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Test #2
N/A
44
Criminology
Undergraduate 2
11/13/2011

Additional Criminology Flashcards

 


 

Cards

Term
Arson
Definition
The malicious burning of or setting fire to the dwelling of another person.
Term
Motives for Arson
Definition
1. Revenge, Jealousy, Hatred
2. Financial Gain (mostly insurance fraud)
3. Intimidation, extortion
4. Need for attention
5. Social protest
6. Arson to conceal other crimes
7. Arson to facilitate other crimes
8. Vandalism and accidental fire setting
Term
Sarbanes/Oxy Act of 2002 (SOX)

1-2
Definition
1. Restricts auditors' conflict of interest

2. CEOs are responsible for corporate financial reports - they must be certified
Term
Sarbanes/Oxy Act of 2002 (SOX)

3-4
Definition
3. "Off-balance-sheet" transactions must be reported

4. Restricts securities analyst's conflict of interests
Term
Sarbanes/Oxy Act of 2002 (SOX)

5-6
Definition
5. Increased penalties for destroying/ altering financial records

6. Increased penalties for white collar crimes
Term
Sarbanes/Oxy Act of 2002 (SOX)

7-8
Definition
7. SEC can freeze transactions deemed unusual

8. Whistle-blower protection
Term
Sarbanes/Oxy Act of 2002 (SOX)

9-10
Definition
9. Increase SEC resources

10. Faster reporting of insider trades
Term
Sarbanes/Oxy Act of 2002 (SOX)

11-12
Definition
11. CEO must sign tax returns

12. Creates an accounting oversight board
Term
SEC
Definition
Securities & Exchange Commission
Term
Whistle-Blower Protection
Definition
a United States federal law that protects federal whistleblowers who work for the government and report agency misconduct. A federal agency violates the Whistleblower Protection Act if agency authorities take (or threaten to take) retaliatory personnel action against any employee or applicant because of disclosure of information by that employee or applicant.
Term
Financial Reform Act of 2010

1-2
Definition
1. Regulate orderly liquidation of corporations

2. Hedge funds must register with government agency
Term
Financial Reform Act of 2010
3-4
Definition
3. Volcker Rule: Banks restricted to only use 3% of holdings in hedge funds/ speculative investments (derivatives)

4. Counter-cyclical capital reserves for banks
Term
Financial Reform Act of 2010
5-6
Definition
5. Derivatives have to be traded through exchanges, not OTC

6. Increased regulation of rating agencies (e.g. - Standard & Poor, Mooneys)
Term
Financial Reform Act of 2010

7-8
Definition
7. CEO stock options must be included in compensation expenses

8. Shareholders may veto "golden parachutes"
Term
Financial Reform Act of 2010

9-10
Definition
9. Say on Pay

10. Federal Reserve audited by GAO
Term
Financial Reform Act of 2010

11-12
Definition
11. National standards of lending - no predatory lending

12. Financial stability oversight council
Term
Financial Reform Act of 2010

13-14
Definition
13. Consumer financial protection bureau

14. Federal Insurance Office
Term
Financial Reform Act of 2010

15-16
Definition
15. Debit card fee regulation

16. Investment advisers must register with SEC ("Bernie Madoff" Rule)
Term
Financial Reform Act of 2010

17
Definition
17. Whistle-blower bounty program
Term
Volcker Rule
Definition
Banks restricted to only use 3% of holdings in hedge funds/ speculative investments (derivatives)
Term
OTC
Definition
Over-The-Counter
Term
"Golden Parachutes"
Definition
an agreement between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated.
Term
GAO
Definition
Government Accountability Office
Term
Bernie Madoff
Definition
a former American stockbroker, entrepreneur, and investor. PONZI SCHEME
Term
Types of White Collar Crimes
Definition
Securities-Related crimes
Bankruptcy Fraud
Fraud against the government
Consumer fraud
Insurance fraud
Tax fraud
Bribery, corruption, and political fraud
Insider-Related fraud
Term
Securities Related Crimes (Churning)
Definition
Churning - The practice of trading a client's shares or stock frequently in order to generate large commissions.
Term
Securities Related Crimes (Insider Trading)
Definition
Insider Trading - The use of material, non public financial information to obtain an unfair advantage in trading securities.
Term
Securities Related Crimes (Stock Manipulation)
Definition
Stock manipulation - Common in the "pink-sheets" over the counter market, in which some stocks are traded at very low prices, but it is by no means limited to such stocks.
Term
Securities related Crimes (Boiler Rooms)
Definition
Boiler Rooms - Operations run by stock manipulators who, through deception and misleading sales techniques, seduce unsuspecting and uninformed individuals into buying stocks in obscure and often poorly financed corporations.
Term
Bankruptcy Fraud
Definition
Any scam designed to take advantage of loopholes in the bankruptcy laws.
Term
Bankruptcy
Definition
The filing of a bankruptcy petition results in proceedings in which the property and financial obligations of an insolvent person or corporation are disposed of.
Term
Fraud against the government
Definition
Collusion in biding

Payoffs

Kickbacks to government officials

Expenditures by a government officials that exceed the budget

Filing of false claims

Hiring of friends and associates
formerly employed by the government

Offers of inducements to government officials
Term
Kickbacks
Definition
a form of bribery
Term
Problems Prosecuting Corporate Crimes
Definition
1. Who's responsible?

2. Boring/complicated for juries and prosecutors

3. Criminal intent or aggressive business practice?

4. Best punishment: fines or prison?

5. How much damage is done?

6. Lack of laws (2 ledger, stock options)

7. Lack of law enforcement resources

8. Auditors paid by corporations they assess

9. Dollar cap on lawsuits against corporations/auditing firms
Term
Corporation
Definition
A business entity who's members have a separation from the company
Term
Health Care Fraud (Overutilization)
Definition
Overutilization - Involves billing for superfluous and unnecessary tests and other services.
Term
Health Care Fraud (Ping-Ponging)
Definition
Ping-ponging - Occurs when physicians refer patients to several practitioners when symptoms do not warrant such referrals
Term
Health Care Fraud (Family Ganging)
Definition
Family ganging - takes place when a doctor extends several unnecessary services to all members of a patients family
Term
Health Care Fraud (Steering)
Definition
Sterring - the practice in which doctors direct patients to the clinic's pharmacy to fill unneeded prescriptions
Term
Health Care Fraud (Upgrading)
Definition
Upgrading - A patient is billed for services more extensive than those that were actually performed
Term
Consumer Fraud
Definition
The act of causing a consumer to surrender money through deceit or misrepresentation of a material fact
Term
Examples of Consumer fraud
Definition
Home improvement fraud

Deceptive Advertising

Telemarketing fraud

Land fraud

Business opportunity fraud

Health care fraud
Term
Top 10 Consumer fraud
Definition
1. Internet auctions
2. Internet services and computer complaints
3. Advanced fee loans and credit protection
4. Shop at home/ catalog sales
5. Foreign money offers
6. Prizes/ sweepstakes at lotteries
7. Business opportunity / work at home plans
8. Telephone services
9. Health care
10. Magazine and buyer clubs
Term
How is Tax Fraud committed
Definition
Keeping two sets of books

Shifting funds

Faking forms
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