Term
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Definition
| The malicious burning of or setting fire to the dwelling of another person. |
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Term
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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 |
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Term
Sarbanes/Oxy Act of 2002 (SOX)
1-2 |
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Definition
1. Restricts auditors' conflict of interest
2. CEOs are responsible for corporate financial reports - they must be certified |
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Term
Sarbanes/Oxy Act of 2002 (SOX)
3-4 |
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Definition
3. "Off-balance-sheet" transactions must be reported
4. Restricts securities analyst's conflict of interests |
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Term
Sarbanes/Oxy Act of 2002 (SOX)
5-6 |
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Definition
5. Increased penalties for destroying/ altering financial records
6. Increased penalties for white collar crimes |
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Term
Sarbanes/Oxy Act of 2002 (SOX)
7-8 |
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Definition
7. SEC can freeze transactions deemed unusual
8. Whistle-blower protection |
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Term
Sarbanes/Oxy Act of 2002 (SOX)
9-10 |
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Definition
9. Increase SEC resources
10. Faster reporting of insider trades |
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Term
Sarbanes/Oxy Act of 2002 (SOX)
11-12 |
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Definition
11. CEO must sign tax returns
12. Creates an accounting oversight board |
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Term
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Definition
| Securities & Exchange Commission |
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Term
| Whistle-Blower Protection |
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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. |
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Term
Financial Reform Act of 2010
1-2 |
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Definition
1. Regulate orderly liquidation of corporations
2. Hedge funds must register with government agency |
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Term
Financial Reform Act of 2010
3-4 |
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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 |
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Term
Financial Reform Act of 2010
5-6 |
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Definition
5. Derivatives have to be traded through exchanges, not OTC
6. Increased regulation of rating agencies (e.g. - Standard & Poor, Mooneys) |
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Term
Financial Reform Act of 2010
7-8 |
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Definition
7. CEO stock options must be included in compensation expenses
8. Shareholders may veto "golden parachutes" |
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Term
Financial Reform Act of 2010
9-10 |
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Definition
9. Say on Pay
10. Federal Reserve audited by GAO |
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Term
Financial Reform Act of 2010
11-12 |
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Definition
11. National standards of lending - no predatory lending
12. Financial stability oversight council |
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Term
Financial Reform Act of 2010
13-14 |
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Definition
13. Consumer financial protection bureau
14. Federal Insurance Office |
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Term
Financial Reform Act of 2010
15-16 |
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Definition
15. Debit card fee regulation
16. Investment advisers must register with SEC ("Bernie Madoff" Rule) |
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Term
Financial Reform Act of 2010
17 |
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Definition
| 17. Whistle-blower bounty program |
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Term
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Definition
| Banks restricted to only use 3% of holdings in hedge funds/ speculative investments (derivatives) |
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Term
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Definition
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Term
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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. |
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Term
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Definition
| Government Accountability Office |
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Term
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Definition
| a former American stockbroker, entrepreneur, and investor. PONZI SCHEME |
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Term
| Types of White Collar Crimes |
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Definition
Securities-Related crimes
Bankruptcy Fraud
Fraud against the government
Consumer fraud
Insurance fraud
Tax fraud
Bribery, corruption, and political fraud
Insider-Related fraud |
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Term
| Securities Related Crimes (Churning) |
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Definition
| Churning - The practice of trading a client's shares or stock frequently in order to generate large commissions. |
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Term
| Securities Related Crimes (Insider Trading) |
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Definition
| Insider Trading - The use of material, non public financial information to obtain an unfair advantage in trading securities. |
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Term
| Securities Related Crimes (Stock Manipulation) |
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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. |
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Term
| Securities related Crimes (Boiler Rooms) |
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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. |
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Term
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Definition
| Any scam designed to take advantage of loopholes in the bankruptcy laws. |
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Term
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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. |
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Term
| Fraud against the government |
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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 |
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Term
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Definition
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Term
| Problems Prosecuting Corporate Crimes |
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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 |
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Term
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Definition
| A business entity who's members have a separation from the company |
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Term
| Health Care Fraud (Overutilization) |
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Definition
| Overutilization - Involves billing for superfluous and unnecessary tests and other services. |
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Term
| Health Care Fraud (Ping-Ponging) |
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Definition
| Ping-ponging - Occurs when physicians refer patients to several practitioners when symptoms do not warrant such referrals |
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Term
| Health Care Fraud (Family Ganging) |
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Definition
| Family ganging - takes place when a doctor extends several unnecessary services to all members of a patients family |
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Term
| Health Care Fraud (Steering) |
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Definition
| Sterring - the practice in which doctors direct patients to the clinic's pharmacy to fill unneeded prescriptions |
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Term
| Health Care Fraud (Upgrading) |
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Definition
| Upgrading - A patient is billed for services more extensive than those that were actually performed |
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Term
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Definition
| The act of causing a consumer to surrender money through deceit or misrepresentation of a material fact |
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Term
| Examples of Consumer fraud |
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Definition
Home improvement fraud
Deceptive Advertising
Telemarketing fraud
Land fraud
Business opportunity fraud
Health care fraud |
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Term
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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 |
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Term
| How is Tax Fraud committed |
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Definition
Keeping two sets of books
Shifting funds
Faking forms |
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