Midterm Review Flashcards
(49 cards)
1
Q
City of Bell Scandal
Robert Rizzo
A
- Being adjudicated
- city manager, convicted
- LA working class community, where compensation for officials was simply off the charts by any standard
- initially tried to convince folks that those insane compensation packages were actually justified
2
Q
Frontline financial crisis video:
How hard is it to prosecute people criminally for white collar crime? Was anyone criminally prosecuted?
A
NO.
3
Q
Bakker, Jim
A
- Religious fraud
- televised and asked people to donate, misused money
- Assemblies of God minister, sex scandal
- The PTL Club-Praise the Lord and the Pass the Loot: Embezzlement ministry, money being used elsewhere, boathouse, bills, sexual misconduct (secretary received hush money $115,000)
- IRS threaten to stop tax break due to the pay the Bakkers were receiving
- CONVICTED in federal court, 45 year prison term
4
Q
Black, William
A
- criminologist
- UCI PH.D student, involved in Savings and Loans
- developed concept of “control fraud”
- exposing Congressional corruption during the Savings and Loan Crisis
- called the “economic structure of corporate law” a myth which insist that only honest companies can pass the inspection of experienced external auditors
- San Francisco bank regulator
5
Q
Boesky, Ivan
A
- financial fraud
- American stock trader who is notable for his prominent role in a Wall Street insider trading scandal in the mid 1980’s
- insider trading: when they act upon information the is not publicly known
- received a PRISON SENTENCE and was fined
6
Q
Braithwaite, John
A
- criminologist (student of Sutherland), trust fraud
- wanted to focus on the wealth; the elite members
(WCC would lose value if high status is removed. It would dilute what was intended to studying crimes as powerful) - claims most important aspects of term is that is can lead to the study of specific acts by which to inform theory
7
Q
Clinard and Quinney
A
- criminologist
- examined criminal, civil, and administrative actions (including administrative violations, financial violations, labor violations, and manufacturing violations)
- found that three-fifths of the 477 manufacturers had at least one action initiated against them in the two-year period under consideration
- replace WCC definition with corporate vs. occupational crime
- Corporate crime: benefit an individual
- Occupational crime: benefit individual and corporate
8
Q
Coleman, James
A
- criminologist
- Found 3 flaws in Sutherland’s definition
- —-> responsibility for some WCC can be attributed only to a group and not individual members
- —-> financial crimes that aren’t a part of occupation should be included
- —-> broadened def to include WCC committed by middle levels of status heirarchy
- New definition: WCC is a violation of law committed by a person or group of persons in the course of an otherwise respected and legitimate occupation or financial activity
- cultural competition: the desire to compete and be successful drives people to lie and cheat
- Criminal behavior requires 2 basic elements
- —–> motivations and opportunity
9
Q
Cressey, Donald
A
- classic study of embezzlers
- Three distinct causal elements need to come together
- —-> Non-shareable financial problem
- —-> Opportunity and knowledge to commit the crime
- —-> Ability to apply a suitable rationalization to “adjust the contradiction” between their behavior and society’s definition of the situation as well as their own self-image
10
Q
Falwell, Jerry
A
- religious fraud
- former ally of Jim Bakker
- contributions solicited on Falwell’s cable TV system
11
Q
Geis, Gilbert
A
- criminologist (UCI Professor)
- General Electrics conspiracy - price fixing
- —-> Price fixing: standard price for certain product
- —-> Finds out bc investor kept bidding same money
- contended that society will not view corporate crime in the same light as other crimes until white-collar criminals are punished the same as other criminals
- Crimes of organizations are qualitatively different from those of individual offenders
12
Q
Jesilow, Paul
A
- criminologist
- did a study and found that big autoshops usually rip people off compared to small autoshops
- women were the most vulnerable
13
Q
Lebed, Jonathan
A
- teenage stock frauder (15 yrs old)
- bought blocks of cheap microcap stocks then pumping them on the internet using financial message boards and hundreds of phony names
- SETTLED case at $285,000
- charged with illegal stock dealing, mislead investors into falso stocks via misleading emails/labels
14
Q
Le Blanc, Dudley
A
- Louisiana politician, toxics mixed in barrel behind his barn
- quackery: sells products that claim to make people better
- claimed that Hadacol could relieve an implausible range of ailments
15
Q
Milken, Michael
A
- securities fraud and junk bond guru
- oversold billions of dollars worth of high-risk securities to banks, insurance companies, and other financial insitutions
- CONVICTED following a guilty plea on felony charges for violating security
16
Q
Minkow, Barry
A
- financial fraud
- 16-yr-old LA high school student
- borrowed money to start Carpet Cleaning Business (ZZZZ Best)
- broke own property and lied about being robbed
- CONVICTED and now a pastor
17
Q
Moon, Sun Myung
A
- religious fraud
- leader of Unification Church
- he violated the US tax, immigration, banking, currency, and foreign-agent registration laws, and state and local laws on charity fraud
- SERVED 11 MONTHS in federal prison
18
Q
Morgan, J.P
A
- conducted Enron style energy market manipulation
- falsely inflate electricity prices which drove up energy prices
19
Q
Needleman and Needleman
A
- criminologist
- crime facilitative vs crime coercive environments based on moral tone/tone at the top
- crime facilitative: members aren’t forced to break the law, but are presented with tempting opportunities
- crime coercive: the system is encouraging you to break the law
20
Q
Popoff, Peter
A
- led fraudulent faith healings (Miracle and Blessing Crusade)
- received people’s life savings and donations to falsely float Russian bibles into the Soviet Union attached to balloons
- exposed by Randi James
21
Q
Randi, James
A
- debunker of paranormal claims
- trapped Peter Popoff in his false healing abilities
- exposed Popoff on the Tonight Show to reveal to truth of Popoff’s scheme
22
Q
Rosoff, Stephen
A
- co-author of Profit Without Honor
23
Q
Ross, E.A
A
- criminologist
- concept of criminaloid
- act like they have values, give back to society, but stealing millions
- never publicly labeled as criminals
24
Q
Spitzer, Eliot
A
- investigator of Payola
- revealed that bribes to radio programmers had been offered by Sony
- radio corporations had taken money and other unlawful forms of compensation to play certain songs
25
Sutherland, Edwin
- WCC: "crime committed by a person of respectability and high social status in the course of his occupation"
- coined the term "white-collar crime'
- 2 differences between WCC and common criminals
- ----> public perception are not so ready to label them as "criminal" as we do with common crime
- ----> self-conceptions: WCC don't take pride in their status as criminals, unlike professional thieves
26
Swaggert, Jimmy
- televangelist
- misappropriation of funds on children charity funds
- sexual misconduct
27
Wheeler, Stanton
- criminologist involved in Yale studies of collective embezzlement
- researched WCC motivation
- ----> risk seekers: pleasure from adding to wealth/ greed
- ----> fear or failing: afraid of losing status and wealth
28
American Family Publishers
- large company used Ed McMahon and Dick Clark celebrity endorsements to trick customers into buying magazine subscriptions as a way to win large amounts of money
- most of the victims were the elderly
- Family Values sued AFP for deceptive language and consumer deception
- ----> must be "no purchase necessary"
29
Asbestos
- environmental crime
- magic mineral, mineral found in rocks
- added to types of building material
- when inhaled, it causes lethal illnesses
30
Auto-repair fraud
- consumer fraud
- most large auto-repair companies cheat customers
- theoretical reason: have commission-based pay schedule that rewarded unnecessary work
- Paul Jesilow's research
31
Bait and Switch
- "an alluring but insincere offer to sell a product or service which the advertiser does not intend or want to sell"
- customers are baited to enter the store by being led to think a certain item is cheaper than it really is
32
Costs of common vs. WCC
- WCC are more costly than common crimes
- physical cost: performing unnecessary surgery
- social costs: loss of trust
- environmental costs: air pollution
- financial costs: increased costs/prices
33
Criminaloid
- another way of defining WCC
- individuals who would prosper through criminal acts during course of occupations but were never publicly labeled as criminals
34
Diffuse victimization
- WCC is hidden
- victim can be the government, public, country, community, and they may not know they are victims
- companies may be too embarrassed to admit they are victims, may make them look incompetent
35
Environmental racism
- toxic waste dumps dumped in impoverished communities
| - Emelle, Alabama was the world's largest toxic waste dump
36
False advertising
- deceptive ads, characterized by misleading or untrue claims, sometimes supported by rigged tests and photographic trickery
- 3 Ad categories
- ---> informative (least visible)
- ---> puffy ads (self-serving ballyhoo or irrelevant celebrity)
- ----> deceptive ads
37
Forms of environmental crime
- air pollution
- civil/administrative reactions
- common law for uncommon crimes
- environmental racism
- occupational disease
- regulation and enforcement
- superfund
- toxic terrorism
- water pollution
- workplace environment
- illegal toxic dumps
38
Gresham's Law Dynamic
- bad money drives out good money
- when government overvalues one type of money and undervalues another
- the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation
39
Love Canal
- environmental crime (physical and economic)
- dumped chem waste in abandoned waterways
- covered the canal and sold it local board of edu to build a school
- resulted in high number of miscarriages and major health defects
- Hooker Chem Corps also responsible for Hyde Park
40
Myth of free market
- laissez-faire ("let it be")
- regulate itself bc competition will naturally lead to reduced prices and better quality products
- caveat emptor: buyer beware
- caveat venditor: sell beware
41
Occupational crime
- benefits individual
- Clinard and Quinney def: offenses committed by individuals in the course of their occupations and the offenses of employees against their employer
42
Organizational crime
- crimes committed by organizations to advance interests of the organizations
- umbrella term for operational and corporate crime
43
Ponzi Scheme
- named after Charles Ponzi aka pyramid scheme
| - created Financial Exchange Co.
44
Price fixing
- criminalized under the Sherman Antitrust Act 1890
- consumers pay higher prices for inferior goods and services
- unlawfully maximize corporate profits at the consumer's expense
45
Price gouging
- pricing above the market price bc there is no alternate retailer, especially in times of disaster
46
Pump and dump
- stock fraud
| - artificially inflating the price through false positive statements to sell the cheaply purchased stock at higher price
47
Quiz show fraud
- false game shows
| - contestants were given answers to the game beforehand
48
Superfund
- CERCLA (Comprehensive Environmental Response, Compensation and Liability Act)
- take wase from one landfill and move it to another
- responsible parties for hazardous conditions were supposed to do the clean up or reimburse govt
- INEFFECTIVE!
49
Toxic terrorism
- unethical and illegal dumping of hazardous waste in poor countries
- 3 forms
- ----> sales of dangerous chemicals
- ----> export of hazardous waste
- ----> construction of polluting factories
