Exam 3: I-II

Question 1

What is the difference between organized crime and syndicate crime?

Answer 1

organized crime- crime in which there’s more than one offender and the offenders are and intend to remain associated with one another for the purpose of committing crimes
syndicate crime- crime committed for financial gain by loose, but firmly established groups of people

Question 2

List the characteristics of organized crime.

Answer 2

1) Not ideological
2) organized hierarchy
3) limited membership
4) violence
5) division of labor
6) monopolistic
7) governed by rules & regulations
8) self-perpetuating
9) profits made illegally
10) provide illegal goods/services desired by the public
11) corruption
12) code of secrecy
13) long-term planning

Question 3

How is organized crime different from terrorist groups?

Answer 3

organized crime: 
1) $ motivations 
2) extensive network (legitimate)
3) violence (not public) 
      targeted/retaliating 
4) assist communities (resources) 

terrorist groups:

1) political & ideological motivations
2) no need to network
3) Public Actions/Violence (random)

Question 4

How is organized crime similar to terrorists groups?

Answer 4

1) Specialization of positions
2) violence
3) use of fear to accomplish goals
4) justifications
5) leader (hierarchical authority)
6) mission/codes of conduct

Question 5

What is enterprise crime?

Answer 5

Enterprise crime- result from the relationships between organized crime figures and legitimate business ppl or political officials

Question 6

What did organized crime groups look like before the 1920’s? Who was involved? What sorts of crimes did they commit?

Answer 6

Small local street gangs
Voting fraud/intimidation of opponents
After prohibition organized crime groups exploded

Question 7

_____ caused the Mafia to loos a lot of power

Answer 7

RICO

Question 8

Who are the new gangs in the US?

Answer 8

Drugs
Motorcycle Gangs
MS13
Blood and Crips

Question 9

Organized crime groups are very _________-_________

Answer 9

business-oriented

Question 10

What is racketeering?

Answer 10

operating an illegal business or scheme in order to make a profit, perpetuated by a structured group

Question 11

In term of organized crime, legitimated OC businesses help provide?

Answer 11

1) money-laundering
2) covey shelter for employees
3) Make $ legitimately

Question 12

What are the three causes of organized crime?

Answer 12

1) opportunity factors
2) the criminal environment
3) the skills/access required to carry out the criminal activity

Question 13

Increasing oc infiltration of legitimate business is beneficial for oc groups because?

Answer 13

1) money laundering
2) tax shelter
3) legit $
4) they can retire respectably
5) make them look legitimate

Question 14

According to Walter’s article “environmental crime and organized crime” what are 5 key areas?

Answer 14

1) Illegal dumping of waste and hazardous substances
2) Illegal trade in endangered species and wildlife
3) Illegal logging and trade in protected woodlands
4) illegal, unregulated, and unreported fishing
5) illegal trade in ozone-depleting substances

Question 15

What is self-regulations?

Answer 15

“private policing directed at one’s own company or professional peers.”

Question 16

What are the 3 parts of self-regulation?

Answer 16

1) components
2) operations
3) top management

Question 17

Why is self regulation good?

Answer 17

1) Bc companies can hide things from LE.
2) Bc law enforcement can’t be everywhere
3) prevents crime against your company
4) moral obligation to be good public CEO’s
5) pre-empt stricter gov’t controls
6) maintain a good reputation.

Question 18

Why is self regulation bad?

Answer 18

1) company can grow complacent
2) employees can pick & chose what they like.
3) lack of accountability.

Question 19

Why do corporations participate in self-regulation?

Answer 19

1) more thorough/better knowledge: ppl know what’s going on in company.
2) more access to employees
3) tough sanctions: sanctions that are certain
4) need “enforced self-regulation”

Question 20

Why are gatekeepers important?

Answer 20

1) GK know what to look for in terms of compliance.
2) the public trusts opinion of GK.
3) saves us $$$
4) assumes they’re unbiased.

Question 21

What do gatekeepers do?

Answer 21

Educate, advise and monitor financial industry of businesses.

Question 22

Why do gatekeepers fail?

Answer 22

1) GK might have a financial interest in company that they’re supposed to be monitoring.
2) GK might have ongoing relationships with others or internally.

Question 23

How do regulations affect gatekeepers?

Answer 23

1) reduce COIs (conflict of interests)
2) encourage whistleblowing
3) board/audit committee oversight: over company
4) strengthen internal controls
5) more training: making sure we train GK & how to handle cases.

Question 24

what are the 2 functions of gatekeepers?

Answer 24

1) educate & advise

2. ) Reputational intermediaries

Question 25

What are the conflicts of interest for gatekeepers?

Answer 25

1. ) social factors

2. ) lack of legal accountability

Question 26

What did the Sarbanes-Oxley Act do?

Answer 26

• passed in reaction to corporate scandals that created strict strategies to prevent WCC.
• It doubled the prison sentences from up to 10yrs-20 years for managers who falsified financial statements.
• the act addressed the need for improved ethics training, corporate governance strategies, and understanding of internal control efforts.