Question 1

Fraud committed on the telephone and Internet can both be subject to criminal prosecution.

Accepted Answer

Both telephone and Internet fraud can be subject to criminal prosecution. In fact, many countries have specific laws and regulations to address these types of fraud.

Question 2

Many criminal prosecutions are based on the use of electronic communications as a part of the crime, not for the actual physical crime itself.

Accepted Answer

Electronic communications, such as emails, text messages, and social media posts, can be used as evidence to support charges related to various crimes such as fraud, cyberstalking, harassment, and online solicitation of minors.

Question 3

Criminal prosecution for tax evasion is rare in practice.

Accepted Answer

The answer of Criminal prosecution for tax evasion is rare...

Question 4

Willful evasion of tax obligations can be a felony.

Accepted Answer

Willful evasion of tax obligations can be considered a criminal offense and may result in felony charges.

Question 5

An American citizen working for an American company in another country who is accused of a crime will be tried under American law.

Accepted Answer

If an American citizen commits a crime while in another country, they are generally subject to the laws of that country and can be tried under their legal system. However, there may be certain circumstances where the individual can request assistance from the US embassy or consulate and that country's authorities may permit the individual to be tried under US law.

Question 6

RICO can be used for criminal and civil prosecutions.

Accepted Answer

RICO, which stands for Racketeer Influenced and Corrupt Organizations Act, can be used for both criminal and civil prosecutions. This law allows for the prosecution of individuals involved in organized crime and for victims to seek compensation for damages caused by these criminal organizations.

Question 7

To combat money laundering the Treasury Department has a widely-used program called "Track the Cash" that all financial institutions must follow.

Accepted Answer

The Treasury Department has a program called "Know Your Customer" that financial institutions must follow to combat money laundering, but there is no program called "Track the Cash."

Question 8

In Bridge v. Phoenix Bond & Indemnity, the Supreme Court held that there was no cause of action by a private company involved in bidding in a government auction. Only the government that suffered a loss has a cause of action under RICO.

Accepted Answer

In Bridge v. Phoenix Bond & Indemnity Co., the Supreme Court held that a plaintiff in a RICO (Racketeer Influenced and Corrupt Organizations Act) case does not need to show that it relied directly on the defendant's misrepresentations to establish a cause of action. This means that private parties can indeed have a cause of action under RICO, even if the direct harm was to another party, such as the government in a bidding process.

Question 9

Prosecution for the crime of money laundering is uncommon.

Accepted Answer

Prosecution for the crime of money laundering is becoming increasingly common, as governments around the world crack down on financial crime and illicit activities such as drug trafficking, terrorism, and corruption. In some countries, money laundering is a serious criminal offense that can result in significant fines, imprisonment, and asset forfeiture. However, due to the nature of the crime, it can be difficult to detect and prosecute, and many cases of money laundering go undetected or unpunished.

Question 10

If one earns income illegally, such as by selling drugs, one must report the income, not hide it.

Accepted Answer

According to the tax laws in the United States, all income must be reported to the IRS, including money earned from illegal activities.

Question 11

Foreigners working in other countries are subject to prosecution under the laws of those countries, not under the terms of the law of their home countries..

Accepted Answer

This is true. Foreigners are subject to the laws of the country they are working in, and can face prosecution if they violate those laws. They are not entitled to special treatment under the laws of their home countries.

Question 12

To combat money laundering there are compliance programs called Know Your Customer or Customer Due Diligence.

Accepted Answer

Know Your Customer (KYC) or Customer Due Diligence (CDD) programs are compliance measures used by financial institutions to combat money laundering and terrorist financing. These programs involve verifying the identity of customers, determining their source of funds, and assessing their level of risk to ensure they are not involved in criminal activities.

Question 13

The RICO statute is used almost exclusively against organized crime.

Accepted Answer

The RICO (Racketeer Influenced and Corrupt Organizations) statute is not used exclusively against organized crime; it has been applied in cases involving businesses, sports, and even political corruption, among others.

Question 14

In Bridge v. Phoenix Bond & Indemnity, the Supreme Court held that there was a right of action by a private party under RICO to sue another party for treble damages for business losses suffered by improper means.

Accepted Answer

The statement accurately reflects the holding of the Supreme Court in Bridge v. Phoenix Bond & Indemnity.

Question 15

If a business receives money that it believes to be "suspicious" it must report the transaction to the relevant government authority.

Accepted Answer

Businesses are required to report any transactions that they suspect to be linked to criminal activity, money laundering, or financing of terrorism to the Financial Crimes Enforcement Network (FinCEN) in the US, or to the appropriate authorities in other countries. This is part of the regulatory framework designed to prevent financial crime and protect the integrity of the financial system. Failing to report suspicious transactions can result in significant fines or legal consequences for the business involved.

Question 16

White collar crime in other developed nations does not appear to draw as much attention as it does in the U.S.

Accepted Answer

While white collar crime is certainly present in other developed nations, it does not receive the same level of media attention or public outrage as it does in the U.S. This may be due to differences in cultural attitudes towards crime and punishment, or variations in the legal and regulatory systems of different countries.

Question 17

Hiding the truth about the origins of income can be the crime of money laundering.

Accepted Answer

Money laundering involves disguising the illegal origins of income, therefore, hiding the truth about the origins of income can be considered a form of money laundering.

Question 18

The application of RICO is to crimes of violence that accompany attempts to get large sums of money.

Accepted Answer

RICO (Racketeer Influenced and Corrupt Organizations Act) applies to a broader range of activities, including but not limited to bribery, securities fraud, and embezzlement, not just crimes of violence related to financial gain.

Question 19

Anti-Money Laundering steps must be taken by legitimate businesses.

Accepted Answer

Legitimate businesses must follow Anti-Money Laundering (AML) regulations and put in place measures to prevent their services from being used for illegal activities like money laundering. This is a legal requirement meant to prevent criminal activities such as terrorism financing, drug trafficking, and other serious crimes. Failing to comply with AML regulations can result in fines, legal action, and damage to a company's reputation.

Question 20

The crime of mail fraud is common since materials related to a fraud that are sent through the mails can fall under the law.

Accepted Answer

The crime of mail fraud is common because any materials related to a fraud that involve the use of the mail can be considered a violation of the law. This can include letters, pamphlets, or any other documentation related to the fraud that is sent through the postal system.

Quiz 5: Criminal Law and Business