his close friend and business partner. Specifically, as a member of the Goldman Sachs board, Mr. Gupta came to knowledge that the board approved a $ 5-billion investment by Warren Buffet. He immediately communicated the information to Mr. Rajaratnam, who acting upon it, bought bought the stock of Goldman Sachs shares (US v. Gupta). After the investment was announced, the price of Goldman Sachs shares soared up increased by 7% (US v. Gupta). …show more content…

From the perspective of classical theory, he is punished because it was his rational choice to commit an offence against society. Since it was his rational choice, he deserves to be punished. Yet, insider trading is not a crime for which a mandatory sentencing is envisaged. Here is the weakness of classical model of justice: it does not account for why the judge chose to sentence Mr. Gupta. Social learning theory suggests that criminal behavior can be learned. Specifically, a criminal learns the behavior from groups or from media. Then a criminal imitates the behavior. Thus, according to the theory criminal behavior emerges because of existence of poor role models (Lanier and Henry 145). From the perspective of social learning theory, Mr. Gupta learned insider trading and imitated it. His background suggests that he exists in the Wall Street environment. This environment is widely believed to be corrupted. Hence, not unreasonable to suggest that insider trading is, if not common, but at least recurring practice

Show More
Related

Theodore Roosevelt Research Paper Outline

773 Words | 4 Pages

Trust busting He believed WALL STREET FINANCIERS and powerful

Read More

Scarver's Criminal Behavior Theory

1206 Words | 5 Pages

Within the past couple of decades, criminologists have developed different criminological theories that apply to the social behaviors and decisions of criminals. One of the earliest theories developed regarding criminality is the rational choice theory, in which describes the rationalization of determining if the rewards from committing the crime outweigh the consequences. In Scarver’s case, his decision to engage in criminal activities outweighed the potential consequences, or the other alternatives if he did not engage in such criminal activities. In addition to the rational choice theory, Scarver’s criminality can be related to the social disorganization theory, which describes the influence of one’s social and physical environment on one’s decision to commit a crime. Lastly, the strain theory can be related to Scarver’s criminality as well, as it is used to describe an individual who lacks the means to obtain such goals, and aspirations, so therefore, he or she engages in criminal activities to acquire the goals.

Read More

The Portrayal Of Chicago In The Gilded Age

396 Words | 2 Pages

As a major shareholder, he distributed cheap shares to other representative members and even the vice president. Due to some misshapes with an acquaintance, letters were released about the scheme and an investigation pursued. Ames was later guilty of “[taking] more than $23 million … for their personal use, including sharing the stolen funds with congressional members” (Pickens, Donald

Read More

Factory Workers In The Late 1800s And Early 1900s

709 Words | 3 Pages

The factories poor workers like Joe worked long hours in were extremely dangerous. Many workers at the time where mutilated or even killed in these factories. Those who didn't die from the injuries were more likely to get laid off then get compensation. The factory owners didn't care there were tons of people who were willing to take the job to try to support their family. That's way the business owners of the late 1800s and early 1900s were robber barons and because they also got rich by using poor cheap labors, they used shady business tactics to cheat investors out of money, and they thought they were superior to their fellow man.

Read More

Court Case Brief-US V. Martha Stewart And Peter Bacanovic

991 Words | 4 Pages

In the civil securities fraud context, the Supreme Court has held that intent indicates that the plaintiff act willfully with a realization that she was acting wrongfully, Ernst & Ernst v. Hochfelder, 425 U.S> 185, 193, 47 L.Ed. 2d 668, 96 S. Ct. 1375 (1976). Or in the criminal securities indictment did the plaintiff have a mental state embracing intent to deceive, manipulate, or defraud, United States v. Dixon, 536 F.2d 1388, 1395 (2d Cir. 1976). The issue is not which definition of intent to apply, but whether, taking into account the heightened standard of proof in criminal cases, is there sufficient evidence of Stewart’s intent to deceive investors.

Read More

White Collar Crime Rational Choice Theory

1831 Words | 8 Pages

There are different types of “white collar crime” that exists inclusive of fraud, embezzlement, insider trading and Ponzi schemes. “White collar crime” affects everyone and the main driving force of the perpetrator of the white collar crime is mainly greed plain and simple. There are different theories associated with “white collar crime”. One of these such theories is the rational choice theory. The rational choice theory indicates that persons have a choice of whether to commit an offence or not.

Read More

Summary Of The Great American Bubble Machine By Matt Taibbi

820 Words | 4 Pages

Goldman Sachs” discusses the evidence found against Goldman Sachs that should make them stand trial. Carl Levin investigated and created a report about the bubble that Goldman Sachs created and the frauds involved in it. In response to the report that Carl Levin publishes, Goldman Sachs misled Congress and then claimed that the bank was just really good at making money. Taibbi then explains that the reason that Goldman Sachs was able to get away with fraud and other crimes was in part due to investment banks convincing the government to allow them to voluntary regulate. These banks claimed that they could regulate themselves because they wanted to weed out corruption and fraud; however, investment banks like Goldman Sachs still participated in those very practices.

Read More

Worldcom Case Study

902 Words | 4 Pages

On the other hand, as he never sold his WorldCom stock, which was a showed that he was unaware of the fraud of financial statements and accurate position of WorldCom. 2. If the fraud had not been detected when it was, how long do you think it might have continued and how would it have ultimately been revealed? If the fraud has not been detected that it might have been gone 10- 20 years undetected. It may have been ultimately detected by the use of checks and balances, and multiple audits through independent auditors.

Read More

The Pros And Cons Of Corporate Crime Reform

519 Words | 3 Pages

Critics of corporate crime reform often argue that these are not victims, they ignore the fact that often times these people did not ask nor understand what was happening to them. One notable example of this is the conundrum of the 2008 Great Recession: The market went bad and now homeowner A owes 500,000 on a house now valued at 100,00 dollars. The easy option is to say, “too bad and so sad,” however is, that, right? The opposing view is that this individual new they couldn’t afford the loan and thus it is their own fault that they are in this situation. However, this doesn’t account for the fact that much like when you go to a Doctor, a Lawyer or any professional in a specific field you naturally rely on that individual to give you the best advice available.

Read More

Social Control Theory: The Criminal Activities Theories Of Crime

205 Words | 1 Pages

Another theory related to criminal activity would be the social control theory. This theory explains that people can see the advantages of crimes and are capable of doing crimes but does not do the crimes for fear of the consequences

Read More

Charles Manson Theory

991 Words | 4 Pages

This process has nine components (Cullen, 2014). The first is criminal behavior is learned not inherited. Second, the Criminal behavior is learned in interaction with other persons in a process of communication. Third, the principal part of the learning of criminal behavior occurs within intimate personal groups. Fourth, When criminal behavior is learned, the learning includes (a) techniques of committing the crime, which is sometimes very complicated, sometimes simple; (b) the specific direction of motives, drives, rationalizations, and attitudes.

Read More

Social Learning Theories: What Makes An Offender Commit Crimes

1059 Words | 5 Pages

One of the major questions asked within the Criminal Justice field is, what makes an offender commit crimes? Although we know there is no one distinct answer to this question, we have learned that there are certain factors can contribute to an individual becoming an offender. The broad theory that supports the idea of criminal behavior being learned is the Social Learning Theory. There are four distinct theories that fall underneath the umbrella of Social Learning Theories. These distinct theories are Differential Association Theory, Differential Anticipation Theory, Differential Reinforcement Theory, and Imitation Theory.

Read More

Edwin Sutherland: A General Sociological Theory Of Criminal Behavior

700 Words | 3 Pages

He came to theorize that crime is caused by the different interactions and patterns of learning that occur in groups that happen to be composed primarily of males, minority group members, or the youth. The principles claimed that behavior is learned through a process of communication in intimate personal groups. These groups teach "definitions" (including skills, motivations, attitudes, and rationalizations) either favorable or unfavorable to the violation of the law. Criminal behavior results when one is exposed to an excess of definitions favorable to the

Read More

Social Disorganization Theory Paper

2283 Words | 10 Pages

In this paper I will be analyzing how living in a stressful, violent, and poverty-ridden environment in combination with racial discrimination can allow residents of that community too develop a “code of the street”, a set of informal rules to abide by. The two theories I will be connecting this matter to, is the social learning theory and social disorganization theory. More often, these street codes and rules are created by young gang members who manage and “run” the neighbourhood and have an influence. It is a requirement for every resident to not only be aware but abide by the rules, it does not matter the age, sex, or colour, but more where that individual resides, at times it may be for survival. Some of the rules in this code are

Read More

Social Learning Theory Of Crime

405 Words | 2 Pages

Primarily people learn to participate in crime by associating with other individuals. Social learning proves they are reinforced for crime, learn believes that are favorable to crime, and are exposed to criminal models. Consequently, they see nothing wrong with what they do as they view crime as something desirable or at least justifiable in certain situations. The theory of social learning involves differential reinforcement, beliefs, and modeling to describe the three mechanisms by which individuals learn to engage in crime from others. According to social learning theory, by association or exposure to others is where juvenile person acquire to act in transgression and conforming behavior.

Read More

More about Goldman Sachs Model Of Criminal Behavior

Open Document