Law Chapter 6, Law chapter 6 Criminal law and business

What is an indictment?

A finding by the grand jury that there is adequate evidence to charge the defendant

Liability without fault

A legal term that imposes responsibility for damages regardless of the existance of negligence, also called strict liability.

Magistrate

A local official exercising administrative and often judicial functions

What is the lowest ranking judicial official called?

A magistrate

Who issues an arrest warrent?

A magistrate

When does a law enforcement officer obtain an arrest warrent?

Before an individual is taken into custody

Extortion is also known as...

Blackmail

The sarbanes-Okley Act makes it illegal for registered public accounting firms to provide nonaudit services to an audic client. Section 201 of the act names what things as illegal?

Broker or deal, investment adisor, or inventment banking services Actuarial services Legal services and expert services unrelated to an audit

What is an afffirmative defense to crime.

Entrapment Duress Jistifiable use of force

Capacity Decisions

Estimate capacity requirement Identify the gaps Develop alternatives Evaluate the alternitives

What are examples of fradulent crimes?

False entries Ponzi Scheme False Token

Strict liability is also known as liability without...

Fault

What crimes do Attorneys in the Computer Crime and Intellectual Propery Section of the U.S. Department of Justice prosicute?

Federal computer crimes.

What are categories of crimes?

Felonies Petty Crimes Misdemeanors

A computer crime can be committed by a corporate insider, such as an employee, or by an outsider, such as an...

Hacker

If the grand jury agrees that the prosecution's evidence against the defendant is adequate, it issues an...

Indictment

What is an essential element of mail fraud?

Intent to defraud

What is an accurate statement regarding an information?

It is prepared by the prosecutor and presented to the magistrate

What are less serious crimes punishable by fines or imprisonment for less than one year?

Misdemeanors

What are common red flags suggesting fraud?

No independent proof of profitability Stock in the small company offering the oportunity not being publically traded Control by a single person

What does RICO do?

Prohibits persons employed by or associated with an enterprise from engaging in a pattern of racketeering activity

What does the FCPA allow the government to do?

Prosecute those who bribe foreign officials

What states of mind may be required for the commission of a federal offense

Purposeful Reckless Negligent Knowingly

What is a plea of nolo contendere?

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

During the first appearance, if magistrate determines that probable cause did not exist for the defendant's arrest, what occurs?

The defendant is released

Essential elements of fraud

(1) a material false representation made with intent to deceive (scienter), (2) a victim's reasonable reliance on the false representation, and (3) damages.

During which decade was the counterfeit access device and computer fraud abuse act passed?

1980s

What year was the Mail Fraud Act passed?

1990

During which decade was the Sarbanes-Oxley Act passed?

2000s

When a judge is the fact finder in a case, the trial is called...

A bench trial

What is commercial bribery?

A bribe in exchange for new information or payoffs

What is a cyber terrorist

A computer hacker

What is the responsible corporate officer doctrine?

A court may assess criminal liability on a corporate executive or officer even if he or she did not engage in, direct, or even know about a specific criminal violation

What is a felony?

A crime that is punishable by inprisonment for more than one year in penitentary or by death

What is information?

A document that demonstrates there is enough evidence to charge the defendant and bring him or her to trial

What is a petit jury?

A fact finding jury

What is a petty offense?

A minor misdemeanor usually punishable by a jail sentence of less than six months or a small fee.

Define booking

A procedure during which the name of the defendant and the alleged crime are recorded in the investigating agency's or police department's records

What is a computer virus?

A program that rearranges, damages, destroys, or replaced computer data.

What is Affirmative defense?

A reason the defendant, even though he or she comitted the physical acts alleged by the prosecution, should be excused from responsibility for those actions.

To punish an individual for criminal behavior, the government must demonstrate what?

Actus reus and mens rea

When does cooking occur?

After the defendants arrest

What are categories of computer crimes prohibited by the Computer Fraud and Abuse Act?

Alteration or modification of data in financial computers causing a loss of $1,000 ir nire Modification of data that impedes medical treatment to individuals Unauthorized use of a computer to collect financial or credit information protected under federal privacy law.

What is a plea bargain?

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

What happens to an employee as a result of the False Claims Act?

An employee who reports an employer for fraud against the government retains a share of the recovery as reward for his or her efforts.

What is an accurate statement regarding the vicarious liability of a n employer for the wrongful act of an employee

An employer can be liable for the wrongful act of an employee if the employer directed, partook in, or authorized the wrongful act

What does criminal fraud involve?

An individual intentionally using some sort of misrepresentation to gain advantage over another person

What is probable cause?

Any essential element or standard by which a lawful officer may make a valud arrest, conduct a personal or property search, or obtain a warrant.

If the grand jury issues an indictment, the defendant appears in court to anser the indictment in a proceeding called the...

Arraignment

What is the amount of money a defendant must pay the court on release from custody as security that he or she will return for trial?

Bail

Under common law, why could a corporation not be considered a criminal and prosecuted?

Because a corporation is not an actual person and does not have a mind.

The national information infrastructure protection act of 1996 amended the...

Computer Fraud and Abuse Act

What is accurate about computer crimes?

Computer crimes are ften difficult to prosecutre, particularly since they are difficult to detect.

What are white collar crimes?

Crimes that are nonviolent illegal acts against society

What is an accurate statement regarding state whistleblower protection law?

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

What is the modern rule regarding whether a corporation can be held criminally responsible?

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

What is Vicarious liability?

Liability that is imposed on one person for the acts of another.

Material fact

Something that would influence another persons behavior

What is forgery?

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

What is insider trading?

The illegal buying or selling of a corporations stock, or other securities by a corporate insider, in a breach of fiduciary duty or some other retalionship of trust and confidence, while in possestion of material, nonpublic information about the security.

What is false pretense?

The illegal obtaining of property belonging to another through materially false representation of an existing fact, with knowledge of the falsity of the representation an with intent to defraud.

What is Bribery?

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

Who has the burden of proof in a criminal trial?

The prosecutor

What are the options available to the prosecutor and the defendant in a plea bargain agreement?

The prosecutor agrees to reccomend a certian sentence if the defendant pleas guilty The prosecutor agrees to reduce the charges if the defendant pleads guilty The prosecutor agrees to drop certain charges if the defendant pleas guilty

What rights are waived in a bench trial?

The right to a jury trial is waived in a bench trial

What federal administrative agency investigates and pursues punishment for stock-option backdating?

The security and Exchanges commission

What is the purpose of the FCPA

To combat the bibary of public officials

What is the purpose of the law against bribery of a public official?

To maintain integrity of government

What is an accurate statement regarding the common-law rule of corporate criminal liability?

Undet the common law, a corporation could not be considered a criminal.

What is pretexting?

Using or causing others to use false pretenses, fradulent statements, fradulent or stolen documents, or other misrepresentations to obtain telephone records of another.

According to the U.S. department of Justice, the decision to prosecute at the federal lebel depends on what?

Whether prosecuting the case serves a federal interest.

How is embezzlement distinguishable from larceny?

With embezzlement, the defendant did not take the property from another; instead, the defendant was already in possession of the property

Actus Reus

a guilty (prohibited) act An illegal act, or failure to act when legally required

Arraignment

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

Mens rea

criminal intent guilty mind

Larceny

theft of personal property

Embezzlement

theft or misappropriation of funds placed in one's trust or belonging to one's employer. taking for one's own use in violation of trust; stealing (of money placed in one's care)