Class 310 Chapter 6 Smartbook

______ 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.

Bribery

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.

______ is generally the illegal buying or selling of a corporation's stock or other securities by a corporate insider, in breach of a fiduciary duty or some other relationship of trust and confidence, while in possession of material, nonpublic information about the security.

Insider trading

______ crimes are nonviolent illegal acts against society.

White-collar

How is embezzlement distinguishable from larceny?

With embezzlement, the defendant does not take the property from another; instead, the defendant is already in possession of the property.

Criminal ______ involves an individual intentionally using some sort of misrepresentation to gain an advantage over another person.

fraud

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

hacker

A cyber ______ 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.

terrorist

Which of the following federal administrative agencies investigates and pursues punishment for stock-option backdating?

the Securities and Exchange Commission

The term actus reus means _________ act.

guilty

Actus reus means ______.

guilty act

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

True or false: In a criminal proceeding, the government files the charges against a defendant.

True

The Sarbanes-Oxley Act makes it illegal for registered public accounting firms to provide nonaudit services to an audit client. Which of the following is not termed illegal according to Section 201 of the act?

using GAAP in the preparation of financial statements

During which decade was the Counterfeit Access Device and Computer Fraud and Abuse Act passed?

The 1980s

Stock-option ______ occurs when an employee falsifies documents to make it appear as though the company had granted options on certain dates, but the dates are selected after the fact by looking backward for dates on which the stock price was low. Multiple choice question.

backdating

Match the categories of crimes (in the left column) with their descriptions (in the right column).

Felonies-Punishable by imprisonment for more than one year in a penitentiary or by death Misdemeanors-Punishable by fines and/or imprisonment for less than one year Petty offenses-Punishable by a jail sentence of less than six months or a small fine

The purpose of the ______ is to combat the bribery of foreign officials.

Foreign Corrupt Practices Act

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

Forgery

Until recently, the most economically destructive computer crime to date was the creation of the ______ virus, which spread rapidly in May 2000.

Love Bug

A(n) ______ 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.

Ponzi scheme

______ is using or causing others to use false pretenses, fraudulent statements, fraudulent or stolen documents, or other misrepresentations to obtain the telephone records of another. Multiple choice question.

Pretexting

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.

For a corporation to be held criminally liable for the acts of an employee, the prosecutor must show all but which of the following?

The employee who committed the act has not been criminally prosecuted.

The Foreign Corrupt Practices Act allows the government to prosecute those who ______ foreign officials.

bribe

White-collar crimes occur most frequently in the ______ context.

business

It is a ________ when an employee uses a work computer in a manner not authorized.

crime

Which of the following is not a common way to punish a white-collar criminal?

exile

Which of the following is not a common way to punish a white-collar criminal?

extradition

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

false imprisonment

Suppose Jim goes door-to-door selling vacuum cleaners at an amazing discount. To obtain the discount, customers must pay immediately, and the vacuum cleaner will be delivered to them in three to five business days. However, Jim possesses no vacuum cleaners and does not plan to deliver any. Jim has committed the crime of ______.

false pretense

Strict liability is also known as liability without ______.

fault

According to the Mail Fraud Act of 1990, which of the following is an essential element to prove mail fraud?

intent to defraud

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

negligence

Strict-liability offenses are _____.

offenses for which no mens rea is required

The Racketeer Influenced and Corrupt Organizations Act prohibits persons employed by or associated with an enterprise from engaging in a pattern of ______ activity.

racketeering

Which of the following does not constitute bribery?

rejecting a bribe

Illegal insider trading typically involves the buying and selling of ______.

securities

A classification of a specific crime usually comes from a __________.

statute

Which of the following is not one of the three federal laws that have aided in the fight against business-related crimes?

the Bush-Cheney Doctrine

A computer ______ is a computer program that rearranges, damages, destroys, or replaces computer data.

virus

The Sarbanes-Oxley Act of 2002 intends to limit ______.

white-collar crime

______ bribery includes a bribe in exchange for new information or payoffs.

Commercial

The National Information Infrastructure Protection Act of 1996 amended the ______ Act.

Computer Fraud and Abuse

Which of the following is an accurate statement regarding computer crimes?

Computer crimes are often difficult to prosecute, particularly since they are difficult to detect.

When liability is assessed without the guilty-mind criterion, it is known as ______ liability.

strict

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.

______ is the wrongful conversion of another's property by one who is lawfully in possession of that property.

Embezzlement

A cyber terrorist is a computer ______.

hacker

Match the states of mind required by an offense (in the left column) with their descriptions (in the right column).

Knowing- In this state of mind, a defendant commits a wrongful act if the person believes that the act is wrongful and does nothing to confirm or disconfirm this belief. Purposeful-In this state of mind, a defendant commits a crime by engaging in a specific wrongful behavior to bring about a specific wrongful result.

Embezzlement usually occurs when a(n) ____________ steals money.

employee

Which of the following is an example of pretexting?

posing as an employee of a telecommunications carrier to obtain the telephone records of an ex-spouse

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

Which of the following is an accurate statement regarding the "thing of value" element for the statutory offense of "bribery of a public official"?

Actual commercial value is not necessary.

Which of the following is an inaccurate statement regarding state whistle-blower protection laws?

Almost all states protect employees who choose to go to the media with their reports of employer wrongdoing.

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.

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.

In an attempt to aid prosecution of computer crimes, the ______ formed the Computer Crime and Intellectual Property Section in its Criminal Division.

U.S. Department of Justice

Which of the following is an accurate statement regarding extortion and bribery?

While bribery is offering something to obtain a desired result, extortion involves a threat if the victim does not give money or property.

With regard to an investment opportunity, which of the following is not a commonly recognized red flag suggesting possible fraud?

a small company that is funded by venture capitalists offering an investment opportunity

Which of the following must the government demonstrate to punish an individual for criminal behavior?

actus reus and mens rea

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

criminal

Which of the following is not a type of computer crime?

one that generates proceeds for an eventual computer purchase

Attorneys in the Criminal Division of the Computer Crime and Intellectual Property Section of the U.S. Department of Justice prosecute ______.

only federal computer crimes

Commercial bribery includes a bribe in exchange for new information or ______.

payoffs

To demonstrate bribery of a public official, the government must show all but which of the following elements?

the public official had served in his or her position for three years or longer

Extortion is also known as ______.

to blackmail

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

to maintain the integrity of the government

Since ______, private citizens have been using the False Claims Act to sue employers on behalf of the government for fraud against the government.

1986

In which year was the Mail Fraud Act passed?

1990

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. Multiple choice question.

protected

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.

responsible corporate officer

Bribery of a public official is a ______ offense under federal law.

statutory

With regard to an investment opportunity, which of the following is not a commonly recognized red flag suggesting fraud? Multiple choice question.

stock in a small company that is not listed

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.

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

Any company can pay to join.

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

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

True

Forgery is a type of ______.

fraud

A(n) ______ is a person who illegally accesses or enters another person's or a company's computer system to obtain information or steal money. Multiple choice question.

hacker

During which decade was the Sarbanes-Oxley Act passed?

The 2000s

Which of the following is not a category of computer crime prohibited by the Computer Fraud and Abuse Act?

Sharing of personal passwords to social media websites with friends and family

______ was originally enacted to combat organized crime.

The Racketeer Influenced and Corrupt Organizations Act