Question 1

What would a white-collar swindler most likely be charged with?

Accepted Answer

Fraud is the most common charge against white-collar swindlers, as it involves deception for financial gain, which is typical of white-collar crimes.

Question 2

What type of white-collar crime was Jim Bakker imprisoned for committing?

Accepted Answer

Jim Bakker was imprisoned for committing a religious swindle, which involved defrauding his followers through his televangelism ministry by selling more timeshares than were available and misusing funds.

Question 3

What is a main characteristic of chiselling?

Accepted Answer

The answer of What is a main characteristic of chiselling?
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Question 4

Managers in a national auto repair franchise regularly pad bills by charging customers for services that are not needed or were never actually done. What type of white-collar crime is this an example of?

Accepted Answer

Chiselling involves cheating or defrauding to gain an advantage or profit, which accurately describes the act of padding bills for unnecessary or unperformed services.

Question 5

What is it called when a supermarket consistently uses scales that are weighted in order to cheat customers?

Accepted Answer

Chiselling refers to the act of cheating or swindling, often by small-scale deceit or trickery such as manipulating scales to defraud customers.

Question 6

A pharmacist regularly substitutes lower-cost generic drugs for high-priced brand names, yet charges customers for the more expensive medications. He reasons that no one is hurt because all the ingredients are identical. What white-collar crime is this an example of?

Accepted Answer

This is an example of professional chiselling, which involves charging someone for a higher-priced service or product while providing a lower-cost alternative. The pharmacist's actions fit this definition as he substitutes cheaper generics but charges for the expensive brand names.

Question 7

What practice is a stock broker engaging in when she, at her own discretion, makes repeated, excessive, and unnecessary trades for a consumer?

Accepted Answer

Churning occurs when a broker engages in excessive buying and selling of securities in a customer's account primarily to generate commissions that benefit the broker, without regard for the customer's investment objectives or financial situation.

Question 8

What is it called when a stockbroker buys stock in a company based on privileged information from an employee within that company?

Accepted Answer

This activity is known as insider trading, which involves trading a public company's stock or other securities (such as bonds or stock options) based on material, non-public information about the company.

Question 9

What organization oversees the activities of the Toronto Stock Exchange?

Accepted Answer

The Ontario Securities Commission is responsible for regulating the capital markets in Ontario, which includes overseeing the activities of the Toronto Stock Exchange.

Question 10

What is insider trading a form of?

Accepted Answer

Insider trading is considered a form of security fraud because it involves trading a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic, material information about the company.

Question 11

What were Ivan Boesky and Michael Milken said to be experts in?

Accepted Answer

Ivan Boesky and Michael Milken were said to be experts in arbitrage, which involves buying and selling assets to profit from price differences in different markets.

Question 12

What is the term for the practice of buying large amounts of stock in companies that are rumoured to be on the brink of a corporate takeover?

Accepted Answer

Arbitrage involves buying stocks in companies rumored to be takeover targets, aiming to profit from the anticipated increase in stock price following the takeover announcement.

Question 13

Which of the following is a major type of Internet securities fraud?

Accepted Answer

Market manipulation is a major type of Internet securities fraud, involving practices that artificially influence the price or volume of securities.

Question 14

What is called when an individual posts false information online concerning a specific stock with the intent to artificially inflate or deflate the price of said stock?

Accepted Answer

This activity is known as market manipulation, where false or misleading information is spread to influence the stock price artificially.

Question 15

What is a "pump and dump" scheme an example of?

Accepted Answer

A "pump and dump" scheme is a type of market exploitation where the price of a stock is artificially inflated through false or misleading statements, allowing perpetrators to sell at a high price before the stock crashes.

Question 16

What is it called when a person uses their position of power to take advantage of an individual for personal gain?

Accepted Answer

Exploitation refers to the act of using one's position of power to take advantage of another individual for personal gain, often in an unfair or unethical manner.

Question 17

A fire inspector demands a payoff from a restaurant owner in order to secure a safety inspection. Though the restaurant is up to code, the inspector says he "will make trouble" unless he gets a payment. What crime category is the inspector's behaviour an example of?

Accepted Answer

The inspector's behavior is an example of exploitation, as he is using his position to demand a payoff by threatening to cause trouble, despite the restaurant being up to code.

Question 18

Why was Conservative Senator Michael Cogger given a $3,000 fine in 1998?

Accepted Answer

Senator Michael Cogger was fined because he used his political office for economic gain, which is considered a breach of ethical standards for public officials.

Question 19

What is one major difference that distinguishes influence peddling from exploitation of an institutional position?

Accepted Answer

Exploitation of an institutional position often involves forcing victims to pay for services or benefits they are already entitled to, while influence peddling typically involves selling privileged information or access to individuals who are not entitled to it, leveraging the influencer's position or connections.

Question 20

What is the name of the desolate South Pacific Island where the Russian mafia, tax dodgers, and other gangsters hid their money?

Accepted Answer

The Republic of Nauru, a small island nation in the South Pacific, became notorious for its banking secrecy and lack of regulations, making it a preferred destination for money laundering activities by various illicit actors, including the Russian mafia and tax dodgers.

Quiz 12: Crimes of Power: White-Collar, Corporate, and Organized Crime