Deck 9: White-Collar and Organized Crime

Question 1

To prove a criminal violation of the Sherman Antitrust Act, the government must establish that two or more entities formed a combination or conspiracy that produces, or potentially produces, an unreasonable restraint of interstate in trade or commerce with intent to violate the law.

Answer 1

True

Question 2

White collar-crimes are generally strict liability offenses.

Answer 2

False

Question 3

Federal law currently does not prohibit theft of computer programs or computer fraud.

Answer 3

False

Question 4

Many statutes defining white-collar crimes provide civil remedies designed to compensate those who have suffered financial losses as a result of a defendant's activities.

Question 5

Federal law makes it a crime to use the U.S.mail in furtherance of any fraudulent scheme.

Question 6

To convict a defendant for violating the False Statements Act, the federal government must prove that the defendant knowingly and willfully submitted to the government a false and material statement.

Question 7

The Internal Revenue Code criminalizes a number of offenses, but does not make it a crime to overstate the amount of deductions on one's tax return.

Question 8

Organized crime in America was at its weakest during the Prohibition era.

Question 9

A state crime can be used as a predicate act of the racketeering activity charged under RICO, but only after the offense has resulted in a conviction in a state court.

Question 10

In prosecuting white-collar crimes in federal court, the government is usually required to prove that the accused committed the prohibited act "with criminal negligence."

Question 11

The Double Jeopardy Clause prohibits the government from prosecuting a defendant for a RICO charge where the defendant has been previously convicted of one or more of the predicate crimes.

Question 12

In prosecuting white-collar crimes in federal court, the government is usually required to prove that the accused committed the prohibited act "knowingly and willfully."

Question 13

Intrastate violations of securities laws are generally prosecuted under state statutes that parallel federal securities laws.

Question 14

The federal RICO statute brings into federal criminal law an offense that was part of English common law.

Question 15

Price-fixing and bid rigging are among the most common violations of the federal anti-trust laws.

Question 16

Insider trading in violation of federal securities laws usually occurs when a person who operates "inside" a corporation has access to material non-public information and uses that information to trade in securities without first disclosing that information to the public.

Question 17

Today, corporations can be held criminally liable for the acts their agents commit within the scope of their authority.

Question 18

The English common law imposed criminal liability on a corporation but not on its members.

Question 19

To obtain a conviction for mail fraud, the federal government must prove the defendant's specific intent to defraud another party by use of the U.S.mail or some other interstate commercial carrier.

Question 20

White-collar crimes are nonviolent offenses characterized by deception or abuse of trust.

Question 21

Federal statutes require financial institutions to file Currency Transaction Reports with the Secretary of the Treasury for cash transactions in excess of _____________.

A)$1,000
B)$5,000
C)$10,000
D)$100,000

Question 22

The Sherman Antitrust Act makes it a crime to _______________________________.

A)enter a contract or engage in any combination or conspiracy in restraint of trade
B)"churn" a customer's brokerage account
C)be involved in trading securities as an "insider"
D)commit any of these acts

Question 23

The federal law often relied on to prosecute state and local officials for extortion "under color of official rights" is known as the _____________.

A)Money Laundering Control Act of 1986
B)False Claims Act
C)Smith Act
D)Hobbs Act

Question 24

Courts have ruled that the _____________Clause of the United States Constitution does not prohibit the government from prosecuting a defendant for a RICO charge where the defendant has been previously prosecuted for one of the predicate crimes.

A)Double Jeopardy
B)Equal Protection
C)Self-Incrimination
D)Privileges and Immunities

Question 25

Which one of the following statements concerning the federal RICO law is incorrect?

A)RICO does not criminalize a person for being a racketeer-it criminalizes the person's conduct of an enterprise through a pattern of racketeering.
B)A violation of a state criminal law cannot be used as a predicate act under RICO if the statute of limitations has run out on the prosecution of the state offense.
C)RICO has become a basis for prosecuting white-collar criminals as well as a weapon for prosecution of organized crime.
D)Unlike other criminal statutes, which are narrowly construed, RICO is intended to be liberally construed to effectuate its intended purpose.

Question 26

A person who uses interstate radio or television facilities to promote a fraudulent scheme to obtain money or property would likely be subject to federal prosecution under the __________.

A)False Statements Act
B)Computer Abuse Amendments Act
C)Wire Fraud Statute
D)Securities and Exchange Act

Question 27

Most white-collar crimes prosecuted in federal court are violations of statutes enacted under Article I, Section 8 of the U.S.Constitution, which grants Congress power to regulate ________.

A)interstate and foreign commerce
B)postal matters
C)bankruptcy and tax matters
D)all of these

Question 28

Making a false statement to obtain government benefits or in connection with performing work for the federal government is an offense under the _____________.

A)Hobbs Act
B)False Statements Act
C)Sherman Antitrust Act
D)None of these

Question 29

Conduct involving identity theft or fraud may in some instances be a violation of federal acts that proscribe _____________.

A)credit card and computer fraud
B)wire, radio and television fraud
C)mail fraud
D)all of these

Question 30

In prosecuting white-collar crimes in federal court, the government is usually required to prove that the accused committed the prohibited act "_____________."

A)with malice aforethought
B)with culpable negligence
C)with reckless abandon
D)knowingly and willfully

Question 31

To convict a defendant under the Money Laundering Control Act of 1986, the prosecution must establish that the defendant ________________.

A)had actual knowledge of or was guilty of willful blindness to the criminal acts alleged
B)should have known that the acts alleged by the government were criminal
C)participated in an illegal activity while knowing the law made it an offense
D)had been warned that the defendant's business associates were under surveillance by FBI who suspected they might be laundering money illegally in foreign banks

Question 32

To convict a person of tax perjury, the government must prove that the defendant ________.

A)filed a return containing a written declaration made under penalty of perjury
B)acted willfully
C)did not believe that the return was true and correct as to every material matter
D)all of these

Question 33

Which one of the following statements is INCORRECT?

A)Congress enacted the Federal Wire Fraud statute under its authority to regulate interstate commerce.
B)Although the government may employ a variety of federal criminal statutes to prosecute those who commit tax fraud, most prosecutions are based on the Internal Revenue Code.
C)A state crime can be used as a predicate act of the racketeering activity charged under RICO, but only after the offense has resulted in a conviction in a state court.
D)In RICO, Congress has defined "enterprise" broadly to include "any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity."

Question 34

The U.S._____________ alone is authorized to enforce the criminal sanctions of the Sherman Antitrust Act.

A)Justice Department
B)Supreme Court
C)Secretary of Commerce
D)None of these

Question 35

The process of disguising illegal income to make it appear legitimate is known as _____________.

A)insider trading
B)money laundering
C)structuring
D)bankruptcy fraud

Question 36

As well as criminal penalties, the federal RICO law provides for ____ used in criminal enterprises.

A)transfer of assets
B)forfeiture of property
C)analysis of computers
D)none of these

Question 37

Although the government may employ a variety of federal criminal statutes to prosecute those who commit tax fraud, most prosecutions are based on the _____________.

A)Hobbs Act
B)Sherman Antitrust Act
C)False Statements Act
D)Internal Revenue Code

Question 38

Since 1978 nearly every state has enacted laws specifically defining computer crimes, often including such offense(s) as ______________.

A)theft of computer services
B)computer fraud
C)computer trespass
D)all of these

Question 39

Knowingly trafficking in counterfeit labels affixed or designed to be affixed to a copy of computer programs, motion pictures, or other audiovisual works is called _______________and is punishable by fine or imprisonment under federal law.

A)theft of trade secrets
B)trademark counterfeiting
C)bootlegging
D)embezzlement

Question 40

Which one of the following statements is INCORRECT?

A)Organized crime figures often attempt to gain political influence through graft and corruption.
B)Protection rackets and other forms of racketeering have become the methodology of organized crime as it has infiltrated many legitimate business operations.
C)All offenses committed by organized crime syndicates are by definition white-collar crimes.
D)Congress enacted the Organized Crime Control Act of 1970 under its power to regulate foreign and interstate commerce.

Question 41

___________ crime involves offenses committed by groups who conduct their business through illegal enterprises.

Question 42

"__________" is the term applied to stock transactions in a customer's account simply to generate commissions for the broker without regard to the customer's investment objectives.

Question 43

In some jurisdictions a corporation cannot be held criminally liable for crimes against persons unless the offense is based on the corporation's _________ rather than on specific intent.

A)actual malice
B)negligence
C)willful misconduct
D)strict liability

Question 44

In 2006, the United States ratified the __________________, a treaty designed to harmonize national laws and strengthen international cooperation in with respect to computer crime.

Question 45

The USA PATRIOT Act was designed to deter and punish terrorist acts in the U.S.and around the world and includes provisions ________________________.

A)creating new categories of offenses proscribing computer hacking
B)criminalizing trafficking in passwords with the intent to defraud
C)creating the crime of domestic terrorism
D)all of these

Question 46

The term _________________ comprises patents, copyrights, trademarks, and trade secrets.

Question 47

The ______________ Act makes it a crime to enter any contract or engage in any combination or conspiracy in restraint of trade.

Question 48

The necessity for the development of statutes to combat organized crime stemmed from the fact that ______________________________________________________.

A)common law and existing statutory offenses did not address ongoing criminal activities
B)the principal activities of organized crime were not criminal offenses
C)wrongful conduct by white-collar defendants was subject only to civil penalties
D)none of these

Question 49

Organized crime figures, sometimes called _____________, frequently conduct their business through illegal enterprises.

Question 50

In addition to questions of statutory interpretation and legislative intent, defendants charged with RICO violations have asserted as defenses ____________________.

A)selective prosecution
B)double jeopardy
C)entrapment
D)all of these

Question 51

After repealing the Eighteenth Amendment in 1933, organized crime syndicates expanded their criminal enterprises into _______.

A)espionage
B)narcotics
C)theft of intellectual property
D)all of these

Question 52

Trademark disputes are generally resolved in civil courts, but federal law does provide criminal penalties for trademark _____________.

Question 53

Originally most prosecutions under the _______ Act were based on extortion by public officials by force, violence, or fear.Now prosecutors frequently rely on the act to prosecute state and local officials based on extortion "under color of official rights."

Question 54

A ___________ affords legal protection to authors of original works, which now include musical, artistic, and architectural works as well as videos, computer software, and databases.

Question 55

By the time __________ was repealed in 1933, organized crime had become involved in many phases of the economy, often pursuing its interests through illegal activities.

Question 56

A ___________ is a distinctive word, phrase, or graphic symbol used to distinguish a product.

Question 57

Federal statutes prohibit a person from "____________" a transaction with one or more institutions to evade the requirement that cash transactions in excess of $10,000 be reported to the government.

Question 58

To prove __________________ the government must prove: (1) the defendant presented a claim seeking reimbursement from the government for medical services or goods; (2) that the claim was false or fraudulent; and (3) the accused knew of the claim's falsity.

Question 59

The theft or misappropriation of personal identifying information and documents commonly referred to as ___________.

Question 60

White-collar crimes often are prosecuted based on federal statutes enacted by Congress under its constitutional authority to regulate interstate and foreign __________.

Question 61

A variety of federal and state statutes criminalize conduct involving misrepresentations, omissions, _______________, and other aspects of fraud in securities dealing.

Question 62

Which of these is NOT a crime that Prudence has committed?

A)insider trading
B)money laundering
C)churning
D)wire fraud

Question 63

Why did Congress enact the Sherman Antitrust Act? What types of offenses are typically charged under the Act? What essential elements must the prosecution prove to find a corporation guilty of violating the Act?

Question 64

The crime of _____________ involves disguising illegal income to make it appear legitimate.

Question 65

What is identity theft? Why have Congress and the state legislatures enacted specific criminal prohibitions in this area? Would identity theft be a crime in the absence of these new prohibitions?

Question 66

A __________ is a federal government grant of the right to exclude others from producing or using a discovery or invention.

Question 67

Let's say that instead of wiring her profits overseas, Prudence uses the profits to pay off her debts to the Unlucky Lady casino in Las Vegas.She is aware of the fact that paying her $100,000 debt at one time will trigger an automatic report to the IRS.So, she decides to instead make a series of $9,000 payments instead.This could be construed as:

A)structuring
B)churning
C)identity theft
D)insider trading

Question 68

By sending her stock transaction to a broker via the U.S.mail, Prudence has:

A)violated the federal mail fraud statute.
B)engaged in money laundering.
C)committed the crime of structuring.
D)committed the crime of identity theft.

Question 69

Which of the following is a crime that Lexicon has NOT committed?

A)money laundering
B)identity theft
C)churning
D)structuring

Question 70

The federal ________ law provides for forfeiture of property used in criminal enterprises and permits the government to bring civil actions against such enterprises.

Question 71

Within the last ten years, Lexicon has ordered an employee to commit a murder and has also ordered an employee to kidnap a potential witness.Both crimes were designed to conceal evidence of his organization's illegal financial activity.Based on this information, federal authorities would be most likely to use which of the following to arrest him:

A)the federal mail fraud statute
B)federal identity theft laws
C)RICO
D)federal wire fraud laws

Question 72

Critics contend that the federal RICO Act is a "catch-all" statute that gives prosecutors too much discretion to expand the range of indictable offenses.Evaluate this criticism.

Question 73

The Supreme Court's decision in Schmuck v.United States is most relevant to what aspect of Prudence's behavior?

A)use of the United States mail
B)se of a wire transfer
C)insider trading
D)whether she paid taxes

Question 74

What forms of intellectual property are recognized by the criminal law? What specific offenses has Congress created to protect intellectual property rights?

Question 75

The _____________ Act prohibits knowingly and willfully making a false statement that is material to a matter within the jurisdiction of any department or agency of the United States.

Question 76

Should white-collar crimes be classified as strict liability offenses? Explain your answer.

Question 77

Lexicon's activity most closely resembles that of what figure?

A)Martha Stewart
B)Bernie Madoff
C)The defendant in Schmuck v.United States
D)The defendant in Ratzlaf v.United States

Question 78

If Prudence has not declared her stock profits on her income tax return, then she has:

A)engaged in money laundering
B)committed the crime of structuring
C)committed the crime of tax fraud
D)has not committed a crime

Question 79

By shifting money from one investor to another, Lexicon has generated a classic example of:

A)tax fraud
B)churning
C)insider trading
D)a Ponzi scheme

Question 80

By constantly buying and selling his clients' stocks for no reason other than to generate commissions for himself,, Lexicon has engaged in:

A)structuring
B)churning
C)a Ponzi scheme
D)insider trading