White-Collar Crime and Reactions of the Criminal Justice System in the United States and Japan

Abstract

Since the 1990s, Japan has faced increasing numbers and types of white-collar crime. Some of them are similar to major cases intheUnited States. For ex- ample, both the savings and loan crisis in the United States and the “Jusen” Housing Loan Company debacle in Japan relate to financial fraud involving thrift institutions. Similarly, both the U.S. Department of Defense scandal and the Japanese Defense Agency scandal concern contract fraud. The Ford Pinto case and allegations against Mitsubishi Motors Co. raise issues of purported “corporate homicide.” Although the cases may be similar, the reaction of each country’s criminal justice system has been different. Reviewing these differences is important because it can providean indication of what the Japanese legal system may be lacking in fighting white-collar crime. It isoften said that the Japanese criminaljustice system is more permissive toward white-collar criminalsthan that of theUnited States. Is that really so? This article first compares white-collar crime cases and the legal reaction to them inthe two countries. Then, based on these comparisons, itaddresses measures to betaken to deal with white-collar crime intheJapanese criminal justice system.