Chapter 5 White Collar Crimes

Question 1

• Illegally restraining trade and promoting anti-competitive behavior
• Illegal practices that antitrust laws target include
• Predatory acts to achieve and maintain a business monopoly
• Price-fixing conspiracies

Answer 1

Antitrust

Question 2

Ex. A federal judge ruled that NCAA’s rules prohibiting athletes from being paid for use of their names, images and likeness violate antitrust law because they “unreasonably restrain trade”

Answer 2

Antitrust

Question 3

Ex. Agreements between competitors that establish boundaries for pricing such as setting a minimum or maximum price on goods.

Answer 3

Antitrust

Question 4

Person or corporation hides or lies about assets in a bankruptcy proceeding

Answer 4

Bankruptcy Fraud

Question 5

Ex. Debtor conceals assets to avoid having to forfeit them

Answer 5

Bankruptcy Fraud

Question 6

Ex. Including false information on a bankruptcy form

Answer 6

Bankruptcy Fraud

Question 7

Offer or taking of money, goods, or services to influence official actions or decisions

Answer 7

Bribery

Question 8

Ex. A security officer in a company accepts a bribe from criminals to allow access to the building for theft

Answer 8

Bribery

Question 9

Ex. An executive demands a bribe to promote a person who would otherwise not have been selected for promotion

Answer 9

Bribery

Question 10

Copying items without authorization - money, designer clothing, trademarks and copyrights

Answer 10

Counterfeiting

Question 11

Ex. Using counterfeit money to make purchases

Answer 11

Counterfeiting

Question 12

Ex. Creating copies of Nike shoes without permission from the company

Answer 12

Counterfeiting

Question 13

Unauthorized use of a credit card

Answer 13

Credit Card Fraud

Question 14

Ex. Making purchases with a stolen credit card

Answer 14

Credit Card Fraud

Question 15

Ex. Unauthorized use of a debit card to get cash

Answer 15

Credit Card Fraud

Question 16

Ex. Credit card fraud that also involves using a computer or the internet (make unauthorized purchases online)

Answer 16

Computer and Internet Fraud

Question 17

Ex. Using a computer to access unauthorized financial records of another

Answer 17

Computer and Internet Fraud

Question 18

Ex. Unauthorized use of a company’s computer

Answer 18

Computer and Internet Fraud

Question 19

Theft or misuse of valuable business information, like trade secrets

Answer 19

Economic Espionage

Question 20

Ex. Person with proprietary access to information (like the recipe for Coca Cola) unlawfully sells the recipe to a 3rd party

Answer 20

Economic Espionage

Question 21

Person in position of trust takes money or property for his/her own use

Answer 21

Embezzlement

Question 22

Ex. Bank teller who pockets customer deposits

Answer 22

Embezzlement

Question 23

Against federal (EPA) and state laws

Answer 23

Environmental Law Violations

Question 24

Ex. Illegal hazardous waste dumping, ocean dumping by cruise ships, oil spills, illegal handling of hazardous substances (pesticides, asbestos, etc.)

Answer 24

Environmental Law Violations

Question 25

- Applies to banks and financial institutions | - Bank fraud in providing loans, financial documents, mortgages

Answer 25

Financial Fraud

Question 26

Governs contracts between the government and public agencies

Answer 26

Government Fraud

Question 27

Ex. 3rd party bills the government agency for goods never delivered

Answer 27

Government Fraud

Question 28

Over-billing and scams by hospitals, doctors, ambulance services, laboratories, pharmacies, extended care facilities

Answer 28

Healthcare Fraud

Question 29

Ex. Billing for services not rendered

Answer 29

Healthcare Fraud

Question 30

Ex. Incorrect reporting of diagnosis

Answer 30

Healthcare Fraud

Question 31

Ex. False issuance of prescription drugs

Answer 31

Healthcare Fraud

Question 32

Person trades a security while in possession of material, non public information

Answer 32

Insider Trading

Question 33

Ex. The CEO of a company divulges important information about the acquisition of his company to a friend who owns a substantial shareholding in the company. The friend acts on the information and sells all his shares before the information is made public.

Answer 33

Insider Trading

Question 34

Fraud in insurance issues

Answer 34

Insurance Fraud

Question 35

Ex. Insurance company charges higher rates than allowed by state regulators

Answer 35

Insurance Fraud

Question 36

Ex. Policyholders lie about condition of property to get lower rates

Answer 36

Insurance Fraud

Question 37

Ex. Policyholders pad their claims to get more money

Answer 37

Insurance Fraud

Question 38

Sending fraudulent materials through the U.S. Postal Service or using the U.S. Postal Service to communicate fraudulent activities

Answer 38

Mailing Fraud

Question 39

Ex. Mailing documents that solicit sensitive information. For example, a victim receives a fake credit card application in the mail asking for their name, address, social security number and phone number. With this information, a criminal may use that person’s identity, or sell it to another

Answer 39

Mailing Fraud

Question 40

Hiding the truth about the origins of money, especially illegal activities

Answer 40

Money Laundering

Question 41

Ex. A fake company is set up to hide illegal drug activity, in the form of a pizza restaurant. The pizza restaurant appears to be legitimate, but is funded with drug money. Financial records of the restaurant are inflated to reflect money received from illegal drug activities as opposed to the actual pizza business

Answer 41

Money Laundering

Question 42

Ex. Failure to file tax returns

Answer 42

Tax Evasion

Question 43

Ex. Failure to report income

Answer 43

Tax Evasion

Question 44

Ex. Overstatement of expenses

Answer 44

Tax Evasion

Question 45

Weapon against organized crime (like the Mafia)

Answer 45

RICO Act

Question 46

RICO Act criminalizes three activities:

Answer 46

(1) Using illegal income to acquire, establish, or operate an enterprise (2) Acquiring an interest in such an enterprise (3) Using an enterprise to collect a debt

Question 47

Ex. Using the phone to solicit people to buy goods and services (when those goods/services do not actually exist), invest money in a fake investment fund, or donate to fake charitable causes

Answer 47

Telephone and Telemarketing Fraud

Question 48

Use of telephone to defraud victims to send money

Answer 48

Telephone and Telemarketing Fraud