Criminal Law & Criminal Conduct

Environmental Crimes

There are many federal laws regulating the environmental policies of U.S. businesses. Some of these laws can include criminal penalties for certain violations, in addition to civil penalties such as those shown below: 💰 Clean Air Act 💰 Clean Water Act 💰 Resource Conservation and Recovery Act 💰 Comprehensive Environmental Response, 💰 Compensation and Liability Act 💰 Endangered Species Act

Bribery

The unethical exchange of money, goods, services, information, or anything of value for favorable or desired actions.

Larceny

The unlawful taking of the personal property of another person or organization.

Mens Rea and Actus Reus

All criminal cases are composed of two essential elements: mens rea and actus reus. These are Latin terms and essentially refer to the government's burden to establish both the criminal intent (or "mind") as well as the criminal act of the defendant, respectively. This is no less applicable to white-collar or corporate criminal cases.

Antitrust Violations

Antitrust laws can be found on both the state and federal levels, and are designed to regulate companies' conduct and organization, more specifically to encourage competition and prevent the over-concentration of economic power, like with monopolies. A monopoly happens when there is unilateral control by one organization over a specific market, often having a detrimental impact on consumer interests. Oversight, regulation, and intervention are ongoing. In the summer of 2020, CEOs of some of the biggest tech companies in the world -- including Apple, Amazon, Facebook, and Google -- were required to testify in front of Congress as reported in Heads of Amazon, Apple, Facebook and Google Testify on Big Tech's Power. The antitrust hearings were designed to suss out whether the companies have stifled competition and ultimately hurt consumers. It likely won't be the last time they face the hot seat. This topic will be discussed in greater detail in a future lesson.

Professional Negligence

Malpractice refers to the negligence occurring when a professional does not meet their duty of care to exercise the degree of care, skill, diligence, and knowledge commonly possessed and exercised by a reasonable, careful, and prudent professional of the same type in the same area.

Civil Versus Criminal Liability

Civil law cases involve injury to the private rights of individuals or organizations, while criminal law cases involve offenses against the public, society, or state.

Monopoly

Control by one organization over a specific market, often having a detrimental impact on consumer prices.

White Collar Crime

Crimes committed by business professionals involving deceit, concealment, or violation of trust.

Criminal Law and Criminal Conduct

Even in business, you'll need to keep informed of potential criminal liability. As you studied in the previous lesson, federal and state authorities are given the power to regulate commerce. This includes the implementation and enforcement of criminal statutes for certain conduct, even if committed under the banner of or to benefit a business. In this lesson, you will review some of the most common types of business-related crimes and further differentiate them from potential civil liabilities. Though most business-related crimes are nonviolent in nature, they can still be incredibly destructive to a business, its employees, its customers, and the public at large.

Criminal Law

Offenses against the public, society, or state.

Racketeering

Often occurring through the channels of organized crime, criminal financial conduct such as loan-sharking, money laundering, and blackmail.

Money Laundering

Passing "dirty" money through legitimate business interests to "clean" it so that it cannot be tied back to the illegal acts it came from.

Spamming

Sending unsolicited and harassing commercial emails or phone calls.

Ponzi Schemes

So-called "pyramid" schemes promising investors low-risk/high return investment opportunities. However, the high rates are paid to old investors with money acquired from bringing in new investors. The scheme eventually collapses because the promised return.

Actus Reus

The criminal, guilty, or "wrongful" act or acts associated with the commission of a crime.

Mens Rea

The criminal, guilty, or "wrongful" mental state associated with the commission of a crime.

Fraud

The intentional misrepresentation of material facts for monetary gain.

Embezzlement

The trusting of an item of value to someone, typically in a position of power and/or trust, who does not return it.

Criminal Versus Civil Case Characteristics

Typically, as to consequences, criminal cases involve jail, prison, or at least criminal fines, whereas civil cases typically result in financial compensation called damages, or being ordered to do or refrain from doing something specific.

Spamming!

We've all gotten spam email, and it is no secret how annoying it can be for consumers. But the sending of unsolicited and harassing commercial email and phone calls can even be criminal, again enforced by government authorities such as the U.S. Department of Justice.

White-Collar Crimes

White-collar crimes are those criminal offenses typically associated with businesses, committed by business professionals in a manner involving deceit, concealment, or violation of trust. Such crimes can have very serious consequences, but they don't typically involve physical harm or violence. White-collar crimes can fall within either the misdemeanor or felony category depending on their seriousness. Specific white-collar crimes include offenses such as securities fraud and bribery, among many others. Your assigned reading provides descriptions of these common business-related crimes, as well as information on how to differentiate between criminal and civil liability.

Objectives

💰 Explain the classification of crimes related to the business world. 💰 Differentiate between criminal liability and civil liability as relates to business.

Felony vs. Misdemeanor

💰 Misdemeanors are usually punishable by fines or prison terms of up to one year. 💰 Felonies involve longer prison sentences, fines, and even execution.

Malpractitioners

💰 engineers 💰 brokers 💰 real estate agents 💰 attorneys 💰 accountants 💰 architects 💰 doctors As with most civil cases, there are myriad types of damages available to a successful plaintiff, which are almost exclusively pecuniary in nature. For this reason, most professions at risk of a malpractice suit must maintain insurance against it.