White Collar Crime Exam 1

__________ occurs when one person illegally obtains property from another by actual or threatened force, fear, or violence, or under cover of official right. a. Racketeering b. Bribery c. Fraud d. Extortion

d. Extortion

_________ is when a person passes a false or worthless instrument such as a check or counterfeit security with the intent to defraud or injure the recipient. a. Counterfeiting b. Currency Schemes c. Theft d. Fraud

d. Fraud

____________ occurs when a person who sells an item pays back a portion of the purchase price to the buyer. a. Bribery b. Blackmail c. Embezzlement d. Kickback

d. Kickback

The scholar who was credited with coining the phrase "white-collar" crime was a. Peter Jennings b. Emile Durkeim c. John Bratton d. None of the above

d. None of the above

_____________ is when money, goods, services, information or anything else of value is offered with intent to influence the actions, opinions, or decisions of the taker. a. Bribery b. Blackmail c. Embezzlement d. Kickback

a. Bribery

_________ occurs when someone copies or imitates an item without having been authorized to do so and passes the copy off for the genuine or original item. a. Counterfeiting b. Currency Schemes c. Forgery d. Fraud

a. Counterfeiting

_________ is where an unsuspecting victim is contacted by the actor who promises to provide a large return on a small investment. a. Investment Scheme b. Currency Scheme c. Theft d. Fraud

a. Investment Scheme

Which of the below crimes would not be considered as a white-collar crime? a. Larceny b. Fraud c. Embezzlement d. Tax evasion

a. Larceny

___________ is the act of artificially inflating the price of stocks by brokers so that buyers can purchase a stock on the rise. a. Securities Fraud b. Racketeering c. Advanced Fee Scheme d. Ponzi Scheme

a. Securities Fraud

Edwin H. Sutherland referred to the "robber barons" of the last half of the nineteenth century as white-collar criminals a. True b. False

a. True

Most crimes in the United States fall into the category of street crimes. a. True b. False

a. True

One of the first problems in any discussion of white-collar crime is defining the concept of white-collar crime. a. True b. False

a. True

Strain theories assume that excessive pressures or strain on the individual often result in criminal conduct. a. True b. False

a. True

The Department of justice defines white-collar crime as offenses classified as nonviolent illegal activities that principally involve traditional notions of deceit, deception, concealment, manipulation, breach of trust, subterfuge, or illegal circumvention. a. True b. False

a. True

The first reported American case in which the term was used was in 1955 in a New York State court discussing the Sherman Anti-Trust Act of 1890. a. True b. False

a. True

The phrase "white collar crime" was originated by Edwin Sutherland in 1939 to describe various criminal acts committed by rich and powerful people. This statement is: a. True b. False

a. True

White Collar Crimes are rarely investigated, rarely arrested, and rarely prosecuted. This statement is: a. True b. False

a. True

___________ is where actors target businesses and obtain business' bank account information from which all funds are later withdrawn. a. West African Investment Scams b. Racketeering c. Advanced Fee Scheme d. Ponzi Scheme

a. West African Investment Scams

When studying white-collar crimes,t he use of the term "elite deviance" is highly problematic because a. not all deviance is considered to be criminal b. it relates to a social class c. it relates to an individual's profession d. it may also be applied street crime

a. not all deviance is considered as criminal

A demand for money or other consideration under threat to do bodily harm, to injure property, to accuse of a crime, or to expose secrets. This is a definition of: a. Bribery b. Blackmail c. Embezzlement d. Kickback

b. Blackmail

Social control theorists contend that individuals are by nature moral and will not commit deviant acts if they have the chance. a. True b. False

b. False

Sutherland concluded that criminal behavior is caused by biological causes. a. True b. False

b. False

White collar crimes are crimes of opportunity and lead to loss of property, earnings, and savings but are not the cause of injury or deaths. This statement is: a. True b. False

b. False

White collar criminals are generally prosecuted only under federal law. a. True b. False

b. False

White-collar crime is generally committed only by individuals at the highest economic levels. a. True b. False

b. False

___________ is the investment or transfer of money from drug transactions or other embezzlement schemes so that it appears that its original source either cannot be traced or is legitimate. a. Racketeering b. Money Laundering c. Securities Fraud d. Advanced Fee Schemes

b. Money Laundering

__________ is the operation of an illegal business for personal profit. a. Securities Fraud b. Racketeering c. Advanced Fee Scheme d. Ponzi Scheme

b. Racketeering

The public's attention on crime has generally been focused on a. Bank robberies b. Street crime c. White-collar crime d. Tax evasion

b. Street crime

Cultural deviance theories assume that individuals a. are capable of committing criminal acts b. are not capable of committing criminal acts c. do not accept the concept that lower-class youths have separate identifiable cultural values d. commit crime because of the lack of internal containments

b. are not capable of committing criminal acts

___________ is where the actor(s) induce victims to give him some type of advanced fee in return for a future benefit. This future benefit never occurs and victim never receives the advanced fee back. a. West African Investment Scams b. Racketeering c. Advanced Fee Scheme d. Ponzi Scheme

c. Advanced Fee Scheme

____________ is when a person who has been entrusted with money or property appropriates it for his or her own use and benefit. a. Bribery b. Blackmail c. Embezzlement d. Kickback

c. Embezzlement

Sutherland attempted to redefine crime according to a. What the criminal did b. The defendant's race c. The defendant's socio-economic class d. None of the above answers are correct

c. The defendant's socio-economic class

Explain how the concept of white-collar crime developed.

Edwin Sutherland originated the term "white collar crime" in 1939 to describe various criminal acts committed by rich and powerful people. This definition was later criticized when research showed that socio-economic status didn't play a role in who commits white collar crime. White collar crime is a crime of opportunity . Now in days, one in every two households has somehow been affected by white collar crime. Various white collar crimes include fraud, counterfeiting, extortion, bribery, and many others. Though it was once believed white collar crime only happened in the business world, it is now clear that it can happen to the average person.

___________ is where the actor(s) solicit investors in a business venture, promising extremely high financial returns or dividends in a very short period of time. The actor never invests the money, however, it does pay dividends to him. The dividends consists of the newest investors funds. The first investors, pleased to receive dividends, encourage new investors to invest. It falls apart when the actor no longer has sufficient new investors to distribute dividends to the old investors or the actor simply takes all the funds and leaves the area. a. West African Investment Scams b. Racketeering c. Advanced Fee Scheme d. Ponzi Scheme

d. Ponzi Scheme

The psychological theories are based primarily on the works of a. Emile Durkheim b. Edwin Sutherland c. David Matza d. Sigmund Freud

d. Sigmund Freud