Chapter 24: White Collar Crime (Occupational and Organizational Crime) Pt. 2

Question 1

What are the different types of white collar crime scams?

Answer 1

(1) telecommunication fraud
(2) “data diddlers”
(3) “Trojan horses” (or secret files)
(4) “Telemarketing”
(5) “loss dumping”
(6) “Overutilization”

Question 2

Which type of white collar crime scam is this:

computer‐ assisted embezzlement by manipulating the information fed into computers for their advantage

Answer 2

“data diddlers”

Question 3

Which type of white collar crime scam is this:
used by computer programmers to make fraudulent electronic transfers, erase personal debts, or discover confidential information without detection

Answer 3

“Trojan horses” (or secret files)

Question 4

Which type of white collar crime scam is this:

scams entice consumers to buy into worthless investments

Answer 4

“Telemarketing”

Question 5

Which type of white collar crime scam is this:

a stockbroker buys stock options without attaching the customer account numbers

Answer 5

“loss dumping”

Question 6

Which type of white collar crime scam is this:

done by medical professionals and other service providers

Answer 6

“overutilization”

Question 7

What are the different types of “telemarketing” scams?

Answer 7

“cash loans”
“one-shot”
“blind pool”

Question 8

Which type of “telemarketing” scam is this:

callers are charged $49 for a generic information package on how to apply for bank loan

Answer 8

“cash loans”

Question 9

Which type of “telemarketing” scam is this:

credit cards in which callers pay a fee for a card that turns out to be usable only once

Answer 9

“one-shot”

Question 10

Which type of “telemarketing” scam is this:

penny stock offerings based on misleading information about new small companies

Answer 10

“blind pool”

Question 11

What are the different types of “overutilization”?

Answer 11

(1) “ping-ponging”
(2) “family ganging”
(3) “fee-splitting”
(4) “steering”
(5) “upgrading”

Question 12

Which type of “overutilization” is this:

referring patients to several different practitioners when their symptoms do not warrant such referrals

Answer 12

(1) “ping-ponging”

Question 13

Which type of “overutilization” is this:

extending several unnecessary services to all members of a patient’s family

Answer 13

(2) “family ganging”

Question 14

Which type of “overutilization” is this:

sending patients to surgeons who will split the largest fee rather than to those who will do the best work

Answer 14

(3) “fee-splitting”

Question 15

Which type of “overutilization” is this:

directing patients to clinics’ pharmacies to fill unneeded prescriptions

Answer 15

(4) “steering”

Question 16

Which type of “overutilization” is this:

billing for services more extensive than those actually performed

Answer 16

(5) “upgrading”

Question 17

What are some classic cases of white collar crime?

Answer 17

(1) Bernard Madoff
(2) New York love canal & chemical company
(3) Ford Pintos case
(4) Three Archer-Daniels-Midland
(5) H. Robbins

Question 18

Which classic white collar crime case is this:
-was sentenced to 150 years in prison by a U.S. District Court in June of 2009 for running a massive Ponzi scheme since the early 1990s

• involved thousands of victims
• between $13 and $50 billion

Answer 18

Bernard Madoff case

Question 19

Which classic white collar crime case is this:
-massive leaks of toxic chemical from an old dumping ground in love canal, New York

• forced 239 families to evacuate and demolish their homes
• another 311 homes have been condemned
• cost taxpayers about $200 million

-lawsuits against the chemical company worth $15 billion are pending in the courts

Answer 19

New York love canal & chemical company case

Question 20

Which classic white collar crime case is this:

• between 1971 and 1976
• cars were recalled for exploding gas tanks
• Ford denied allegations that it was aware of the defect in early crash tests but failed to make changes for financial reasons
• more than 50 people are believed to have died as a result of this

Answer 20

Ford Pintos case

Question 21

Which classic white collar crime case is this:
-were charged with conspiring to fix worldwide prices for livestock feed

-$100 million in fines, the largest criminal anti‐trust fine in history

Answer 21

Three Archer-Daniels-Midland case

Question 22

Which classic white collar crime case is this:
-accused of knowingly misrepresenting the nature, quality, safety, and efficacy of the Dalkon Shield, an intrauterine birth‐control device

-At least 17 women died

Answer 22

H. Robbins case

Question 23

What are some way we can control white collar crime?

Answer 23

(1) increasing consumer advocacy and awareness of white-collar crimes
(2) greater security and tighter business controls
(3) increasing protection for whistleblowers
(4) increasing moral and ethical training
(5) increase the certainty, severity, and swiftness of criminal punishments for these crimes

Question 24

Why is imprisonment for white collar crime often fickle?

Answer 24

offenders often get probation or suspended sentences