Chapter 6 BLAW

Infancy

A person who is not yet a legal adult may use this defense to defuse the guilty-mind requirement of a crime.

magistrate

A________________, the lowest-ranking judicial official, issues the arrest warrant.

first appearance

After the prosecutor files the complaint, the defendant makes the first appearance _____________________ the appearance before a magistrate who determines whether there was probable cause for the arrest

computer crimes.

In a further attempt to aid prosecution of computer crimes, the U.S. Department of Justice formed the Computer Crime and Intellectual Property Section (CCIPS) in its Criminal Division. Attorneys in this division prosecute only federal __________________

violations

Insider-trading ______________ also include tipping such information, securities trading by the person tipped, and securities trading by those who misappropriate such information.

RICO, the False Claims Act, the Sarbanes-Oxley Act of 2002

Three federal laws that have been somewhat successful in this battle are ______________,_______________,_______________.

1.value 2.federal influence

To demonstrate bribery under this statute, the government must show three elements: (1) something of ___________ was offered, given, or promised to; (2) a __________public official with; (3) intent to influence that person's judgment or conduct. The "thing of value" element has been construed very liberally; actual commercial value is not necessary.

1.intent 2.use

To prove mail fraud, the government must demonstrate two elements: (1) an __________ to defraud and (2) the _______ of or causing the use of mails to further the fraudulent scheme.

Wrongful behavior, that is, actus reus (guilty act). Wrongful state of mind, also known as mens rea (guilty mind).

To punish an individual for criminal behavior, the government must demonstrate the two elements of a crime:

Bench trial

When a judge is the fact finder in a case

Miranda rights

When law enforcement agents arrest individuals, the officers must inform the individuals of their _______________.

liability without fault

When liability is assessed without the guilty-mind criterion, it is known as ____________________ or strict liability.

cyber terrorist

______________ is 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.

Forgery,

______________ the fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another, is another type of fraud.

Felonies

______________- include serious crimes, such as murder, that are punishable by imprisonment for more than one year in a penitentiary or by death.

Bail

_______________ is the amount of money defendants pay to the court on release from custody as security that they will return for trial.

False pretense

_______________ 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.

Extortion

_______________ otherwise known as blackmail, is the making of threats for the purpose of obtaining money or property.

Misdemeanors

_______________- are less serious crimes punishable by fines and/or imprisonment for less than one year.

Petty offenses,

_________________- such as violating a building code, are minor misdemeanors and are usually punishable by a jail sentence of less than six months or a small fine.

negligent

a defendant is _____________ if he or she does not meet a standard of care that the reasonable person would use in the context that led to the criminal act.

information

a formal accusation stating the facts and specifying the violation of criminal law.

indictment

a written accusation of the crime allegedly committed by the defendant

plea bargain

an agreement in which the prosecutor agrees to reduce charges, drop charges, or recommend a certain sentence if the defendant pleads guilty.

difference between civil and criminal

an individual person or corporation can file a civil lawsuit. This difference exists because in a criminal trial, society is seen as the victim, whereas a civil trial involves an individual victim or victims.

Miranda rights steps

"You have the right to remain silent and refuse to answer any questions." "Anything you say may be used against you in a court of law." "You have the right to consult an attorney before speaking to the police and have an attorney present during any questioning now or in the future."

Ponzi scheme

A ________________ is a fraudulent operation in which the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors rather than from profit earned by the operator.

knowingly

A defendant can ______________ commit a wrongful act if the person knows the act is wrongful or believes that the act is wrongful yet does nothing to confirm or disconfirm this belief.

purposefully

A defendant can _______________- commit a crime by engaging in a specific wrongful behavior to bring about a specific wrongful result.

reckless

A defendant is reckless if a criminal act occurs when the individual consciously ignores substantial risk.

commercial

Another type of bribery is _____________ bribery, which includes a bribe in exchange for new information or payoffs.

Sarbanes-Oxley

Congress passed _____________ largely in response to the business scandals of the early 2000s, such as Enron, WorldCom, and Global Crossing, as well as the accounting firm Arthur Andersen.

Counterfeit Access Device and Computer Fraud and Abuse Act of 1984

Congress passed the ____________________________________________(also know as the Computer Fraud and Abuse Act, or CFAA). The act prohibits six broad categories of computer crimes: *Unauthorized use of or access to a computer to obtain classified military or foreign policy information with the intent to harm the United States or to benefit a foreign country.

arrested

Criminal proceedings generally begin when an individual is______________ for a crime.

prosecutor

First, the government, referred to as the ____________, always brings the criminal case, whereas in a civil case, the party filing the case, the plaintiff, can be an individual, business, or government entity.

1.employee 2.benefiting 3.corporation

For a corporation to be held criminally liable for the acts of an employee, the prosecutor must show that (1) the _____________was acting within the scope of her or his employment; (2) the employee was acting with the purpose of ____________ the corporation; and (3) the act was imputed to the ______________.

petit jury

If the defendant pleads not guilty, his case will be heard before a ____________

insider trading

Illegal __________ is generally a person's buying or selling of a security, in breach of a fiduciary duty or some other relationship of trust and confidence, while in possession of material, nonpublic information about the security.

government

In a criminal proceeding, the ______________ files the charges against the defendant.

False Assurances That an Investment Opportunity Is Not Fraudulent

Long-time existence of investment opportunity: A Ponzi scheme can operate for a long time. As long as the company keeps getting new investors, it can continue to use the new investors to pay off the few who insist on collecting their returns. Many investors may be content to accumulate paper profits, especially if there is a financial incentive for reinvestment of profits. For example, the Financial Advisory Fund had been in business for almost 20 years before its fraudulent foundation was uncovered. A list of names and addresses of satisfied investors you can contact: All such schemes will have some satisfied investors who have received payments from the new investment money. Membership in the Better Business Bureau: Any company can pay to join. If most of the investors have not attempted to withdraw their funds and the company is still getting new investments, there will be no disgruntled investors to complain to the BBB. A report of profitability from Dun & Bradstreet: Dun & Bradstreet does not do an independent financial audit of a company's profits. As stated on its website, Dun & Bradstreet simply provides the information regarding profits that it receives from companies. Acceptance of money rolled over from IRAs: There is no government check on the soundness of firms that roll over IRAs. Bank references: If a firm simply has a large amount of money in a checking account in a bank and has never sought a loan from the bank, the bank would have no reason to do any due diligence on the firm. Also, if the owner of the firm is personable and the account has never been overdrawn, the bank personnel may well give the firm a good reference. Glossy brochures and television ads: All you need for both is some money and the knowledge that many people may be overly impressed by a fancy brochure or ad campaign.

mail

One of the most frequently prosecuted frauds is _________ fraud, which is the use of mails to defraud the public.

Organized Crime Control Act of 1970: the Racketeer Influenced and Corrupt Organizations (RICO) Act

One of the most important tools for fighting white-collar crime is Title IX of the ___________________.

violations of regulatory

Only certain crimes, typically __________________ statutes, allow punishment to be assessed without having to prove a guilty mind.

white-collar crimes

Originally, __________________were distinguished from other crimes because of the social status of the offender. The more modern approach is to define _________________ as a variety of nonviolent illegal acts against society that occur most frequently in the business context.

embezzlement

Suppose Joe takes some of that money out of the account and uses it to gamble, and he fixes the records to cover up the fact that he has used some of the money for his personal use. He has committed the crime of ______________, the wrongful conversion of another's property by Page 116one who is lawfully in possession of that property.

Principles of Federal Prosecution

The __________________________________________, established by the U.S. Department of Justice, suggest that at the federal level the decision to prosecute depends on two primary factors: (1) whether the evidence is sufficient to obtain a conviction and (2) whether prosecuting the case serves a federal interest.

Mistake of fact

The defendant says his or her honest and reasonable mistake about a fact relevant to the commission of the crime negates the idea of a guilty mind.

Forgery

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

criminal law

The purpose of ____________ is to punish an offender for causing harm to public health, safety, or morals.

computer crime

The term ________________ refers broadly to any wrongful act that (1) is directed against computers, (2) uses computers to commit a crime, or (3) involves computers.

Red Flags Suggesting Possible Fraud

When you are looking at a brochure offering an investment opportunity that seems almost too good to be true, it may indeed not be as good as it seems, especially if it contains these red flags of fraud: No independent proof of profitability: The brochure provides the investment strategy but includes no details that can be verified, such as names and addresses of specific companies in which it invests. Control by a single person. No audited financial statements and no evidence of internal controls. Unusually high rates of return: The rates of return are significantly higher than those for other funds with a similar investment strategy. New investors' reliance primarily on existing investors in deciding to invest.

47

___________ states currently have whistle-blower protection laws for either public or private sector employees or both.

Bribery

____________ is the offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust.

False Claims Act

____________ to sue employers on behalf of the government for fraud against the government.

hacker

______________ a person who illegally accesses or enters another person's or a company's computer system to obtain information or to steal money.

virus

______________ is a computer program that rearranges, damages, destroys, or replaces computer data. Thus, if an employee or a hacker creates and releases a virus, a company can easily lose vital information.

Difference between bribery and extortion

bribery is offering someone something to obtain a desired result, extortion involves the threat of doing something if the target of the extortion does not relinquish money or a specific piece of property.

vicarious liability,

cases, ______________ or liability imposed on one person for the acts of another, is assessed to the corporate executive.

strict-liability offenses

courts began to impose liability on corporations for _________________________, those offenses that do not require state of mind

arraignment arraignment .

defendant appears in court to answer the indictment in a proceeding

Burden of proof

has two elements: the burden of production of evidence and the burden of persuasion. To meet the burden of production of evidence, the prosecution must produce any tangible evidence and testimony that prove the elements of the crime that the defendant allegedly committed. Along with producing evidence, the prosecution also has the burden of persuasion: The prosecutor must persuade the jury beyond reasonable doubt that the defendant committed the crime.

Fines

in 2010, the federal government collected $2.8 billion in restitution, criminal fines, and felony assessments in criminal cases.1 ___________, however, are only one way that those found guilty of fraud and other white-collar crimes might be punished.

affirmative defense

is a reason the defendant, even though he or she committed the physical acts alleged by the prosecution, should be excused from responsibility for those actions

Sarbanes-Oxley

makes it illegal for registered public accounting firms to provide nonaudit services to an audit client. Section 201 of the act specifically names as illegal: Bookkeeping or other services related to the accounting records or financial statements of the audit client.

nolo contendere

whereby the defendant does not admit guilt but agrees not to contest the charges

1.punishment 2.compensation

the outcome of each is different. In a criminal case, the objective is_____________, so the defendant may be fined or imprisoned; in a civil case, the objective is to remedy a wrong done to the plaintiff, so the defendant either will have to provide _____________ to the plaintiff or may be subject to an equitable remedy such as an injunction or order for specific performance

safeguards

the potential impact of losing a criminal case is so much more serious than the impact of losing a civil case, the Constitution provides a number of safeguards for the criminal defendant.

arrest warrant

to obtain an __________________, the law enforcement agent must demonstrate that there is probable cause, or a likelihood, that a suspect committed or is planning to commit a crime.

Foreign Corrupt Practices Act

type of bribery is the bribery of foreign officials. The purpose of the ___________________________ (FCPA) is to combat such bribery.

responsible corporate officer

under the "____________________" doctrine, a court may assess criminal liability on a corporate executive or officer even if he or she did not engage in, direct, or know about a specific criminal violation.