White Collar Crime Final Exam
questions well answered graded A+
Public Interests in prosecuting Corporate Crime - ANS ✔✔1- protecting the integrity of
economic and capital markets
2- protecting consumers, investors and business entities against competitors who use unfair
advantages
3- preventing violations of environmental laws
4- discouraging business practices that would permit or promote unlawful conduct at the
expense of the public interest
One of the most effective ways to combat corporate misconduct is to... - ANS ✔✔hold all
accountable all individuals who engage in wrongdoing (go after the individuals)
Because a corporation only acts through individuals
Prosecution of a corporation is not a substitute for the prosecution of criminally culpable
individuals - ANS ✔✔a corporation can only act through individuals- individual criminal liability
may be the most effective deterrent against future wrongdoing
provable individual criminal culpability should be pursued especially if it is by high level
corporate officers
There are additional factors to consider when prosecuting a corporate target - ANS ✔✔- nature
and seriousness of the offense (including risk of harm to public)
- pervasiveness of wrongdoing within the company (one person vs. most people)
- corporations history of similar misconduct
- corporations willingness to cooperate (must identify all individuals substantially involved and
provide all relevant facts- good faith exception, also consider obstruction efforts)
,- adequacy and effectiveness of corporations compliance program at the time of the offense and
at the time of charging
- corporations timely and voluntary disclosure of wrongdoing
- the corporations remedial actions (efforts to fix problem, fire wrongdoers, pay restitution)
- collateral consequences of indictment (shareholders, employees, public)
- adequacy of alternatives (civil or regulatory enforcement actions)
- adequacy of prosecuting individuals involved
- interests of any victims
Modern Environmental regulation - ANS ✔✔Started after Earth Day in 1970-
- US Environmental Protection Agency, Clean Water Act, Clean Air Act, Resource Conservation
and Recovery Act, etc
All statutes have criminal provisions so that they are enforceable
Environmental criminal statutes - ANS ✔✔Initially they were all misdemeanors (less than 1 year
prison) but most statutes have now been amended to substitute or add felonies
- usually determine whether it is a felony or misdemeanor with intent (knowingly vs negligently)
Environmental Administrative Law - ANS ✔✔statutes provide the agency with the authority to
regulate
statutes define compliance and criminal violations
Environmental enforcement - ANS ✔✔the major federal anti-pollution statutes are under the
US EPA, states have their own EPAs but must adhere to the US EPA standards (state standards
approved by the USEPA become federally enforceable)
Other federal agencies have statute specific authority- coast guard, department of
transportation, fish and wildlife
, Clean Water Act - ANS ✔✔All discharges of pollutants (inclusive definition) into US waters from
a point source are prohibited
Discharges are only allowed with a government issued permit which sets limits and requires
monthly reports
Permit system allows for enforcement of CWA because it sets definitive limits and mandatory
reporting
administrative v criminal liability - ANS ✔✔for administrative/civil violation need just the act, for
criminal need the act and knowingly (know the act was happening not that it was wrong- higher
standard because public welfare is at stake) or
Prosecutorial discretion - ANS ✔✔broad government enforcement discretion, but it is used
conservatively- usually only prosecute cases (and are trained to only prosecute cases) that were
done knowingly and willfully because they are aware of the political consequences of overuse
response to violation - ANS ✔✔immediate response actions- stop the violation
control the evidence- send out communication to employees not to destroy any evidence
internal investigation
Dotterweich - ANS ✔✔The owner of a company can be prosecuted for a crime their company
committed even if they didn't know it was being committed- congress puts the burden on the
owner to be responsible for their conduct for the protection of the public because they should
be informed of what their company is doing
Park - ANS ✔✔In order to protect the public, the president of a company has responsibility for
everything the company does even if they don't know about criminal conduct or don't engage in
criminal conduct
Iverson - ANS ✔✔The jury can find the defendant guilty as a responsible corporate officer if the
defendant has (1) knowledge of the act (2) the authority and capacity to stop it and (3) they
failed to prevent it
questions well answered graded A+
Public Interests in prosecuting Corporate Crime - ANS ✔✔1- protecting the integrity of
economic and capital markets
2- protecting consumers, investors and business entities against competitors who use unfair
advantages
3- preventing violations of environmental laws
4- discouraging business practices that would permit or promote unlawful conduct at the
expense of the public interest
One of the most effective ways to combat corporate misconduct is to... - ANS ✔✔hold all
accountable all individuals who engage in wrongdoing (go after the individuals)
Because a corporation only acts through individuals
Prosecution of a corporation is not a substitute for the prosecution of criminally culpable
individuals - ANS ✔✔a corporation can only act through individuals- individual criminal liability
may be the most effective deterrent against future wrongdoing
provable individual criminal culpability should be pursued especially if it is by high level
corporate officers
There are additional factors to consider when prosecuting a corporate target - ANS ✔✔- nature
and seriousness of the offense (including risk of harm to public)
- pervasiveness of wrongdoing within the company (one person vs. most people)
- corporations history of similar misconduct
- corporations willingness to cooperate (must identify all individuals substantially involved and
provide all relevant facts- good faith exception, also consider obstruction efforts)
,- adequacy and effectiveness of corporations compliance program at the time of the offense and
at the time of charging
- corporations timely and voluntary disclosure of wrongdoing
- the corporations remedial actions (efforts to fix problem, fire wrongdoers, pay restitution)
- collateral consequences of indictment (shareholders, employees, public)
- adequacy of alternatives (civil or regulatory enforcement actions)
- adequacy of prosecuting individuals involved
- interests of any victims
Modern Environmental regulation - ANS ✔✔Started after Earth Day in 1970-
- US Environmental Protection Agency, Clean Water Act, Clean Air Act, Resource Conservation
and Recovery Act, etc
All statutes have criminal provisions so that they are enforceable
Environmental criminal statutes - ANS ✔✔Initially they were all misdemeanors (less than 1 year
prison) but most statutes have now been amended to substitute or add felonies
- usually determine whether it is a felony or misdemeanor with intent (knowingly vs negligently)
Environmental Administrative Law - ANS ✔✔statutes provide the agency with the authority to
regulate
statutes define compliance and criminal violations
Environmental enforcement - ANS ✔✔the major federal anti-pollution statutes are under the
US EPA, states have their own EPAs but must adhere to the US EPA standards (state standards
approved by the USEPA become federally enforceable)
Other federal agencies have statute specific authority- coast guard, department of
transportation, fish and wildlife
, Clean Water Act - ANS ✔✔All discharges of pollutants (inclusive definition) into US waters from
a point source are prohibited
Discharges are only allowed with a government issued permit which sets limits and requires
monthly reports
Permit system allows for enforcement of CWA because it sets definitive limits and mandatory
reporting
administrative v criminal liability - ANS ✔✔for administrative/civil violation need just the act, for
criminal need the act and knowingly (know the act was happening not that it was wrong- higher
standard because public welfare is at stake) or
Prosecutorial discretion - ANS ✔✔broad government enforcement discretion, but it is used
conservatively- usually only prosecute cases (and are trained to only prosecute cases) that were
done knowingly and willfully because they are aware of the political consequences of overuse
response to violation - ANS ✔✔immediate response actions- stop the violation
control the evidence- send out communication to employees not to destroy any evidence
internal investigation
Dotterweich - ANS ✔✔The owner of a company can be prosecuted for a crime their company
committed even if they didn't know it was being committed- congress puts the burden on the
owner to be responsible for their conduct for the protection of the public because they should
be informed of what their company is doing
Park - ANS ✔✔In order to protect the public, the president of a company has responsibility for
everything the company does even if they don't know about criminal conduct or don't engage in
criminal conduct
Iverson - ANS ✔✔The jury can find the defendant guilty as a responsible corporate officer if the
defendant has (1) knowledge of the act (2) the authority and capacity to stop it and (3) they
failed to prevent it
