This is fascinating. Essentially William K. Black is modifying out concepts of White Collar Crime (The Lord knows it needs it!).
Here Black explains what he means by the concept -
Here’s a fuller treatment by the author.
When Fragile becomes Friable: Endemic Control Fraud as a Cause of Economic Stagnation and Collapse
Individual “control frauds” cause greater losses than all other forms of property crime combined. They are financial super-predators. Control frauds are crimes led by the head of state or CEO that use the nation or company as a fraud vehicle. Waves of “control fraud” can cause economic collapses, damage and discredit key institutions vital to good political governance, and erode trust. The defining element of fraud is deceit – the criminal creates and then betrays trust. Fraud, therefore, is the strongest acid to eat away at trust. Endemic control fraud causes institutions and trust to become friable – to crumble – and produce economic stagnation.