This one-of-a-kind book analyses a variety of white collar crimes from various sectors and areas: investment frauds, corporate crimes, environmental crimes, occupational deviances, power abuses, health frauds, consumer abuses, crime in education, crime in the name of religion and cyber crimes. Unlike existing literature in this domain, it focuses on the subject from the perspective of victims. A result of six years of research, the book examines various regulatory and enforcement issues and aims to provide valuable inputs through large number of anecdotes and examples. 

Announcing it’s release in August, author Dr. Sibichen K. Mathew said, “There are disasters, maladies, and miseries  happening in this world, some of which are beyond human control and some others because of human control. White Collar Crimes belong to the second category as these are results of deliberate actions by the powerful. All of us have been cheated during the course of our lives without realizing it, till we experience the harm or when we witness or hear about the harm on others.  Every minute, hundreds of scams of various types are reported from across the world. The book would provide valuable insights on the nature white collar crimes, the ‘how’ and ‘why’ of such crimes, regulatory interventions, and what more to be done to curb them” 

ABOUT THE BOOK 

Most of us have been victims of frauds and related crimes at some point or the other in our lives. We may not have answers to pertinent questions such as: Who is responsible for the fraud committed? Why do people commit white collar crimes? What makes us vulnerable to such crimes? Who could have prevented the crime? What could individuals and entities do to prevent the crime in future and what action should we take to recover the losses? Unlike street crimes where victims are clearly identified and their losses and concerns are suitably recorded and attended to, the victims of White Collar Crimes are not given proper attention and many times such crimes are considered to be ‘victim less’.

This book attempts to examine the above questions by analyzing various types of white collar crimes, drawing examples of such crimes that have happened across the world. History reveals that crimes travel across the globe in time as criminals learn from each other for their criminal indulgences. We hear about a crime elsewhere – in a different city or a country – and within no time you find the same thing happening with necessary improvisation in our own neighborhood.

When the corporate criminals, opportunist and greedy public servants join hands, to indulge in various types of crimes, the regulatory enforcement becomes lax, farce and ineffective. In the end, the victims – the public who were adversely impacted, the shareholders who lost their investments, the consumers who got a raw deal, the employees who lost their jobs and the financiers who lost what they lent – suffer without any recourse. The book culminates with two chapters exclusively on answering questions such as – Why do people commit white collar crime? Why do people fall victim to white collar crime and how to curb this menace? The book concludes with an analysis of whistleblowers and the related challenges and safeguards.

As scams and frauds perpetuate, there is a need for a systematic analysis of the pattern, the impact and the preventive steps. The insights given in the book would be helpful for professionals as well as common citizens.

PRAISE FOR THE BOOK

“After his brilliant earlier work “Making People Pay” Dr. Sibichen Mathew now turned his splendid mind to an equally important topic of white collar crimes. Crimes, are the result of the power of motive on character. The rewards of crime are far, richer and higher than the chances and risks of detection and punishment. While the resourcefulness of the criminal mind seems inexhaustible in its evil power it draws strength from the conniving or negligent conduct of the Regulators charged with prevention of crime. Cyber crimes, it is known, transfer with electronic speed enormous amounts of stolen wealth across frontiers of nation. International collaboration to check this menace is less intelligent than the criminal mind. As to the repetitive pattern of bank frauds, the Regulators should own the responsibility.

The avarice, intellectual lassitude and gullibility of the victims themselves are the main reasons. Amongst the remedies as the author says, is creation of awareness, effective regulatory enforcement and encouragement and protection of the whistle blowers. Dr. Mathew has once again earned our gratitude for his concern for and commitment to the common good.”

─  Justice M N Venkatachaliah, Former Chief Justice of India, Former Chairman of the National Human Rights Commission and of the National Commission to Review the Working of the Constitution 

“This is a well-researched collation of how one gets cheated, in India and abroad, and of what governments have done to curb it.  It is written well, expected of an established author.  It will resonate, especially with victims of one or the other of the cited instances.  However, there is no cure for human cupidity.”

─ Bibek Debroy, Chairman of the Economic Advisory Council to Prime Minister of India and Padma Shri Awardee

“Mathew pieces together the multiple dimensions of white collar crime to come up with a comprehensive and illuminating picture. Moving easily from popular discourse to academic findings and back, he provides an account that is as thought provoking as it is readable.”

─ Prof. Dr. Narendar Pani, Dean, School of Social Sciences, National Institute of Advanced Studies, Bengaluru, and Former Senior Editor, The Economic Times

“While jewelry heists and unexplained homicides were the mysteries of yore, today a plethora of white collar crimes capture the public imagination. At the base of every mega public scam are several such crimes. In this useful book, Dr. Sibichen Mathew explains how and why these white collar crimes happen, and what can be done to make them more difficult to commit.”

Rishikesha T. Krishnan

Professor of Strategy and Director Designate, Indian Institute of Management, Bangalore

“For all of us who have been cheated — and there is no exception— this book is a wake -up call. In a lucid style, and pulling no punches, Sibichen Mathew lays bare all manner of white collar crimes, to keep us awake and alert, and to enable us to recognise and respond. Truly a compelling and convincing read.

Damodaran, IAS (Retd.)

Former Chairman SEBI, UTI and IDBI, and Chairman of the Board of Directors of IndiGo and Excellence Enablers Private Ltd

“This book is the result of six years of painstaking research and analysis on the ramifications of white collar crimes.   Dr. Mathew makes a compelling case of what can be done to curb this menace and the restitutionary  remedies that would be effective. This is a long overdue commentary on this neglected subject and I hope that this book gets the attention it deserves.” 

Arvind P. Datar

Senior Advocate, Madras High Court

You just got cheated – Book review

Right from the title to the ‘dedications’ page, the author, Dr. Sibichen Mathew has made it amply clear who the victim of white-collar crimes (WCC) is – the ubiquitous, unsuspecting, unfortunate common man who is made to believe that the consequence is not him, not now.  What “You just got cheated” does is to debunk this very myth that a crime committed somewhere does not impact you and me.  How does he do it ?  By peeling layers after layers of white collar crimes committed across generations, geographies and genres, gleaned from his years of dedicated research and diligent analysis – presented to us with facts, figures and insights in an easy-to-understand 15 chapter format.  Each chapter is on its own and speaks for itself.  You can pick up any chapter at any time and experience the contours of a different type of chilling crime and its grave consequences. Despite the magnitude and complexity of each type of crime described, what the author has done well is to succinctly summarise the details and hold a mirror at the end of each chapter, compelling the reader to pause and ponder.  The similarities of crimes committed across countries albeit with a time gap, the failure of society to recognise the same, the failings of greedy and gullible men to fall prey to such crimes time and again, the heady mix of politicians, corporates, administrators, regulators and the mafia, the unjust so-called ‘justice system’ – all elements and characters of the scam saga are dealt with in an appropriate manner and in good measure too. While the investigation process and cases filed seem to identify the ‘victims’, the author reminds us time and again that it is You and Me who are the real silent sufferers in the long run with no one to fight for us nor claim compensation.

Having said this, the book does throw light on many cases where scamsters have been nabbed thanks to either public proactiveness or societal angst and action. More often than not, the regulators wake up after the crime is committed and try to bolt the horse after it has run out of the stable – tighten the rules and regulations as a reaction rather than as a proactive action ! As evidence shows, by then the criminal is out on the streets, having escaped to a safe haven with the booty.  It is you and me who are left stranded as victims, with empty wallets, lost jobs, dead families, failing health and a bruised economy that has an adverse long-term effect on society.

The very 1^st chapter is an eye-opener of sorts.  How many scams abound around us across sectors – automobile, pharma, medical, energy, stock market, food, plantation, financial sector, insurance, manufacturing, technology, real estate, religion, media, NGOs et al.  Intriguing to read that it is not only individuals but also the government, banks, institutions and corporates who are victimised with uncovered losses. Differentiating between normal crimes and WCC, Dr. Sibichen says “There are disasters, maladies, and miseries  happening in this world, some of which are beyond human control and some others because of human control. WCC belong to the second category as these are results of deliberate actions by the powerful.” Interesting explanation.  Is environmental damage a WCC perpetrated by the humankind on this planet earth ?  Have the guardians become criminals ? Is this only the folly of the high and mighty ? Or are all of us a party to it by remaining as silent spectators ? Are we both the criminals as well as the victims, I wonder !

The introduction to each topic captivates the reader’s attention with an apt quote, short verse, an anecdote or a reference to a popular book, serial or a movie. You cannot resist but read further and stay hooked. The author does well by infusing his personal experiences also at some places, lending credibility to certain topics like the real estate frauds. Under Investment frauds, the under-karating of jewelry by jewellery retailers caught my attention as did the various types of real estate frauds, MF scams that happen day in and day out, as we turn a blind eye thinking it will not happen to us. The headlines-making scams like Harshad Mehta scam, Satyam scam, Sarada ponzi scheme, Sandesera case, Vijay Mallya, Mehul Choksi, Nirav Modi, Enron, Rajat Gupta, IL&FS scam, Vyapam, Adarsh Housing, PNB case, to the not-so-familiar ones that have happened in other countries are all critically analysed.   The latest kids on the block, Bitcoins & Cryptocurrency have been given decent coverage as well with current cases highlighted.  

Being a public policy expert and administrator himself, Dr. Sibichen has been able to not only trace the genesis of the frauds, the methodology adopted by the criminals, the type of investigation conducted and the resulting outcomes seen but also the legislative changes brought about after each case.  Well, the efficacy or otherwise of such regulatory actions can be a topic for another book by itself but suffice to say that as a reader one is able to connect the dots well and reflect.

Victims are in the form of customers, employees, investors, vendors, contract workers…just about anyone.  Predatory corporate crimes in chapter 4 is an eye opener.  Though we see unfair trade practices of dominant players, a common man never comes to realise that this is a crime by itself, until he sees it through the author’s writings. Alongside conducting extensive research on each type of crime Dr. Sibichen has also given a personal flavour to some topics like the Bhopal Gas tragedy and Vyapam Housing scam where he has visited the scene of crime himself and met a cross section of people.  This definitely lends credibility to his approach and how much the ‘injustice to victims’ means to him. What has moved me the most and stood out is the Endosulfan victims of Kerala and the ‘Guttala Bimari’ stories in chapter 5. The lessons from each of these scams and the plight of the victims reveal the human side of the author who is currently serving as a tax bureaucrat.

India, US, China, Australia, Congo, UK, France, Germany, Brazil, Africa are but a few of the countries from where Dr. Sibichen has sourced his array of crime cases.  Quoting studies conducted about the reasons for such crimes, he says it is not just financial motive.  Chapter 13 deals with “Fraud Triangle, Fraud Pentagon & Fraud Diamond” that are intriguing theories about the motives behind WCC. After analysing each of the crimes in fair detail, the book also goes into the regulatory landscape covering the legislations, regulatory institutions & enforcement agencies. From here emerges the recommendation of the author to establish an Independent Audit Regulatory Authority, considering how auditors have been embroiled in most of the corporate frauds across the globe.  Well, in India aren’t we already over-regulated with a host of regulatory authorities ?  Will one more add to the cost of doing business or promote ease of doing business in the long run is the moot question ? The author also ponders if a uniform international law sans borders of jurisdiction should be the way forward.  Several chilling instances of whistle-blowers becoming victims themselves leaves us shocked and indignant.  Dr. Sibichen’s suggestions for creating a conducive atmosphere for active whistle blowers are noteworthy.

The book is undoubtedly a scholarly read and can be referred to by both academicians as well practitioners who are interested to learn about different types of crimes, frauds & cheating and more importantly victimology.  Hope it does interest the common man who gets cheated by WCC  but remains oblivious to the same. 

Arise, Awake & Act seems to be the clarion call of “You Just Got Cheated”!!      

S C Sharada is a Company Secretary with 25 years of professional corporate experience. She is the co-founder of the corporate consulting firm Lex Valorem India and SC Sharada & Associates.