CRIMES Used by permission. For Educational purposes only.

2 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. 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. Crimes are classified as felonies and misdemeanors. A felony is a crime that is punishable by imprisonment or death. 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. A misdemeanor is punishable by a fine or less than a year in prison.

3 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.

4 General Principles Responsibility for Criminal Acts. Responsibility for Criminal Acts. What happens when ‘innocent’ person is charged with a crime? What happens when ‘innocent’ person is charged with a crime? Corporate Responsibility. Corporate Responsibility. Corporations may be held responsible for the criminal acts of their employees. Corporations may be held responsible for the criminal acts of their employees. Liability may attach when employees fail to act. Liability may attach when employees fail to act. Forfeiture is a penalty for a crime. Forfeiture is a penalty for a crime.

5 Sarbanes-Oxley Reforms Passed after the Enron-WorldCom debacles, called the White-Collar Crime Penalty Enhancement Act of Passed after the Enron-WorldCom debacles, called the White-Collar Crime Penalty Enhancement Act of Substantially increases penalties for corporate crimes. Substantially increases penalties for corporate crimes. Mail and wire fraud penalties to 20 years. Mail and wire fraud penalties to 20 years.

6 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 CrimesUse of Mails to DefraudCriminal LibelEmbezzlement Improper use of Interstate Commerce Securities CrimesCheats and Swindles Obtaining Goods by False Pretenses Bad ChecksFalse ClaimsPerjuryForgeryCounterfeiting Improper Commercial Influence Improper Political Influence BlackmailExtortionBriberyRacketeering White Collar Crimes

7 Punishment There is no uniform law of crimes. Each state and the federal government define and punish crimes as they choose. 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. 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. “Patriot Act” after 9-11 amends the Money Laundering Control Act and Bank Secrecy Act.

8 Computer Crimes Statutes have expanded the area of criminal law to meet situations in which computers are involved. 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 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. 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.

9 Computer Crimes Crime that can be committed only by person having knowledge or use of a computer. Crime that can be committed only by person 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 Computer. Circumventing Copyright Protection by Computer.

10 AgencyMay complaint name individual? Maximum individual penaltyMaximum corporate penalty Internal Revenue ServiceYesWillful 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; willful failure to file, $100,000; fraud, $500,000 Antitrust Division of the Justice Department Yes$100,000, three years, or both$1 million, injunction, divestiture Food and Drug Administration Yes$1,000, one year, or both for first offense; $10,000, three years, or both thereafter, illegal drug importation, $250,000/ten years $1,000 for first offense, $10,000 thereafter; seizure of condemned products; illegal drug importation, $250,000 Federal Trade CommissionYesRestitution, injunctionRestitution, injunction, divestiture, $10,000 per day for violation of rules, orders Securities and ExchangeYes$10,000, five years, or both (1933); $100,000, five years, or both (1934) $2,000,000 Penalties for Business Crimes

11 Penalties for Business Crime (cont’d) AgencyMay complaint name individual? Maximum individual penaltyMaximum corporate penalty Equal Employment Opportunity Commission NoInjunction (some state liability possible) Injunction, back pay award, reinstatement Office of Federal Contract Compliance Programs NoSuspension, cancellation of contract Environmental Protection Agency YesMedical waste, $50,000/two years; solid waste, $250,000/two years; $50,000 per day of violation penalty Medical waste, $1,000,000; solid waste, $1,000,000; $50,000 per day of violation penalty Occupational Safety and Health Administration NoWillful, 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 $70,000 Consumer Product Safety Commission Yes$50,000, one year, or both$500,000 (civil) Fair Labor Standards Act Department Yes$10,000 per employee, six months, or both $100,000, reimbursement of wages AgencyMay complaint name individual? Maximum individual penaltyMaximum corporate penalty Equal Employment Opportunity Commission NoInjunction (some state liability possible) Injunction, back pay award, reinstatement Office of Federal Contract Compliance Programs NoSuspension, cancellation of contract Environmental Protection Agency YesMedical waste, $50,000/two years; solid waste, $250,000/two years; $50,000 per day of violation penalty Medical waste, $1,000,000; solid waste, $1,000,000; $50,000 per day of violation penalty Occupational Safety and Health Administration NoWillful, 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 $70,000 Consumer Product Safety Commission Yes$50,000, one year, or both$500,000 (civil) Fair Labor Standards Act Department Yes$10,000 per employee, six months, or both $100,000, reimbursement of wages

12 Constitutional Amendments Criminal procedure is dictated by the Fourth, Fifth, and Sixth Amendments. Criminal procedure is dictated by the Fourth, Fifth, and Sixth Amendments. The Fourth Amendment protects against unreasonable searches. The Fourth Amendment protects against unreasonable searches. The Fifth Amendment protects against self- incrimination and provides due process. The Fifth Amendment protects against self- incrimination and provides due process. Corporations do not have a right to remain silent. Disclosures of corporate records must be made Corporations do not have a right to remain silent. Disclosures of corporate records must be made The Sixth Amendment guarantees a speedy trial. The Sixth Amendment guarantees a speedy trial.