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1. Criminal activity that typically involves groups that conspire to make illegal profits through connections to
business and commerce is .
2. In the 1930s, Sutherland first used the phrase to describe the criminal activities of the
rich and powerful.
3. Credit-card fraud and income-tax evasion are two types of .
4. An auto repair shop charging customers for bogus repairs is .
5. The FBI estimates that health care fraud now costs the nation per year.
6. occurs when a corporate employee with direct knowledge of market-sensitive
information uses it to buy and sell securities, giving the employee-trader an unfair advantage over the general
public.
7. occurs when contractors provide the government or other corporations with incomplete
or misleading information on how much it will actually cost to fulfill the contracts on which they are bidding.
8. A white-collar involves the criminal activity of people who use a business proposition to trick
others out of their money.
9. An investment fraud that involves the payment of purported returns to existing investors from funds contributed
by new investors is referred to as a .
10. refers to a substance made by gathering waste trimmings, cooking them so the fat
separates easily from the muscle, and using a centrifuge to complete the separation.
11. occurs when an organization that either (a) advances credit, (b) provides loans, (c)
supports people financially, or (d) reimburses them for services provided to a third party is the target of criminal
activity.
12. When a businessperson uses an institutional position to grant favors and sell information to which their co-
conspirators are not entitled, this is referred to as .
13. Violation of the carries maximum penalties of a $100 million criminal fine for
corporations and a $1 million criminal fine and 10 years in prison for individuals.
14. Interest in corporate crime first emerged in the early 1900s, when a group of writers, known as
, targeted the monopolistic business practices of John D. Rockefeller and other
corporate business leaders
15. A mortgage is a home loan given to borrowers who, because of their income, would not ordinarily
qualify for bank loans.
16.
The
of the U.S. Constitution gives the federal government the authority to regulate
white-collar crime.
17. The Ponzi scheme is named for , a famous white-collar criminal who duped investors into
a stamp-collecting scheme.
18. is a white-collar enforcement strategy that encourages law-abiding behavior through both the threat
of economic sanctions and the promise of rewards for conformity.
19. According to the perspective, environmental crimes are violations of existing criminal laws
designed to protect people and the environment
20. The U.S. Congress has passed numerous laws that regulate and restrict wildlife imports and exports, including
the Act of 1973 and the Lacey Act.
21. According to the approach to green crimes, environmental harm is viewed as any human
activity that disrupts a biosystem, destroying plant and animal life.
22. The establishes and maintains goals and standards for U.S. water quality and purity.
23. The major enforcement arm against environmental crimes is the .
24. The Mafia originated in around 1860, and started as a criminal gang employed by
wealthy landowners to function as agents of social and land control
25. White-collar offenders who claim that everyone commits crime reflect the or view
of causation.
26. Using illegal tactics to make profits in the marketplace is known as:
a. entrepreneurship. b. enterprise crime.
c. venture enterprise. d. illegitimate enterprise.
27. White-collar crime involves illegal activities of people and institutions whose acknowledged purpose is profit
through business transactions.
a. criminal; black-market b. black-market; violent
c. illegal; legitimate d. illegal; illegitimate
28. In the 1930s, Sutherland first used the phrase “whitecollar crime” to describe the criminal activities of:
a. the rich and powerful. b. the proletariat.
c. the mafia. d. businesspeople.
29. A white-collar crime in which a stockbroker makes repeated trades with a client’s account in order to
fraudulently increase his or her commissions is known as:
a. chiseling. b. churning.
c. front running. d. bucketing.
30. Churning, front running, and bucketing are types of:
a. influence peddling. b. blue-collar fraud.
c. bank fraud. d. securities fraud.
31. Who or what is the victim in crimes of influence peddling?
a. the organization b. the customers of an organization
c. entry-level employees d. the stockholders of an organization
32. Systematic theft of company property by employees is common and is called:
a. front running. b. bucketing.
c. “steering.” d. pilferage.
33. In 1977, Congress passed the Foreign Corrupt Practices Act, which made it illegal to:
a. traffic women and children across country borders.
b. bribe foreign officials.
c. take kickbacks from foreigners.
d. engage in price fixing with foreign businesses.
34. Penalties for bank fraud include a maximum fine of $1 million and up to how much time in prison?
a. 10 b. 70
c. 30 d. life
35. Which of the following actions would be considered health care fraud?
a. referring patients to other physicians in the same office
b. directing patients to particular pharmacies
c. referring patients to a clinic in which the physician has a financial interest
d. All of the above
36. For the government to prove tax fraud, the minimum dollar amount that must be involved is:
a. $50. b. $100.
c. $1000. d. There is no minimum dollar amount.
37. Tom Delay was forced out of politics because of his involvement in a bribery scandal involving Washington,
D.C., lobbyist Jack Abramoff. Representative Randy “Duke” Cunningham resigned from Congress after
confessing to accepting $2.4 million in bribes. Former Illinois Governor George Ryan was convicted of steering
government contracts to people willing to give him kickbacks and bribes. All three of these men committed the
white-collar crime of:
a. restraint of trade. b. influence peddling.
c. professional chiseling. d. embezzlement.
38. Income-tax evasion is a type of client fraud. Not paying taxes, is an example of:
a. affirmative tax evasion. b. authoritative neglect.
c. inert evasion. d. passive neglect.
39. A white-collar involves the criminal activity of people who use a business proposition to trick others out
of their money.
a. fraud b. embezzlement
c. swindle d. transition
40. When powerful institutions willfully violate the laws that restrain them from doing social harm or that require them
to do social good, it is called corporate crime or:
a. organized crime. b. organizational crime.
c. social crime. d. antitrust crime.
41. A corporation that requires its customers to use one of the other services that it offers is practicing a:
a. group boycott. b. tying arrangement.
c. division of markets. d. price fixing.
42. When firms divide a region into territories and each firm agrees not to compete in the others’ territories, it is
illegal and is called:
a. group boycott. b. tying arrangement.
c. division of markets. d. price fixing.
43. What white-collar crime involves a contract or conspiracy designed to stifle competition, create a monopoly,
artificially maintain prices, or otherwise interfere with free-market competition?
a. restraint of commerce b. restraint of trade
c. restraint of business d. restraint of competition
44. If a store advertises sweaters at a bargain price but do not actually have any sweaters for sale for that price, they
are guilty of which offense?
a. insider trading b. restraint of trade
c. churing d. false advertising
45. One example of health care fraud involves billing for more expensive services or procedures than were actually
provided or performed. This practice is termed and requires “inflation” of the patient’s diagnosis code
to a more serious condition consistent with the false procedure code.
a. ladder coding b. trade coding
c. upcoding d. step coding
46. The factor that distinguishes corporate crime from individual-level white-collar crime is that with corporate
crime, the perpetrator is a/an and not a/an .
a. corporate officer, stockholder
b. legal fiction, individual
c. partnership, group
d. business monopoly, board of control
47. Which act established health care fraud as an independent federal criminal offense that carries a penalty of up to
10 years in prison?
a. Health Insurance Scheme Punishment Act.
b. Health Insurance Portability and Accountability Act.
c. Health Insurance Protection Act.
d. Health Insurance Act.
48. Which scheme involves telling victims that certain financial instruments have been issued by legitimate
organizations and that investments are high-payoff and low-risk?
a. investment embezzlement b. advanced-fee scheme
c. prime bank investment fraud d. hedge fund fraud
49. Which scheme involves private investors taking only wealthy clients?
a. investment embezzlement b. advanced-fee scheme
c. prime bank investment fraud d. hedge-fund fraud
50. Which of the following is the routine practice of paying radio stations to play particular songs?
a. play sharing b. payola
c. music fraud d. playing fraud
51. Which of the following involves systematic theft of company property by employees?
a. pilferage b. payola
c. labor theft d. labor fraud
52. Failing to pay taxes on time and report income are examples of which type of tax fraud?
a. passive neglect b. open neglect
c. unintentional neglect d. careless neglect
53. One method of controlling white-collar crime is through the use of compliance strategies. How do compliance
strategies work?
a. Compliance strategies aim for law conformity without the necessity of detecting, processing, or penalizing
individual violators.
b. Compliance strategies require cooperation and self-policing from businesses.
c. Compliance strategies provide economic incentives for obeying the law.
d. Compliance strategies do all of the above.
54. Corporations can circumvent economic sanctions by:
a. declaring bankruptcy.
b. moving their rule-violating activities overseas.
c. merging with another corporation.
d. devaluing their stock.
55. Compliance strategies are often viewed as “slaps on the wrists.” In their place, deterrence strategies have
become the normative approach to controlling white-collar offenders. Why is the tide turning from compliance to
deterrence?
a. Because of the crushing caseloads of compliance agencies such as the Food and Drug Administration and
the Environmental Protection Agency
b. Because of the increased number of prisons structured to house nonviolent offenders
c. Because of public displeasure and a growing awareness of the damage caused by white-collar criminals
d. Because of pressure aimed at political officials from lobbyists and labor unions
56. Why do deterrence strategies typically work when combating white-collar crime?
a. White-collar criminals are difficult to shame.
b. White-collar crime is a rational act.
c. Federal agencies are eager to throw criminal executives in prison.
d. White-collar criminals conceive of themselves as more threatening than street criminals.
57. Which act establishes standards for U.S. water quality and purity?
a. Clean Water Act
b. Emergency Planning and Community Right-to-Know Act
c. Endangered Species Act
d. Oil Pollution Act
