1. The Criminal Law And Business10
The Criminal Law And Business

2. Introduction
Business Law Did Not Consist Of Understanding Of Criminal Law- Changed
Reasons For Change Of View:
Arthur Andersen
Enron
MCI/WorldCom

3. Crime Wrong Against Society & Prohibited Conduct Malum In Se
White-Collar Crime Committed By:
Business Entities
Officers
Accountants
Attorneys
Desk Workers

4. Crime Classifications
Felony
Misdemeanor
Indictment
Grand Jury
Information
Gov’t Charge
Fine Or
Imprisonment
Fine Or
Jail<1 yr.

5. California Crime Statistics
Crime Rate Per 100,000 Population
Source: Office Of Attorney General, Dept. Of Justice, State Of California

6. U.S. Felony Conviction Rates(2000)
Source: U.S. Dept. Of Justice, Office Of Justice Programs, Bureau Of Justice Statistics

7. Concepts Willfully Pleas Committed Voluntarily On Purpose Intent
Guilty
Not Guilty
Nolo Contendere

8. Grand Jury Constitution- 5th Amendment 23 Citizens Of Jurisdiction
Probable Cause
Presumption Of Innocence
No Defense Counsel
Subpoena Power
Secret Proceedings

9. Conspiracy More Than 1 Person Agrees To Carrying Out Criminal Offense
Each Member Is Agent/Partner Of Other Members- Willful Member
Commit Overt Act- Not Required To Know Details

10. Aiding And Abetting Federal Charge Assist In Criminal Act
Participating In Conspiracy
State Charge = Accessory
Before Crime
After The Fact

11. Fourth Amendment To Constitution
Illegal Search & Seizure- Unreasonable
Extends To Civil Matters
Assumes Expectation Of Privacy

12. Fifth Amendment To Constitution
Self-Incrimination
Protects Accused From Testifying Against Self
Does Not Protect Against Being Required To Produce Evidence
Business Records Can Be Obtained
Only Protects Sole Proprietorship Entity
Double Jeopardy

13. Sixth Amendment To Constitution
Provides Protections To:
Speedy/Public Trial
Trial By Jury
Be Informed Of Charge
Confront Accuser
Subpoena Witnesses
Assistance Of Attorney

14. Specific Business Crimes
Worker Endangerment- Occupational Safety & Health Act
Obstruction Of Justice
False Statement
Bank
Federal Agency
OSHA

15. Specific Business Crimes (cont’d)
Larceny- Unlawful Taking Of Property
Robbery
Burglary

16. Fraud Elements: Securities Fraud Health Care Fraud Mail & Wire Fraud
Intention To Mislead
Misstatement Of Fact
Justifiable Reliance
Injury
Securities Fraud
Health Care Fraud
Mail & Wire Fraud
securities
Health
Care
Mail &
Wire
FRAUD

17. Mail And Wire Fraud Interstate Communication
Scheme To Defraud- Course Of Action To Deceive Others
Legal Aspects- Statement (Material Fact) Known To Be Untrue Or Disregards Truth
Intent To Defraud- Act Knowingly
Good Faith

18. Bankruptcy Crimes
Falsify Information
False Claim
Concealment

19. Racketeer Influenced & Corrupt Organizations Act(1970)
Liability
Use/Invest Income From Prohibited Activities
Acquire/Maintain Interest In Prohibited Enterprise
Conducts/Participates In Prohibited Enterprise
Prohibited Activity
Pattern Of Racketeering
Collection Of Unlawful Debt

20. Cyber Crime
Hacker (Cracker)- Unlawful Access To Electronic Information
Electronic Theft
Trade Secrets
Personnel Records
Customer Lists

21. Trends Sarbanes-Oxley Act Prosecution For Tax Evasion
Plea Bargain With Mid-Level Employees In Exchange For Testimony Against Top-Level Employees
Seizure Of Assets

22. Business Decision: Cashing Out
Did You Commit A Crime When You Sold The Stock?
Did You Commit A Crime In Your Answer To The Federal Agent?
Were You Part Of An Illegal Conspiracy?

23. 10
End of Chapter 10