lesson 4

Question 1

key element of fraud is

Answer 1

deception

Question 2

crimes commonly committed against businesses

Answer 2

larceny, embezzlement, fraud

Question 3

grand larceny

Answer 3

theft of one or more items valued at 1000 or more

Question 4

petit larceny

Answer 4

theft of items valued at less than 1000

Question 5

embezzlement example

Answer 5

stealing from employer

Question 6

fraud

Answer 6

use of some type of deception to obtain money or property from the person deceived

Question 7

types of fraud

Answer 7

wire/mail fraud, insurance fraud, internet fraud

Question 8

wire and/or mail fraud

Answer 8

involves the use of some type of carrier (postal service, telephone, radio, TV, internet, fax, email). often targets the elderly.

Question 9

insurance fraud

Answer 9

attempts to obtain money from an insurance company

Question 10

insurance fraud by policy holder

Answer 10

a person that has a valid policy with an insurance company presenting false information or making a false claim to collect money on their own policy (hit and run)

Question 11

caveat

Answer 11

use of legitimate payments

Question 12

insurance fraud by a third party

Answer 12

when someone uses deception to attempt to collect an insurance settlement from another person’s insurer (automobile “accidents”)

Question 13

internet fraud

Answer 13

form of deception that uses the internet to find victims and/or to communicate with others in order to commit the fraud

Question 14

forms of internet fraud

Answer 14

• unsolicited offers/letters such as winning a prize
• auctions that involve fake products or no products at all
• auctions that involves shilling (a fake bidder tries to up the price)
• identity theft often by phishing in order to deceive recipient to give personal info

Question 15

when businesses commit crimes, the punishment:

Answer 15

• can involve large payments of fines and restitution to reimburse victims of the crime
• in serious and extreme cases, the officers of the corporation may actually be charged personally with the crimes and subjected to punishment

Question 16

OSHA

Answer 16

occupational safety and health act. federal law that protects employees of the corporation

Question 17

RICO act

Answer 17

racketeering influenced corrupt organization. criminal statue designed to prosecute the mafia but has not been used to prosecute businesses that violate its terms

Question 18

how to prove RICO violations

Answer 18

1. The state must prove the business committed two or more racketeering acts (embezzlement, insurance fraud, internet fraud, arson)
2. State must prove that the acts were done to accomplish one of the following: investing in/acquiring legitimate businesses with criminal money, maintaining/acquiring businesses through criminal activity

Question 19

insys therapeutics

Answer 19

developed fentanyl for cancer patients, bribed physicians and hospitals to prescribe it. found of illegal drug distribution, mail and wire fraud, bribery

Question 20

other crimes by businesses

Answer 20

money laundering, unauthorized employees, foreign corrupt practices act

Question 21

money laundering

Answer 21

finding a way to take the illegally obtained gains from criminal activity and either using it to promote more crime or finding a way to conceal the illegal source of the funds + place them back into legitimate commerce

Question 22

unauthorized employees

Answer 22

to knowingly hire undocumented/unauthorized workers. the purpose of this is to pay a lower wage bc these workers are willing to accept it to be able to work at all

Question 23

foreign corrupt practices act

Answer 23

primarily involves paying bribes to foreign officials in order to avoid some regulation or practice, or to gain a competitive advantage.
- even though on foreign soil, US federal jurisdiction allows for these prosecutions