Deck 11: White-Collar and Organized Crime

Question 1

Which of the following organizations are most victimized by health-care fraud?

A)private insurance companies
B)Medicare and Medicaid
C)privately funded hospitals
D)publicly funded hospitals

Answer 1

B

Question 2

What is it called when a company replaces a focus on profits with a focus that integrates financial,environmental,and social considerations in its performance and assessments?

A)triple bottom line
B)ethical reform
C)structural reform
D)social consciousness

Answer 2

A

Question 3

What was the "truth in securities" law of 1933 designed to do?

A)to create a regulatory body to register,regulate,and oversee brokerage firms and transfer agents
B)to restore investor confidence and bring order to the financial markets
C)to provide investors with significant information and to prohibit deceit and misinformation
D)to prevent chief executive officers and chief financial officers from profiting illegally

Answer 3

C

Question 4

What is the name for a form of fraud that uses money collected from new investors,rather than profits from the supposed underlying business venture,to pay high rates of return promised to earlier investors?

A)broker embezzlement
B)investor embezzlement
C)commodities scheme
D)Ponzi scheme

Question 5

How do Hirschi and Gottfredson explain the motivations of white-collar criminals?

A)White-collar criminals are motivated by the ease of white-collar crime.
B)White-collar criminals are motivated by the same forces that drive other criminals.
C)The motivations of white-collar criminals have little to do with personal gain.
D)The motivations of white-collar criminals are to fit in with corporate culture.

Question 6

Which of the following conclusions did the Kefauver Committee reach?

A)The Mafia is primarily located in large eastern cities.
B)The Mafia has international ties to narcotics traffic.
C)Mafia leaders have little knowledge of operations.
D)A single individual controls Mafia activity.

Question 7

In 2002,as a result of the Sarbanes-Oxley Act,the U.S.Department of Justice increased additional funding to investigate and prosecute corporate crime.What type of reform is this according to the book The Criminal Elite: The Sociology of White-Collar Crime?

A)ethical reform
B)structural reform
C)political reform
D)enforcement reform

Question 8

Which of the following statements is true of white-collar crime in the United States?

A)White-collar crime emerged in the 1980s.
B)White-collar crime has cost American taxpayers very little money.
C)White-collar crime cost American taxpayers billions of dollars in the 1980s.
D)White-collar crime has decreased since the year 2000.

Question 9

Which of the following statements is true of most Sicilian immigrants to America?

A)Most Sicilian immigrants moved to America to participate in Mafia activities.
B)Few Sicilian immigrants had experience with the Mafia while living in Italy.
C)Most Sicilian immigrants moved to the U.S.to escape Mafia repression.
D)The Mafia had little to do with Sicilian immigration to the United States.

Question 10

What was the event that gave the Mafia a secure foothold in many U.S.cities?

A)the Great Depression
B)the Civil War
C)Purge Day of 1931
D)Prohibition

Question 11

Which of the following is not considered to be a financial crime according to the FBI?

A)government fraud
B)mass-marketing fraud
C)securities fraud
D)health-care fraud

Question 12

Mr.Green is an attorney who overbills clients for hours that he has not worked.What type of crime is this?

A)organizational occupational crime
B)professional occupational crime
C)blue-collar crime
D)organized crime

Question 13

What is the name of the legal statute that made it illegal for criminal activity to interfere in interstate commerce or use the highways to conduct racketeering?

A)the Hobbs Act
B)the Sarbanes-Oxley Act
C)the RICO Act
D)the Kefauver Act

Question 14

Which statement is true of the Racketeer Influenced Corrupt Organization (RICO)portion of The Organized Crime Control Act of 1970?

A)RICO made conducting racketeering a legal act.
B)RICO generalized the definition of racketeering.
C)RICO makes it a crime to profit from racketeering
D)RICO allows prosecution for income tax evasion.

Question 15

Which presidential administration was affected by the Teapot Dome Scandal?

A)Benjamin Harrison's
B)Warren Harding's
C)Richard Nixon's
D)Bill Clinton's

Question 16

Which strategy for controlling organized crime has been successful in some states?

A)enacting many new criminal statutes
B)extensively using informants
C)legalizing gambling and gaming
D)strictly enforcing existing law

Question 17

What happened to organized crime between the years of 1931 and 1951?

A)The government eradicated organized criminal activity.
B)The organizations' activities became nearly invisible.
C)The organizations grew exponentially.
D)The rival organizations were at war.

Question 18

What caused the savings and loan disaster in the 1980s?

A)mismanagement and appropriation of depositor funds
B)securities fraud using depositor funds
C)insider trading with the use of depositor funds
D)illegal and undocumented loans given to management

Question 19

Which of the following individuals was convicted of insider trading in the ImClone scandal?

A)Ivan Boesky
B)Kenneth Lay
C)Martha Stewart
D)Michael Milken

Question 20

Which two groups are often,thought of as synonymous with organized crime?

A)the American Mafia and La Cosa Nostra
B)Italian and Irish immigrants
C)La Mano Negro and the Omertà
D)crime bosses and lieutenants

Question 21

It is easier to convict corporate criminals than street criminals.

Question 22

The Teapot Dome Scandal involved illegal leasing of government property.

Question 23

Middle Eastern criminal groups are most active in California,Louisiana,and Texas.

Question 24

Ponzi,pyramid and prime bank schemes are all instances of securities fraud.

Question 25

Property flipping is a form of mortgage fraud where the lender is the victim.

Question 26

A chief financial officer of a corporation who commits fraud while acting on behalf of the corporation commits individual occupational fraud rather than corporate fraud.

Question 27

The Sarbanes-Oxley Act was the largest reform of American business practice since the Great Depression.

Question 28

The Nigerian letter fraud scheme is an example of money laundering.

Question 29

Research analysts at securities firms like Goldman Sachs Group,Inc.were charged with securities fraud in 2002.

Question 30

Between 2002 and 2007 more than 50 chief financial officers were convicted of fraud.

Question 31

The SEC was established in 1934 to oversee the securities industry.

Question 32

White-collar crime is less likely to result in prosecution than other type of crimes.

Question 33

Executive officers must now personally vouch for the truth and fairness of their companies' financial disclosures.

Question 34

Enron Corporation hid company losses through complex accounting practices.

Question 35

Initial efforts to control organized crime were directed at individuals.

Question 36

Mafia families no longer operate in the United States today.

Question 37

Elected officials in large major cities such as Chicago and New York are seldom connected to organized crime.

Question 38

The profits of bootlegging in the Prohibition era led to corruption of many law enforcement officials.

Question 39

Balkan organized crime families affiliated with Mafia families before establishing their own organizations.

Question 40

The concept of criminal enterprises is limited to the traditional system of organized crime.

Question 41

Sicilian Mafia organizational hierarchies are much different from the clan-based structure of _____ organizations.

Question 42

The Sarbanes-Oxley Act was put into place in _____ to help control the conduct of corporations.

Question 43

What was the Teapot Dome Scandal of 1929? How did it end?

Question 44

The Wickersham Commission criticized the influence of _____ on professional law enforcement in the U.S.

Question 45

What were the two acts created by federal legislators in reaction to the Stock Market Crash of 1929,and what were they designed to do?

Question 46

A violation of the law by the executive of a company on its behalf is known as _____crime.

Question 47

In the 1990s,low interest rates lead to sham _____ operations.

Question 48

WorldCom,Inc.executives were charged with ______ fraud in 2002.

Question 49

What differentiates white-collar crime from other forms of crime,and why is it so difficult to prosecute?

Question 50

Unlawful activity undertaken by organized criminal groups operating across international boundaries is known as _____ organized crime

Question 51

Disguising illegal income as legal income is known as money_____.

Question 52

Define the five types of activities that may qualify as organized crime

Question 53

Identify three of the major clans involved in transnational crime and discuss the type of crime in which they tend to be most involved.

Question 54

The 1914 _____Act prohibited mergers and acquisitions that might create a monopoly that would restrain trade.

Question 55

Summarize the organized crime code known as Omertà.

Question 56

The Exxon Valdez disaster was an example of _____crime.

Question 57

A criminal enterprise is a group of _____ or more people,with one of them occupying a supervisory or management position.

Question 58

Loan-sharking involves the lending of money at _____rates much higher than legal limits.

Question 59

What approaches might best control organized crime? Give examples of these approaches