Deck 13: Enterprise Crime: White-Collar, Green-Collar, and Transnational Organized Crime

Question 1

The ____________________of the U.S. Constitution gives the federal government the authority to regulate white-collar crime.

Answer 1

Commerce Clause

Question 2

The FBI estimates that health care fraud now costs the nation ____________ per year.

Answer 2

$80 billion

Question 3

Each year about ______ workers are injured on the job.

Answer 3

4 million

Question 4

Violation of the _____________________ carries maximum penalties of a $100-million criminal fine for corporations, and a $1-million criminal fine and 10 years in prison for individuals.

Question 5

__________________occurs when contractors provide the government or other corporations with incomplete or misleading information on how much it will actually cost to fulfill the contracts on which they are bidding.

Question 6

__________________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 7

The Ponzi scheme is named for _________________, a famous white-collar criminal who duped investors in a stamp-collecting scheme.

Question 8

Price fixing, restraint of trade, and hazardous waste dumping are types of _____ crime.

Question 9

Interest in corporate crime first emerged in the early 1900s, when a group of writers known as _____________________ targeted the monopolistic business practices of John D. Rockefeller and other corporate business leaders

Question 10

Several years ago, whistleblowers revealed that almost 70 percent of ground meat sold in grocery stores contained finely textured beef, better termed _______, made mostly from waste trimmings.

Question 11

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

Question 12

__________________ refers to a substance made by gathering waste trimmings, cooking them so the fat separates easily from the muscle, and using a centrifuge to complete the separation.

Question 13

A white-collar ___________ involves the criminal activity of people who use a business proposition to trick others out of their money.

Question 14

An auto repair shop charging customers for bogus repairs is _________.

Question 15

A ________ mortgage is a home loan given to borrowers who, because of their income, would not ordinarily qualify for bank loans.

Question 16

An investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors is referred to as a ______________________.

Question 17

When a businessperson uses an institutional position to grant favors and sell information to which their co-conspirators are not entitled, this is referred to as _______________________.

Question 18

_________________ occurs when an organization that either (a) advances credit, (b) provides loans, (c) supports people financially, or (d) reimburses them for services provided to a third party is the target of criminal activity.

Question 19

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

Question 20

In the 1930s, Sutherland first used the phrase __________________ to describe the criminal activities of the rich and powerful.

Question 21

According to the _____________ perspective, environmental crimes are violations of existing criminal laws designed to protect people and the environment

Question 22

_______________ is the term used to describe a criminal enterprise that involves the planning and execution of the distribution of illicit materials or services by groups and/or networks of individuals working in more than one country.

Question 23

According to the _________________ approach to green crimes, environmental harm is viewed as any human activity that disrupts a biosystem, destroying plant and animal life.

Question 24

Harvesting, processing, and transporting timber or wood products in violation of existing laws and treaties is termed ___________________.

Question 25

Federal legislation that enables prosecutors to bring additional criminal or civil charges against people whose multiple criminal acts constitute a conspiracy is referred to as _______.

Question 26

Acts involving illegal environmental harm that violate environmental laws and regulations are termed _______.

Question 27

Disposal into rivers or lakes of excess fertilizers, herbicides, and insecticides from agricultural land and residential areas is an example of _____________.

Question 28

The Mafia originated in ___________ around 1860, and started as a criminal gang employed by wealthy landowners to function as agents of social and land control.

Question 29

The acquisition of people by improper means such as force, fraud, or deception, with the aim of exploiting them in such illegal activities as prostitution, forced labor, or slavery, is referred to as____________.

Question 30

White-collar offenders who claim that everyone commits crime reflect the _________ or _________ view of causation.

Question 31

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

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

Question 32

In 2015, an estimated 42 million tons of ______ was disposed of around the world.

Question 33

_________ 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 34

According to the _______ view, some organizations promote criminal enterprise in the same way that lower-class culture encourages the development of juvenile gangs and street crime.

Question 35

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 36

The U.S. Congress has passed numerous laws that regulate and restrict wildlife imports and exports, including the __________________ Act of 1973 and the Lacey Act.

Question 37

Efforts to control transnational organized crime are typically in the hands of agencies located within the ______ level of government.

Question 38

The ____________________ establishes and maintains goals and standards for U.S. water quality and purity.

Question 39

_________ strategies involve detecting criminal violations, determining who is responsible, and penalizing the offenders to help prevent future violations.

Question 40

The major enforcement arm against environmental crimes is the ___________________.

Question 41

Penalties for bank fraud include a maximum fine of $1 million and up to how much time in prison?

A) 10 years
B) 15 years
C) 30 years
D) Life

Question 42

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 43

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 44

If a store advertises sweaters at a bargain price but does not actually have any sweaters for sale for that price, they are guilty of which offense?

A) insider trading
B) restraint of trade
C) churning
D) false advertising

Question 45

A white-collar crime in which a stockbroker makes repeated trades with a client's account in order to fraudulently increase his or her commissions is known as:

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

Question 46

Income-tax evasion is a type of client fraud. Not paying taxes is an example of:

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

Question 47

Who is the victim in crimes of influence peddling?

A) the organization
B) the organization's customers
C) entry-level employees
D) the organization's stockholders

Question 48

In 1977, Congress passed the Foreign Corrupt Practices Act, which 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 49

Which action would be considered health care fraud?

A) referring patients to other physicians in the same office
B) directing patients to particular pharmacies
C) referring patients to a clinic in which the physician has a financial interest
D) all of these are examples of health care fraud

Question 50

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

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

Question 51

A corporation that requires its customers to use one of its other services is practicing a:

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

Question 52

Which Act established health care fraud as an independent federal criminal offense that carries a penalty of up to 10 years in prison?

A) Health Insurance Scheme Punishment Act
B) Health Insurance Portability and Accountability Act
C) Health Insurance Protection Act
D) Health Insurance Act

Question 53

What is the minimum dollar amount that must be involved for the government to prove tax fraud?

A) $50
B) $100
C) $1,000
D) There is no minimum dollar amount

Question 54

Churning, front running, and bucketing are types of:

A) influence peddling.
B) blue-collar fraud.
C) bank fraud.
D) securities fraud.

Question 55

Tom DeLay was forced out of politics because of his involvement in a bribery scandal involving Washington, D.C., lobbyist Jack Abramoff. Representative Randy "Duke" Cunningham resigned from Congress after confessing to accepting $2.4 million in bribes. Former Illinois Governor George Ryan was convicted of steering government contracts to people willing to give him kickbacks and bribes. These three men committed the white-collar crime of:

A) restraint of trade.
B) influence peddling.
C) professional chiseling.
D) embezzlement.

Question 56

When powerful institutions willfully violate the laws that restrain them 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 57

The factor that distinguishes corporate crime from individual-level white-collar crime is that with corporate crime, the perpetrator is a(n) _______ and not a(n) _________.

A) corporate officer, stockholder
B) legal fiction, individual
C) partnership, group
D) business monopoly, board of control

Question 58

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

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

Question 59

A white-collar ______ involves the criminal activity of people who use a business proposition to trick others out of their money.

A) fraud
B) embezzlement
C) swindle
D) transition

Question 60

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) businesspeople.

Question 61

What causal explanation of white-collar crime states that some organizations promote criminal enterprise in the same way that lower-class culture encourages the development of juvenile gangs and street crime?

A) neutralization view
B) self-control view
C) cultural view
D) rationalization view

Question 62

One method of controlling white-collar crime is through the use of compliance strategies. How do compliance strategies work?

A) Compliance strategies aim for law conformity without the necessity of detecting, processing, or penalizing individual violators.
B) Compliance strategies require cooperation and self-policing from businesses.
C) Compliance strategies provide economic incentives for obeying the law.
D) Compliance strategies do all of the above.

Question 63

Which scheme involves private investors taking only  wealthy clients?

A) investment embezzlement
B) advanced-fee scheme
C) prime bank investment fraud
D) hedge-fund fraud

Question 64

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 65

Crips, Bloods, and the MS-13 are now referred to as:

A) transnational mega-gangs.
B) Eurocentric gangs.
C) S.A.B.I.T. gangs.
D) the "New Mafia."

Question 66

The United States is estimated to purchase approximately _____ percent of all illegal wildlife and wildlife products on the global market.

A) 5
B) 10
C) 20
D) 30

Question 67

Several Mexican drug cartels have formed known alliance known as the:

A) Federation.
B) Separacion.
C) Almacenamiento.
D) Alamo.

Question 68

Which Act requires companies to disclose information about toxic chemicals they release into the air and water?

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

Question 69

Which Act establishes standards for U.S. water quality and purity?

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

Question 70

In 1970, Congress passed the Organized Crime Control Act. Title IX of the act, probably its most effective measure, is the:

A) Racketeer Influenced and Corrupt Organizations (RICO) Act.
B) Organized Racketeering Crime Act (ORCA).
C) Congressional Organized Crime Act.
D) Whitey Ford Criminal Enterprise Act.

Question 71

Which of the following involves systematic theft of company property by employees?

A) pilferage
B) payola
C) labor theft
D) labor fraud

Question 72

Failing to pay taxes on time and report income are examples of which type of tax fraud?

A) passive neglect
B) open neglect
C) unintentional neglect
D) careless neglect

Question 73

Which scheme involves telling victims that certain financial instruments have been issued by legitimate organizations, and that those investments are high-payoff and low-risk?

A) investment embezzlement
B) advanced-fee scheme
C) prime bank investment fraud
D) hedge fund fraud

Question 74

Most businesses in Russia, whether legal, quasilegal, or illegal, must operate with the protection of a:

A) krysha .
B) La Cosa Nostra .
C) triad.
D) vor v zakoyne .

Question 75

Which of the following is the routine practice of paying radio stations to play particular songs?

A) play sharing
B) payola
C) music fraud
D) playing fraud

Question 76

____________________is a form of organized crime operating across national borders.

A) Transnational organized crime
B) International organized crime
C) Human Green Trafficking
D) The transnational Environmental Crime Syndicate

Question 77

Why do deterrence strategies typically work when combating white-collar crime?

A) White-collar criminals are difficult to shame.
B) White-collar crime is a rational act.
C) Federal agencies are eager to throw criminal executives in prison.
D) White-collar criminals conceive of themselves as being more threatening than street criminals.

Question 78

The Oil Pollution Act was enacted after the:

A) BP oil leak.
B) Exxon Valdez oil spill.
C) East Coast pollution scare.
D) Compass oil spill.

Question 79

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 80

Compliance strategies are often viewed as "slaps on the wrist." 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) because of the crushing caseloads of compliance agencies such as the Food and Drug Administration and the Environmental Protection Agency
B) because of the increased number of prisons structured to house nonviolent offenders
C) because of public displeasure and a growing awareness of the damage caused by white-collar criminals
D) because of pressure aimed at political officials from lobbyists and labor unions