Deck 13: Enterprise Crime

Question 1

Operation Bullpen was a federal government effort aimed at stopping a major _____________ operation in the sports memorabilia industry.

A)churning
B)front running
C)swindle
D)chiseling

Answer 1

C

Question 2

__________________________ is activity that brings about environmental harm.

Answer 2

Green collar crime

Question 3

_____________________ is defined as the intentional or negligent discharge of a toxic or contaminating substance into the biosystem that is known to have an adverse effect on the natural environment or life.

Answer 3

Criminal environmental pollution

Question 4

_________________ is a routine practice in the record industry of paying radio stations and DJs to play songs.

Question 5

White collar offenders who claim that everyone does it reflect the ___________________ or _____________________ view of causation.

Question 6

The major enforcement arm against environmental crimes is the _______________________.

Question 7

A white-collar crime in which a stockbroker makes repeated,excessive,and unnecessary buying and selling of stock is known as:

A)chiseling
B)churning
C)front running
D)bucketing

Question 8

A __________________ is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.

Question 9

_________ is the systematic theft of company property by employees.

Question 10

Criminal activity that typically involves groups that conspire to make illegal profits through connections to business and commerce is _______________________.

Question 11

White collar crime involves illegal activities of people and institutions whose acknowledged purpose is __________ profit through __________ business transactions.

A)criminal;black-market
B)black-market;violent
C)illegal;legitimate
D)illegal;illegitimate

Question 12

______________________ occurs when a corporate employee with direct knowledge of market-sensitive information uses it to buy and sell securities,giving the employee-trader an unfair advantage over the general public.

Question 13

Credit card fraud and income tax evasion are two types of _______________.

Question 14

In the 1930s,Sutherland first used the phrase "white-collar crime" to describe the criminal activities of:

A)the rich and powerful
B)the proletariat
C)the mafia
D)business people

Question 15

White-collar crime,which includes antitrust violations,price fixing,and false advertising,is known as _________________.

Question 16

Using illegal tactics to make profits in the marketplace is known as:

A)entrepreneurship
B)enterprise crime
C)venture enterprise
D)illegitimate enterprise

Question 17

________________ occurs when bribes are taken by employees who use their positions to grant favors and sell information to which their co-conspirators are not entitled.

Question 18

________________ is a white-collar enforcement strategy that encourages law-abiding behavior through both the threat of economic sanctions and the promise of rewards for conformity.

Question 19

According to the ____________ some business organizations promote white-collar criminality in the same way that lower-class culture encourages the development of juvenile gangs and street crime.

Question 20

In the 1930s,____________first used the phrase "white-collar crime" to describe the criminal activities of the rich and powerful.

Question 21

Some corporations have endangered the lives of their own workers by maintaining unsafe conditions in their plants and mines.What federal agency sets and controls standards of workers' safety?

A)Occupational Safety and Health Administration
B)Environmental Protection Agency
C)Internal Revenue Service
D)Securities and Exchange Commission

Question 22

Compliance strategies are often viewed as "slaps on the wrists." In their place,deterrence strategies have become the normative approach to controlling white-collar offenders.Why is the tide turning from compliance to deterrence?

A)due to the crushing caseloads of compliance agencies such as the Food and Drug Administration and the Environmental Protection Agency
B)due to the increased number of prisons structured to house non-violent offenders
C)due to public displeasure and a growing awareness of the damage caused by white-collar criminals
D)due to pressure aimed at political officials from lobbyists and labor unions

Question 23

In crimes of institutional exploitation,the victims are those who are forced to pay for services to which they have a clear right.Who or what is the victim in crimes of influence peddling?

A)the organization that is compromised by its employees
B)the customers of an organization who end up paying higher prices for its goods or services
C)entry-level employees of an organization who are compromised by higher-ranking employees
D)the stockholders of an organization compromised by its customers

Question 24

The control of restraint of trade violations,which involves a contract or conspiracy designed to stifle competition,create a monopoly,artificially maintain prices,or otherwise interfere with free market competition,has its legal basis in:

A)Emergency Planning and Community Right-to-Know Act
B)Sherman Antitrust Act
C)U.S.Internal Revenue Code
D)Foreign Corrupt Practices Act

Question 25

In many _________________,the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses,instead of engaging in any legitimate investment activity.

A)front-running schemes
B)pilferages
C)bank frauds
D)Ponzi schemes

Question 26

For the government to prove tax fraud,the minimum dollar amount that must be involved is:

A)$50
B)$100
C)$1000
D)there is no minimum dollar amount

Question 27

What white-collar crime involves a contract or conspiracy designed to stifle competition,create a monopoly,artificially maintain prices,or otherwise interfere with free market competition?

A)restraint of commerce
B)restraint of trade
C)restraint of business
D)restraint of competition

Question 28

An example of business-related bribery is the routine practice of paying radio stations or DJs to play songs.This is known as:

A)chiseling
B)bucketing
C)payola
D)pilferage

Question 29

__________________ occurs when the victim has a clear right to expect a service,and the offender threatens to withhold the service unless an additional payment or bribe is forthcoming.

A)Influence peddling
B)Exploitation
C)Chiseling
D)Front running

Question 30

Income tax evasion is a type of client fraud.Simply not paying taxes,not reporting income,or not paying taxes when due is a misdemeanor known as:

A)affirmative tax evasion
B)authoritative neglect
C)inert evasion
D)passive neglect

Question 31

When firms divide a region into territories and each firm agrees not to compete in the others' territories,it is illegal and is called:

A)group boycott
B)tying arrangement
C)division of markets
D)price fixing

Question 32

A cab drivers who routinely overcharges customers by charging them out-of-town rates though the ride had taken place within city limits is involved in what type of white-collar crime?

A)churning
B)chiseling
C)upcoding
D)bucketing

Question 33

When powerful institutions or their representatives willfully violate the laws that restrain these institutions from doing social harm or that require them to do social good,it is called corporate crime or:

A)organized crime
B)organizational crime
C)social crime
D)antitrust crime

Question 34

Vendors who bundle subprime loans into large pools and sell them as securities,a process known as securitization,are involved in a:

A)mortgage swindle
B)investment swindle
C)Ponzi scheme
D)foreclosure rescue scams

Question 35

Congress passed the Foreign Corrupt Practices Act that made it illegal to:

A)traffic women and children across country borders
B)bribe foreign officials
C)take kickbacks from foreigners
D)engage in price-fixing with foreign businesses

Question 36

One method of controlling white-collar crime is through the use of compliance strategies.Which of the following is not how compliance strategies work?

A)Compliance strategies aim for law conformity without the necessity of detecting,processing,or penalizing individual violators.
B)Compliance strategies do not require cooperation and self-policing from businesses.
C)Compliance strategies provide economic incentives for obeying the law.
D)Compliance strategies depend on the threat of economic sanctions or civil penalties to control corporate violators.

Question 37

One example of health care fraud involves billing for more expensive services or procedures than were actually provided or performed.This practice is termed ______________and requires "inflation" of the patient's diagnosis code to a more serious condition consistent with the false procedure code.

A)ladder coding
B)trade coding
C)upcoding
D)step coding

Question 38

When speaking of white-collar enforcement,which of the following is an inaccurate statement?

A)Enforcement is generally proactive.
B)Local agencies rarely have the funds necessary for efficient enforcement.
C)On the federal level,detection is primarily in the hands of administrative departments and agencies.
D)Many local prosecutors do not consider white-collar crimes particularly serious problems.

Question 39

Which of the following pieces of legislation combats fraud and abuse in publicly traded companies?

A)Sarbanes-Oxley (SOX)
B)Sherman Antitrust Act
C)Emergency Planning and Community Right-to-Know Act
D)Foreign Corrupt Practices Act

Question 40

Systematic theft of company property by employees is common and is called:

A)front running
B)bucketing
C)"steering"
D)pilferage

Question 41

Corporations can circumvent economic sanctions by:

A)declaring bankruptcy
B)moving their rule-violating activities overseas
C)merging with another corporation
D)devaluing their stock

Question 42

There are numerous problems presented by illegal wildlife exporting.Which of the following reasons is not true?

A)Poachers imperil endangered species and threaten them with extinction.
B)The importation of non-native species,which could harm the receiving habitats.
C)By evading government controls,poachers create the potential for introducing pests and diseases into formerly unaffected areas.
D)The global trade in illegal wildlife has declined due to waining economic incentive.

Question 43

Individual exploitation of institutional power involves forcing victims to pay for services to which they have a clear right.

Question 44

What theory can be used to explain the collapse of Enron?

A)rationalization view
B)low self-control
C)corporate culture theory
D)neutralization view

Question 45

_________ occurs when fishing vessels sign on to their home nation's rules but then choose to ignore their scope and boundary,or operate in a country's waters without permission or on the high seas without a flag.

A)Illegal dumping
B)Illegal fishing
C)Illegal shipping
D)Illegal exporting

Question 46

Which of the following statements does not reflect corporate culture theory?

A)Everyone else does it.
B)Business enterprises place excessive demands on employees.
C)Senior employees encourage new employees to believe that greed is good.
D)Companies maintain business climates tolerant of deviance.

Question 47

Affirmative tax evasion occurs when an individual fails to pay taxes or does not report all income.

Question 48

Blue-collar employees may be involved in systematic theft of company property,commonly called pilferage.

Question 49

_________________________ is defined as the intentional or negligent discharge of a toxic or contaminating substance into the biosystem that is known to have an adverse effect on the natural environment or life.

A)Criminal environmental pollution
B)Illegal dumping
C)Biocentric degradation
D)Environmental discharge

Question 50

One of the largest and fastest growing problems concerns disposing of obsolete high-tech electronics called:

A)E-waste
B)T-waste
C)Tech-dump
D)Green-trash

Question 51

Thirty years ago,the Knapp Commission found that police corruption in New York City was pervasive and widespread,ranging from officers taking small gratuities from local businesspeople to senior officers receiving payoffs in the thousands of dollars from gamblers and narcotics violators.

Question 52

The term "Ponzi scheme" comes from an individual who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s.

Question 53

Rationalizing their ________ is a common trait of white-collar criminals.

A)greed
B)skill
C)authority
D)power

Question 54

______________ crimes involve a wide range of actions and outcomes that harm the environment and that stem from decisions about what is produced,where it is produced,and how it is produced.

A)Green-collar
B)White-collar
C)Blue-collar
D)Yellow-collar

Question 55

Why do deterrence strategies against white-collar criminals work?

A)because white collar criminals are difficult to shame
B)because white collar crime is a rational act
C)because federal agencies are eager to throw criminal executives in prison
D)because white collar criminals conceive of themselves as more threatening than street criminals

Question 56

Illegal logging can have severe environmental and social impact.Which of the following impact statements is false?

A)Illegal logging exhausts forests,destroys wildlife and damages its habitats.
B)By reducing forest cover,illegal logging repairs the ability of land to absorb carbon emissions
C)Illegal logging creates unsustainable economic devastation in the poorest countries.
D)The substantial revenues from illegal logging fund national and regional conflict.

Question 57

The _____________________ view advocates viewing green crime beyond current laws to its impact on the damage occurring in third world nations that have insufficient regulatory laws and whose environmental laws are being manipulated by corporations.

A)legalistic
B)environmental justice
C)biocentric
D)corporate deterrence

Question 58

What causal explanation of white-collar crime states that the motives that produce white-collar crimes are the same as those that produce any other criminal behavior?

A)neutralization view
B)self-control view
C)corporate culture theory
D)rationalization view

Question 59

Both the United States and most sovereign nations have passed laws making it a crime to pollute of damage the environment.Which of the following is not an environmental law in the U.S.?

A)Clean Water Act
B)Endangered Species Act
C)Sarbanes-Oxley Act
D)Emergency Planning and Community Right-to-Know Act

Question 60

Bank fraud can encompass such diverse schemes as check kiting,check forgery,false statements on loan applications,sale of stolen checks,bank credit card fraud,unauthorized ATM use,auto title fraud,and illegal transactions with offshore banks.

Question 61

The Sherman Antitrust combats fraud and abuse in publicly traded companies.

Question 62

Identify and define the different approaches used to combat white-collar crime and provide two examples of each.

Question 63

Deterrence strategies should work and have worked in controlling white-collar crime because white-collar crime,by its nature,is a rational act.

Question 64

Define enterprise crime and discuss the two typologies.

Question 65

The type of white-collar crime that includes antitrust violations,price fixing,and false advertising is known as corporate crime.

Question 66

Discuss the two of the following causes of crime: rational choice view,the neutralization view,the cultural view,and the self-control view of white-collar crime causation.

Question 67

Identify and define three damaging forms of green collar crime.

Question 68

Many offenders feel free to engage in business crime because they can easily rationalize its effects.

Question 69

Define and distinguish between exploitation and influence peddling

Question 70

Identify and define the different perspectives of green collar crime.

Question 71

Identify four findings of the most recent national survey conducted by the National White Collar Crime Center with concern to white-collar crime.

Question 72

Define white-collar crime comparing Sutherland's original definition of white-collar crime with today's more updated definition.

Question 73

Illegal logging costs billions of dollars each year in governments revenue,impairing the ability of third world nations to provide needed social services.

Question 74

Hirschi and Gottfredson maintain that the motives that produce white-collar crime are not the same as those that produce any other criminal behaviors.

Question 75

Among the allegations of criminal wrongdoing investigated by the EPA is conspiracy and money laundering relating to environmental criminal activities.

Question 76

Illegal wildlife traders can be independent one person operations that sell a single item to complex multi-ton,commercial-sized consignments shipped all over the world.

Question 77

A division of markets involves a corporation requiring its customers who use one of its services to use other services it offers.

Question 78

Compare and contrast white-collar and green-collar crime.Define both concepts then link the two categories.

Question 79

Identify and discuss two U.S.federal agencies involved in white-collar crime enforcement.