Chapter 10: White-Collar and Organized Crime

Test Bank

Multiple Choice

1. Which of the following crimes is defined as an unauthorized access to programs and databases and unlawfully obtaining information through deceit and trickery?

A. identity theft

B. computer theft

C. computer crime

D. identity crime

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Knowledge

Answer Location: Computer Crime

Difficulty Level: Easy

2. The principle that every working person should be guaranteed safe and healthful working conditions is expressed in which of the following acts?

A. Environmental Crimes Act

B. Securities Fraud Act

C. Occupational Safety and Health Act

D. Health Fraud Act

Learning Objective: 10-4: The purchase of a stock in the company in which an individual is employed constitutes the crime of insider trading.

Cognitive Domain: Knowledge

Answer Location: Occupational Safety and Health

Difficulty Level: Easy

3. In 1970, ______ statute was developed to counter the infiltration of legitimate businesses engaged in interstate commerce by organized crime.

A. identity theft

B. antitrust violation

C. copyright violation

D. RICO

Learning Objective: 10-16: Know the purpose of RICO and the types of acts prohibited under RICO.

Cognitive Domain: Knowledge

Answer Location: Racketeer Influenced and Corrupt Organizations

Difficulty Level: Easy

4. The high duty of care that corporate executives and boards possess to safeguard and to protect the investment of stockholders is known as ______.

A. fiduciary relationship

B. corporate duty

C. financial relationship

D. financial duty

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Securities Fraud | Insider Trading

Difficulty Level: Easy

5. The purchase or sale of securities based on information that is not available to the public at large is known as ______.

A. financial relationship

B. insider trading

C. open trading

D. securities fraud

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Securities Fraud | Insider Trading

Difficulty Level: Easy

6. Which doctrine states that corporate officials must publicly reveal information to the public relating to the economic condition of a corporation before they buy or sell the company’s stock?

A. misappropriation

B. stock fraud

C. securities fraud

D. disclose or abstain

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Securities Fraud | Insider Trading

Difficulty Level: Easy

7. ______ authorizes the federal government to prosecute what ordinarily are considered the criminal offenses of gambling, the illegal shipment and sale of alcohol, extortion, bribery, arson, prostitution, money laundering, and controlled substances.

A. Mail Act

B. Payola Act

C. Travel Act

D. Securities Act

Learning Objective: 10-7: There is no legal prohibition on a bank accepting deposits that are known to be the proceeds of unlawful narcotics trafficking so long as the money is not counterfeit.

Cognitive Domain: Knowledge

Answer Location: Travel Act

Difficulty Level: Easy

8. The content of books, films, artistic works, musical scores, and other “products of the mind” are known as ______.

A. intellectual property

B. copyrights

C. trademarks

D. fiduciary property

Learning Objective: 10-15: Explain the purpose of the criminal law in protecting intellectual property, trademarks, and trade secrets.

Cognitive Domain: Knowledge

Answer Location: Theft of Intellectual Property

Difficulty Level: Easy

9. ______ type of crime involves creating some false source of income that accounts for the money used to buy a house, purchase a car, or open a bank account.

A. health-care fraud

B. securities fraud

C. money laundering

D. mail fraud

Learning Objective: 10-10: There is no significant difference between the crime of bribery of a public official and the crime of extortion of a public official.

Cognitive Domain: Knowledge

Answer Location: Money Laundering

Difficulty Level: Easy

10. ______ act requires the heads of corporations to certify that their firms’ financial reports are accurate

A. Payola

B. Sherman (Antitrust)

C. Sarbanes-Oxley

D. Truman Antitrust

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Securities Fraud | Insider Trading

Difficulty Level: Easy

11. Which Supreme Court case affirmed that corporations could be held criminally liable under the Federal Food and Drugs Act?

A. United States v. O’Hagan

B. United States v. Carpenter

C. United States v. Dotterweich

D. United States v. Duff

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Knowledge

Answer Location: Corporate Criminal Liability

Difficulty Level: Easy

12. Which one of the following can impose criminal liability in those instances that the criminal conduct is authorized, requested, commanded, performed, or recklessly tolerated by the board of directors or by a high managerial official acting on behalf of a corporation?

A. Model Penal Code 2.07

B. Respondeat superior

C. Corporate superior

D. Managerial superior

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Knowledge

Answer Location: Corporate Criminal Liability

Difficulty Level: Easy

13. Which one of the U.S. Departments agreed not to pursue a criminal prosecution against the corporation so long as the corporation agrees to institute reforms to prevent additional criminal conduct and to pay a fine?

A. Department of Labor

B. Department of Homeland Security

C. Department of Treasury

D. Department of Justice

Learning Objective: 10-2: Air and water pollution unlike the failure to safely dispose of toxic chemicals is penalized by civil fines and is not subject to criminal prosecution.

Cognitive Domain: Knowledge

Answer Location: Corporate Criminal Liability

Difficulty Level: Medium

14. Which of the following is NOT an element of white-collar crime?

A. to avoid the payment or loss of money

B. to obtain money, property, or service

C. to secure a business or professional advantage

D. to betray somebody’s trust

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Knowledge

Answer Location: Introduction

Difficulty Level: Easy

15. One of the reasons why textbooks generally do not devote significant attention to white-collar crime is because ______.

A. white-collar crime is one of the least active areas of federal prosecution

B. white-collar crime is not a distinct category of crime

C. these cases are difficult to solve

D. there is no enough human resource

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Comprehension

Answer Location: Introduction

Difficulty Level: Medium

16. The mens rea for most of the environmental statutes is ______.

A. recklessly committing the prohibited act

B. negligently committing the prohibited act

C. knowingly committing the prohibited act

D. negligently committing the permitted act

Learning Objective: 10-3: The Occupational Safety and Health Act focuses on workers’ exposure to illness, disease, and injury and does not address death on the job.

Cognitive Domain: Comprehension

Answer Location: Environmental Crime

Difficulty Level: Medium

17. Which of the following imposes criminal penalties for improper discharge of refuse (foreign substances and pollutants) into navigable or tributary waters of the United States?

A. Refuse Act

B. Clean Water Act

C. Federal Insecticide, Fungicide, and Rodenticide Act

D. Resource Conservation and Recovery Act

Learning Objective: 10-3: The Occupational Safety and Health Act focuses on workers’ exposure to illness, disease, and injury and does not address death on the job.

Cognitive Domain: Comprehension

Answer Location: Environmental Crime

Difficulty Level: Medium

18. Which of the following was NOT one of the most dangerous industry sectors in 2016?

A. public safety

B. transportation

C. forestry

D. constructions

Learning Objective:10-3: Learning Objective: 10-3: The Occupational Safety and Health Act focuses on workers’ exposure to illness, disease, and injury and does not address death on the job.

Cognitive Domain: Application

Answer Location: Occupational Safety and Health

Difficulty Level: Medium

19. Which one of the following rules states that corporate officials must publicly reveal information to the public relating to the economic condition of a corporation before they buy or sell the company’s stock.

A. misappropriation

B. stock fraud

C. securities fraud

D. disclose or abstain

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Comprehension

Answer Location: Insider Trading

Difficulty Level: Easy

20. ______ requires the heads of corporations to certify that their firms’ financial reports are accurate.

A. Payola Act

B. Sherman (Antitrust) Act

C. Sarbanes-Oxley Act

D. Truman Antitrust Act

Learning Objective: 10-6: It is unlawful for a health care provider to bill federal insurance for unnecessary medical procedures.

Cognitive Domain: Comprehension

Answer Location: Insider Trading

Difficulty Level: Easy

21. Corporate executives and corporate boards of directors possess a(n) ______ to safeguard and to protect the investments of stockholders.

A. corporate profits rise

B. fiduciary relationship

C. investigation

D. financial penalties

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Comprehension

Answer Location: Insider Trading

Difficulty Level: Medium

22. ______ is an intentional and knowing misrepresentation of a material (important) fact intended to induce another person to hand over money or property

A. Fraud

B. Insider trading

C. Embezzlement

D. Forgery

Learning Objective: 10-6: It is unlawful for a health care provider to bill federal insurance for unnecessary medical procedures.

Cognitive Domain: Knowledge

Answer Location: Mail and Wire Fraud

Difficulty Level: Medium

23. Which of the following must NOT a prosecutor demonstrate for a conviction of mail fraud?

A. scheme

B. money or property

C. mail

D. wire

Learning Objective: 10-6: It is unlawful for a health care provider to bill federal insurance for unnecessary medical procedures.

Cognitive Domain: Knowledge

Answer Location: Mail and Wire Fraud

Difficulty Level: Easy

24. Which of the following is NOT part of the functions of the Consumer Financial Protection Bureau (CFPB)?

A. rehabilitate conspirators

B. research consumer behavior

C. take consumer complaints

D. promote financial education

Learning Objective: 10-6: It is unlawful for a health care provider to bill federal insurance for unnecessary medical procedures.

Cognitive Domain: Comprehension

Answer Location: Mail and Wire Fraud

Difficulty Level: Medium

25. With ______, the individuals involving spreading false information sell the shares that they inexpensively purchased for a significant profit.

A. mail

B. wire

C. pump and dump

D. graft

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Insider Trading

Difficulty Level: Easy

26. Which one of the following criminal acts cannot be prosecuted under the Travel Act?

A. prostitution

B. money laundering

C. illegal shipment of alcohol

D. burglary

Learning Objective: 10-7: There is no legal prohibition on a bank accepting deposits that are known to be the proceeds of unlawful narcotics trafficking so long as the money is not counterfeit.

Cognitive Domain: Application

Answer Location: The Travel Act

Difficulty Level: Medium

27. Which one of the following punishments is NOT associated with health-care fraud?

A. a fine and imprisonment of up to 10 years

B. imprisonment of up to 20 years if a serious injury is caused

C. death, if in a state that authorizes capital punishment

D. life in prison if death is caused

Learning Objective: 10-8: It is not a crime for several corporations to agree to charge the same price for an item to prevent price competition so long as the price of the item is sufficiently low that it benefits consumers.

Cognitive Domain: Application

Answer Location: Health Care Fraud

Difficulty Level: Medium

28. One example of Sherman Antitrust Act is ______?

A. washing of money

B. price-fixing

C. insider trading

D. identify theft

Learning Objective: 10-9: The federal government has exclusive jurisdiction over computer crime including computer hacking, trespass, and tampering.

Cognitive Domain: Application

Answer Location: Antitrust Violations

Difficulty Level: Medium

29. Which of the following is NOT a crime which the perpetrators of identity theft typically are also in violation of statutes of?

A. health-care fraud

B. wire fraud

C. mail fraud

D. credit card fraud

Learning Objective: 10-12: Explain the elements of identity theft.

Cognitive Domain: Application

Answer Location: Identity Theft

Difficulty Level: Medium

30. Which of the following states does NOT have higher identity theft complaints rate?

A. Texas

B. Michigan

C. Delaware

D. Florida

Learning Objective: 10-12: Explain the elements of identity theft.

Cognitive Domain: Application

Answer Location: Identity Theft

Difficulty Level: Medium

31. Thomas directed the manufacture and distribution of cocaine at two crack houses. He then deposited the profits in cash into various accounts, listed under the name of the Youth Club Organization, in which the proceeds of legitimate activities also were deposited. Funds were used for organization expenses as well as for Thomas’ rent; credit card charges; and purchases of automobiles, cellular phones, and beepers used to direct the sale of cocaine. Thomas is charged with what type of crime along with several drug charges?

A. computer crime

B. money laundering

C. tax crime

D. identify theft

Learning Objective: 10-10: There is no significant difference between the crime of bribery of a public official and the crime of extortion of a public official. Cognitive Domain: Application

Answer Location: Money Laundering

Difficulty Level: Medium

32. ______ is also called as structuring offense or illegal structuring.

A. Computer crime

B. Money laundering

C. Tax crime

D. Currency violation

Learning Objective: 10-13: Know the basic elements of currency violations and tax crimes.

Cognitive Domain: Comprehension

Answer Location: Currency Violations

Difficulty Level: Medium

33. Who was NOT convicted of tax crime?

A. Paul Manafort

B. Michael Cohen

C. Robert Mueller

D. James Comey

Learning Objective: 10-13: Know the basic elements of currency violations and tax crimes.

Cognitive Domain: Comprehension

Answer Location: Currency Violations

Difficulty Level: Easy

34. Which one of the activities cannot be punished by computer crime statutes?

A. copying software without authorization

B. falsifying e-mail transmissions in connection with the sending of unsolicited bulk e-mail

C. causing a computer to malfunction

D. the unauthorized carrying away of a personal computer

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Comprehension

Answer Location: Computer Crime

Difficulty Level: Easy

35. What case caused state legislatures and the federal government to pass statutes addressing computer theft and crime?

A. People v. Braverman

B. Lund v. Commonwealth

C. Commonwealth v. Edison

D. Miller v. Virginia Polytechnic Institute

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Comprehension

Answer Location: Computer Crime

Difficulty Level: Easy

36. ______ is the intentional entrance into a computer system without permission and with the intent to cause injury to an individual.

A. Computer hacking

B. Spam

C. Computer tempering

D. Computer trespass

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Comprehension

Answer Location: Computer Crime

Difficulty Level: Easy

37. Which of the following is NOT an important provision related to computer fraud?

A. prohibits knowingly and with intent to defraud, trafficking in passwords to permit unauthorized access to a government computer

B. proclaims knowingly transmitting a commercial, unsolicited e-mail that contains false or misleading information on a subject line

C. proclaims that it is unlawful to transmit in interstate commerce any threat to cause damage to a protected computer with the intent to extort something of value

D. intentionally accessing a computer without authorization and obtaining information

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Comprehension

Answer Location: Computer Crime

Difficulty Level: Medium

38. ______ refers to the content of books, films, artistic works, musical scores, and other products of the mind.

A. Tangible property

B. Intangible property

C. Intellectual property

D. Unintellectual property

Learning Objective: 10-15: Explain the purpose of the criminal law in protecting intellectual property, trademarks, and trade secrets.

Cognitive Domain: Comprehension

Answer Location: Theft of Intellectual Property

Difficulty Level: Medium

39. ______ holds defendants responsible for all acts of racketeering undertaken as part of a criminal enterprise.

A. Gebardi rule

B. Pinkerton rule

C. RICO

D. Wharton’s rule

Learning Objective: 10-16: Know the purpose of RICO and the types of acts prohibited under RICO.

Cognitive Domain: Knowledge

Answer Location: Conspiracy Prosecution

Difficulty Level: Easy

40. The ______ safeguards the rights of authors in books, films, and songs that have been published.

A. Travel Act

B. Payola Act

C. Mail Act

D. Copyright Act

Learning Objective: 10-15: Explain the purpose of the criminal law in protecting intellectual property, trademarks, and trade secrets.

Cognitive Domain: Knowledge

Answer Location: Copyright

Difficulty Level: Easy

True/False

1. The mens rea for environmental crimes is negligently committing the prohibited act.

Learning Objective: 10-3: The Occupational Safety and Health Act focuses on workers’ exposure to illness, disease, and injury and does not address death on the job.

Cognitive Domain: Knowledge

Answer Location: Environmental Crimes

Difficulty Level: Easy

2. The requirements for mail and wire fraud are similar, except that a mail communication must cross interstate or foreign boundaries.

Learning Objective: 10-6: It is unlawful for a health care provider to bill federal insurance for unnecessary medical procedures.

Cognitive Domain: Comprehension

Answer Location: Mail and Wire Fraud

Difficulty Level: Medium

3. A bank must report to the IRS any cash transaction of more than $5,000.

Learning Objective: 10-13: Know the basic elements of currency violations and tax crimes.

Cognitive Domain: Comprehension

Answer Location: Currency Violations

Difficulty Level: Easy

4. Approximately 15% of identify thefts are committed by family, friends, neighbors, or coworkers of the victim.

Learning Objective: 10-12: Explain the elements of identity theft.

Cognitive Domain: Knowledge

Answer Location: Identity Theft

Difficulty Level: Easy

5. It is a violation of federal law to receive a payment for directing a patient to a health-care provider.

Learning Objective: 10-8: It is not a crime for several corporations to agree to charge the same price for an item to prevent price competition so long as the price of the item is sufficiently low that it benefits consumers.

Cognitive Domain: Comprehension

Answer Location: Health Care Fraud

Difficulty Level: Easy

6. Under the Clean Water Act, it is illegal to knowingly store, make use of, or dispose of hazardous waste without a permit.

Learning Objective: 10-3: The Occupational Safety and Health Act focuses on workers’ exposure to illness, disease, and injury and does not address death on the job.

Cognitive Domain: Comprehension

Answer Location: Environmental Crimes

Difficulty Level: Easy

7. The spreading of false information about a company to drive up stock prices and sell previously inexpensive stocks for a significant profit is known as “pump and dump.”

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Securities Fraud | Insider Trading

Difficulty Level: Easy

8. The Department of Justice limits white-collar crime to employment-related offenses.

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Knowledge

Answer Location: Introduction

Difficulty Level: Easy

9. The mens rea of computer trespass requires the intent to cause injury to an individual.

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Comprehension

Answer Location: Computer Crime

Difficulty Level: Easy

10. Under the respondeat superior doctrine, a corporation may be held liable for the acts of employees only where the acts are contrary to corporate policy.

Learning Objective: 10-2: Air and water pollution unlike the failure to safely dispose of toxic chemicals is penalized by civil fines and is not subject to criminal prosecution.

Cognitive Domain: Comprehension

Answer Location: Corporate Criminal Liability

Difficulty Level: Medium

11. A corporate crime may result in the criminal conviction of the employee committing the offense, but the corporation will never be convicted.

Learning Objective: 10-2: Air and water pollution unlike the failure to safely dispose of toxic chemicals is penalized by civil fines and is not subject to criminal prosecution.

Cognitive Domain: Comprehension

Answer Location: Corporate Criminal Liability

Difficulty Level: Easy

12. Most white-collar crime prosecutions are undertaken by local governments.

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Knowledge

Answer Location: Introduction

Difficulty Level: Easy

13. Injury to workers is one type of environmental crime.

Learning Objective: 10-3: The Occupational Safety and Health Act focuses on workers’ exposure to illness, disease, and injury and does not address death on the job.

Cognitive Domain: Knowledge

Answer Location: Environmental Crime

Difficulty Level: Easy

14. OSHA primarily relies on incarceration and financial penalties to ensure compliance.

Learning Objective: 10-4: The purchase of a stock in the company in which an individual is employed constitutes the crime of insider trading.

Cognitive Domain: Compression

Answer Location: Occupational Safety and Health

Difficulty Level: Easy

15. The misappropriation doctrine expands the law beyond individuals who work for a corporation and criminally punishes all individuals who take and use inside corporate information that is in the possession of their employer.

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Knowledge

Answer Location: Insider Trading

Difficulty Level: Easy

16. The Travel Act prohibits the payment of money to radio station employees for the inclusion of material as part of a program unless the payment is disclosed to the recipient’s employer.

Learning Objective: 10-7: There is no legal prohibition on a bank accepting deposits that are known to be the proceeds of unlawful narcotics trafficking so long as the money is not counterfeit.

Cognitive Domain: Knowledge

Answer Location: Travel Act

Difficulty Level: Easy

17. Identity theft statutes typically require that an individual knowingly uses the identification of another individual.

Learning Objective: 10-12: Explain the elements of identity theft.

Cognitive Domain: Knowledge

Answer Location: Identity Theft

Difficulty Level: Easy

18. Access device fraud is a federal crime in which individuals knowingly with the intent to defraud to produce a counterfeit access device or to use or traffic in counterfeit access devices.

Learning Objective: 10-11: Understand access device fraud.

Cognitive Domain: Knowledge

Answer Location: Access Device Fraud

Difficulty Level: Easy

19. Criminal liability under tax crime statutes requires that an individual act recklessly.

Learning Objective: 10-13: Know the basic elements of currency violations and tax crimes Cognitive Domain: Comprehension

Answer Location: Tax Crime

Difficulty Level: Easy

20. Racketeer Influenced and Corrupt Organizations (RICO) was enacted to punish the domestic theft of trade secrets and prohibit the theft of trade secrets by foreign governments.

Learning Objective: 10-16: Know the purpose of RICO and the types of acts prohibited under RICO.

Cognitive Domain: Comprehension

Answer Location: Tax Crime

Difficulty Level: Medium

Short Answer

1. What are the two primary tests for determining whether a corporation should be criminally liable under the statute?

Learning Objective: 10-2: Air and water pollution unlike the failure to safely dispose of toxic chemicals is penalized by civil fines and is not subject to criminal prosecution.

Cognitive Domain: Knowledge

Answer Location: Corporate Criminal Liability

Difficulty Level: Easy

2. How are those convicted of white-collar crime sentenced?

Learning Objective: 10-1: White-collar crime is defined as any criminal offense committed by a wealthy individual.

Cognitive Domain: Knowledge

Answer Location: Introduction

Difficulty Level: Easy

3. What is the Occupational Safety and Health Act?

Learning Objective: 10-4: The purchase of a stock in the company in which an individual is employed constitutes the crime of insider trading.

Cognitive Domain: Comprehension

Answer Location: Occupational Safety and Health

Difficulty Level: Easy

4. What is the difference between tippers and tippees?

Learning Objective: 10-5: State governments have sole and exclusive jurisdiction over fraudulent business practices.

Cognitive Domain: Comprehension

Answer Location: Insider Trading

Difficulty Level: Easy

5. What is the similarity and difference between mail and wire fraud?

Learning Objective: 10-6: It is unlawful for a health care provider to bill federal insurance for unnecessary medical procedures.

Cognitive Domain: Comprehension

Answer Location: Insider Trading

Difficulty Level: Medium

6. Name two elements of money laundering.

Learning Objective: 10-10: There is no significant difference between the crime of bribery of a public official and the crime of extortion of a public official. Cognitive Domain: Comprehension

Answer Location: Money Laundering

Difficulty Level: Easy

7. List three types of tax crimes.

Learning Objective: 10-13: Know the basic elements of currency violations and tax crimes.

Cognitive Domain: Comprehension

Answer Location: Tax Crime

Difficulty Level: Easy

8. Identify some of the differences between identity theft and computer crimes?

Learning Objective: 10-14: List the various types of computer crime.

Cognitive Domain: Analysis

Answer Location: Computer Crimes

Difficulty Level: Medium

9. What is the difference between intellectual property, trademarks, and trade secret?

Learning Objective: 10-15: Explain the purpose of the criminal law in protecting intellectual property, trademarks, and trade secrets.

Cognitive Domain: Comprehension

Answer Location: Theft of Intellectual Property

Difficulty Level: Easy

10. What are the three steps of the RICO?

Learning Objective: 10-16: Know the purpose of RICO and the types of acts prohibited under RICO.

Cognitive Domain: Analysis

Answer Location: Racketeer Influenced and Corrupt Organizations

Difficulty Level: Medium

Essay

1. What is the Travel Act? Why does the United States have a Travel Act? What is required for a conviction under the Travel Act?

Learning Objective: 10-7: There is no legal prohibition on a bank accepting deposits that are known to be the proceeds of unlawful narcotics trafficking so long as the money is not counterfeit.

Cognitive Domain: Comprehension

Answer Location: The Travel Act

Difficulty Level: Medium

2. What are the types of scenarios punished under RICO?

Learning Objective: 10-16: Know the purpose of RICO and the types of acts prohibited under RICO.

Cognitive Domain: Comprehension

Answer Location: Racketeer Influenced and Corrupt Organizations

Difficulty Level: Medium

3. What is intellectual property, and why does the law protect it?

Learning Objective: 10-15: Explain the purpose of the criminal law in protecting intellectual property, trademarks, and trade secrets.

Cognitive Domain: Comprehension

Answer Location: Theft of Intellectual Property

Difficulty Level: Medium

4. Describe access device fraud and provide an example of how state law punishes such a crime.

Learning Objective: 10-11: Understand access device fraud.

Cognitive Domain: Comprehension

Answer Location: Access Device Fraud

Difficulty Level: Medium

5. Describe the five primary types of tax crimes. What is the required intent? Do these crimes have varying levels of intent?

Learning Objective: 10-13: Know the basic elements of currency violations and tax crimes.

Cognitive Domain: Knowledge

Answer Location: Tax Crime

Difficulty Level: Medium