Chapter 5 White Collar Crimes Flashcards
- Illegally restraining trade and promoting anti-competitive behavior
- Illegal practices that antitrust laws target include
- Predatory acts to achieve and maintain a business monopoly
- Price-fixing conspiracies
Antitrust
Ex. A federal judge ruled that NCAA’s rules prohibiting athletes from being paid for use of their names, images and likeness violate antitrust law because they “unreasonably restrain trade”
Antitrust
Ex. Agreements between competitors that establish boundaries for pricing such as setting a minimum or maximum price on goods.
Antitrust
Person or corporation hides or lies about assets in a bankruptcy proceeding
Bankruptcy Fraud
Ex. Debtor conceals assets to avoid having to forfeit them
Bankruptcy Fraud
Ex. Including false information on a bankruptcy form
Bankruptcy Fraud
Offer or taking of money, goods, or services to influence official actions or decisions
Bribery
Ex. A security officer in a company accepts a bribe from criminals to allow access to the building for theft
Bribery
Ex. An executive demands a bribe to promote a person who would otherwise not have been selected for promotion
Bribery
Copying items without authorization - money, designer clothing, trademarks and copyrights
Counterfeiting
Ex. Using counterfeit money to make purchases
Counterfeiting
Ex. Creating copies of Nike shoes without permission from the company
Counterfeiting
Unauthorized use of a credit card
Credit Card Fraud
Ex. Making purchases with a stolen credit card
Credit Card Fraud
Ex. Unauthorized use of a debit card to get cash
Credit Card Fraud
Ex. Credit card fraud that also involves using a computer or the internet (make unauthorized purchases online)
Computer and Internet Fraud
Ex. Using a computer to access unauthorized financial records of another
Computer and Internet Fraud
Ex. Unauthorized use of a company’s computer
Computer and Internet Fraud
Theft or misuse of valuable business information, like trade secrets
Economic Espionage
Ex. Person with proprietary access to information (like the recipe for Coca Cola) unlawfully sells the recipe to a 3rd party
Economic Espionage
Person in position of trust takes money or property for his/her own use
Embezzlement
Ex. Bank teller who pockets customer deposits
Embezzlement
Against federal (EPA) and state laws
Environmental Law Violations
Ex. Illegal hazardous waste dumping, ocean dumping by cruise ships, oil spills, illegal handling of hazardous substances (pesticides, asbestos, etc.)
Environmental Law Violations
- Applies to banks and financial institutions
- Bank fraud in providing loans, financial documents, mortgages
Financial Fraud
Governs contracts between the government and public agencies
Government Fraud
Ex. 3rd party bills the government agency for goods never delivered
Government Fraud
Over-billing and scams by hospitals, doctors, ambulance services, laboratories, pharmacies, extended care facilities
Healthcare Fraud
Ex. Billing for services not rendered
Healthcare Fraud
Ex. Incorrect reporting of diagnosis
Healthcare Fraud
Ex. False issuance of prescription drugs
Healthcare Fraud
Person trades a security while in possession of material, non public information
Insider Trading
Ex. The CEO of a company divulges important information about the acquisition of his company to a friend who owns a substantial shareholding in the company. The friend acts on the information and sells all his shares before the information is made public.
Insider Trading
Fraud in insurance issues
Insurance Fraud
Ex. Insurance company charges higher rates than allowed by state regulators
Insurance Fraud
Ex. Policyholders lie about condition of property to get lower rates
Insurance Fraud
Ex. Policyholders pad their claims to get more money
Insurance Fraud
Sending fraudulent materials through the U.S. Postal Service or using the U.S. Postal Service to communicate fraudulent activities
Mailing Fraud
Ex. Mailing documents that solicit sensitive information. For example, a victim receives a fake credit card application in the mail asking for their name, address, social security number and phone number. With this information, a criminal may use that person’s identity, or sell it to another
Mailing Fraud
Hiding the truth about the origins of money, especially illegal activities
Money Laundering
Ex. A fake company is set up to hide illegal drug activity, in the form of a pizza restaurant. The pizza restaurant appears to be legitimate, but is funded with drug money. Financial records of the restaurant are inflated to reflect money received from illegal drug activities as opposed to the actual pizza business
Money Laundering
Ex. Failure to file tax returns
Tax Evasion
Ex. Failure to report income
Tax Evasion
Ex. Overstatement of expenses
Tax Evasion
Weapon against organized crime (like the Mafia)
RICO Act
RICO Act criminalizes three activities:
(1) Using illegal income to acquire, establish, or operate an enterprise
(2) Acquiring an interest in such an enterprise
(3) Using an enterprise to collect a debt
Ex. Using the phone to solicit people to buy goods and services (when those goods/services do not actually exist), invest money in a fake investment fund, or donate to fake charitable causes
Telephone and Telemarketing Fraud
Use of telephone to defraud victims to send money
Telephone and Telemarketing Fraud
