Deck 13: Enterprise Crime: White-Collar, Green-Collar, and Transnational Organized Crime

Question 1

Violation of the _____________________ carries maximum penalties of a $100 million criminal fine for corporations and a $1 million criminal fine and 10 years in prison for individuals.

Answer 1

Sherman Antitrust Act

Question 2

The ____________________of the U.S. Constitution gives the federal government the authority to regulate white-collar crime.

Answer 2

Commerce Clause

Question 3

_________________ occurs when an organization that either (a) advances credit, (b) provides loans, (c) supports people financially, or
(d) reimburses them for services provided to a third party is the target of criminal activity.

Answer 3

Client fraud

Question 4

A white-collar ___________ involves the criminal activity of people who use a business proposition to trick others out of their money.

Question 5

__________________occurs when contractors provide the government or other corporations with incomplete or misleading information on how much it will actually cost to fulfill the contracts on which they are bidding.

Question 6

When a businessperson uses an institutional position to grant favors and sell information to which their co-conspirators are not entitled, this is referred to as _______________________.

Question 7

A ________ mortgage is a home loan given to borrowers who, because of their income, would not ordinarily qualify for bank loans.

Question 8

An investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors is referred to as a ______________________.

Question 9

The FBI estimates that health care fraud now costs the nation ____________ per year.

Question 10

Credit-card fraud and income-tax evasion are two types of __________________.

Question 11

__________________occurs when a corporate employee with direct knowledge of market-sensitive information uses it to buy and sell securities, giving the employee-trader an unfair advantage over the general public.

Question 12

The Ponzi scheme is named for _________________, a famous white-collar criminal who duped investors into a stamp-collecting scheme.

Question 13

Interest in corporate crime first emerged in the early 1900s, when a group of writers, known as _____________________, targeted the monopolistic business practices of John D. Rockefeller and other corporate business leaders

Question 14

The U.S. Congress has passed numerous laws that regulate and restrict wildlife imports and exports, including the __________________ Act of 1973 and the Lacey Act.

Question 15

In the 1930s, Sutherland first used the phrase  __________________ to describe the criminal activities of the rich and powerful.

Question 16

__________________ refers to a substance made by gathering waste trimmings, cooking them so the fat separates easily from the muscle, and using a centrifuge to complete the separation.

Question 17

According to the _____________ perspective, environmental crimes are violations of existing criminal laws designed to protect people and the environment

Question 18

_________ is a white-collar enforcement strategy that encourages law-abiding behavior through both the threat of economic sanctions and the promise of rewards for conformity.

Question 19

An auto repair shop charging customers for bogus repairs is _________.

Question 20

Criminal activity that typically involves groups that conspire to make illegal profits through connections to business and commerce is __________________.

Question 21

A white-collar ______ involves the criminal activity of people who use a business proposition to trick others out of their money.

A) fraud
B) embezzlement
C) swindle
D) transition

Question 22

In the 1930s, Sutherland first used the phrase "white-collar crime" to describe the criminal activities of:

A) the rich and powerful.
B) the proletariat.
C) the mafia.
D) businesspeople.

Question 23

White-collar offenders who claim that everyone commits crime reflect the _________ or _________ view of causation.

Question 24

The major enforcement arm against environmental crimes is the ___________________.

Question 25

White-collar crime involves illegal activities of people and institutions whose acknowledged purpose is ___ profit through ___ business transactions.

A) criminal; black-market
B) black-market; violent
C) illegal; legitimate
D) illegal; illegitimate

Question 26

Penalties for bank fraud include a maximum fine of $1 million and up to how much time in prison?

A) 10
B) 70
C) 30
D) life

Question 27

When powerful institutions willfully violate the laws that restrain them from doing social harm or that require them to do social good, it is called corporate crime or:

A) organized crime.
B) organizational crime.
C) social crime.
D) antitrust crime.

Question 28

Which of the following actions would be considered health care fraud?

A) referring patients to other physicians in the same office
B) directing patients to particular pharmacies
C) referring patients to a clinic in which the physician has a financial interest
D) All of the above

Question 29

The ____________________ establishes and maintains goals and standards for U.S. water quality and purity.

Question 30

Income-tax evasion is a type of client fraud. Not paying taxes, is an example of:

A) affirmative tax evasion.
B) authoritative neglect.
C) inert evasion.
D) passive neglect.

Question 31

Who or what is the victim in crimes of influence peddling?

A) the organization
B) the customers of an organization
C) entry-level employees
D) the stockholders of an organization

Question 32

Tom Delay was forced out of politics because of his involvement in a bribery scandal involving Washington, D.C., lobbyist Jack Abramoff. Representative Randy "Duke" Cunningham resigned from Congress after confessing to accepting $2.4 million in bribes. Former Illinois Governor George Ryan was convicted of steering government contracts to people willing to give him kickbacks and bribes. All three of these men committed the white-collar crime of:

A) restraint of trade.
B) influence peddling.
C) professional chiseling.
D) embezzlement.

Question 33

In 1977, Congress passed the Foreign Corrupt Practices Act, which made it illegal to:

A) traffic women and children across country borders.
B) bribe foreign officials.
C) take kickbacks from foreigners.
D) engage in price fixing with foreign businesses.

Question 34

According to the _________________ approach to green crimes, environmental harm is viewed as any human activity that  disrupts a biosystem, destroying plant and animal life.

Question 35

For the government to prove tax fraud, the minimum dollar amount that must be involved is:

A) $50.
B) $100.
C) $1000.
D) There is no minimum dollar amount.

Question 36

Churning, front running, and bucketing are types of:

A) influence peddling.
B) blue-collar fraud.
C) bank fraud.
D) securities fraud.

Question 37

A white-collar crime in which a stockbroker makes repeated trades with a client's account in order to fraudulently increase his or her commissions is known as:

A) chiseling.
B) churning.
C) front running.
D) bucketing.

Question 38

The Mafia originated in ___________ around 1860, and started as a criminal gang employed by wealthy landowners to function as agents of social and land control

Question 39

Using illegal tactics to make profits in the marketplace is known as:

A) entrepreneurship.
B) enterprise crime.
C) venture enterprise.
D) illegitimate enterprise.

Question 40

Systematic theft of company property by employees is common and is called:

A) front running.
B) bucketing.
C) "steering."
D) pilferage.

Question 41

The factor that distinguishes corporate crime from individual-level white-collar crime is that with corporate crime, the perpetrator is a/an ____ and not a/an ____.

A) corporate officer, stockholder
B) legal fiction, individual
C) partnership, group
D) business monopoly, board of control

Question 42

One example of health care fraud involves billing for more expensive services or procedures than were actually provided or performed. This practice is termed ______ and requires "inflation" of the patient's diagnosis code to a more serious condition consistent with the false procedure code.

A) ladder coding
B) trade coding
C) upcoding
D) step coding

Question 43

Why do deterrence strategies typically work when combating white-collar crime?

A) White-collar criminals are difficult to shame.
B) White-collar crime is a rational act.
C) Federal agencies are eager to throw criminal executives in prison.
D) White-collar criminals conceive of themselves as more threatening than street criminals.

Question 44

Which act establishes standards for U.S. water quality and purity?

A) Clean Water Act
B) Emergency Planning and Community Right-to-Know Act
C) Endangered Species Act
D) Oil Pollution Act

Question 45

Which of the following is the routine practice of paying radio stations to play particular songs?

A) play sharing
B) payola
C) music fraud
D) playing fraud

Question 46

When firms divide a region into territories and each firm agrees not to compete in the others' territories, it is illegal and is called:

A) group boycott.
B) tying arrangement.
C) division of markets.
D) price fixing.

Question 47

A corporation that requires its customers to use one of the other services that it offers is practicing a:

A) group boycott.
B) tying arrangement.
C) division of markets.
D) price fixing.

Question 48

Failing to pay taxes on time and report income are examples of which type of tax fraud?

A) passive neglect
B) open neglect
C) unintentional neglect
D) careless neglect

Question 49

The Oil Pollution Act was enacted after which aftermath?

A) BP oil leak
B) Exxon Valdez oil spill
C) East Coast pollution scare
D) Compass oil spill

Question 50

Which act requires companies to disclose information about toxic chemicals they release into the air and water?

A) Clean Water Act
B) Emergency Planning and Community Right-to-Know Act
C) Endangered Species Act
D) Oil Pollution Act

Question 51

Which of the following involves systematic theft of company property by employees?

A) pilferage
B) payola
C) labor theft
D) labor fraud

Question 52

Which scheme involves private investors taking only  wealthy clients?

A) investment embezzlement
B) advanced-fee scheme
C) prime bank investment fraud
D) hedge-fund fraud

Question 53

Which act established health care fraud as an independent federal criminal offense that carries a penalty of up to 10 years in prison?

A) Health Insurance Scheme Punishment Act.
B) Health Insurance Portability and Accountability Act.
C) Health Insurance Protection Act.
D) Health Insurance Act.

Question 54

One method of controlling white-collar crime is through the use of compliance strategies. How do compliance strategies work?

A) Compliance strategies aim for law conformity without the necessity of detecting, processing, or penalizing individual violators.
B) Compliance strategies require cooperation and self-policing from businesses.
C) Compliance strategies provide economic incentives for obeying the law.
D) Compliance strategies do all of the above.

Question 55

Compliance strategies are often viewed as "slaps on the wrists." In their place, deterrence strategies have become the normative approach to controlling white-collar offenders. Why is the tide turning from compliance to deterrence?

A) Because of the crushing caseloads of compliance agencies such as the Food and Drug Administration and the Environmental Protection Agency
B) Because of the increased number of prisons structured to house nonviolent offenders
C) Because of public displeasure and a growing awareness of the damage caused by white-collar criminals
D) Because of pressure aimed at political officials from lobbyists and labor unions

Question 56

Which scheme involves telling victims that certain financial instruments have been issued by legitimate organizations and that investments are high-payoff and low-risk?

A) investment embezzlement
B) advanced-fee scheme
C) prime bank investment fraud
D) hedge fund fraud

Question 57

Corporations can circumvent economic sanctions by:

A) declaring bankruptcy.
B) moving their rule-violating activities overseas.
C) merging with another corporation.
D) devaluing their stock.

Question 58

____________________ is a form of organized crime operating across national borders.

A) ​Transnational organized crime
B) ​International organized crime
C) ​Human Organ Trafficking (H.O.T.) association
D) ​Transnational Environmental Crime Syndicate

Question 59

If a store advertises sweaters at a bargain price but do not actually have any sweaters for sale for that price, they are guilty of which offense?

A) insider trading
B) restraint of trade
C) churing
D) false advertising

Question 60

What white-collar crime involves a contract or conspiracy designed to stifle competition, create a monopoly, artificially maintain prices, or otherwise interfere with free-market competition?

A) restraint of commerce
B) restraint of trade
C) restraint of business
D) restraint of competition

Question 61

Crips, Bloods, and the MS-13 are now referred to as:

A) ​transnational mega-gangs.
B) ​eurocentric gangs.
C) ​S.A.B.I.T. gangs.
D) ​The "New" Mafia.

Question 62

Affirmative tax evasion occurs when an individual fails to pay taxes or does not report all income.

Question 63

Many offenders feel free to engage in business crime because they can easily rationalize its effects.

Question 64

In 1970, Congress passed the Organized Crime Control Act. Title IX of the act, probably its most effective measure, is the:

A) ​Racketeer Influenced and Corrupt Organizations (RICO) Act
B) ​Organized Racketeering Crime Act (ORCA)
C) ​Congressional Organized Crime Act
D) ​Whitey Ford Criminal Enterprise Act

Question 65

In 1970, Congress passed the Organized Crime Control Act. Title IX of the act, probably its most effective measure, is the Racketeer Influenced and Corrupt Organization (RICO) Act.

Question 66

Influence peddling occurs when individuals who hold important institutional positions sell information to outsiders.

Question 67

The type of white-collar crime that includes antitrust violations, price fixing, and false advertising is known as corporate crime.

Question 68

The Sherman Antitrust Act is aimed at individuals who are engaged in a conspiracy.

Question 69

Several Mexican drug cartels have formed known alliance known as the:

A) ​Federation
B) Separacion
C) ​Almacenamiento
D) ​Alamo

Question 70

Payola occurs when a radio station is paid to play certain music.

Question 71

Group boycott occurs when there is a conspiracy to set and control the price of a necessary commodity.

Question 72

What causal explanation of white-collar crime states that the motives that produce white-collar crimes are the same as those that produce any other criminal behavior?

A) neutralization view
B) self-control view
C) corporate-culture theory
D) rationalization view

Question 73

Bank fraud can encompass such diverse schemes as check kiting, check forgery, false statements on loan applications, sale of stolen checks, credit-card fraud, unauthorized ATM use, auto title fraud, and illegal transactions with offshore banks.

Question 74

Transporting timber or wood products in violation of laws or treaties is an example of a green crime.

Question 75

Individual exploitation of institutional power involves forcing victims to pay for services to which they have a clear right for no charge.

Question 76

Most businesses in Russia, legal, quasi-legal, and illegal must operate with the protection of a:

A) Krysha.
B) La Cosa Nostra.
C) Triad.
D) Vor v Zakoyne.

Question 77

Thirty years ago, the Knapp Commission found that police corruption in New York City was pervasive and widespread, ranging from officers taking small gratuities from local businesspeople to senior officers receiving payoffs in the thousands of dollars from gamblers and narcotics violators.

Question 78

A division of markets involves a corporation requiring its customers who use one of its services to use other services it offers.

Question 79

Employees may be involved in systematic theft of company property, commonly called "pilferage."

Question 80

The FBI belongs to several international working groups aimed at combating transnational gangs in various parts of the world.