their businesses and keep commerce flowing more efficiently.
While federal courts initially interpreted the commerce power narrowly, over time, the federal courts have
decided that the commerce clause gives the federal government broad powers to regulate commerce, not only
on an interstate (between the states) level, but also on an intrastate (within each state) level, as long as
some economic transaction is involved. The federal government does not usually exceed its regulatory
powers.
White Collar Crime
White collar crimes are characterized by deceit, concealment, or violation of trust. They are committed by
business professionals. They generally involve fraud, and the employees committing the crimes are motivated
by the desire for financial gains or fear of losing business standing, money, or property. Fraud is the
intentional misrepresentation of material facts for monetary gain. This type of crime is not dependent on
threats or violence.
Figure 5.2
White collar crimes are committed by business professionals within businesses with the intent of
gaining or maintaining status. (Credit: Rawpixel/ pexels/ License: CC0)
White collar crimes tend to violate state laws, and sometimes federal laws. The violation depends on what is
involved in the crime. For instance, criminal acts involving the United States postal system or interstate
commerce violate federal law.
Although white collar crimes do not need to include physical violence, these types of crimes can destroy
companies, the environment, and the financial stability of clients, employees, and communities. In 2018,
Jeremiah Hand and his brothers, Jehu Hand and Adam Hand, were convicted and sentenced to between 9 and
30 months in prison for their respective roles in a pump-and-dump scheme. In this scheme, they were
dishonest about control over their company’s stock, and even went as far as filing false forms in an effort to
raise the value of the stock. Once the value of the stock was raised, they released their shares into the market.
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Chapter 5 Criminal Liability
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