Deck 14: White-Collar Crime

Question 1

Which of the following Imposes criminal penalties for the discharge of certain pollutants beyond an authorized limit into navigable waterways?

A) The Refuse and Harbors Appropriations Act
B) Water Pollution Control Act
C) Fungicide and Rodenticide Act
D) Resource Conservation and Recovery Act

Answer 1

B

Question 2

______ emerged as a subject of interest when it was announced that Martha Stewart was the subject of a criminal investigation for lying to investigators about the sale of stock.

A) Environmental crimes
B) Stock market fraud
C) Fiduciary fraud
D) Money laundering

Answer 2

B

Question 3

Which of the following must a prosecutor demonstrate for a conviction of mail fraud?

A) scheme
B) money or property
C) mail
D) all of these

Answer 3

D

Question 4

Which of the following is the most commonly charged and prosecuted public corruption offense?

A) tax evasion
B) embezzlement
C) conspiracy
D) bribery

Question 5

The ______ prohibits the payment of money to radio station employees for the inclusion of material as part of a program unless the payment is disclosed to the recipient's employer.

A) Mail Act
B) Payola Act
C) Travel Act
D) Securities Act

Question 6

The ______ declared that every working person should be guaranteed safe and healthful working conditions.

A) environmental crimes
B) securities fraud
C) Occupational Safety and Health Act
D) health fraud

Question 7

______ occurs when fraudulent claims are submitted for the reimbursement of services that were never provided.

A) Health care fraud
B) Securities fraud
C) Money laundering
D) Mail fraud

Question 8

______ involves creating some false source of income that accounts for the money used to buy a house, purchase a car, or open a bank account.

A) Health care fraud
B) Securities fraud
C) Money laundering
D) Mail fraud

Question 9

______ is/are defined as the knowingly corrupt behavior by a public official in the exercise of his or her official responsibilities.

A) Crimes of official misconduct
B) Crimes of public officials
C) Political crimes
D) Public corruption

Question 10

The ______ declares that it is illegal for an individual or a U.S. company to bribe a foreign official in order to cause that official to assist in obtaining or retaining business.

A) Mail Act
B) Payola Act
C) Foreign Corrupt Practices Act
D) Sherman (Antitrust) Act

Question 11

The ______ of 1890 is intended to ensure a free and competitive business marketplace.

A) Mail Act
B) Payola Act
C) Foreign Corrupt Practices Act
D) Sherman (Antitrust) Act

Question 12

Corporate executives and corporate boards of directors possess a ______, or a high duty of care to safeguard and to protect the investment of stockholders.

A) fiduciary relationship
B) corporate duty
C) financial relationship
D) financial duty

Question 13

______ are individuals who transmit information regarding insider trading.

A) Tippees
B) Whistleblowers
C) Tippers
D) Informants

Question 14

With ______ fraud, the communication must cross interstate or foreign business.

A) mail
B) wire
C) pump and dump
D) graft

Question 15

All of the following are types of environmental crime EXCEPT ______.

A) air pollution
B) water pollution
C) injury to workers
D) disposal of hazardous waste

Question 16

The Department of Justice focuses on ______ to ensure that the stock market functions in a fair and open fashion.

A) financial relationship
B) insider trading
C) open trading
D) securities fraud

Question 17

______ are individuals who receive the information regarding insider trading.

A) Tippees
B) Whistleblowers
C) Tippers
D) Informants

Question 18

The ______ authorizes the federal government to prosecute what ordinarily are considered the criminal offenses of gambling, the illegal shipment and sale of alcohol, extortion, bribery, arson, prostitution, money laundering, and controlled substances.

A) Mail Act
B) Payola Act
C) Travel Act
D) Securities Act

Question 19

______ threatens the health and natural resources of the United States.

A) Environmental crimes
B) Securities fraud
C) Occupational safety and health
D) Health fraud

Question 20

The ______ rule states that corporate officials must publicly reveal information to the public relating to the economic condition of a corporation before they buy or sell the company's stock.

A) misappropriation
B) stock fraud
C) securities fraud
D) disclose or abstain

Question 21

All of the following are elements of money laundering EXCEPT ______.

A) an agreement between two or more people
B) a monetary transaction intended to disguise the source of the money
C) a transaction intended to promote a specified unlawful activity
D) money that constituted proceeds from the unlawful activity

Question 22

Timothy is pulled over for speeding by a police officer on his drive home from work. He is running behind and knows his wife will be angry because he is late so he wants the process to go as quickly as possible. He offers the officer $100 dollars to just let him go without a ticket. The officer does not take it and continues to write the ticket. May Timothy be guilty of bribery?

A) Yes, but only in a jurisdiction that recognized the subjective test.
B) Yes, no mutual agreement is required.
C) No, the act was not completed.
D) No, bribery requires a meeting of the minds.

Question 23

John owned a construction company that frequently bid on state contracts. He agreed with other construction company owners to rig the bidding process to ensure that each company would receive state contracts. The firm designated among the group to receive the bid would submit an inflated price and the others would submit even higher bids to ensure the first company would receive the contract. This led to unreasonably high costs for government projects. What may allow for the prosecution of this behavior?

A) the Sarbanes Oxley Act
B) the Sherman Antitrust Act of 1890
C) the act in opposition to monopolies
D) false pretenses

Question 24

What is generally the mens rea for white-collar crimes?

A) intentionally
B) knowingly
C) recklessly
D) negligently

Question 25

A conviction for mail fraud requires the prosecution to demonstrate which of the following?

A) some of the following elements: scheme, falsehood, money or property, reliance, and mail
B) all of the following elements: scheme, falsehood, money or property, reliance, and mail
C) malice, falsehood, money or property, reliance, and mail
D) recklessness, falsehood, money or property, reliance, and mail

Question 26

All of the following are prosecuted under the Travel Act EXCEPT ______.

A) prostitution
B) money laundering
C) illegal shipment of alcohol
D) burglary

Question 27

All of the following are punishments associated with health care fraud EXCEPT ______.

A) a fine and imprisonment of up to 10 years
B) imprisonment of up to 20 years if a serious injury is caused
C) death, if in a state that authorizes capital punishment
D) life in prison if death is caused

Question 28

Which of the following was not one of the most dangerous industry sectors in 2015?

A) public safety
B) fishing
C) transportation
D) forestry

Question 29

______ prohibits the contamination of the public water system.

A) Pollution Act
B) Toxic Substance Control Act
C) Safe Drinking Water Act
D) Water Safety and Health Act

Question 30

OSHA primarily relies on which of the following to ensure compliance?

A) financial penalties and the civil process
B) the criminal process and the civil process
C) the civil process and incarceration
D) incarceration and financial penalties

Question 31

______ is defined as asking, accepting, receiving, or offering money or an item of value or compensation or a reward for an official decision.

A) Bribery
B) Graft
C) Blackmail
D) Pump and dump

Question 32

Craig works at a hospital that follows proper procedure for the storing and disposal of hazardous waste. He believes he accidently lost his wedding band in one of the containers in which the waste is stored. He needs to go through the containers but knows he would not be permitted to do so on the hospital premises. He asks two friends to help him transport the containers to his home. He rents a uhaul and they fill the truck and drive away. Under which environmental law may he be prosecuted?

A) The Safe Drinking Water Act
B) Rivers and Harbors Appropriations Act
C) Clean Air Act
D) Resource Conservation and Recovery Act

Question 33

Which case ruled "there can be no justification for permitting officers and directors to retain profits which they derived solely from exploiting information gained by virtue of their inside position as corporate officials"?

A) United States v. Sarbanes Oxley
B) Tipper v. Tippee
C) Diamond v. Oreamuno
D) United States v. Carpenter

Question 34

The ______ requires the heads of corporations to certify that their firms' financial reports are accurate.

A) Payola Act
B) Sherman (Antitrust) Act
C) Sarbanes-Oxley Act
D) Truman Antitrust Act

Question 35

Those convicted of white-collar crime are sentenced how?

A) just like anyone else
B) through alternative forms of sentencing that typically do not include incarceration
C) through the utilization of public shaming
D) through the imposition of hefty fines

Question 36

Shane is part of a political action committee working to get his candidate elected to public office. He designs a mailer that will be sent via UPS nationwide in order to advise the public of the shortcomings of the opponent. The flyer is designed to look as though it came from the opponents campaign, as if the campaign staff had turned on the candidate. Can Shane be convicted of mail fraud?

A) No, because Shane had no intent to obtain money or property as a result of the mailer.
B) No, because he used UPS instead of the U.S. Post Office.
C) Yes, because he made an intentional false statement.
D) Yes, because those in receipt of the mailer will likely rely on its contents as truth.

Question 37

White-collar crimes are committed to obtain all but which of the following?

A) money
B) official position
C) property
D) service

Question 38

Taylor has 100 shares of a new corporation. Because the business is still in its infancy, stock can be purchased relatively inexpensively. He wants to make a profit without sticking around for the long haul. He begins spreading rumors that the corporation will soon be purchased by Apple, which is in no way true. The stock soars and he quickly sells his stock, making a tremendous profit. Taylor's actions are an example of what?

A) a conspiracy
B) pump and dump
C) bribery
D) a tippee

Question 39

A conviction under the Sherman Antitrust Act requires which of the following?

A) two or more people
B) one individual
C) knowingly entered into a contract or conspiracy
D) which produced unreasonable restraint on interstate trade

Question 40

Josh owns a cash only barbershop. He is very successful and makes thousands of dollars in cash every day. He uses his barbershop as a front for his drug dealing business. He reports that he earns just 45,000 per year when its well over 200,000. He definitely lives as though he makes 200,000. He paid for his luxury home in cash and has a small fleet of classic and sports cars. This disparity between lifestyle and income may attract the intention of whom?

A) the IRS
B) the FDA
C) the United Nations
D) the Congress Subcommittee on Money Laundering

Question 41

The misappropriation doctrine expands the law beyond individuals who work for a corporation and criminally punishes all individuals who take and use inside corporate information that is in the possession of their employer.

Question 42

Stock market fraud emerged as the subject of intense public interest when it was announced that Bill Gates was the subject of criminal investigation for lying to investigators about the sale of stock.

Question 43

What allows for federal jurisdiction over otherwise state crimes in order to combat organized crime?

A) the Communications Act
B) the Travel Act
C) the Interstate Act
D) the State Commerce Act

Question 44

Organized crime figures may obtain currency through what means?

A) illegal activity only
B) legal activity only
C) generated through drug sales
D) legal and illegal activity

Question 45

The Broadcasting Act prohibits the payment of money to radio station employees for the inclusion of material as part of a program unless the payment is disclosed to the recipient's employer.

Question 46

The mens rea for environmental crimes is negligently committing the prohibited act.

Question 47

The most frequently prosecuted state and federal official misconduct is the blackmail of a public official.

Question 48

The requirements for mail and wire fraud are similar with the exception that the mail communication must cross interstate or foreign boundaries.

Question 49

White-collar crime is the least active area of federal prosecution.

Question 50

Today, the increased concern with environmental crimes has led the federal and various state governments to establish special prosecution units.

Question 51

______ involves spreading false information about a company to drive up the stock price
a. Graft
b. Pump and dump
c. Bribery
d. Embezzlement

Question 52

Money laundering involves money derived from government officials.

Question 53

Dr. Assam works at a cancer treatment center in Indiana. On multiple occasions he has told patients they had cancer when, in reality, some simply had allergies or the flu or various other non-life-threatening illnesses. These patients underwent unnecessary radiation and/or chemotherapy as a result of his advice. He did this in order to be able to bill Medicare and Medicaid at a higher rate. What type of crime has Dr. Assam committed?

A) failure to obtain consent
B) inducement to medical treatment
C) health care fraud
D) false pretenses

Question 54

Health care fraud is only punished by a fine.

Question 55

All of the following are theories behind the Sherman Act according to Justice Black EXCEPT ______.

A) competition results in low prices and high quality
B) competition results in high prices
C) competition promotes self-reliance
D) competition promotes democratic values

Question 56

OSHA refers some cases to the Environmental Protection Agency.

Question 57

Bribery and graft both require an intent to influence or to be influenced.

Question 58

The Department of Justice, in the past decade, has focused its white-collar crime investigations on insider trading.

Question 59

The Travel Act of 1961 was intended to assist the state and local governments to combat organized crime.

Question 60

In 1995, Congress responded to the increasingly high number of job-related deaths and injuries by passing the Occupational Safety and Health Act.

Question 61

List and describe some acts that are defined as environmental crimes. Do you believe that it is necessary for the federal and various state governments to establish special prosecution units for environmental crimes? Why or why not? Support your answer with examples from your reading.

Question 62

What is the intention of the Sherman (Antitrust) Act of 1890?

Question 63

What is the misappropriation doctrine?

Question 64

How does sociology define white-collar crime?

Question 65

What is the Occupational Safety and Health Act? Why was this act passed? Do you believe that it is necessary in the 21st century to have OSHA? Why or why not?

Question 66

What is the Occupational Safety and Health Act?

Question 67

Sociologist Robert K. Merton pioneered the concept of white-collar crime.

Question 68

Explain the difference between securities fraud and antitrust violations. Explain why pursuing each crime is important and provide an example of each.

Question 69

What are crimes of official misconduct?

Question 70

What is the Travel Act? Why does the United States have a Travel Act? What is required for a conviction under the Travel Act?

Question 71

List four central environmental laws.

Question 72

What is the original intention of the Travel Act?

Question 73

Most white-collar crime prosecutions are undertaken by local governments.

Question 74

The Justice Department defines white-collar crime as a crime committed by an individual of respectability and high social status in the course of his or her occupation.

Question 75

What is white-collar crime? How does sociology's definition differ from the U.S. Department of Justice's definition? Why does the United States have a separate classification for white-collar crimes?

Question 76

What is the disclose or abstain doctrine?

Question 77

Crimes of official misconduct are defined as the knowingly corrupt behavior by a public official in the exercise of his or her official responsibilities.

Question 78

What is insider trading? Why is insider trading criminal? Use the example of Martha Stewart to support your answer.

Question 79

What is the difference between a graft and a bribe?

Question 80

What is the difference between mail fraud and wire fraud?