Question 1

____________ fraud is any fraud connected with communications media.

Accepted Answer

Mass-marketing fraud involves the use of mass communication channels, such as email, social media, or telemarketing, to scam victims out of money or personal information. This includes scams such as phishing, lottery and sweepstakes scams, and investment scams.

Question 2

Which of the following is an example of corporate fraud?

Accepted Answer

A

Question 3

Which of the following is an example of environmental crime?

Accepted Answer

The dumping of 11 million gallons of crude oil off the coast of Alaska by Exxon's Valdez supertanker is an example of environmental crime. This incident caused severe damage to the marine ecosystem, fish and wildlife populations, and local economies, among other things.

Question 4

The _________ Act was passed to prevent the development of trusts and monopolies in restraint of trade.

Accepted Answer

The Sherman Antitrust Act of 1890 was passed to prevent the formation of monopolies and trusts in order to promote competition and protect consumers. It prohibits activities such as price-fixing, bid-rigging, and market allocation that can lead to monopolistic practices. The Sarbanes-Oxley Act of 2002 is focused on financial reporting and corporate governance, while the Securities Exchange Act of 1934 regulates securities transactions and exchanges. The Clayton Antitrust Act of 1914 extends and refines the principles of the Sherman Act and prohibits other anti-competitive practices such as mergers and acquisitions that may substantially reduce competition.

Question 5

According to John Braithwaite, the central explanatory variable in all criminal activity, including white-collar crime, is

Accepted Answer

John Braithwaite's theory of crime is based on the idea of inequality as the central explanatory variable in all criminal activity, including white-collar crime. Braithwaite argues that crime is more likely to occur in societies that have high levels of inequality and where individuals feel they have few legitimate opportunities to achieve success. In such a society, crime is seen as an adaptive response to the lack of opportunities and the frustration and anger that arises from this inequality.

Question 6

Edwin Sutherland applied elements of ________ theory to white-collar crime.

Accepted Answer

Edwin Sutherland's theory of differential association argues that criminal behavior is learned through interactions with others, and this theory can be applied to white-collar crime as well. He believed that white-collar criminals learned their behavior from their colleagues and employees through their social interactions, just as traditional criminals learn from their peers in the streets. Therefore, the best choice is A) differential association.

Question 7

A physician who bills Medicare for blood tests that are never actually performed is involved in __________ occupational crime.

Accepted Answer

The physician described is committing professional occupational crime, which refers to the illegitimate actions of individuals in a professional role or occupation, such as a doctor committing fraud by billing for services not rendered.

Question 8

Martha Stewart was implicated in the insider trading scandal involving

Accepted Answer

Martha Stewart was implicated in the insider trading scandal involving ImClone. In 2001, she sold 3,928 shares of ImClone Systems just before the announcement of the FDA's decision not to review the company's application for a promising new drug. It was alleged that she had inside information about the decision and used it to avoid significant losses. Stewart was convicted of obstruction of justice and making false statements to investigators in relation to the scandal.

Question 9

To what exactly did the concept of white-collar crime originally refer?

Accepted Answer

The concept of white-collar crime originally referred to crimes committed by persons of high social status who used their occupational positions for illegal gain. It was first introduced by sociologist Edwin Sutherland in 1939. Over time, the definition has expanded to include any nonviolent crime committed by individuals in the course of their occupation or financial activities.

Question 10

The obstruction of justice conviction of the accounting firm of Arthur Anderson is an example of __________ crime.

Accepted Answer

The conviction of Arthur Anderson for obstruction of justice is an example of a corporate crime, as it involves the illegal actions of a corporation or its employees in furthering the interests of the company.

Question 11

Which of the following statements about health-care fraud is not true?

Accepted Answer

This statement is not true. Health-care fraud targets both private health-care programs and government-sponsored programs such as Medicare and Medicaid.

Question 12

_________ fraud includes stock market manipulation, Ponzi schemes, and hedge fund fraud.

Accepted Answer

Securities and commodities fraud involves illegal activities in the stock market, such as insider trading, false reporting, and market manipulation. Ponzi schemes and hedge fund fraud are also types of securities fraud. Mortgage fraud involves misrepresenting information in order to obtain a mortgage loan, while corporate fraud involves illegal activities within a company, such as embezzlement or falsifying financial statements. Mass-marketing fraud involves scams that target consumers, such as fraudulent telemarketing schemes.

Question 13

Currently, the concept of white-collar crime focuses on the

Accepted Answer

The concept of white-collar crime primarily focuses on the nature of the crime, which typically involves non-violent, financially motivated offenses committed by business and government professionals.

Question 14

acted as a quasi-police organization in the Italian ghetto areas of American cities during the industrial era.

Accepted Answer

The answer of acted as a quasi-police organization in the...

Question 15

The expansion of organized crime and their focus on official corruption was due to which event?

Accepted Answer

The expansion of organized crime and their focus on official corruption was largely due to the enactment of Prohibition, which created a lucrative black market for illegal alcohol sales. This drove criminal organizations to bribe and corrupt government officials and law enforcement in order to maintain and expand their criminal enterprises.

Question 16

__________ criminology is the study of environmental harm, crime, law, regulation, victimization, and justice.

Accepted Answer

The description best fits the field of green criminology, which focuses on crimes against the environment and the resulting harm to society and individuals. White-collar criminology deals with crimes committed by individuals in high-ranking positions, classical criminology focuses on the study of crime as a social phenomenon, and environmental criminology examines the relationship between the physical environment and criminal behavior.

Question 17

Why do Hirschi and Gottfredson conclude that white-collar criminality is less common as the types of criminality found among the lower classes?

Accepted Answer

Hirschi and Gottfredson argue that white-collar criminality is less common because those working in white-collar jobs generally do not possess the characteristics associated with criminal behavior, such as impulsivity, low self-control, and a willingness to take risks. Additionally, white-collar crimes often require specialized knowledge and skills, which may not be possessed by those in lower-class positions. Thus, the opportunity may be present, but the motivation and ability are often lacking.

Question 18

The 2001 _________ Act gives the SEC the authority to bar dishonest corporate directors and officers from ever again serving in positions of corporate responsibility.

Accepted Answer

The Sarbanes-Oxley Act was enacted in 2002 to address corporate governance and accountability issues after the Enron and WorldCom scandals. Among other provisions, it gives the SEC the authority to bar dishonest corporate directors and officers from ever again serving in positions of corporate responsibility. The Securities Exchange Act of 1934 established the SEC, but it does not specifically give the SEC the authority mentioned in the question. The Sherman and Clayton Acts are antitrust laws that do not pertain to the SEC's authority over corporate officers and directors.

Question 19

According to Gary Green's typology of occupational crime, __________ occupational crimes benefit the employing agency.

Accepted Answer

Organizational occupational crimes are committed for the benefit of the employing agency, such as embezzlement or the misuse of company resources. State authority crimes involve individuals abusing their power for personal gain, professional crimes involve individuals committing crimes related to their profession (e.g. medical fraud), and individual crimes are committed for personal gain.

Question 20

________has been called the biggest white-collar crime in history.

Accepted Answer

The answer of ________has been called the biggest white-collar crime...

Quiz 13: White-Collar and Organized Crime