Question 1

Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that Jason was her attacker.

Accepted Answer

While the officers should have given Jason his Miranda warnings, the DNA evidence provides strong evidence for the prosecution. The confession may not be admissible in court, but the case can still proceed with the DNA evidence.

Question 2

Discuss the procedural changes made as a result of Arizona v. Gant.

Accepted Answer

The answer of Discuss the procedural changes made as a...

Question 3

Bernie Ebbers, the former CEO of WorldCom, on trial for securities fraud and other crimes, offered as his defense that he did not know what his officers were doing.

Accepted Answer

The defense of lack of knowledge or intent is not a valid one in this case as Ebbers can be held liable for the actions of his subordinates, as he was the CEO and responsible for the overall operations of the company. The principle of vicarious liability holds that bosses are responsible for the actions of their employees, particularly in cases of securities fraud and other corporate crimes.

Question 4

Under Sarbanes-Oxley, auditors must retain their work papers:

Accepted Answer

Under Sarbanes-Oxley, auditors must retain their work papers for a minimum of five years. This requirement is intended to ensure that auditors can provide evidence to support their opinions and defend against potential litigation or regulatory inquiries.

Question 5

Ann McMillan is a CPA with a public accounting firm. A client of Ann's has called to tell her that the SEC is investigating the company for possible misrepresentations in the company's financial reports. Ann is worried that she may have pushed the envelope in allowing some of the revenues of the client to be reported as they were. Ann shreds several sets of notes from her meetings with the client on revenue recognition. Ann

Accepted Answer

Shredding notes related to an ongoing SEC investigation can be considered obstruction of justice and is a criminal offense. The privileged communication does not justify destroying evidence, and the fact that the SEC has not contacted Ann is irrelevant.

Question 6

Officer Muldoon is on foot patrol in Tempe, Arizona when he looks inside a garage (the garage door is open) and sees a statute that he knows is a rare art work that was stolen the night before from a building downtown. Officer Muldoon:

Accepted Answer

Officer Muldoon can use the sighting as probable cause to obtain a search warrant, or in certain emergency situations, he may be able to enter the premises without a warrant to recover the stolen artwork. It is also not illegal for Officer Muldoon to look inside the open garage from a public street, as there is no reasonable expectation of privacy in plain view. Therefore, option D is the correct choice.

Question 7

Ann McEachron is an administrative assistant at a large international accounting firm. Her supervisor has asked her to destroy boxes of documents from an audit the firm conducted 2 years ago. The firm generally keeps records for
7 years, because of potential tax liability and issues, but it has destroyed documents earlier in cases in which the amount of paperwork becomes overwhelming. Ann wonders about the request, but complies with her supervisor's order.
The company that was the subject of the audit is currently under criminal investigation and the partner in the accounting firm who conducted the audit is aware of that investigation.
It is a federal crime to destroy documents that are involved in or could potentially be involved in either a civil or criminal investigation. Evaluate the criminal liability of Ann, her supervisor and the partner for the destruction of the comments. Would your answer be different if Ann had read in the newspaper about the criminal investigation of the company?

Accepted Answer

The answer of Ann McEachron is an administrative assistant at...

Question 8

Penalties for corporate officers under Sarbanes-Oxley include:

Accepted Answer

Corporate officers who violate the Sarbanes-Oxley Act can face both criminal and civil penalties. Criminal penalties can include 5-20 years for mail and wire fraud, as well as 1-10 years for violation of fiduciary duties. Civil penalties may include fines of up to $5,000. Therefore, option D is the correct answer.

Question 9

Part of the case came from federal agents' examination of e­mails Mr. Parnell sent to his managers and employees. Which of the following is correct about the agents' access to those e­mails?

Accepted Answer

The agents would have been required to obtain a warrant to access Mr. Parnell's emails, as they are protected by the Fourth Amendment. Choice A is incorrect, as employees do have a reasonable expectation of privacy in their work emails. Choice C is also incorrect, as Mr. Parnell's Fifth Amendment rights do not apply to emails voluntarily sent to his managers and employees. Therefore, the correct answer is B.

Question 10

Glen Albanese was arrested after federal authorities conducted an investigation that indicated the funds that he had raised for relief efforts for Hurricane Katrina victims had been used to purchase landscaping for his home, acquire a Labradoodle pedigree dog, and buy tickets to DisneyWorld and Six Flags. Mr. Albanese had raised funds for his charity by advertising that the funds raised would be used to rebuild homes and provide scholarships for the children of victims. Instead, he met individuals who sold him the dog and furnished the landscaping in odd locations and paid them in cash in envelopes. Which of the following crimes would be applicable for the federal authorities to charge?

Accepted Answer

Criminal fraud and embezzlement would be applicable charges in this scenario as Mr. Albanese raised funds under false pretenses and used them for personal expenses instead of for the intended charitable purposes. A violation of SOX (Sarbanes-Oxley Act) may not be applicable as it pertains to the accountability of publicly traded companies and their financial reporting.

Question 11

Pedro Moreno and Rolando Cue-Baiza brought their boat from Nassau to Miami. They re-entered the Miami port without going through customs. They docked the boat and began unloading it. Miami customs officials had observed the boat re-enter (by helicopter). When Moreno and Cue-Baiza began unloading the boat, customs officials sent in
a team of officers to search the boat (no warrant). The officers discovered numerous bales of marijuana during the search and Moreno and Cue-Baiza were charged with drug possession and trafficking. They are now challenging the validity of the warrantless search. Discuss its validity.

Accepted Answer

The answer of Pedro Moreno and Rolando Cue-Baiza brought their...

Question 12

Dennis Kozlowski was the former CEO of Tyco who was charged with larceny, otherwise known as embezzlement. During his trial, Mr. Kozlowski offered testimony that all of his loans from the company that were not repaid were authorized loans that had been forgiven by the board of directors. The testimony about the board's approval:

Accepted Answer

The testimony about the board's approval shows that Kozlowski did not have the intention to commit a wrong act (mens rea) and that he believed he had the right to use the company's money (actus reus). However, this testimony does not change the fact that the money belonged to the corporation, so choice C is incorrect.

Question 13

Explain the changes Sarbanes-Oxley made to criminal laws.

Accepted Answer

The answer of Explain the changes Sarbanes-Oxley made to criminal...

Question 14

Which of the following laws require businesses to report cash transactions involving $10,000 or more?

Accepted Answer

All of the laws mentioned (Bank Secrecy Act, USA Patriot Act, Money Laundering Control Act) require businesses to report cash transactions involving $10,000 or more.

Question 15

Mr. Parnell and others formerly with the company had their charges issued through a grand jury. Which of the following would have been issued?

Accepted Answer

A grand jury is responsible for determining if there is enough evidence to indict someone on criminal charges. Therefore, if charges were issued through a grand jury, it would be in the form of an indictment.

Question 16

The penalty for document destruction under Sarbanes-Oxley is:

Accepted Answer

The answer of The penalty for document destruction under Sarbanes-Oxley...

Question 17

The "Know They Customer" program:

Accepted Answer

The "Know Your Customer" (KYC) program is a federal program related to detecting money laundering. It requires financial institutions to verify the identity of their customers and monitor their financial activities to prevent money laundering and other financial crimes. There is no evidence to suggest that the program is unconstitutional.

Question 18

Schmuck was involved in the sale of used automobiles. He engaged in the practice of rolling back odometers and then selling the vehicles. What crime(s) has been committed?

Accepted Answer

The answer of Schmuck was involved in the sale of...

Question 19

McGuire was an employee of First National Bank of Grayson (FNBG). FNBG participated in a Kentucky Housing Corporation (KHC) program in which KHC loaned money to financial institutions. The institutions would then make low-interest loans to low-income individuals who qualified for purchase of a home. FNBG received the funds and produced bogus paperwork for 80 loans but never loaned the money. Instead, they invested the money at a high
rate of interest. Eventually the money was returned to KHC, but McGuire was charged with making false records and fraud. Can McGuire, as an employee, be held liable?

Accepted Answer

The answer of McGuire was an employee of First National...

Question 20

What is usually the basis of RICO civil suits?

Accepted Answer

RICO civil suits are usually based on criminal fraud or wire fraud. The Racketeer Influenced and Corrupt Organizations (RICO) Act was originally created to combat organized crime, but it has since been used to fight other forms of criminal activity, such as fraud and corruption. Civil suits under RICO are typically brought by victims of these crimes who are seeking compensation for damages.

Quiz 8: Business Crime

Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that Jason was her attacker.

Discuss the procedural changes made as a result of Arizona v. Gant.

Bernie Ebbers, the former CEO of WorldCom, on trial for securities fraud and other crimes, offered as his defense that he did not know what his officers were doing.

Under Sarbanes-Oxley, auditors must retain their work papers:

Officer Muldoon is on foot patrol in Tempe, Arizona when he looks inside a garage (the garage door is open) and sees a statute that he knows is a rare art work that was stolen the night before from a building downtown. Officer Muldoon:

Penalties for corporate officers under Sarbanes-Oxley include:

Part of the case came from federal agents' examination of emails Mr. Parnell sent to his managers and employees. Which of the following is correct about the agents' access to those emails?

Explain the changes Sarbanes-Oxley made to criminal laws.

Which of the following laws require businesses to report cash transactions involving $10,000 or more?

Mr. Parnell and others formerly with the company had their charges issued through a grand jury. Which of the following would have been issued?

The penalty for document destruction under Sarbanes-Oxley is:

The "Know They Customer" program:

Schmuck was involved in the sale of used automobiles. He engaged in the practice of rolling back odometers and then selling the vehicles. What crime(s) has been committed?

What is usually the basis of RICO civil suits?

Quiz 8: Business Crime

Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that Jason was her attacker.

Discuss the procedural changes made as a result of Arizona v. Gant.

Bernie Ebbers, the former CEO of WorldCom, on trial for securities fraud and other crimes, offered as his defense that he did not know what his officers were doing.

Under Sarbanes-Oxley, auditors must retain their work papers:

Officer Muldoon is on foot patrol in Tempe, Arizona when he looks inside a garage (the garage door is open) and sees a statute that he knows is a rare art work that was stolen the night before from a building downtown. Officer Muldoon:

Penalties for corporate officers under Sarbanes-Oxley include:

Part of the case came from federal agents' examination of e­mails Mr. Parnell sent to his managers and employees. Which of the following is correct about the agents' access to those e­mails?

Explain the changes Sarbanes-Oxley made to criminal laws.

Which of the following laws require businesses to report cash transactions involving $10,000 or more?

Mr. Parnell and others formerly with the company had their charges issued through a grand jury. Which of the following would have been issued?

The penalty for document destruction under Sarbanes-Oxley is:

The "Know They Customer" program:

Schmuck was involved in the sale of used automobiles. He engaged in the practice of rolling back odometers and then selling the vehicles. What crime(s) has been committed?

What is usually the basis of RICO civil suits?

Part of the case came from federal agents' examination of emails Mr. Parnell sent to his managers and employees. Which of the following is correct about the agents' access to those emails?