CRIMESCRIMES

Used by permission. For Educational purposes

only.

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General PrinciplesGeneral Principles

• Crime: When a person does not live up to Crime: When a person does not live up to the standards set by law, that society will the standards set by law, that society will prosecute the person for the misconduct. prosecute the person for the misconduct.

• Crimes are classified as felonies and Crimes are classified as felonies and misdemeanors. misdemeanors.

• A felony is a crime that is punishable A felony is a crime that is punishable by imprisonment or death.by imprisonment or death.

• A misdemeanor is punishable by a fine A misdemeanor is punishable by a fine or less than a year in prison.or less than a year in prison.

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General PrinciplesGeneral Principles

Mental StateMental State

The defendant The defendant does not have does not have to know that to know that

the act is the act is criminal; it is criminal; it is sufficient that sufficient that the act was the act was

done done voluntarily.voluntarily.

ActAct

An act or An act or omission of omission of a required a required act must act must actually actually

take place.take place.

HarmHarm

Harm may Harm may occur, but it occur, but it

is not a is not a required required

element for element for an act to be an act to be classified as classified as

a crime.a crime.

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General PrinciplesGeneral Principles• Responsibility for Criminal Acts.Responsibility for Criminal Acts.

• What happens when ‘innocent’ person is What happens when ‘innocent’ person is charged with a crime?charged with a crime?

• Corporate Responsibility.Corporate Responsibility.

• Corporations may be held responsible for Corporations may be held responsible for the criminal acts of their employees.the criminal acts of their employees.

• Liability may attach when employees Liability may attach when employees failfail to to act.act.

• Forfeiture is a penalty for a crime. Forfeiture is a penalty for a crime.

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Sarbanes-Oxley Sarbanes-Oxley ReformsReforms

• Passed after the Enron-WorldCom Passed after the Enron-WorldCom debacles, called the White-Collar debacles, called the White-Collar Crime Penalty Enhancement Act of Crime Penalty Enhancement Act of 2002.2002.

• Substantially increases penalties Substantially increases penalties for corporate crimes.for corporate crimes.

• Mail and wire fraud penalties to 20 Mail and wire fraud penalties to 20 years.years.

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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 Cheats and Swindles

Obtaining Goods by False Pretenses

Bad Checks

False Claims

Perjury

Forgery

Counterfeiting

Improper Commercial Influence

Improper Political Influence

Blackmail

Extortion

Bribery

Racketeering

White Collar CrimesWhite Collar Crimes

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PunishmentPunishment• There is no uniform law of crimes. Each There is no uniform law of crimes. Each

state and the federal government define state and the federal government define and punish crimes as they choose. and punish crimes as they choose.

• Although the tendency is to follow a Although the tendency is to follow a common pattern, many variations exist common pattern, many variations exist between the law of different states and between the law of different states and federal law.federal law.

• ““Patriot Act” after 9-11 amends the Money Patriot Act” after 9-11 amends the Money Laundering Control Act and Bank Secrecy Laundering Control Act and Bank Secrecy Act.Act.

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Computer CrimesComputer Crimes• Statutes have expanded the area of Statutes have expanded the area of

criminal law to meet situations in which criminal law to meet situations in which computers are involved. computers are involved.

• The unauthorized taking of information The unauthorized taking of information from a computer is made a crime under from a computer is made a crime under both federal and state statutes. both federal and state statutes.

• The Federal Computer Access Device and The Federal Computer Access Device and Computer Fraud and Abuse Act of 1984 Computer Fraud and Abuse Act of 1984 and the Electronic Fund Transfers Act of and the Electronic Fund Transfers Act of 1978 also expand the definition of a 1978 also expand the definition of a computer crime.computer crime.

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Computer CrimesComputer Crimes

• Crime that can be committed only by person Crime that can be committed only by person having knowledge or use of a computer.having knowledge or use of a computer.

• Computers can be ‘victims.’Computers can be ‘victims.’

• Theft of Hardware or Software.Theft of Hardware or Software.

• Diverting Delivery by Computer.Diverting Delivery by Computer.

• Economic Espionage by Computer.Economic Espionage by Computer.

• Circumventing Copyright Protection by Circumventing Copyright Protection by Computer.Computer.

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Agency May complaintname

individual?

Maximum individual penalty Maximum corporatepenalty

Internal Revenue Service Yes Willful failure to pay,$10,000/five years; willful

failure to file, $25,000/one year;fraud, $100,000/three years

Willful failure to pay,$10,000, 50% assessment,prosecution costs; willfulfailure to file, $100,000;fraud, $500,000

Antitrust Division of theJustice Department

Yes $100,000, three years, or both$1 million, injunction,divestiture

Food and DrugAdministration

Yes $1,000, one year, or both forfirst offense; $10,000, three

years, or both thereafter, illegaldrug importation, $250,000/ten

years

$1,000 for first offense,$10,000 thereafter; seizure ofcondemned products; illegaldrug importation, $250,000

Federal Trade Commission Yes Restitution, injunction Restitution, injunction,divestiture, $10,000 per dayfor violation of rules, orders

Securities and Exchange Yes $10,000, five years, or both(1933); $100,000, five years, or

both (1934)

$2,000,000

Penalties for Business Penalties for Business CrimesCrimes

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Penalties for Business Crime Penalties for Business Crime (cont’d)(cont’d)

Agency May complaintname

individual?

Maximum individual penalty Maximum corporatepenalty

Equal EmploymentOpportunity Commission

No Injunction (some state liabilitypossible)

Injunction, back pay award,reinstatement

Office of Federal ContractCompliance Programs

No Suspension, cancellation ofcontract

Environmental ProtectionAgency

Yes Medical waste, $50,000/twoyears; solid waste,$250,000/two years; $50,000per day of violation penalty

Medical waste, $1,000,000;solid waste, $1,000,000;$50,000 per day of violation

penalty

Occupational Safety andHealth Administration

No Willful, maximum of $70,000per violation; minimum of$5,000 per violation; death,$10,000 and/or six months;false reports, $10,000 and/or sixmonths; advance notice ofinspection, $1,000 and/or six

months

$70,000

Consumer Product SafetyCommission

Yes $50,000, one year, or both $500,000 (civil)

Fair Labor Standards ActDepartment

Yes $10,000 per employee, sixmonths, or both

$100,000, reimbursement ofwages

Agency May complaintname

individual?

Maximum individual penalty Maximum corporatepenalty

Equal EmploymentOpportunity Commission

No Injunction (some state liabilitypossible)

Injunction, back pay award,reinstatement

Office of Federal ContractCompliance Programs

No Suspension, cancellation ofcontract

Environmental ProtectionAgency

Yes Medical waste, $50,000/twoyears; solid waste,$250,000/two years; $50,000per day of violation penalty

Medical waste, $1,000,000;solid waste, $1,000,000;$50,000 per day of violation

penalty

Occupational Safety andHealth Administration

No Willful, maximum of $70,000per violation; minimum of$5,000 per violation; death,$10,000 and/or six months;false reports, $10,000 and/or sixmonths; advance notice ofinspection, $1,000 and/or six

months

$70,000

Consumer Product SafetyCommission

Yes $50,000, one year, or both $500,000 (civil)

Fair Labor Standards ActDepartment

Yes $10,000 per employee, sixmonths, or both

$100,000, reimbursement ofwages

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Constitutional Constitutional AmendmentsAmendments

• Criminal procedure is dictated by the Fourth, Fifth, Criminal procedure is dictated by the Fourth, Fifth, and Sixth Amendments. and Sixth Amendments.

• The The FourthFourth Amendment protects against Amendment protects against unreasonable searches.unreasonable searches.

• The The FifthFifth Amendment protects against self- Amendment protects against self-incrimination and provides due process.incrimination and provides due process.

• Corporations do not have a right to remain Corporations do not have a right to remain silent. Disclosures of corporate records must silent. Disclosures of corporate records must be madebe made

• The The SixthSixth Amendment guarantees a speedy trial. Amendment guarantees a speedy trial.