The definition of the term “white-collar crime” first requires understanding the term “white-collar”. While unregulated under Labor Law no. 4857, the term “white-collar” generally refers to employees who work in offices, exerting mental effort. These employees often serve as managers, professionals, office workers and technical specialists. In this context, the term “white-collar crime” represents offenses that white-collar workers commit by abusing their positions.
White-collar crimes are typically committed by people of high social status exploiting their position and power in professional or institutional settings. The crimes involve fraud, deceit and breach of trust rather than physical violence or coercion. The term “white-collar” alludes to the white dress shirts of office workers.
In the mid-20th century, Edwin Sutherland introduced the sociological concept of white-collar crime, expanding the traditional perception of crime and drawing attention to crimes committed by people with high social status. Unlike traditional criminal law offenses (e.g. theft, murder), this type of crime involves less physical harm, but can lead to greater economic and social damage.
Examples of white-collar crimes include fraud and breach of trust, which are regulated under the Turkish Penal Code (“TPC”) as part of offenses against property.
Fraud (TPC, Article 157)
Acts punishable as fraud involve deceiving a person through fraudulent conduct to secure a benefit for the perpetrator or another party, causing harm to the deceived person or someone else. In other words, the crime of fraud entails using deceit to cause harm by way of fraudulent conduct.
Fraudulent conduct refers to any action that induces the victim to make mistakes and impaired decisions by weakening their will. Through fraudulent conduct, the victim performs an act to which they would not have consented with their true will.
Fraudulent conduct must be convincing enough to deceive the victim, i.e. it must involve a deliberate and substantial deceit rather than a trivial lie. In order for the crime to occur, the victim must be in a position to be deceived by fraudulent conduct.
Major forms of fraud requiring heavier penalties are regulated under article 158 of the TPC. Accordingly, if the perpetrator uses information systems, banks or credit institutions or takes advantage of the victim’s dangerous situation or difficult conditions, they will face heavier punishment.
Breach of Trust (TPC, Article 155)
Breach of trust occurs when a person uses property transferred to them for safekeeping or specific use in favor of themselves or someone else, violating the purpose of the transfer, or when they deny the transfer itself. If the transferee abuses a professional relationship between them and the transferor, they commit the crime of breach of trust by abusing their occupation.
The perpetrator does not have to obtain an unfair gain for breach of trust to occur. Article 155 of the TPC punishes the act of using property “in favor of oneself or someone else” by abusing possession or denying the transfer. Although the phrase “in favor of” gives the impression that the perpetrator must obtain an unfair gain through their act, this type of crime does not require obtaining an unfair advantage. Likewise, the crime does not require actual damage. Indeed, it suffices for the perpetrator to use the transferred property contrary to the transfer’s purpose or to deny the transfer itself.
Possession means a person’s actual control over an object; therefore, the transferor and the transferee must have concluded a valid contract for this crime to occur. They must have made the contract of their own free will. If the transferee and the property owner have not made a legal contract, the criteria for the crime are not fulfilled. If the transferee obtains the property by deceiving the property owner, then there can be no valid contract, and the act is deemed as fraud.
The perpetrator must obtain the property with the explicit consent of the owner. For the crime to occur, following the property’s transfer for specific use or safekeeping, the perpetrator must either violate this purpose or deny the transfer altogether.
Consequently, the crime of breach of trust occurs when the transferred property is used contrary to the transfer’s purpose or when the perpetrator denies the transfer itself. As such, one of those acts is sufficient for the crime to occur.
In conclusion, white-collar crimes refer to offenses committed by individuals, usually of high social status, abusing their professional and institutional powers. These crimes are non-violent in nature and use more sophisticated methods such as deceit, fraud and breach of trust. Specifically, crimes of fraud and breach of trust are regulated under the relevant articles of the TPC. These crimes do not only harm their victims but also cause economic losses and undermine public trust. Therefore, an effective fight against such crimes is essential to protect individual rights and ensure social justice.
