Chapter Criminal Law and Business © 2013 The McGraw-Hill Companies, Inc All rights reserved Copyright © 2016 McGraw-Hill Education. All rights reserved Chapter Case Hypothetical Thomas Townsend has an embarrassing criminal past In 1985, he was convicted of pedophilia, having had sexual relations with a 15-year-old child (at the time, Townsend was 29 years old.) By all accounts, Townsend has led a relatively uneventful life over the years since 1985, spending most of his time building and selling musical instruments to earn a living, and reclusively “keeping to himself” on his property on the edge of town Local police investigators are curious whether Townsend has truly learned from “the error of his ways.” The local sheriff has received a number of complaints from area citizens, who are appalled that a child sex offender is “among their midst.” Working in collaboration with the Federal Bureau of Investigation (FBI,) local police authorities devise and implement a plan to determine whether Thomas is leading an innocent life Over the course of an eighteen-month period, police investigators mail Townsend a circular they have created, advertising a fictitious publication called “Lustful Lads and Lasses.” Among other pronouncements, the circular entices readers to “order now before publication ceases; see young boys and girls aged 12-16 engaged in all sorts of acts only big boys and girls should be allowed to do!” Having received the circular each month and having declined on seventeen occasions, Townsend finally responds to the circular on the eighteenth occasion, mailing in the $39.95 purchase price Local, state and federal authorities immediately intervene, arresting Townsend for solicitation of child pornographic materials At Townsend’s arraignment hearing, his attorney moves for immediate dismissal of the charges, arguing entrapment Do the police efforts described constitute entrapment? Does entrapment justify dismissal of all charges against the accused? Rather than dismissal of charges, why not simply sanction those authorities responsible for the entrapment? © 2013 The McGraw-Hill Companies, Inc All rights reserved Chapter Case Hypothetical and Ethical Dilemma Warren Delaney believed that his home was his “castle,” and during the summer months every year, his “castle” was a tiny cabin nestled in the woods of upstate New York Delaney was an Economics professor at a small college in Florida, and for him, there was no better way to “rest and recharge” after a hectic academic year than to head north for the cozy confines of his cabin For several consecutive years, Warren’s cabin had been vandalized and/or burglarized during the winter months while he was in Florida During the winter of 2010, several windows had been shattered In the winter of 2011, several pieces of furniture had been stolen At some point during the winter of 2012, the bedroom mattress had been ripped apart for some unexplained reason, with foam and fabric scattered about the bedroom floor On each of these occasions, the perpetrator had forced the front door lock open, and had entered the cabin through the front door Warren envisioned a way to stop the criminal(s) responsible for these violations He spring-loaded a shotgun in the living room of the cabin, and pointed it directly at the front door The shotgun was configured so that if someone opened the front door while he was away, it would fire at the intruder Warren returned to his cabin in May 2014 and came upon a grisly scene The front door had been opened, and at the threshold was the partially-decomposed body of what appeared to be a middleaged man, dead of a shotgun blast to the chest Warren immediately called the local sheriff, Officer Brian Mulholland Upon arriving at the scene and briefly questioning Warren, Officer Mulholland arrested him Was the arrest valid? Did Warren Delaney commit first-degree murder? Did Warren use justifiable force in this situation? © 2013 The McGraw-Hill Companies, Inc All rights reserved Elements of a Crime •“Actus Reus”—Wrongful behavior (guilty act) •“Mens Rea”—Wrongful state of mind, such as purpose, knowledge, recklessness, or negligence (guilty mind) © 2013 The McGraw-Hill Companies, Inc All rights reserved Classification of Crimes •Felonies—Serious crimes punishable by imprisonment for greater than one year, or death •Misdemeanors—Less serious crimes punishable by fines, or imprisonment for less than one year •Petty Offenses—Minor misdemeanors punishable by small fines or short jail sentences © 2013 The McGraw-Hill Companies, Inc All rights reserved White Collar Crime Definition: A variety of nonviolent illegal acts against society that occur most frequently in the business context © 2013 The McGraw-Hill Companies, Inc All rights reserved Crimes Affecting Business: “White Collar Crimes Bribery Extortion Fraud Embezzlement Computer Crimes â 2013 The McGraw-Hill Companies, Inc All rights reserved Bribery Definition: The offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust © 2013 The McGraw-Hill Companies, Inc All rights reserved Extortion (Blackmail) Definition: The making of threats for the purpose of obtaining money or property © 2013 The McGraw-Hill Companies, Inc All rights reserved Fraud Definition: A variety of means by which an individual intentionally uses some sort of misrepresentation to gain advantage over another person © 2013 The McGraw-Hill Companies, Inc All rights reserved 10 “Miranda Rights” Before a law enforcement officer engages in “custodial interrogation,” he/she must inform the defendant of the following: •“You have the right to remain silent and refuse to answer any questions” •“Anything you say may be used against you in a court of law” •“You have the right to consult an attorney before speaking to the police and have an attorney present during any questioning now or in the future” •“If you cannot afford an attorney, one will be appointed for you before the questioning begins” •“If you not have an attorney available, you have the right to remain silent until you have had an opportunity to consult with one” •“Now that I have advised you of your rights, are you willing to answer any questions without an attorney present?” © 2013 The McGraw-Hill Companies, Inc All rights reserved 23 Criminal Procedure: Trial Procedure •Jury Selection •Trial (with burden of proof on prosecution) •Jury Deliberations •Jury Verdict •Sentencing Hearing (if Defendant found guilty) © 2013 The McGraw-Hill Companies, Inc All rights reserved 24 Affirmative Defenses to Crimes • Infancy • Mistake of Fact • Entrapment • Necessity • Intoxication • Insanity • Justifiable Use of Force • Duress © 2013 The McGraw-Hill Companies, Inc All rights reserved 25 Affirmative Defenses to Crimes: Infancy A person who is not yet a legal adult may use this defense to defuse the “guilty mind” requirement of a crime © 2013 The McGraw-Hill Companies, Inc All rights reserved 26 Affirmative Defenses to Crimes: Mistake of Fact The defendant says his or her honest and reasonable mistake about a fact relevant to the commission of the crime negates the idea of a guilty mind © 2013 The McGraw-Hill Companies, Inc All rights reserved 27 Affirmative Defenses to Crimes: Intoxication The defendant says he or she took an intoxicant without awareness of its likely effect, mistook its identity, or took the intoxicant under force © 2013 The McGraw-Hill Companies, Inc All rights reserved 28 Affirmative Defenses to Crimes: Insanity The defendant contends he or she had a severe mental illness that substantially impaired the defendant’s capacity to understand and appreciate the moral wrongfulness of the act © 2013 The McGraw-Hill Companies, Inc All rights reserved 29 Affirmative Defenses to Crimes: Duress The defendant says he or she was forced to perform an act against his or her will © 2013 The McGraw-Hill Companies, Inc All rights reserved 30 Affirmative Defenses to Crimes: Entrapment The defendant contends he or she would not have committed the crime or broken the law if not induced or tricked into doing so by law enforcement officers © 2013 The McGraw-Hill Companies, Inc All rights reserved 31 Affirmative Defenses to Crimes: Necessity The defendant contends he or she was acting to prevent imminent harm, and there was no legal alternative to the action he or she took © 2013 The McGraw-Hill Companies, Inc All rights reserved 32 Affirmative Defenses to Crimes: Justifiable Use of Force The defendant contends the use of force was necessary to prevent imminent death or great bodily harm to the defendant or to another or to prevent the imminent commission of a forcible felony © 2013 The McGraw-Hill Companies, Inc All rights reserved 33 Criminal Procedure: Posttrial Procedure •If jury returns verdict of not guilty, government (prosecution) cannot appeal the acquittal •If jury returns verdict of guilty, defendant may appeal verdict by claiming prejudicial error of law at trial •If no appeal, defendant sentenced after judge receives additional information relevant to sentencing © 2013 The McGraw-Hill Companies, Inc All rights reserved 34 The Racketeer Influenced and Corrupt Organizations Act (RICO) •Prohibits persons employed by or associated with an enterprise from engaging in a pattern of racketeering activity •Anyone whose business or property has been damaged can sue to recover treble damages and attorney fees in a civil action © 2013 The McGraw-Hill Companies, Inc All rights reserved 35 The False Claims Act •Allows employees to sue employers on behalf of the federal government Employee retains share of recovery â 2013 The McGraw-Hill Companies, Inc All rights reserved 36 The Sarbanes-Oxley Act •Passed by Congress in response to the business scandals of the early 2000s (Examples: Enron, WorldCom, Global Crossing, Arthur Anderson) •Criminalizes specific non-audit services when provided by a registered accounting firm to an audit client •Increases the punishment for a number of whitecollar offenses •Extends the statute of limitations regarding the discovery of fraud (two years from the date of discovery of the fraud, five years from the date of the criminal act) © 2013 The McGraw-Hill Companies, Inc All rights reserved 37 ... against society that occur most frequently in the business context © 2013 The McGraw-Hill Companies, Inc All rights reserved Crimes Affecting Business: “White Collar” Crimes •Bribery •Extortion... defendant contends he or she would not have committed the crime or broken the law if not induced or tricked into doing so by law enforcement officers © 2013 The McGraw-Hill Companies, Inc All rights.. .Chapter Case Hypothetical Thomas Townsend has an embarrassing criminal past In 1985, he was convicted