ch08 - Chapter 8 CRIMES General Principles Crime: When a...

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Unformatted text preview: Chapter 8 CRIMES General Principles Crime: When a person does not live up to the standards set by law, that society will prosecute the person for the misconduct. Crimes are classified as felonies and misdemeanors. A felony is a crime that is punishable by imprisonment or death. A misdemeanor is punishable by a fine or less than a year in prison. 2 General Principles Mental State The defendant does not have to know that the act is criminal; it is sufficient that the act was done voluntarily. Act An act or omission of a required act must actually take place. Harm Harm may occur, but it is not a required element for an act to be classified as a crime. 3 General Principles Responsibility for Criminal Acts. What happens when `innocent' person is charged with a crime? Corporate Responsibility. Corporations may be held responsible for the criminal acts of their employees. Liability may attach when employees fail to act. Forfeiture is a penalty for a crime. 4 Sarbanes-Oxley Reforms Passed after the Enron-WorldCom debacles, called the White-Collar Crime Penalty Enhancement Act of 2002. Substantially increases penalties for corporate crimes. Mail and wire fraud penalties to 20 years. 5 White Collar Crimes Crimes that do not use (or threaten to use) force or violence or that do not cause injury to person(s) or physical damage to property. Credit Card Crimes Use of Mails to Defraud Criminal Libel Embezzlement Improper use of Interstate Commerce Securities Crimes Racketeering Bribery Extortion Blackmail Improper Political Influence Improper Commercial Influence Counterfeiting Forgery Perjury False Claims Obtaining Goods by False Pretenses Bad Checks Cheats and Swindles 6 Punishment There is no uniform law of crimes. Each state and the federal government define and punish crimes as they choose. Although the tendency is to follow a common pattern, many variations exist between the law of different states and federal law. "Patriot Act" after 9-11 amends the Money Laundering Control Act and Bank Secrecy Act. 7 Computer Crimes Statutes have expanded the area of criminal law to meet situations in which computers are involved. The unauthorized taking of information from a computer is made a crime under both federal and state statutes. The Federal Computer Access Device and Computer Fraud and Abuse Act of 1984 and the Electronic Fund Transfers Act of 1978 also expand the definition of a computer crime. 8 Computer Crimes Crime that can be committed only by person having knowledge or use of a computer. Computers can be `victims.' Theft of Hardware or Software. Diverting Delivery by Computer. Economic Espionage by Computer. Circumventing Copyright Protection by Computer. 9 Penalties for Business Crimes Agency May complaint Maximum individual penalty name individual? Yes Maximum corporate penalty Internal Revenue Service Willful failure to pay, Willful failure to pay, $10,000/five years; willful $10,000, 50% assessment, failure to file, $25,000/one year; prosecution costs; willful fraud, $100,000/three years failure to file, $100,000; fraud, $500,000 $100,000, three years, or both $1 million, injunction, divestiture $1,000, one year, or both for $1,000 for first offense, first offense; $10,000, three $10,000 thereafter; seizure of years, or both thereafter, illegal condemned products; illegal drug importation, $250,000/ten drug importation, $250,000 years Restitution, injunction Restitution, injunction, divestiture, $10,000 per day for violation of rules, orders Antitrust Division of the Justice Department Food and Drug Administration Yes Yes Federal Trade Commission Yes Securities and Exchange Yes $10,000, five years, or both $2,000,000 (1933); $100,000, five years, or both (1934) 10 Penalties for Business Crime Agency May complaint name individual? No No Yes Medical waste, $50,000/two years; solid waste, $250,000/two years; $50,000 per day of violation penalty Willful, maximum of $70,000 per violation; minimum of $5,000 per violation; death, $10,000 and/or six months; false reports, $10,000 and/or six months; advance notice of inspection, $1,000 and/or six months $50,000, one year, or both $10,000 per employee, six months, or both Maximum individual penalty Equal Employment Opportunity Commission Office of Federal Contract Compliance Programs Environmental Protection Agency Injunction (some state liability possible) (cont'd) Maximum corporate penalty Injunction, back pay award, reinstatement Suspension, cancellation of contract Medical waste, $1,000,000; solid waste, $1,000,000; $50,000 per day of violation penalty $70,000 Occupational Safety and Health Administration No Consumer Product Safety Commission Fair Labor Standards Act Department Yes Yes $500,000 (civil) $100,000, reimbursement of wages 11 Constitutional Amendments Criminal procedure is dictated by the Fourth, Fifth, and Sixth Amendments. The Fourth Amendment protects against unreasonable searches. The Fifth Amendment protects against selfincrimination and provides due process. Corporations do not have a right to remain silent. Disclosures of corporate records must be made The Sixth Amendment guarantees a speedy trial. 12 ...
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