Deck 12: Crimes of Power: White-Collar, Corporate, and Organized Crime

Question 1

Which of the following countries has significant difficulties with money laundering?

A) the United Kingdom
B) Singapore
C) the Bahamas
D) Germany

Answer 1

the Bahamas

Question 2

Crimes of opportunity for the purpose of financial gain involve breaking regulatory rules. These types of crimes typically do not result in personal victimization. What type of crime is this the definition of?

A) corporate
B) professional
C) occupational
D) enterprise

Answer 2

enterprise

Question 3

Which of the following is an example of a white-collar crime?

A) fraud
B) identify theft
C) drug trafficking
D) extortion

Answer 3

fraud

Question 4

Which of the following is an example of a cybercrime?

A) price-fixing
B) stalking
C) polluting
D) smuggling

Question 5

What type of crime are child pornography and stalking example of?

A) immoral
B) illicit
C) moral
D) transactional

Question 6

Which of the following is an example of a green-collar crime?

A) selling marijuana
B) loan sharking
C) dumping waste
D) market manipulation

Question 7

What is the main similarity between all categories of enterprise crime?

A) selling illegal goods to knowing customers
B) manipulating unknowing customers
C) intimidating customers into buying illegal goods
D) buying legal goods to sell to knowing customers

Question 8

The Corporate Crime Reporter constructed a list of the top 100 corporate criminals of the 1990s. Based on the findings of this article, how many categories of cooperate criminals was suggested?

A) 3
B) 9
C) 14
D) 19

Question 9

Why might a legitimate business enlist the help of organized criminals?

A) to help with advertising
B) to improve their image
C) to increase employee moral
D) to help end a strike

Question 10

What is the major distinction between white-collar crime and corporate crime?

A) The beneficiary of corporate crime is the organization itself, while the beneficiary of white-collar crime is an employee of the organization.
B) Corporate crime usually involves younger, less experienced workers, while white-collar crime is usually committed by older, seasoned workers.
C) They are both based on enterprise, but white-collar crime involves lay workers, while corporate crime usually involves government workers.
D) White-collar crime is usually non-political while corporate crime is motivated by political agendas.

Question 11

What is the major motivation for both organized crime and white-collar crime?

A) personal profit
B) personal issues
C) corporate obsession
D) corporate violence

Question 12

What type of crime is typically committed by individuals of high social status within a legitimate business with the sole purpose of personal profit?

A) blue-collar
B) organized
C) cyber
D) white-collar

Question 13

More than 200,000 occupational deaths occur each year. Which of the following annually kills and injures more people than all street crimes combined?

A) angry postal workers
B) corporate violence
C) accidental injury
D) fraudulent safety claims by companies

Question 14

Who first used the term "white-collar crime"?

A) Edwin Sutherland
B) Walter Reckless
C) Donald Cressey
D) Travis Hirschi

Question 15

How did Edwin Sutherland define white-collar crime?

A) a crime committed by a person of status in the course of their occupation
B) any crime committed during the course of legitimate employment
C) any crime committed by those who had been entrusted with money
D) illegal act or series of illegal acts committed by non-physical means and by concealment or guile to obtain money or property, or to avoid the payment of loss of money or property or to obtain business or personal advantage

Question 16

What did Edwin Sutherland believe was even more significant than the cost of white-collar crime?

A) damage to consumerism
B) damage to elitist groups
C) damage to social relations
D) damage to institutional communication

Question 17

Why are cases involving white-collar crime often dealt with in civil court rather than criminal court?

A) This type of crime is not considered severe enough for criminal court.
B) Injured parties want to see the offenders punished.
C) Due to backlogs in the criminal courts most cases are transferred to civil court.
D) Injured parties want to recover the losses they experienced from the crime.

Question 18

What changes have modern criminologists made to Sutherland's original definition of white-collar crime?

A) The definition has been narrowed to be more specific.
B) The definition has been broadened to include more examples.
C) The definition now includes all forms of enterprise crime.
D) The definition only includes individuals from the upper-class who engage in criminal activity.

Question 19

Edelhertz described white-collar crime as "an illegal act committed by nonphysical means to obtain money or property or to obtain business or personal advantage." Which statement is a criticism of this definition?

A) It fails to recognize the use of physical means to obtain the goal.
B) It does not specify what socio-economic class engages in this type of crime.
C) It fails to highlight the connection of this type of crime to business enterprise.
D) IT is far too specific and narrow in scope.

Question 20

What is an example of occupational crime?

A) employee theft
B) identity theft
C) gambling
D) bribery

Question 21

What groups are usually included in today's definition of white-collar crime?

A) only high-class elitist groups
B) large businesses and their employees
C) any individuals who use the marketplace for criminal activity
D) state-corporate crime only

Question 22

What kind of crime is loss due to employee theft from a business?

A) sensational
B) occupational
C) durational
D) opportunist

Question 23

According to the study by Statistics Canada, why are most businesses unlikely to report employee fraud?

A) They are too embarrassed to admit fraud occurred.
B) They feel the fraud was to minor to report.
C) They do not know how to properly report a crime of this nature.
D) They do not want to get the employee in trouble.

Question 24

Why are white-collar criminals unlikely to receive long prison sentences?

A) They do not fit the stereotype of a criminal.
B) They rarely get caught.
C) Their crimes are not considered serious by the courts.
D) They can afford expensive attorneys to defend them.

Question 25

What is the major commonality between white-collar crime and organized crime?

A) The primary purpose of the illegal acts is to financially profit.
B) Both groups engage in criminal acts to exact revenge against their enemies.
C) The primary purpose of the criminal acts to protest against social injustices.
D) Both groups engage in criminal acts to improve social relations with other institutions.

Question 26

What type of white-collar crime refers to people who come across an opportunity during the course of their work duties to make extra money by bending or breaking the rules?

A) corporate
B) government
C) occupational
D) organized/professional

Question 27

What is the most common white-collar crime problem in China?

A) corruption
B) black marketing
C) employee embezzlement from stores
D) factory owners who take products for their own use

Question 28

What type of white-collar crime involves legitimate organizations engaging in illegal acts to promote their business in a highly competitive environment?

A) corporate
B) government
C) occupation
D) organized/professional

Question 29

What type of white-collar crime involves people or groups of people whose primary source of income is illegal?

A) corporate
B) government
C) occupational
D) organized/professional

Question 30

According to Clinard and Quinney, what are the two categories of white-collar crime?

A) dominant and passive
B) occupational and corporate
C) ad-hoc and collateral
D) organized and professional

Question 31

Which category of white-collar crime is committed episodically for personal profit, such as welfare fraud or cheating on income taxes?

A) ad-hoc violations
B) abuses of trust
C) collateral business crime
D) con games

Question 32

Which category of white-collar crime includes embezzlement, bribery, or taking kickbacks?

A) ad-hoc violations
B) abuses of trust
C) collateral business crime
D) con games

Question 33

Which category of white-collar crime is committed by organizations to further their business interests, such as antitrust violations or environmental crimes?

A) ad-hoc violations
B) abuses of trust
C) collateral business crime
D) con games

Question 34

Which category of white-collar crime is committed solely for the purpose of cheating clients?

A) ad-hoc violations
B) abuses of trust
C) collateral business crime
D) con games

Question 35

According to Edelhertz, white-collar crimes can be grouped into four distinct categories. How would he classify a "1-800" telephone business designed to sell bogus securities to unwary customers?

A) abuses of trust
B) collateral business crimes
C) con games
D) ad-hoc violations

Question 36

How would Edelhertz classify a contractor who insists customers pay in cash for services rendered so that he will not have to declare the income?

A) ad-hoc violations
B) abuses of trust
C) collateral business crime
D) con games

Question 37

Who would be considered a direct victim of price-fixing?

A) consumers
B) employees
C) competitors
D) the government

Question 38

Which category of white-collar crime involves stealing through deception by individuals who have no continuing institutional or business position and whose entire purpose is to obtain money illegally?

A) swindle
B) chiselling
C) exploitation
D) bribery

Question 39

A door-to-door salesman dressed in religious garb sells Bibles that have been "blessed by the Pope." It turns out they are cheap copies he bought at the local book store. What white-collar crime is he committing?

A) swindle
B) chiselling
C) exploitation
D) bribery

Question 40

Investigators believe that officials at the International Bank of Credit and Commerce made billions of dollars in loans to confederates who had no intention of repayment. What white-collar crime did they commit?

A) swindle
B) chiselling
C) exploitation
D) bribery

Question 41

What would a white-collar swindler most likely be charged with?

A) theft
B) fraud
C) robbery
D) trafficking

Question 42

What type of white-collar crime was Jim Bakker imprisoned for committing?

A) bribery
B) chiselling
C) religious swindle
D) embezzlement

Question 43

What is a main characteristic of chiselling?

A) lying to make quick profits
B) charging clients for necessary services
C) extorting clients to increase profits
D) obtaining merchandise through illegal means

Question 44

Managers in a national auto repair franchise regularly pad bills by charging customers for services that are not needed or were never actually done. What type of white-collar crime is this an example of?

A) swindle
B) chiselling
C) exploitation
D) bribery

Question 45

What is it called when a supermarket consistently uses scales that are weighted in order to cheat customers?

A) abuses of trust
B) chiselling
C) con game
D) ad-hoc violation

Question 46

A pharmacist regularly substitutes lower-cost generic drugs for high-priced brand names, yet charges customers for the more expensive medications. He reasons that no one is hurt because all the ingredients are identical. What white-collar crime is this an example of?

A) swindle
B) professional chiselling
C) exploitation
D) generic fraud

Question 47

What practice is a stock broker engaging in when she, at her own discretion, makes repeated, excessive, and unnecessary trades for a consumer?

A) mixing
B) front running
C) channelling
D) churning

Question 48

What is it called when a stockbroker buys stock in a company based on privileged information from an employee within that company?

A) professional chiselling
B) con game
C) financial trading
D) insider trading

Question 49

What organization oversees the activities of the Toronto Stock Exchange?

A) Fair Dealing Trade Commission
B) Corporate Crime Enforcement Branch
C) White-Collar Crime Enforcement Branch
D) Ontario Securities Commission

Question 50

What is insider trading a form of?

A) embezzlement
B) security fraud
C) kickbacks
D) stings

Question 51

What were Ivan Boesky and Michael Milken said to be experts in?

A) churning
B) arbitrage
C) exploitation
D) arbitration

Question 52

What is the term for the practice of buying large amounts of stock in companies that are rumoured to be on the brink of a corporate takeover?

A) bribery
B) manipulation
C) arbitrage
D) peddling

Question 53

Which of the following is a major type of Internet securities fraud?

A) influence peddling
B) market manipulation
C) occupational exploitation
D) collateral chiselling

Question 54

What is called when an individual posts false information online concerning a specific stock with the intent to artificially inflate or deflate the price of said stock?

A) fraudulent security offerings
B) fraudulent peddling
C) corporate marketing
D) market manipulation

Question 55

What is a "pump and dump" scheme an example of?

A) corporate swindle
B) market exploitation
C) fraudulent marketing
D) internet corruption

Question 56

What is it called when a person uses their position of power to take advantage of an individual for personal gain?

A) exploitation
B) arbitrage
C) bucketing
D) swindling

Question 57

A fire inspector demands a payoff from a restaurant owner in order to secure a safety inspection. Though the restaurant is up to code, the inspector says he "will make trouble" unless he gets a payment. What crime category is the inspector's behaviour an example of?

A) swindling
B) chiselling
C) exploitation
D) bribery

Question 58

Why was Conservative Senator Michael Cogger given a $3,000 fine in 1998?

A) He reformed the political machines that used their positions to buy and sell favours.
B) He used his political office for economic gain.
C) He gave the Kennedys their start in politics.
D) He ran the largest scheme to exploit purchasing agents in major industries.

Question 59

What is one major difference that distinguishes influence peddling from exploitation of an institutional position?

A) Influence peddling does not involve politicians, whereas exploitation of an institutional position does.
B) Institutional exploitation can be done only with the knowledge of many people, while influence peddling is more discreet.
C) Influence peddling does not happen in the government, while institutional exploitation does.
D) Exploitation forces victims to pay for services they deserve, while influence peddling involves selling information to which conspirators are not entitled.

Question 60

What is the name of the desolate South Pacific Island where the Russian mafia, tax dodgers, and other gangsters hid their money?

A) The Republic of Nauru
B) St. Kitts
C) Carabay Island
D) Baha Bhanda island

Question 61

Who was accused of accepting payments from a private company in return for procuring a lucrative contract with the federal government to buy passenger airplanes?

A) Allan Rock
B) Brian Mulroney
C) Jean Chrétien
D) Michael Cogger

Question 62

What was the Knapp Commission investigating?

A) corruption among police officers
B) corruption among government officials
C) corruption among provincial court judges
D) corruption among correctional service workers

Question 63

What allegations against the Toronto police were investigated by the RCMP in the 2001?

A) conspiracy to commit fraud
B) corruption and theft of money from the squad's "fink fund"
C) violating the police officer code of secrecy
D) extortion and threats against prisoners

Question 64

What is necessary in order to eradicate police corruption?

A) changing police operations to include better oversight procedures
B) increasing the number of partners police have in order to prevent a solo police officer from thinking no one is looking
C) decriminalizing police theft and allowing the confiscation of drugs
D) provide rewards for tips, similar to Crime Stoppers

Question 65

Who is the victim of embezzlement and employee fraud?

A) customers
B) employees
C) the employing company
D) the government

Question 66

What is the systematic theft of company or corporate property?

A) pilferage
B) exploitation
C) chiselling
D) management fraud

Question 67

What is it called when a cashier rings up lower prices on single-item purchases and pockets the difference?

A) pilferage
B) exploitation
C) chiselling
D) management fraud

Question 68

What is it called when a truck driver makes fictitious purchases of fuel and splits the gains with the truck stop?

A) management fraud
B) pilferage
C) a syphon exchange
D) a monopoly

Question 69

In one study, approximately what percentage of employees surveyed reported involvement with pilferage?

A) 2
B) 10
C) 35
D) 50

Question 70

What is the conversion of company assets for personal benefit or for the concealment of unacceptable performance from stockholders an example of?

A) pilferage
B) exploitation
C) chiselling
D) management fraud

Question 71

According to a recent survey of 300 companies by a national accounting firm, what percentage of these companies reported having fallen prey to employee fraud in the last 12 months?

A) 35
B) 75
C) 90
D) 100

Question 72

In a 2007 study of fraud against Canadian businesses, who did retail businesses report most of the offenders as being?

A) partners
B) outside associates
C) employees
D) non-employees

Question 73

What did the Bre-X scandal in 1996 involve?

A) a company selling shares that didn't exist, from an abandoned warehouse in Montana
B) a gold mining company that "spruced up" its samples to make them appear like purer gold in order to attract investors
C) a company that concealed its unacceptable performance to prevent stockholders from rioting and suing management
D) a company fraudulently increasing personal holdings of company stock

Question 74

Which fraud cost $500 billion, involved 1,700 banks that collapsed, and found criminal activity was a central factor in 70-80 percent of the cases?

A) the savings and loan scandal
B) the health care fraud
C) the Bre-X scandal
D) La Costa Nostra scandal

Question 75

According to the commissioner of the California Department of Savings and Loan, what is the best way to rob a bank?

A) commit computer fraud
B) engage in an ongoing criminal enterprise with organized crime
C) write false cheques
D) be an owner

Question 76

What does the term "land flipping" refer to?

A) tossing coins to see who will purchase a desired tract of land
B) having the bank sell foreclosed land to a bank officer or his straw man
C) driving up the price of land artificially before obtaining a loan for it at the artificially inflated price
D) trading or flipping useless parcels of land back and forth between loan officers before finally foreclosing on them

Question 77

What term describes the practice of bank insiders lending each other money, failing to pay it back, and then trading the loans back and forth to avoid detection?

A) flipping
B) ping-ponging
C) bound lending
D) reciprocal lending

Question 78

What was the savings and loan crisis largely the result of?

A) inept bank managers
B) unregulated finance capitalism
C) inattention by the police even when they had been forewarned
D) an inadvertent loss of funds and bankruptcy

Question 79

Why are financial institutions a good target for fraud?

A) Bank managers are not trained to detect indicators of fraud.
B) No product is produced or sold so it is more difficult to detect.
C) The police have no jurisdiction over banks.
D) Bank tellers rarely report suspicious activity.

Question 80

Which of the following is an example of healthcare fraud?

A) referring a patient to a specialist for necessary follow-up tests
B) writing a patient a prescription for antibiotics to treat an illness
C) instructing a patient to fill a prescription at a specific pharmacy because they know the owner
D) billing for the services that the patient received during the office visit