TY - JOUR
T1 - Using financial incentives and income contingent penalties to detect and punish collusion and insider trading
AU - Chapman, Bruce
AU - Denniss, Richard
PY - 2005/4
Y1 - 2005/4
N2 - Collusion and insider trading, being white collar crimes, are often characterised as being victimless crimes. The absence of identifiable victims makes the detection of these crimes particularly difficult. This paper proposes that, in order to increase the flow of information about collusion and insider trading, parties engaged in these crimes should be offered financial incentives to provide evidence against their co-conspirators. In order to provide greater certainty that rewards will be paid, and also to increase the probability that any fines are paid, it is also proposed that an income-contingent fine collection mechanism be utilised. The paper presents two case studies to illustrate how the fine collection mechanism could be used.
AB - Collusion and insider trading, being white collar crimes, are often characterised as being victimless crimes. The absence of identifiable victims makes the detection of these crimes particularly difficult. This paper proposes that, in order to increase the flow of information about collusion and insider trading, parties engaged in these crimes should be offered financial incentives to provide evidence against their co-conspirators. In order to provide greater certainty that rewards will be paid, and also to increase the probability that any fines are paid, it is also proposed that an income-contingent fine collection mechanism be utilised. The paper presents two case studies to illustrate how the fine collection mechanism could be used.
UR - http://www.scopus.com/inward/record.url?scp=18944381199&partnerID=8YFLogxK
U2 - 10.1375/acri.38.1.122
DO - 10.1375/acri.38.1.122
M3 - Review article
SN - 0004-8658
VL - 38
SP - 122
EP - 140
JO - Australian and New Zealand Journal of Criminology
JF - Australian and New Zealand Journal of Criminology
IS - 1
ER -