White-collar crime
September 11, 2008 By: Michael T. Heenan Pit & QuarryWhite-collar crime can be applied to all activities outside what first comes to mind when we think of criminal actions against people or property. White-collar crime encompasses Internet scams, fraudulent tax returns, securities and exchange violations, failure to pay withholding taxes, hiring illegal immigrants, defrauding government agencies through false claims for benefits or providing untrue information to obtain government contracts.
Safety offenses
White-collar crimes are often committed by people you would never think of as doing something criminal. Owners, managers and supervisors of businesses can fall into this category. At mining operations, companies and their agents have been prosecuted for knowing and willful violations of safety laws.
A knowing and willful violation can occur when a supervisor, manager or other company official decides to take a chance that nothing bad will happen. Putting miners in danger of unsupported ground is just one example. A manager’s intentional decision to use a hoisting device with wire rope or a sling or a hook or stopping device that is defective could be another.
Decision to proceed
Almost any instance where something unsafe is used because a replacement part is not immediately available, or it will take too long to change the part, or the job is too important to stop production at this moment can constitute a willful violation. Similarly, any unsafe act that is authorized, ordered or carried out by a manager or a supervisor can be a prosecutable offense. If something bad happens – if someone is killed or injured – the likelihood of prosecution greatly increases. The worse the accident, the more likely it will come to the attention of federal enforcement agencies or prosecutors.
A rare and inhumane manager would have no concern over whether people might be hurt, but that is not the type of person who faces prosecution for a safety violation. Managers are dedicated to their jobs and to getting their mission accomplished and to keeping the business profitable. That is what they are thinking when they encourage, direct or allow work to proceed even though the procedure is clearly not what it should be, or the equipment is obviously defective. They are not thinking that someone might get hurt. They would never think of intentionally putting someone in danger, but that might be exactly what they are doing.
Prosecutor’s discretion
When a case does come to the attention of prosecutors, they have a variety of procedures for finding the truth of the matter. Mining cases are usually investigated preliminarily by Mine Safety and Health Administration special investigators. Prosecutors also may ask the FBI to step in, particularly if there are issues of falsification or fraudulent concealment of evidence. Prosecutors may summon witnesses, including targets of their investigation, to appear before a grand jury. They may require production of documents. They may simply ask a targeted person for an interview.
Accident cases are usually prosecuted. Decisions on whether to prosecute will be based on questions such as:
• How much was this accident in the public eye?
• How terrible was the accident in the eyes of those who know the circumstances?
• How likely would a jury be to think someone should be held responsible?
• What do employee witnesses say about this manager or supervisor – and specifically his or her conduct with respect to safety in general?
• Does it appear that the manager or supervisor actually knew the critical facts prior to the accident?
The bottom line
As for potential consequences of a prosecutor’s inquiry, a case may be dropped. A pre-indictment plea may be negotiated. There might be a post-indictment plea. Or there could be a trial, in which case the outcome will be in the hands of judge and jury. The point is that no manager or supervisor should ever take chances when obvious safety hazards exist. Concern for safety will prevent serious violations of law.
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