Chapter 7: Business Crimes Flashcards
General Rule of Laws
An individual can engage in any type of conduct they wish unless there is a law prohibiting those actions; Decided by legislature
Burglary
Entry into any building or occupied structure with the intent to commit a crime; Don’t have to commit the actual crime, just entering makes you guilty
Is it considered burglary if a thief breaks into a house to steal a necklace but the necklace is not there
Yes because he has the intent to commit the crime
Is it burglary if a criminal attacks someone in an abandoned house?
No because it is abandoned
Is it burglary if a person enters a store and hides in the bathroom until the store closes and then loots the store?
Yes, because at the time he committed the crime, he should not have been inside
Is it burglary if a person steals something out of a mobile home?
Yes because that is someone’s home; Event a tent could be burglary
What is the penalty for burglary?
Up to 20 years
Has a person committed a crime if he purposely comes upon the land of another but has no intent to commit a crime?
Not burglary, but trespassing
Criminal Trespass
Occurs when a person enters the land of another without permission or with no legal right to be there
What is the penalty for criminal trespassing?
Up to 2 years and fine of $500-$5,000
Larceny (Theft)
Taking and carrying away the property of another without consent and with the intent of depriving the other of the goods permanently
Examples of Larceny/Theft
Rigging the lottery; Withdrawing more than asked from a friend’s bank account
Have you committed a crime if you spend the money in your bank account that was accidentally put there?
Yes because you knew the money wasn’t yours
Joey Coyle Larceny Case
Found innocent/temporary insanity after spending 1.2 million that fell out of a car
True or False: Theft refers to possession, not ownership
True
Is it theft if a mechanic puts new brakes on your car and you take it off the lot without paying for repairs?
Yes, because the mechanic keeps your car (lien) until they are paid for it, even if you own it
Is it theft if one group of thieves steals a gas truck from another group of thieves?
All guilty of theft; Does not matter who owns it
Is it considered theft if your neighbor leaves his keys in the ignition and you take it for a joy-ride?
No, you did not intend to deprive the owner of the goods permanently; Rather, its is joy-riding an unauthorized vehicle
Retail Theft/Shoplifting Penalty
Penalty depends on value of what is taken; Higher price = larger penalty
Embezzlement
Occurs when someone takes property entrusted to him or her with the intent to deprive the owner of the property
What is the difference between an embezzler and thief?
An embezzler is lawfully entrusted with the property as opposed to a thief who improperly obtains possession of the asset
Robbery
Theft plus force or threat of forces; Same thing as theft/larceny, but with force
What is the definition of robbery in PA?
A person is guilty of robbery, if, in the course of committing a theft, he physically takes or removes property from the person of another by force no matter how slight
What is the penalty for robbery?
7-20 years
Electronic Fencling
Crime occurs when one uses the Internet to sell property gained through unlawful means; Ex: Stealing a necklace and selling it online
Identity Theft
It is a crime to use the personal identifying information of another; Using the victim’s personal information to obtain a financial advantage such as the misappropriation of a credit card or money from a bank account
What are the most common forms of ID theft?
Credit card fraud, Communication services, Bank fraud, Fraudulent loan
Identity Theft is now a crime under:
The Identity Theft and Assumption Deterrence Act
Is there anything wrong with buying an expensive watch of the street corner
Yes
Receiving Stolen Property
Unlawful to buy/receive stolen goods knowing that goods are stolen
Conspiracy
Agreement between two or more people to commit a crime or to do a lawful act in an unlawful manner
What does the charge of conspiracy allow government to do?
Allows the government to file charges against anyone who has participated in the planning or commission of a crime and to hold each liable for the actions of the other
How can you do a lawful act in an unlawful manner?
2 movie theaters merging to have monopoly and charge high ticket prices; Anti-trust violation
What is the main requirement for conspiracy?
Must have 2 people agree with intent to go through with deal
What happens if an undercover cop makes a deal with a drug dealer to go through with a big deal?
Dealer can’t be charged with conspiracy because the cop never had the intention with going through with the deal; If it was 2 dealers & cop, could charge
Can a husband and wife conspire to commit a crime?
Yes, they are considered two different people
Can a person with multiple personalities commit conspiracy?
No, that is one person
What qualifies as an agreement for conspiracy?
Need an overt act; Just agreeing is not enough, actually have to do something that puts plan in action
Case: Two men agree to rob bank
Not conspiracy because no overt act
Case: Two men agree to rob bank and one man draw up blue print
Conspiracy because men furthered the act
Is it a defense that the person to the conspiracy was too drunk to have formed the intent to conspire to commit the crime?
Up to the jury to decide
What is the penalty for conspiracy?
Same as the crime planned to be committed; Robbing a bank: 20 years for robbery, 20 for conspiracy
What happens if you unknowingly give a ride to a guy who shoots up a Wawa?
Not conspiracy because the man had no idea; Will get charged, but must to explain to jury what happened
White Collar Crime
Illegal actions committed in a business setting; Included computer fraud, health care fraud, securities fraud, insider trading, embezzlement, tax evasion
Payola/Kickback
Slang term for bribery
Bribery
Act of offering something of value to another with the intent of influencing that person’s opinion or to have something done in return by that entity
Examples of Bribery
Giving money to jury to influence vote, Paying cop to overlook crime
Money Laundering
Combining illegal and legal businesses so no one can tell where the money is coming from
Where did the term Money Laundering originate from?
Al Capone owned laundromats to dispose of money obtained by illegal means
Money Laundering Control Act
Purpose is to go after the third party who claims ownership to money obtained through illegal means; Go after people accepting the cash; Person charged does not commit crime, rather they accept the money
Insider Trading
When a person buys or sells stock while in possession of information about the stock that has not been made public
Example of Insider Trading
President of firm knows FDA is not going to approve cancer drug so he immediately sells stock before it is made public (Martha Stewart)
Cooking the Books
Occurs whenever a person makes a false statement of a material face or overvalues property for purposes of inducing a bank to take action; Making false statement to bank; Committed against Federal Government
Example of Cooking the Books
Tyler’s need to increase revenue so it builds Microbrewery; Fudges financials to get loan
Bankruptcy Fraud
When a person devises a scheme to defraud by: filing a false bankruptcy statement, filing false document in proceeding or making a fraudulent representation representation or claim in bankruptcy case
Rico
Law designed to eliminate the influence of organized crime; Prohibits anyone from investing, acquiring, or participating in the affairs of business through a pattern of racketeering activities
What is Rico now used for?
To prosecute corruption in organized labor, gangs, and corrupt political officials
What are the requirements for Rico?
Requires the defendant engage in 2+ instances of racketeering and criminal must have directly invested/maintained/participated in criminal enterprise affecting interstate or foreign commerce
What 3 things must you show to prove Mail/Wire fraud?
There is a scheme to defraud, which involves the use of the mail or wire communication, for the purpose of executing the scheme
Examples of Mail/Wire Fraud
Getting emails about winning a million dollars, Email from friend asking you to wire them money
Can a business be held criminally liable for the actions of an employee?
Even though a corporation is a separate entity from its officer and employees, it may still be held liable for the criminal actions of its employees committed within the scope of employment
An employee is acting within the scope of employment if:
The employee has the authority to do the particular corporate business which was conducted criminally; Employee was acting in part in furtherance of business; Corporate management has authorized or tolerate criminal acts
Example of Criminal Liability for Business
Employee serving alcohol to minor
What does the 5th amendment guarantee?
That a person cannot be compelled to testify against himself; Protects people from self-incrimination
Voluntary 5th Amendment
If a person decides to talk to police, it must be voluntarily made
Where did the Miranda Warnings originate?
Mr. Miranda arrested for crime and challenged his confession in court saying he should have been given rights
When do you have to be give the warnings?
When there is custodial interrogation
Custody
Means that the person “feels significantly deprived of freedom to leave”
Police questioned man in back of police car as they rode around
Court ruled that he should have been given Miranda Warnings because he was in custody
Police surround child in bed who was suspected of murder
Court ruled that he should have been given Miranda Warnings because his room was considered custody
Interrogation
Asking questions about crime
What happens if a man walks up to police and confesses crime
Not granted Miranda Warnings because person voluntarily confessed
Penalty for Miranda Warnings
If not given warnings, statement will not be admissible in court
Can a man refuse to take shirt off and show tattoo for an in-court incrimination?
No, because the warnings only apply to spoken words; If court wants handwriting sample, fingerprint, or picture, person must do it
Fourth Amendment
Prohibits unlawful searches and seizures; Warrants must be issued upon probable cause
Search Warrant
Look for reasonable expectation of privacy; Specific to location and item; Police generally need warrant to search person and property
Drug Search Example
Drugs can be found anywhere, so the cops can search anywhere in the house
Is it lawful if a cop looks into backyard, sees weed, and arrests homeowner?
Lawful search because cop could see drugs in public view
Is it lawful for a cop to arrest homeowner for weed after peering over fence?
Unlawful search because homeowner had reasonable expectation of privacy; Police officer does have probable cause to go get warrant
Is it lawful for a cop to climb up fire escape and arrest person for having weed plant on windowsill?
Lawful search because fire escape is open to public
Is it lawful to search trash for untaxed cigarettes?
Lawful because once you put your trash outside, you have relinquished control
What happens if cops seize drugs when searching for TV with warrant in kitchen? In cookie jar? In back of TV?
Lawful because it is reasonable to look for TV in kitchen; Unlawful because no TV would be in cookie jar; Lawful because must look inside TV to see if stolen
General Rule of Searches
As long as police look where they can reasonably expect to find search item, anything they find is legal
