Legal Environment of Bus. Chapter 13 Smart Book

the statutory penalties involve imprisonment up to 30 years if it impacts a financial institution

A characteristic of a mail or wire fraud is that _____.

it serves as an investigative body

A feature of a grand jury is that _____.

it requires the police to obtain a search warrant prior to a search of a person or premises

A feature of the Fourth Amendment to the U.S. Constitution is that _____.

it extends liability to any person who maintains an interest in or control of an enterprise

A feature of the Racketeer Influenced and Corrupt Organizations Act (RICO) is that _____.

acts under the direction of someone accused of criminal activities

A person might be held responsible for aiding and abetting in the commission of a crime if he or she _____.

take from a person the tangible right of honest services

A scheme to defraud involves a plan or program designed to _____.

has the capacity to influence a decision to be made by the employees of the bank

A statement or report made to a bank is false when made if it relates to a material fact and is untrue. A fact is material if it _____.

relates to a material fact and is untrue

A statement that is presented to a bank is false when made if it _____.

Blank 1: conspiracy

A(n) _____ is a criminal offense involving an agreement or a "kind of partnership" for criminal purposes in which each member becomes the agent or partner of every other member.

compelled to testify against himself or herself

According to the Fifth Amendment to the U.S. Constitution, the privilege against self-incrimination protects an accused from being _____.

have the assistance of an attorney

According to the Sixth Amendment to the U.S. Constitution, in criminal cases, an individual has the right to _____.

Blank 1: double Blank 2: jeopardy

According to the ______ _____ clause of the U.S. Constitution, no person shall be subject for the same offense to be twice put in jeopardy of life or limb.

assists the perpetrator of the crime in eluding the police

An accessory to a crime is an individual who _____.

refusing to speak the truth when summoned as an eyewitness

An example of obstruction of justice is an individual _____.

insolvent debtors file false information in the proceedings

Bankruptcy crimes are committed when _____.

Blank 1: white Blank 2: collar Blank 3: crime

Edwin H. Sullivan coined the term _____-_____ _____ in the 1930s to apply to criminals of high socioeconomic status, such as corporate executives who commit fraud.

It is committed purposefully.

Identify a true statement about a criminal act that is done willfully.

It advantages the defendant by avoiding the cost of trial.

Identify a true statement about the nolo contendere plea in a criminal case.

It occurs in a professional or business setting.

Identify a true statement about white-collar crime.

An employee paying money to his or her manager for facilitating his or her promotion

Identify an example of a kickback.

A person signing another person's name on a legal document

Identify an example of fraud.

A customer stealing a piece of jewelry from a store

Identify an example that illustrates larceny.

An individual hiding the weapon used in a crime before the arrival of investigators

Identify an example that illustrates obstruction of justice.

Knowingly making or using any false writing or document Willfully covering up a trick or scheme

Identify the actions that are considered schemes to defraud. (Check all that apply.)

Failure to correct a false impression Preventing another from acquiring information relevant to a transaction

Identify the actions that lead to theft by deception. (Check all that apply.)

Billing for services not actually performed Accepting kickbacks for patient referrals Unbundling each stage of a procedure as if it were a separate procedure

Identify the examples of health care fraud. (Check all that apply.)

The right to confront one's accuser The right to subpoena witnesses in one's favor The right to a speedy and public trial The right to a trial by jury

Identify the rights that are granted in criminal cases by the Sixth Amendment to the U.S. Constitution. (Check all that apply.)

When a person self-incriminates by telling the truth in response to governmental questioning When a person denies guilt by making a false statement when questioned by a governmental official When a person raises greater suspicion by remaining silent in response to governmental questioning

Identify the situations in which the exculpatory no exception is permitted. (Check all that apply.)

It may not select targets of criminal probes out of malice. It should have at least 16 persons to hear evidence. It normally consists of 23 citizens who live within the jurisdiction of the court that would try one accused of a crime.

Identify the true statements about a grand jury. (Check all that apply.)

A person who intentionally accesses a computer without authorization to obtain protected information is subject to criminal prosecution. Cyber crime is more difficult to detect than crimes that preceded the Internet.

Identify the true statements about cyber crime. (Check all that apply.)

The guidelines are now advisory, requiring a court to consider them but permitting the court to tailor the sentence in light of other concerns. The goals of the guidelines are punishment and deterrence.

Identify the true statements about the sentencing guidelines for federal crimes developed by a federal sentencing commission in the late 1980s. (Check all that apply.)

conspiracy

In corporate fraud prosecutions, prosecutors often charge mid-level managers with _____ then offer plea bargains to them for testimony against their top executive counterparts.

they are necessary to avoid possible injustice

In judicial proceedings, transcripts of grand jury proceedings cannot be obtained under any circumstances except if _____.

Blank 1: overt Blank 2: act

In the context of a conspiracy, any transaction or event knowingly committed by a conspirator in an effort to accomplish some object of the conspiracy is known as a(n) _____ _____.

the existence of a fact was deliberately ignored by the accused

In the context of criminal intent, knowledge can be inferred if _____.

keep a portion of the recovery as a bounty

In the context of health care fraud investigations, the False Claims Act allows a citizen relator who successfully brings a lawsuit that recovers fraudulently obtained federal funds to _____.

The businessperson will have to produce, in court, records prepared in the ordinary course of business.

In the context of the Fifth Amendment protection against compulsory self-incrimination, identify a true statement about requiring a businessperson to testify about a business matter.

A corporation or other collective entity cannot be called upon to testify in court; only individuals can do so. Only a sole proprietorship is protected against compulsory self-incrimination by the Fifth Amendment.

In the context of the Fifth Amendment protections, identify the true statements about cases that involve businesses. (Check all that apply.)

ensure that similar crimes receive similar sentences

In the late 1980s, a federal sentencing commission developed sentencing guidelines for federal crimes to _____.

financial or monetary

Intent to defraud involves deceiving someone for _______ loss/gain

Accessories before the crime: They assist in preparation for the crime and may be punished the same as the person who committed the crime. Accessories after the fact: They are usually subject to specific penalties for their actions as determined by the laws of the various states.

Match the types of accessories to a crime (in the left column) with their descriptions (in the right column). Accessories before the crime Accessories after the fact

Felonies They are punishable by imprisonment in a penitentiary for a period of one year or more. Misdemeanors They are punishable by a jail sentence of less than one year.

Match the types of crime (in the left column) with the punishments imposed upon conviction (in the right column). Felonies Misdemeanors

Felony cases They are commenced by a grand jury indictment. Misdemeanor cases They are commenced when a charge called an information is filed by the government.

Match the types of criminal cases (in the left column) with their methods of commencement (in the right column). Felony cases Misdemeanor cases

money or financial

OSHA has the power to impose _____ penalties for violations of health and safety standards

kickbacks

Payments made to a person who has facilitated a transaction are known as ______.

Punishment that is so severe as to degrade human dignity Punishment that is inflicted completely in an arbitrary manner

The Eight Amendment of the U.S. Constitution prohibits cruel and unusual punishments. In the context of the Supreme Court decision in Furman v. Georgia, identify the basic principles used to determine if a punishment is cruel and unusual. (Check all that apply.)

against compulsory self-incrimination

The Fifth Amendment to the U.S. Constitution is best known for its protection of individuals _____.

unreasonable searches and seizures by the government

The Fourth Amendment to the U.S. Constitution protects individuals and corporations from _____.

bankruptcy

The U.S. Code makes certain conduct by a debtor and certain conduct by creditors and others a federal crime. These crimes are known as _____ crimes.

prosecution for making a false statement when his or her statement simply denies criminal wrongdoing

The exculpatory no exception protects an individual from _____.

no contest

The last plea of a defendant in a criminal case, nolo contendere, is Latin for _____.

sole proprietorship

The only type of business protected against compulsory self-incrimination by the Fifth Amendment privilege is a _____.

false claims under the False Claims Act

The prosecution against health care frauds usually involves _____.

criminal

The right to a jury trial doesn't extend to state juvenile court delinquency proceedings because they are not _____ proceedings.

larceny

The unlawful taking of personal property with the intent to deprive the rightful owner of it permanently is known as _____.

False

True or false: A person cannot be convicted of conspiracy if he or she did not know all the details of the unlawful scheme, even if he or she had an understanding of the unlawful nature of the plan and willfully joined in that plan on one occasion.

True

True or false: Corporate officials often hide losses incurred by employees engaged in cyber crime from company investors.

True

True or false: Courts have held that the use of mail or wire communication for fraudulent purposes can be proven by circumstantial evidence.

True

True or false: The charge of aiding and abetting is similar to the allegation of participating in a conspiracy.

True

True or false: The disclosure of a grand jury transcript is appropriate only in those cases where the need for it outweighs the public interest in secrecy.

False

True or false: The right to a jury trial extends to state juvenile court delinquency proceedings.

The Fifth Amendment

Which amendment to the U.S. Constitution provided the double jeopardy clause?

Fines should not be arbitrary or grossly disproportional to the crime. Bails should be high enough to discourage a defendant from fleeing, but not prohibitively high.

Which of the following are ensured by the Eighth Amendment of the U.S. Constitution? (Check all that apply.)

It can bring actions against businesses for violation of health and safety standards.

Which of the following is true of the Occupational Safety and Health Administration (OSHA)?

The defendant willfully became a member of the conspiracy. Two or more persons came to a mutual understanding to try to accomplish a common and unlawful plan.

Which of the following should be proved beyond a reasonable doubt to convict a person of conspiracy? (Check all that apply.)

There is an increase in legislative efforts to protect the public from fraud. There is an attempt to renew investor confidence in the markets.

With reference to the Sarbanes-Oxley Act, identify the recent trends following major prosecutions in the United States in 2000 and 2008. (Check all that apply.)

Blank 1: Intent Blank 2: to Blank 3: defraud

____ ____ ____ means to act knowingly and with the specific intent to deceive someone, ordinarily for the purpose of causing some financial loss to another or bringing about some financial gain to oneself.

Racketeering

_______ is defined in the Racketeer Influenced and Corrupt Organizations Act (RICO) to mean any act or threat involving specified state law crimes, any act indictable under various specified federal statutes, and certain federal offenses.