Chapter 6: Criminal Law and Business

information

A document charging an individual with a specific crime. It is prepared by a prosecuting attorney and presented to a court at a preliminary hearing.

Mail Fraud Act

Federal legislation enacted in 1990 as a comprehensive approach to criminalizing any fraud in which the defrauding party uses the mail or any wire, radio, or television in perpetrating the fraud.

Forgery

The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.

Strict Liability

The legal responsibility for damage or injury even if you are not negligent. Liability without fault.

Z. True or false: Strict-liability offenses are offenses that do not require state of mind.

True

Foreign Corrupt Practices Act

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

indictment

the act of accusing; a formal accusation

Crime

the violation of a society's formally enacted criminal law

Z. Why is membership in the Better Business Bureau a false assurance that an investment opportunity is not fraudulent?

Any company can pay to join.

Computer Crime

Any violation of criminal law that involves knowledge of computer technology for its perpetration, investigation, or prosecution.

felonies

A serious criminal offense punishable by a prison sentence of more than one year

bail

A sum of money used as a security deposit to ensure that an accused person returns for his or her trial

Z. Why is a report of profitability from Dun & Bradstreet a false assurance that an investment opportunity is not fraudulent?

Dun & Bradstreet does not do an independent financial audit of a company's profits.

Counterfeit Access Device and Computer Fraud and Abuse Act

Enacted on October 12, 1984, it provides federal prosecutors with a specific crime titled, "Fraud and related activity in connection with computers" to prosecute criminal computer activity.

Z. Which of the following is an incorrect statement regarding criminal posttrial procedure?

If the petit jury returns a verdict of not guilty, a third party can appeal the acquittal.

Z. Which of the following is an accurate statement regarding the personal liability of a corporate executive for a business crime?

In addition to a corporation having criminal liability, a corporate executive may also be personally liable for a business crime.

Z. Which of the following is not one of the essential elements required for criminal fraud liability?

The defendant fails to do what a reasonable person would have done under the same or similar circumstances.

strict-liability

The legal responsibility for damage or injury even if you are not negligent

magistrate

a civil officer charged with the administration of the law

nolo contendere

a defendant's plea declaring that he will not make a defense but not admitting his guilt

commercial bribery

a form of bribery which involves corrupt dealing with the agents or employees of potential buyers to secure an advantage over business competitors

Ponzi Scheme

a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

Insider trading

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

white collar crime

crime committed by people of high social position in the course of their occupations

liability without fault

crime to do a specific act or cause a certain result without regard to the care exercised

Sarvanes-Oxley Act

criminalizes specific nonaudit services. (2000's)

Z. Which of the following is not an example of a fraudulent crime?

false imprisonment

bribery of a public official

federal crime designed to ensure that government officials act with the interest of the constituents in mind instead of their own financial interests

actus reus

guilty act

mens rea

guilty mind

False Claim Act

is a federal law that prohibits fraudulent claims to the government.

bribery of foreign officials

it is illegal for American business persons to use bribery in the securing of foreign contracts. This goes on all the time, has to in international business world. (You can bribe low but you can not bribe high).

strict liabilty

liability without fault

Z. In the context of the states of mind required by an offense, a defendant is ______ if he or she does not meet a standard of care that a reasonable person would use in the context that led to the criminal act, and a defendant is _____ if a criminal act occurs when the individual consciously ignores substantial risk.

negligent; reckless

Stock Option Backdating

occurs when an employee falsifies documents to make it appear as if the company had granted options on certain dates.

Z. If the defendant pleads not guilty, his case will be heard before a ______ jury.

petit

Z. False ______ is the illegal obtaining of property belonging to another through materially false representation of an existing fact, with knowledge of the falsity of the representation and with the intent to defraud.

pretense

Z. A major way the National Information Infrastructure Protection Act of 1996 amended the Computer Fraud and Abuse Act was the substitution of the term ______ computers for federal interest computers so that the statute now protects any computer attached to the Internet.

protected

probable cause

reasonable cause for issuing a search warrant or making an arrest; more than mere suspicion

Embezzlement

taking for one's own use in violation of trust; stealing (of money placed in one's care)

Z. The burden of proof in a criminal trial has two elements: ______.

the burden of production of evidence and the burden of persuasion

burden of proof

the obligation facing a persuasive speaker to prove that a change from current policy is necessary

extortion (blackmail)

the practice of obtaining something, especially money, through force or threats

bribery

when someone voluntarily offers payment to get an illegal advantage

Fraud

wrongful or criminal deception intended to result in financial or personal gain

misdemeanor

(n.) a crime or offense that is less serious than a felony; any minor misbehavior or misconduct

Z. Which of the following is an accurate statement regarding state whistle-blower protection laws?

Currently, 47 states have whistle-blower protection laws for either public or private sector employees or both.

cyber terrorist

A hacker whose intention is the exploitation of a target computer or network to create a serious impact, such as the crippling of a communications network or the sabotage of a business or organization, which may have an impact on millions of citizens if the terrorist's attack is successful.

petit jury

A jury of 6 to 12 persons that determines guilt or innocence in a civil or criminal action.

Criminal Law

A law that defines crimes against the public order.

Miranda Rights

A list of rights that police in the United States must read to suspects in custody before questioning them, pursuant to the Supreme Court decision in Miranda v. Arizona.

virus

A tiny, nonliving particle that invades and then reproduces inside a living cell.

bench trial

A trial in which the judge alone hears the case

plea bargain

Agreement between a prosecutor and a defendant that the defendant will plead guilty to a lesser offense to avoid having to stand trial for a more serious offense.

Z. Which of the following is an accurate statement regarding the "responsible corporate officer" doctrine?

A corporate executive can be liable even if she or he did not engage in, direct, or know about a specific criminal violation.

Hacker

A person who secretly gains access to computers and files without permission.

Statute

a written law passed by a legislative body

Z. Identify the true statements regarding posttrial procedure in criminal proceedings.

Judges are given certain factors to consider in sentencing, such as the defendant's criminal record. The guidelines for judges to consider in sentencing for white-collar crimes have been established.

Racketeer Influenced and Corrupt Organizations Act

A federal act that provides for both criminal and civil penalties for racketeering.

Z. What is the current rule regarding whether a corporation can be held criminally responsible?

Currently, corporations can be held criminally accountable for almost any crime.

Z. Pursuant to the __________ Act, an employee who reports an employer for fraud against the government retains a share of the recovery as a reward for his or her efforts.

False Claims

booking

The formal process of making a police record of an arrest

False Pretense

The illegal obtaining of another's property by making a materially false representation of an existing fact, with knowledge of the falsity of the representation and with the intent to defraud.

first appearance

The initial appearance of an arrested individual before a judge, who determines whether there was probable cause for the arrest. If the judge ascertains that probable cause did not exist, the individual is freed.

arraignment

a hearing in which a suspect is charged and pleads guilty or not guilty