BLAW Exam 2

___________ 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.

Pretexting

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

Bribery

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.

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.

_____________ 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

What 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.

__________ crimes are nonviolent illegal acts against society.

White-collar

The term actus reus means _________ act.

guilty

Petty Offenses

punishable by a jail sentence of less than six months or a small fine

Misdemeanors

punishable by fines and/or imprisonment for less than one year

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

Any company can pay to join.

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

business

Actus reus means _________.

guilty act

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

Foreign Corrupt Practices Act

What are common ways to punish a white-collar criminal?

incarceration, employment disqualification, hose arrest, community service

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

the Securities and Exchange Commission

Extortion is also known as __________.

blackmail

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

bribe

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

strict

To demonstrate bribery of a public official, the government must show what elements?

1. the defendant had the intent to influence the public official's judgement or conduct 2. something of value was offered, given, or promised 3. a public official was involved

Forgery is a type of __________.

fraud

Embezzlement usually occurs when an ___________ 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

What are some of the essential elements required for criminal fraud liability?

1. The victim sustained damages as a result of the defendant's false representation. 2. The defendant made a material false representation with the intent to deceive the victim. 3. The victim reasonably relied on the defendant's false representation.

What are red flags suggesting possible fraud?

1. no independent proof of profitability 2. control by a single person 3. no audited financial statements and no evidence of internal controls 4. unusually high rates of return 5. new investors's reliance primarily on existing investors in deciding to invest

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.

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

Commercial

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

Embezzlement

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

True

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

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.

backdating

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

criminal

What constitutes bribery?

offering, giving, or soliciting a bribe

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

payoffs

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

to maintain the integrity of the government

In which year was the Mail Fraud Act passed?

1990

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

Forgery

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.

Ponzi scheme

What are examples of a fraudulent crime?

false token, Ponzi scheme, false entries

Strict liability is also known as liability without _________.

fault

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

fraud

What is not an example of a fraudulent crime?

negligence

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 the substantial risk.

negligent; reckless

Felonies

punishable by imprisonment for more than one year in a penitentiary or by death

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

securities

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

statute

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?

stock in a small company that is not listed