White-Collar Crime: A Privileged Justice System in New Zealand?

Sentencing Guidelines Spark Debate

A recent Court of Appeal decision in New Zealand has ignited debate about sentencing guidelines, particularly for white-collar offenders. Professor Lisa Marriott from the University’s Wellington School of Business and Government argues that poverty, deprivation, and addiction should be taken into account when sentencing, citing a new law that gives police discretion to use a “health-centred approach” in cases where individuals are found with illegal drugs for personal use.

A Stark Contrast: White-Collar vs. Blue-Collar Offenders

However, a closer examination of financial crime sentences reveals a stark contrast between white-collar and blue-collar offenders. Research analyzing 30 high-profile white-collar financial fraud cases and 30 blue-collar financial crime cases shows that white-collar offenders are privileged in the justice system.

• Factors such as good character, reputation damage, and ability to pay reparation often favourably impact sentencing outcomes for these offenders.
• In contrast, mitigating factors like good character or loss of community standing are rarely considered in blue-collar financial crimes.

The Sentencing Act 2002: Purposes of Sentencing

The Sentencing Act 2002 outlines the purposes of sentencing, including:

• Holding the offender accountable
• Creating deterrence
• Denouncing criminal conduct
• Rehabilitating

White-Collar Offenders: A Study of Serious Fraud Office Prosecutions

A study of Serious Fraud Office prosecutions found that the good character of white-collar offenders was referenced in all cases, often facilitating the crime due to their position of trust. Access to superior networks and references can result in shorter sentences, while restitution is another mitigating factor that can lead to sentence discounts.

Concerns about Unequal Justice

However, this system raises concerns about unequal justice, with those who have resources able to “buy” a lighter sentence while poorer offenders may face harsher penalties. Professor Marriott proposes three changes to sentencing decisions:

• Excluding the good character of white-collar offenders when it enabled the offending
• Treating restitution as an aggravating factor rather than mitigating one
• Not considering natural consequences like loss of reputation or shame as justification for sentence discounts

A More Nuanced Approach to Sentencing

This debate highlights the need for a more nuanced approach to sentencing in New Zealand, taking into account the complex factors that drive offending behaviour. By acknowledging the role of poverty, deprivation, and addiction in white-collar crime, we can work towards a more equitable justice system that holds all offenders accountable while providing opportunities for rehabilitation.

Key Takeaways

• Poverty, deprivation, and addiction should be taken into account when sentencing
• White-collar offenders are privileged in the justice system due to factors such as good character, reputation damage, and ability to pay reparation
• A more nuanced approach to sentencing is needed to address unequal justice and promote rehabilitation.