Ch. 9 Business Crime
Terms
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- Why are many business crimes committed?
- Because the companies apply pressure to managers and employees to produce results.
- What are white-collar crimes?
- Crimes committed for or against a business
- Who is held liable in business crimes?
- those in the management of firms whose employees actually commit criminal acts can be held liable if they authorized the conduct, knew about the conduct but did nothing, or failed to act reasonably in their supervisory positions.
- What is the white-collar kingpin law?
- imposes minimum mandatory sentences (ten years in most instances) for corporate offices who mastermind financial crimes such as bank and securities fraud.
- What is the Sarbanes-Oxley Act (or White-Collar Criminal Penalty Enhancement Act of 2002)?
- penalties for mail and wire fraud increased from their former maximums of five years to twenty years in prison.
- What are three reforms to criminal penalties?
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1. the penalties much cost the corporation as much as a bad business decision would cost.
2. Required prison sentences fo officers and directors.
3. Requires corporations to stand criminally responsible under traditional criminal statutes for corporate wrongs - What is shame punishment?
- it involves public disclosure of an offense.
- What does the U.S sentencing Commission do?
- developed both federal sentencing guidelines and a carrot-and-stick approach to fighting white collar crime. Under the guidelines, companies that take substantial steps to prevent, investigate, and punish wrongdoing and cooperate with federal investigators can be treated less harshly in sentencing.
- What are elements?
- requirements for proof
- What is mens rea?
- having the required state of mind for a crime (voluntary action to commit the crime)
- What is actus Reus?
- All crimes include, in addition to the mental intent, a requirement of some specific action or conduct. An example is embezzlement
- What is embezzlement?
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Theft; the actio of employees who take their employers' property. The following elements are necessary:
1. intent to take property
2. an actual taking of property for permanent use
3. no authorization to take property. - computer crime
- this is a term used as though it were a completely separate body of law from criminal law.
- Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act
- ordered the FTC to create a national do-not-call list for email marketers similar to the current do-not-call list that the FTC created for consumers as a barrier against telemarketers.
- International Convention on Computer Crime
- permits businesses in member countries to obtain international copyright protection for their software products.
- Counterfeit Access Device and Computer Fraud and Abuse Act (CADCFA)
- Makes it a federal crim to use or access federal or private computers without authorization in several types of situations.
- Federal Computer Fraud and Abuse ACT (CFAA)
- classifies unauthorized access to a government computer as a felony and trespass into a federal government computer as a misdemeaner.
- No Electronic Theft Act
- A federal law that makes it a criminal offense to willfuly infringe copyrighted material worth over $1000 using the internet or other electronic devices even when the infringer does not profit from the use of the material.
- Aconomic Espionage Act
- makes it a criminal offense to steal trade secrets from an employer.
- Criminal fraud
- Business crimes against individuals usually resulting from sales transactions.
- Racketeer Influenced and Corrupt Organizations (RICO) Act
- passed with the intent of curbing organized crime activity.
- Fourth Amendment
- protect's the individual's privacy and is the basis for requiring warrants for searches of private property
- fifth amendment
- provides protection against self-incrimination and is also the "due process" amendment.
- sixth amendment
- meant to ensure a speedy trial
- Miranda warnings
- these must be given to all people who are subjected to custodial interrogation.
- Initial appearance
- the defendent must have an opportunity to appear before a judicial figure within a short period of time to be informed of his/her charges, rights, and so on.
- preliminary hearing
- the prosecution presents evidence to a judge to idicate that the accused committed the crime
- information
- establishes what the defendant did and when and what crimes were committed.
- grand jury
- a panel of citizens who serve for a designated period of time and act as bopody responsible for the review of evidence of crimes.
- arraignment
- the proceeding at which the defendant enters a plea of guilty, or no contest (nolo contendre)
- plea bargain
- the term used in criminal proceedings for a settlement.
- discovery
- if the case goes to trial. IT require each side to turn over certain types of information to the other side, including lists of witnesses and exhibits.
- omnibus hearing
- the forum wherein chellenges (such as seizing evidence without a warrant) can be presented for the judge's ruling as to the admissibiity of the evidence.