61. The omnibus hearing is:
a. the same as the preliminary hearing.
b. held before trial to determine evidentiary issues.
c. held after trial.
d. none of the above
62. The purpose of an omnibus hearing is to:
a. issue an indictment.
b. issue an information.
c. hear evidentiary challenges.
d. have the defendant enter a plea.
63. Most RICO charges involve:
a. mail fraud, wire fraud or securities fraud.
b. organized crime.
c. wage tax violations.
d. individuals and not companies.
64. Which of the following is not an element of the crime of embezzlement?
a. intent to take property
b. taking property permanently
c. no authorization to take the property
d. All of the above are elements of embezzlement.
65. Which of the following is not an element of criminal fraud?
a. a false material statement
b. reliance by the buyer
c. a mistake by the seller or the intent to mislead
d. All of the above are elements.
66. The Fourth Amendment protections:
a. apply to individuals.
b. do not apply to corporations.
c. do not apply to corporate officers.
d. all of the above
67. The Fifth Amendment protections:
a. apply to corporations.
b. can be used by officers of a corporation to prevent disclosure of corporate records.
c. can be used by officers of a corporation to prevent disclosure of corporate records that incriminate them.
d. none of the above
68. The failure to give the Miranda warnings:
a. is a problem only if the defendant is in jail.
b. will result in a dismissal of all charges.
c. is a problem only if the defendant is in custody.
d. none of the above
69. The purpose of the initial appearance is to:
a. issue an indictment against the defendant.
b. set the terms of release (if any).
c. allow the judge to issue an information.
d. provide the defendant with the opportunity to appear before the grand jury.
70. The purpose of an arraignment is to:
a. issue an indictment against the defendant.
b. set the trial date.
c. provide the defendant with the opportunity to appear before the grand jury.
d. ensure that the Miranda warnings are given.
71. Which of the following would mitigate an officer’s or corporation‘s sentence under the corporate sentencing
guidelines?
a. officer had no direct knowledge; he/she was only the supervising manager
b. the company had an ethics training program
c. subordinates failed to follow orders
d. subordinates were demoted for questioning decisions
72. Which of the following is not an exception to the Fourth Amendment search warrant requirement?
a. a search of a burning building
b. a search of an area in plain view
c. an inspection of a factory for safety violations
d. All of the above are exceptions to the warrant requirement.
73. “Taking the Fifth” means:
a. refusing to allow a search of your office.
b. refusing to turn over corporate documents.
c. refusing to testify to prevent self-incrimination.
d. demanding a search warrant.
74. At which of the following procedures may a defendant present evidence?
a. initial appearance
b. trial
c. grand jury
d. appeal
75. The FBI has developed new technology that enables it to listen to conversations in homes from vans parked in the
street outside the homes. While listening to conversations in one neighborhood, the FBI uncovers a meth lab.
Agents move in and arrest those in the home without a warrant. Under the Kyllo case:
a. the FBI is not required to have a warrant because the information was uncovered without invading the
house.
b. the FBI is not required to have a warrant because the information was uncovered from outside the private
property of the individuals involved.
c. the FBI is required to have a warrant in order to listen to the conversations.
d. the FBI needs a warrant to listen only if it is going to arrest someone.
e. none of the above
76. The Money Laundering Control Act:
a. applied only to financial institutions.
b. prohibited concealing or disguising sources of funds.
c. both a and b
d. none of the above
77. The USA Patriot Act:
a. has been declared unconstitutional.
b. expanded the Money Laundering Control Act.
c. applies only to banks.
d. none of the above
78. Which of the following would be the crime of obstruction of justice?
a. making a false entry
b. certification of financial statements
c. destroying e-mails
d. both a and c
79. Mens rea is:
a. the actual criminal act.
b. not required for proof of a crime.
c. only required for common-law crimes.
d. none of the above
80. Joan owns a citrus tree farm near Mesa, Arizona. Joan and her family have fertilized the trees each spring for 52
years. The irrigation for the trees carries the fertilizer remnants into the Salt River. When EPA investigators
discover the fertilizer in the Salt River and trace the unique brand to Joan, they indict her for violation of the Clean
Water Act, for the discharge of a substance into a waterway. Joan responds, “I didn’t know there was fertilizer. I
was just letting water flow.”
a. Joan has sufficient mens rea for the crime.
b. Joan can rely on the Ahmad case and escape criminal liability.
c. Joan can be held criminally liable for negligence.
d. none of the above
81. According to Arizona v. Gant, police officers:
a. may not serach a vehicle when the owner is present.
b. may search a vehicle with the driver’s permission or with a warrant.
c. may search a vehicle only with a warrant.
d. may no longer search vehicles because it is an invasion of privacy.
82. Which of the following will reduce a corporation’s sentence under the U.S. Sentencing Guidelines?
a. having a code of ethics
b. having ethics training
c. having ethics hotline
d. All of these can reduce a corporation’s sentence.
83. Which is the new crime created by Sarbanes-Oxley?
a. mail fraud
b. obstruction of justice
c. certification of false financial statements
d. both a and b
84. The penalty for document destruction under Sarbanes-Oxley is:
a. five years.
b. ten years.
c. fifteen years.
d. twenty years.
85. Bernie Ebbers, the former CEO of WorldCom, on trial for securities fraud and other crimes, offered as his defense
that he did not know what his officers were doing.
a. Ebbers’ defense is a valid one because there is no intent.
b. Ebbers’ defense is a valid one because there is no actus reus.
c. Ebbers can be held liable for the actions of employees.
d. both a and b
86. Penalties for corporate officers under Sarbanes-Oxley include:
a. 5-20 years for mail and wire fraud.
b. 1-10 years for violation of fiduciary duties.
c. a maximum penalty of $5,000.
d. both a and b
87. Dennis Kozlowski was the former CEO of Tyco who was charged with larceny, otherwise known as
embezzlement. During his trial, Mr. Kozlowski offered testimony that all of his loans from the company that were
not repaid were authorized loans that had been forgiven by the board of directors. The testimony about the board’s
approval:
a. shows a lack of mens rea on Kozlowski’s part.
b. shows he did not have the actus reus of taking something that did not belong to him.
c. is irrelevant because the money belonged to the corporation.
d. both a and b
88. Under Sarbanes-Oxley, auditors must retain their work papers:
a. for one year.
b. for three years.
c. for five years.
d. until they no longer represent a client.
89. Ann McMillan is a CPA with a public accounting firm. A client of Ann’s has called to tell her that the SEC is
investigating the company for possible misrepresentations in the company’s financial reports. Ann is worried that
she may have pushed the envelope in allowing some of the revenues of the client to be reported as they were. Ann
shreds several sets of notes from her meetings with the client on revenue recognition. Ann
a. is probably guilty of obstruction of justice.
b. has done nothing wrong because the notes are privileged communication the SEC is not entitled to have.
c. has not committed obstruction of justice because the SEC has not contacted her.
d. none of the above
90. What is usually the basis of RICO civil suits?
a. criminal fraud or wire fraud
b. prostitution
c. gambling
d. illegal drug sales or transportation
91. Which of the following laws require businesses to report cash transactions involving $10,000 or more?
a. Bank Secrecy Act
b. USA Patriot Act
c. Money Laundering Control Act
d. all of the above
92. The “Know They Customer” program:
a. is a federal program directed at commercial bribery prevention.
b. is a federal program related to detecting money laundering.
c. is an unconstitutional federal program.
d. both a and c
93. Officer Muldoon is on foot patrol in Tempe, Arizona when he looks inside a garage (the garage door is open) and
sees a statute that he knows is a rare art work that was stolen the night before from a building downtown. Officer
Muldoon:
a. cannot use the sighting as a basis for a warrant.
b. cannot enter the premises to recover the statute.
c. is not permitted to look inside the garage from the street even when the door is open.
d. none of the above
94. Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda
warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that
Jason was her attacker.
a. Because of the violation of Jason’s rights in the officers’ failure to give the Miranda warnings, the case
must be dismissed.
b. The case can still proceed with the DNA evidence.
c. The case can proceed but only with the victim’s testimony.
d. none of the above
95. Schmuck was involved in the sale of used automobiles. He engaged in the practice of rolling back odometers and
then selling the vehicles. What crime(s) has been committed?
96. Pedro Moreno and Rolando Cue-Baiza brought their boat from Nassau to Miami. They re-entered the Miami port
without going through customs. They docked the boat and began unloading it. Miami customs officials had observed
the boat re-enter (by helicopter). When Moreno and Cue-Baiza began unloading the boat, customs officials sent in
a team of officers to search the boat (no warrant). The officers discovered numerous bales of marijuana during the
search and Moreno and Cue-Baiza were charged with drug possession and trafficking. They are now challenging
the validity of the warrantless search. Discuss its validity.
97. McGuire was an employee of First National Bank of Grayson (FNBG). FNBG participated in a Kentucky Housing
Corporation (KHC) program in which KHC loaned money to financial institutions. The institutions would then make
low–interest loans to low-income individuals who qualified for purchase of a home. FNBG received the funds and
produced bogus paperwork for 80 loans but never loaned the money. Instead, they invested the money at a high
rate of interest. Eventually the money was returned to KHC, but McGuire was charged with making false records
and fraud. Can McGuire, as an employee, be held liable?
98. Ann McEachron is an administrative assistant at a large international accounting firm. Her supervisor has asked her
to destroy boxes of documents from an audit the firm conducted 2 years ago. The firm generally keeps records for
7 years, because of potential tax liability and issues, but it has destroyed documents earlier in cases in which the
amount of paperwork becomes overwhelming. Ann wonders about the request, but complies with her supervisor’s
order.
The company that was the subject of the audit is currently under criminal investigation and the partner in the
accounting firm who conducted the audit is aware of that investigation.
It is a federal crime to destroy documents that are involved in or could potentially be involved in either a civil or
criminal investigation. Evaluate the criminal liability of Ann, her supervisor and the partner for the destruction of the
comments. Would your answer be different if Ann had read in the newspaper about the criminal investigation of the
company?
99. Discuss the procedural changes made as a result of Arizona v. Gant.
100. Explain the changes Sarbanes-Oxley made to criminal laws.
101. Glen Albanese was arrested after federal authorities conducted an investigation that indicated the funds that he had
raised for relief efforts for Hurricane Katrina victims had been used to purchase landscaping for his home, acquire
a Labradoodle pedigree dog, and buy tickets to DisneyWorld and Six Flags. Mr. Albanese had raised funds for his
charity by advertising that the funds raised would be used to rebuild homes and provide scholarships for the children
of victims. Instead, he met individuals who sold him the dog and furnished the landscaping in odd locations and paid
them in cash in envelopes. Which of the following crimes would be applicable for the federal authorities to charge?
a. Criminal fraud
b. Embezzlement
c. A violation of SOX
d. a and b only
e. all of the above
102. Mr. Parnell and others formerly with the company had their charges issued through a grand jury. Which of the
following would have been issued?
a. Indictment
b. Information
c. Subpoena
d. Warrant
103. Part of the case came from federal agents’ examination of e-mails Mr. Parnell sent to his managers and
employees. Which of the following is correct about the agents’ access to those e-mails?
a. Because employees e-mails are not private, the agents did not need a warrant.
b. The agents would have been required to obtain a warrant.
c. Mr. Parnell could successfully object to the use of the e-mails because of his Fifth Amendment rights.
d. both b and c
104. Mr. Parnell entered a not guilty plea to the charges. Which of the following would have been the forum for
entering that plea?
a. Grand jury
b. Preliminary hearing
c. Arraignment
d. Initial appearance
105. The crime Mr. Parnell is charged with is shipping contaminated food. What would the federal government have to
show in its case to establish the crime?
a. That Mr. Parnell did the actual shipping of the product.
b. That Mr. Parnell saw the actual product before it was shipped.
c. That Mr. Parnell knew that the product was contaminated before shipment occurred.
d. all of the above
106. Who else would be criminally responsible for the shipment of contaminated product?
a. Board members
b. Managers who shipped the product knowing it was contaminated
c. Clerks who paid the shipping expenses
d. Shippers who handled the goods
107. The U.S. Justice Department has entered into a deferred prosecution agreement with several U.S. banks on
charges of mortgage fraud. The agreements provide that if the banks stay out of legal difficulties for five years
then the charges will be dropped. The banks agreed to have monitors in place during the five years and pay a fine.
Which of the following best describes what has been done by these arrangements with the banks?
a. A guilty plea has been entered.
b. A nolo contendere plea has been entered.
c. There has been a finding of innocence.
d. The parties have a corporate integrity agreement.
108. Which of the following crimes has been curbed back by appellate court decisions on corporate financial
misstatements and officer liability?
a. Honest services fraud
b. SOX financial certification provisions
c. Obstruction of justice
d. Criminal fraud