Chapter 13: criminal law and business

Question 1

criminal law

Answer 1

Defines how state/government and its reps deters and punishes those who affect ownership of property

Question 2

crime

Answer 2

Deemed wrong by legislature

White collar crimes
Business entities, desk workers, accountants, attorneys

inherently wrong
- Murder, rape, theft (in some cases)

Question 3

Crime Classifications

Answer 3

Felony → Indictment (Grand Jury) → Fine or Imprisonment

Grand jury - death penalty, or federal crimes

Misdemeanor → Information (Gov’t charge) → fine or jail <1yr

Question 4

Crime & Intent

Answer 4

Key to successful prosecution is existence of ability to prove some level of willful or knowing intent by perpetrator

No intent (driving fast and crashing car into someone and killing) - less severity, different charges

Question 5

Pleas in criminal cases

Answer 5

Guilty
Not guilty
Nolo contendere - no contest
- To avoid civil lawsuit

Question 6

Grand Jury

Answer 6

5th Amendment

Capital or infamous crimes

Investigative body - hear evidence and vote to where there is probably cause for that person to stand trial

Looking to establish probable cause for trial that could lead to death penalty

Question 7

Constitutional Protections

Answer 7

Bill of Rights of Constitution provide liberties that protects persons from power of the government

Let the officer in home - warrant ex.

Question 8

4th amendment

Answer 8

Protects persons and businesses from unreasonable search and seizure

Expectation of privacy - generally assumed

Searches
Valid consent
Lawfully given warrant

Question 9

5th Amendment

Answer 9

Protects persons and business from testifying against oneself

Never have to take witness stand if prosecuted against in criminal matter

Double jeopardy - cannot be tried twice for same crime

Question 10

6th Amendment

Answer 10

more protection

Criminal proceeding protection - right to speedy trial
Trial jury
Informed of charge
Confront accuser
Subpoena witnesses
Assistance of attorney

Question 11

Business crimes

Answer 11

fraud
false statement
larceny
RICO
Cyber crime
endangering workers
conpsiracy
obstruction of justice
aiding and abetting
bribery and kickbacks

Question 12

fraud

Answer 12

Knowingly falsify, cover up, use false information

Pursued in litigation in a civil situation

elements:
- Intent to mislead
- Misstatement of fraud
- Justifiable reliance
- Injury

Question 13

types of fraud

Answer 13

Mail and wire fraud
Securities fraud
Health care fraud
Counterfeiting
Bankruptcy fraud

Question 14

other ways to commit fraud

Answer 14

Known to be untrue or make it with reckless indifference to truth - fraudulent/wrong info

Half truth - conceal material fact

Material fact - important for a reasonable person to engage in business w/ you

Question 15

Mail and wire fraud

Answer 15

Interstate communication

Knowing course of action taken to deceive others

Conceal facts/helping someone to conceal facts

Question 16

false statement

Answer 16

To bank:
- Financial statements
- Relate to material fact

To federal agency:
- Willfully and knowingly
- Relate to material matter
- “Exculpatory no”

Importance in business of audited financial statements

Question 17

Larceny

Answer 17

fancy word for theft

unlawful taking of property

Question 18

robbery

Answer 18

larceny with violence/threat of violence

Question 19

burglary

Answer 19

breaking into property with intent to commit felony

Question 20

Embezzlement

Answer 20

smaller amounts of money

Question 21

RICO

Answer 21

Racketeer Influenced and Corrupt Organizations Act

combat organized crime by targeting not just individual criminals, but also the organizations they are part of

Question 22

examples of RICO

Answer 22

• use/invest income from prohibited activities
• acquire/maintain interest in prohibited enterprise
• Conducts/participates in prohibited enterprise

Question 23

Prohibited activity under RICO

Answer 23

Pattern of racketeering

Collection of unlawful debt

Question 24

cyber crime

Answer 24

ID theft
Electronic theft
- trade secrets, records, customer lists
Hacking
Crimes done by computers

Difficult to prove

Question 25

Endangering workers

Answer 25

Resulting in injuries to workers - OSHA (occupational safety and health administration) - Assault and battery - Accidental homicide - Safety precautions - Occupational safety and health act

Question 26

conspiracy

Answer 26

More than 1 person agrees to carrying out criminal offense Each member is an agent/partner of other members - willful member

Question 27

Obstruction of Justice

Answer 27

Act committed with intent to obstruct legislative or judicial process ex. - Clean up files - Changing record of phone convo - Shredding documents during pending investigation

Question 28

Aiding and abetting

Answer 28

assisting or encouraging someone else to commit a crime, making the aider and abettor liable for the crime as well

Question 29

bribery and kickbacks

Answer 29

offering/receiving something to influence outcome of an event Of a public official = federal charge Kickback - giving something to someone that facilitated a transaction - paying for referrals

Question 30

Importance of sentencing guidelines

Answer 30

To ensure uniformity Guidelines provide uniformity - concern → too complex to use and lost of use of control Decisions may be decided by commissions - rather than judge that sat in on the case