Of Breaches of the Peace, Home Invasions and Securities Fraud

17 Pages Posted: 15 Apr 2007

See all articles by Christine Hurt

Christine Hurt

Southern Methodist University - Dedman School of Law


In some quarters of academia, commentators have criticized the lengthy prison sentences meted out to corporate officers convicted of violating federal laws pertaining to white collar crimes. These sentences, made more harsh by amendments to the Federal Sentencing Guidelines pursuant to the Sarbanes-Oxley Act of 2002, are seen as disproportionate to the harms created by the acts and inconsistent with the punishments given for violent crimes under state law. For example, the former President of Enron, Inc., Jeffrey Skilling, was sentenced to over twenty-four years in federal prison, just over the minimum sentence calculated by the Guidelines, for violating securities laws; however, in his home state of Texas, to face a minimum of twenty-four years in prison, a murderer would have to kill five individuals without provocation or passion. This disparity, although not unique in comparing state crimes to other federal crimes, such as drug possession and distribution, poses the question: Is Jeff Skilling worse than a serial killer?

This Essay comes to the unsettling conclusion that the harsher punishments now available for corporate crime, particularly securities crime, are neither disproportionate or inconsistent with state law crimes after examining the values that society places on the interests protected by such punishments. This Essay presumes that prohibitions and punishments of certain acts reflect the relative values that society places on an interest that is threatened by the targeted activity. For example, larceny historically was criminalized to protect the public peace from breaches arising from the wresting of possession of an object from another. In addition, enhanced penalties for robbery and burglary reflect society's interest not in property but in living free from fear of bodily injury, particular in the safety of one's own home or castle. Today, however, society's greatest fear in most parts of the U.S. is not of random violence or home intrusion but of financial insecurity in the future. This Essay presents the argument that in our modern society, maintaining the integrity of the capital markets is the new "keeping of the peace" and that to today's modern worker, a retirement account is the "castle" that needs protection from invasion.

Keywords: white collar crime, securities law, corporations, criminal law

JEL Classification: K14, K22

Suggested Citation

Hurt, Christine, Of Breaches of the Peace, Home Invasions and Securities Fraud. American Criminal Law Review, 2007, U Illinois Law & Economics Research Paper No. 07-024, Available at SSRN: https://ssrn.com/abstract=980302

Christine Hurt (Contact Author)

Southern Methodist University - Dedman School of Law

P.O. Box 750116
Dallas, TX 75275
United States

HOME PAGE: https://www.smu.edu/Law/Faculty/Profiles/Hurt-Christine

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics