Corporate and White Collar Crime : Cases and Materials

by Brickey, Kathleen F.

• ISBN13: 9780735556164
• ISBN10: 0735556164
• Edition: 4th
• Format: Hardcover
• Copyright: 2006-03-01
• Publisher: Wolters Kluwer

Summary

With an emphasis on substantive law, this extensively revised casebook provides comprehensive coverage of major white-collar crime statutes in the federal criminal code, securities laws, and environmental statutes, As well as sentencing principles under the Federal Sentencing Guidelines. CORPORATE AND WHITE COLLAR CRIME: Cases and Materials, Fourth Edition, shows students what white collar crime is and how it is detected, prosecuted, and punished today. The casebook is well known for its teachability: distinguished author Kathleen F. Brickey, who is widely published in the field and has served as a consultant To The U.S. Sentencing Commission, draws on her extensive experience to present a revealing and realistic account of the law distinctive focus on major white-collar crime statutes allows timely and topical coverage of contemporary substantive law issues clear and concise expository introductions illuminate the contexts of the cases that follow well edited and carefully selected cases (the best "teaching cases") are reinforced by provocative notes and questions that stimulate lively classroom discussion skillfully written problems throughout the book enrich understanding of the cases and challenge students to apply substantive law principles to hypotheticals that test the outer bounds of the principal cases recent Justice Department prosecution guidelines provide an excellent platform for exploring policy considerations relating to prosecuting corporations and their officers and executives a detailed Teacher's Manual supplies specific guidance on discussion and analysis of casebook problems, notes, and questions The Fourth Edition incorporates new material on: recent corporate fraud prosecutions, including those of Arthur Andersen, Martha Stewart, and Bernie Ebbers Sarbanes-Oxley statutes relating to conspiracy, securities fraud, and obstruction of justice important Supreme Court decisions that invalidate the Federal Sentencing Guidelines (Booker) and Arthur Andersens obstruction of justice conviction (Andersen), As well as high Court decisions relating to conspiracy (Jimenez Recio), mail fraud (Pasquantino), and federal program bribery (Sabri) significant appellate court decisions

Table of Contents

Preface	xxvii
Acknowledgments	xxix
Corporate Criminal Liability	1	(40)
Introduction	1	(17)
New York Central & Hudson River Railroad v. United States	1	(2)
Notes and Questions	3	(1)
Francis T. Cullen, William J. Maakestad, and Gary Cavender, Corporate Crime Under Attack	3	(2)
Notes and Questions	5	(1)
U.S. Department of Justice Guidance, Federal Prosecution of Corporations	5	(3)
Notes and Questions	8	(1)
Kathleen F. Brickey, Enron's Legacy	8	(3)
Notes and Questions	11	(1)
United States v. C. R. Bard, Inc.	12	(5)
Notes and Questions	17	(1)
The Respondeat Superior Rule	18	(14)
Criminal Acts	18	(1)
Commonwealth v. Beneficial Finance Co.	18	(3)
Notes and Questions	21	(1)
People v. Lessoff & Berger	22	(2)
Notes and Questions	24	(1)
United States v. Hilton Hotels Corp.	24	(2)
Notes and Questions	26	(1)
Criminal Intent	27	(1)
United States v. Bank of New England, N.A.	27	(4)
Notes and Questions	31	(1)
The Model Penal Code Rule	32	(9)
Section 2.07 Liability of Corporations, Unincorporated Associations and Persons Acting, or Under a Duty to Act, in Their Behalf	32	(2)
State v. Chapman Dodge Center, Inc.	34	(2)
Notes and Questions	36	(1)
State v. Christy Pontiac-GMC, Inc.	37	(2)
Notes and Questions	39	(1)
Note on Corporate Structure	39	(1)
Kathleen F. Brickey, Rethinking Corporate Liability Under the Model Penal Code	39	(2)
Personal Liability in an Organizational Setting	41	(18)
Introduction	41	(1)
Direct Participants	41	(4)
United States v. Wise	41	(2)
Notes and Questions	43	(1)
Sanford H. Kadish, Some Observations on the Use of Criminal Sanctions in Enforcing Economic Regulations	43	(1)
Notes and Questions	44	(1)
Note on Accomplice Liability	44	(1)
Problem 2-1	44	(1)
Responsible Corporate Officers	45	(14)
United States v. Park	46	(6)
Notes and Questions	52	(1)
Problem 2-2	53	(1)
Problem 2-3	53	(1)
Problem 2-4	53	(1)
United States v. Jorgensen	54	(3)
Notes and Questions	57	(1)
Note on Fines and Indemnification	57	(1)
Notes and Questions	58	(1)
Conspiracy	59	(32)
Introduction	59	(1)
The Plurality Requirement	60	(6)
United States v. Stevens	61	(2)
Notes and Questions	63	(1)
United States v. Hughes Aircraft Co.	64	(2)
Notes and Questions	66	(1)
Knowing Participation	66	(6)
United States v. Furkin	67	(3)
Notes and Questions	70	(1)
United States v. Misle Bus & Equipment Co.	70	(1)
Notes and Questions	71	(1)
Note on Scope of Conspiracy	71	(1)
The Object Offense	72	(11)
United States v. Arch Trading Co.	73	(2)
Notes and Questions	75	(1)
United States v. Licciardi	76	(7)
Notes and Questions	83	(1)
Withdrawal and Termination	83	(8)
United States v. Steele	83	(4)
Notes and Questions	87	(1)
Problem 3-1	87	(1)
United States v. Jimenez Recio	88	(2)
Notes and Questions	90	(1)
Mail Fraud	91	(64)
Introduction	91	(1)
Schemes to Defraud	92	(37)
Intent to Defraud	92	(1)
United States v. Hawkey	92	(2)
Notes and Questions	94	(1)
Note on Fraud and False Pretenses	94	(1)
Problem 4-1	95	(1)
Note on Materiality	95	(1)
Lustiger v. United States	96	(2)
Notes and Questions	98	(1)
Problem 4-2	98	(1)
Protected Interests	99	(1)
United States v. George	99	(4)
Notes and Questions	103	(1)
Carpenter v. United States	103	(3)
Notes and Questions	106	(1)
Cleveland v. United States	106	(6)
Notes and Questions	112	(1)
Pasquantino v. United States	112	(5)
Notes and Questions	117	(1)
United States v. Czubinski	118	(6)
Notes and Questions	124	(1)
United States v. DeVegter	125	(4)
Notes and Questions	129	(1)
Use of the Mails	129	(8)
Schmuck v. United States	130	(4)
Notes and Questions	134	(1)
United States v. Sampson	134	(2)
Notes and Questions	136	(1)
Note on Proof of Mailing	136	(1)
Mail and Wire Fraud Affecting a Financial Institution	137	(2)
United States v. Bouyea	137	(2)
Notes and Questions	139	(1)
Statutes Prohibiting Specific Frauds	139	(16)
Bank Fraud	139	(1)
United States v. Doke	140	(3)
Notes and Questions	143	(1)
United States v. Reaume	143	(2)
Notes and Questions	145	(1)
Computer Fraud	146	(1)
United States v. Middleton	146	(6)
Notes and Questions	152	(1)
United States v. Czubinski	152	(2)
Notes and Questions	154	(1)
Securities Fraud	155	(58)
Introduction	155	(1)
Willfulness	156	(7)
United States v. Weiner	157	(5)
Notes and Questions	162	(1)
The ``No Knowledge'' Proviso	163	(5)
United States v. Lilley	164	(3)
Notes and Questions	167	(1)
Insider Trading	168	(41)
The Evolving Doctrinal Rules	169	(1)
Classical Theory	169	(1)
Chiarella v. United States	169	(5)
Notes and Questions	174	(1)
Misappropriation Theory	174	(1)
United States v. O'Hagan	174	(5)
Notes and Questions	179	(1)
Tipper/Tippee Theory	179	(1)
Dirks v. Securities and Exchange Commission	179	(4)
Notes and Questions	183	(1)
Problem 5-1	184	(1)
United States v. Chestman	184	(5)
Notes and Questions	189	(1)
Note on Rule 10b5-2	190	(1)
Notes and Questions	190	(1)
Knowing Possession	191	(1)
United States v. Teicher	191	(3)
Notes and Questions	194	(1)
Note on Rule 10b5-1	194	(2)
Notes and Questions	196	(1)
Problem 5-2	196	(1)
Materiality	196	(1)
Problem 5-3	197	(1)
The Human Dimension of the Wall Street Insider	198	(1)
Trading Scandal
Wall Street's Army_of Insiders	198	(1)
Insider Trading Prosecutions in the Southern District of New York	198	(11)
Misrepresentation and Concealment	209	(2)
Case Study: United States v. Stewart	209	(1)
Notes and Questions	210	(1)
Securities Fraud Prosecutions Under the Sarbanes-Oxley Act	211	(2)
Notes and Questions	212	(1)
False Statements	213	(44)
Introduction	213	(1)
Jurisdiction	214	(7)
United States v. Rodgers	214	(3)
United States v. Wright	217	(2)
Notes and Questions	219	(1)
United States v. Steiner Plastics Manufacturing Co.	219	(1)
Notes and Questions	220	(1)
Department or Agency	221	(6)
United States v. McNeil	221	(3)
Notes and Questions	224	(1)
United States v. Pickett	224	(2)
Notes and Questions	226	(1)
False Statements	227	(10)
False Promises	227	(1)
United States v. Shah	227	(4)
Notes and Questions	231	(1)
``Exculpatory No's''	231	(1)
Brogan v. United States	231	(5)
Notes and Questions	236	(1)
Materiality	236	(1)
Problem 6-1	236	(1)
Culpable Mental State	237	(6)
United States v. Yermian	237	(4)
United States v. Green	241	(2)
Notes and Questions	243	(1)
Multiple Punishment	243	(2)
United States v. Ramos	243	(2)
Notes and Questions	245	(1)
Related Theories of Liability	245	(12)
Procurement Fraud	245	(1)
United States v. Brooks	245	(4)
Notes and Questions	249	(1)
United States v. Sain	249	(1)
Notes and Questions	250	(1)
False Claims	251	(1)
United States v. Maher	251	(3)
Notes and Questions	254	(1)
Certification of Corporate Financial Reports	254	(1)
Notes and Questions	255	(2)
Perjury and False Declarations	257	(50)
Introduction	257	(1)
Making Material False Statements	257	(9)
Bronston v. United States	257	(4)
Notes and Questions	261	(1)
Problem 7-1	261	(1)
United States v. Walser	262	(4)
Notes and Questions	266	(1)
The Two-Witness Rule	266	(5)
United States v. Davis	267	(3)
Notes and Questions	270	(1)
Note on Inconsistent Declarations	270	(1)
Problem 7-2	270	(1)
The Recantation Defense	271	(10)
United States v. Sherman	271	(7)
Notes and Questions	278	(2)
Note on Competent Tribunals and Ancillary Proceedings	280	(1)
Immunized Testimony	281	(5)
United States v. Apfelbaum	281	(4)
Notes and Questions	285	(1)
Perjury by Government Witnesses	286	(21)
Case Study: United States v. Stewart	286	(1)
United States v. Stewart (Opinion of the Court)	286	(1)
United States v. Stewart (Indictment)	287	(8)
United States v. Stewart (Opinion of the Court)	295	(3)
Notes and Questions	298	(1)
Verdict Form: United States v. Stewart	299	(3)
Table 7-1: Jury Findings Against Martha Stewart	302	(2)
Table 7-2: Jury Findings Against Peter Bacanovic	304	(3)
Obstruction of Justice	307	(68)
Introduction	307	(1)
Pending Judicial Proceedings	307	(11)
United States v. Simmons	309	(3)
Notes and Questions	312	(1)
United States v. Lundwall	313	(4)
Notes and Questions	317	(1)
Endeavoring to Influence or Impede	318	(19)
United States v. Collis	318	(3)
Notes and Questions	321	(1)
United States v. Griffin	321	(4)
Notes and Questions	325	(1)
Problem 8-1	325	(1)
United States v. Aguilar	326	(4)
Notes and Questions	330	(1)
United States v. Cintolo	330	(4)
Notes and Questions	334	(1)
Problem 8-2	335	(1)
Note on Lawyer Liability	336	(1)
Notes and Questions	337	(1)
The Victim and Witness Protection Act	337	(24)
Noncoercive Witness Tampering	338	(1)
Section 1503: The Omnibus Clause	338	(1)
United States v. Lester	338	(4)
Notes and Questions	342	(1)
Section 1512: Corrupt Persuasion	342	(1)
Arthur Andersen LLP v. United States	342	(5)
Notes and Questions	347	(1)
Note on Evidence Tampering and Document Destruction	348	(1)
Destruction or Alteration of Records in Federal Investigation	349	(1)
Notes and Questions	350	(1)
Destruction of Corporate Audit Records	350	(1)
Notes and Questions	351	(1)
Section 1512: Misleading Conduct	351	(1)
United States v. Gabriel	351	(5)
Notes and Questions	356	(1)
Section 1512: Harassment	356	(1)
United States v. Wilson	356	(2)
Notes and Questions	358	(1)
Tampering with Records or Otherwise Impeding an Official Proceeding	358	(1)
Notes and Questions	359	(1)
Coercive Witness Tampering	359	(1)
United States v. Willard	359	(1)
Notes and Questions	360	(1)
Note on Retaliation Against Witnesses and Informants	360	(1)
Notes and Questions	361	(1)
The Fifth Amendment Privilege	361	(14)
The Act of Production Doctrine	361	(3)
Notes and Questions	364	(1)
The Enron Investigation	364	(1)
Case Study: SEC v. Lay	364	(1)
Memorandum of the Securities and Exchange Commission in Support of Its Application for Orders to Show Cause, for an In Camera Review, and Requiring Obedience to Subpoena	365	(5)
Reply of the Securities and Exchange Commission in Support of Its Application for Order Requiring Obedience to Subpoena	370	(3)
Stipulation and Order Requiring Production of Records	373	(2)
Bribery of Public Officials	375	(50)
Introduction	375	(1)
Bribery of Public Officials	376	(30)
Official Acts	376	(1)
United States v. Parker	376	(2)
Notes and Questions	378	(1)
United States v. Arroyo	378	(3)
Notes and Questions	381	(1)
Motive and Intent	381	(1)
United States v. Sun-Diamond Growers of California	381	(4)
Notes and Questions	385	(1)
United States v. Anderson	386	(2)
Notes and Questions	388	(1)
Thing of Value	389	(1)
United States v. Williams	389	(1)
Problem 9-1	390	(1)
Public Officials	390	(1)
Appointed Officials	391	(1)
Dixson v. United States	391	(4)
Notes and Questions	395	(1)
Elected Officials	395	(1)
United States v. Brewster	395	(6)
Notes and Questions	401	(1)
Cooperating Witnesses	401	(1)
United States v. Ware	401	(4)
Notes and Questions	405	(1)
Federal Program Bribery	406	(13)
Salinas v. United States	406	(3)
Notes and Questions	409	(1)
United States v. DeLaurentis	409	(2)
Notes and Questions	411	(1)
Sabri v. United States	412	(3)
Notes and Questions	415	(1)
United States v. Copeland	416	(3)
Notes and Questions	419	(1)
Extortion Under Color of Official Right	419	(6)
Evans v. United States	419	(5)
Notes and Questions	424	(1)
Rico	425	(82)
Introduction	425	(1)
The Enterprise	425	(10)
United States v. Turkette	426	(3)
Notes and Questions	429	(1)
Problem 10-1	429	(1)
National Organization for Women v. Scheidler	430	(3)
Notes and Questions	433	(1)
Note on Interstate Commerce Requirement	433	(2)
Pattern of Racketeering Activity	435	(13)
The Pattern Requirement	435	(1)
H.J., Inc. v. Northwestern Bell Telephone	436	(6)
Notes and Questions	442	(1)
State Predicate Crimes	443	(1)
United States v. Garner	443	(4)
Notes and Questions	447	(1)
Problem 10-2	447	(1)
Note on the Dual Sovereignty Doctrine	447	(1)
Relationship Between Person and Enterprise	448	(7)
Reves v. Ernst & Young	448	(4)
Notes and Questions	452	(1)
Problem 10-3	452	(1)
McCullough v. Suter	453	(1)
Note on Relational Elements	454	(1)
RICO Conspiracies	455	(3)
Salinas v. United States	455	(2)
Notes and Questions	457	(1)
Asset Forfeiture	458	(28)
Forfeitable Interests	458	(1)
United States v. Simmons	458	(4)
Notes and Questions	462	(1)
United States v. Rubin	463	(3)
Notes and Questions	466	(1)
Third-Party Interests	466	(1)
United States v. BCCI Holdings	467	(4)
Notes and Questions	471	(1)
Attorneys' Fees	472	(1)
Caplin & Drysdale v. United States	473	(3)
Notes and Questions	476	(1)
United States v. Moffitt, Zwerling & Kemler, P.C.	476	(4)
Notes and Questions	480	(2)
Constitutional Limits	482	(1)
Alexander	482	(1)
Alexander v. United States	482	(2)
Alexander II	484	(1)
Alexander III	484	(1)
United States v. Alexander (Alexander III)	485	(1)
Notes and Questions	486	(1)
Civil Liability	486	(21)
Injury to Business or Property	487	(1)
Sedima, S.P.R.L. v. Imrex Co.	487	(4)
Notes and Questions	491	(1)
Libertad v. Welch	491	(3)
Notes and Questions	494	(1)
Causation	495	(1)
Commercial Cleaning Services, L.L.C. v. Colin Service Systems, Inc.	495	(4)
Notes and Questions	499	(1)
Securities Fraud Claims	500	(1)
Congressional Record, Statements of March 8, 1995, Regarding Floor Amendments to H.R. 1058	501	(3)
Notes and Questions	504	(3)
Tax Fraud	507	(40)
Introduction	507	(1)
Willfulness	507	(21)
Proof of Culpability	508	(1)
United States v. Guidry	508	(3)
Notes and Questions	511	(1)
United States v. Olbres	511	(5)
Notes and Questions	516	(1)
Ignorance or Mistake	517	(1)
Cheek v. United States	517	(6)
Notes and Questions	523	(1)
Reliance on Professional Advice	524	(1)
Bursten v. United States	524	(2)
Notes and Questions	526	(1)
Problem 11-1	527	(1)
Tax Evasion	528	(11)
Attempt to Evade or Defeat	528	(1)
United States v. Eaken	528	(3)
Notes and Questions	531	(1)
Methods of Proof	532	(1)
Net Worth Method	532	(1)
United States v. Bencs	532	(3)
Notes and Questions	535	(1)
Bank Deposits and Cash Expenditures Method	535	(1)
United States v. Abodeely	536	(3)
Notes and Questions	539	(1)
False Declarations	539	(8)
Material Matters	540	(1)
United States v. Di Varco	540	(1)
United States v. Greenberg	541	(1)
Notes and Questions	542	(1)
True and Correct	543	(1)
Siravo v. United States	543	(1)
Notes and Questions	544	(3)
Currency Reporting Crimes and Money Laundering	547	(56)
Introduction	547	(1)
Currency Reporting Crimes	547	(36)
The Bank Secrecy Act	548	(1)
Transporting Monetary Instruments	548	(1)
United States v. Forty-Seven Thousand Nine Hundred Eighty Dollars ($47,980) in Canadian Currency	549	(3)
Notes and Questions	552	(1)
United States v. Bajakajian	553	(7)
Notes and Questions	560	(1)
Domestic Currency Transactions	561	(1)
Ratzlaf v. United States	561	(6)
Notes and Questions	567	(2)
Enhanced Penalties	569	(1)
United States v. St. Michael's Credit Union	569	(4)
Notes and Questions	573	(1)
Section 60501	574	(1)
Attorney-Client Privilege	574	(1)
United States v. Goldberger & Dubin, P.C.	574	(4)
Notes and Questions	578	(1)
Lefcourt v. United States	579	(3)
Notes and Questions	582	(1)
Designated Reporting Transactions	582	(1)
Problem 12-1	583	(1)
Problem 12-2	583	(1)
Problem 12-3	583	(1)
Money Laundering	583	(20)
United States v. Tencer	584	(2)
Notes and Questions	586	(1)
United States v. Campbell	587	(4)
Notes and Questions	591	(1)
United States v. Johnson	592	(5)
Notes and Questions	597	(2)
United States v. Kennedy	599	(2)
Notes and Questions	601	(2)
Environmental Crimes	603	(58)
Introduction	603	(1)
Water Pollution: The Clean Water Act	604	(27)
Discharge from a Point Source	604	(1)
United States v. Plaza Health Laboratories, Inc.	604	(6)
Notes and Questions	610	(1)
Permit Requirement	610	(1)
United States v. Frezzo Brothers, Inc.	610	(3)
Notes and Questions	613	(1)
Knowing Violations	613	(1)
United States v. Ahmad	613	(4)
Notes and Questions	617	(1)
United States v. Sinskey	617	(4)
Notes and Questions	621	(2)
Responsible Corporate Officer Doctrine	623	(1)
United States v. Hong	623	(2)
Notes and Questions	625	(1)
Knowing Endangerment	626	(1)
United States v. Borowski	626	(5)
Notes and Questions	631	(1)
Air Pollution: The Clean Air Act	631	(3)
United States v. Dipentino	631	(2)
Notes and Questions	633	(1)
Hazardous Waste	634	(27)
The Resource Conservation and Recovery Act	634	(1)
Treatment, Storage, or Disposal Violations	634	(1)
United States v. Johnson & Towers, Inc.	634	(5)
United States v. Hoflin	639	(4)
Notes and Questions	643	(1)
Transportation Violations	644	(1)
United States v. Hayes International Corp.	644	(5)
Notes and Questions	649	(1)
United States v. Fiorillo	649	(5)
Notes and Questions	654	(1)
Knowing Endangerment	655	(1)
The Comprehensive Environmental Response, Compensation, and Liability Act	655	(1)
United States v. Carr	656	(3)
Notes and Questions	659	(2)
Sanctions	661	(82)
Introduction	661	(1)
Imprisonment	662	(60)
Pre-Guidelines Sentencing	662	(1)
United States v. Bergman	662	(2)
Notes and Questions	664	(1)
Browder v. United States	665	(1)
Notes and Questions	666	(1)
Guidelines Sentencing	666	(1)
Sentencing Guidelines Roadmap	667	(3)
Relevant Conduct	670	(1)
United States v. Pinnick	671	(2)
Notes and Questions	673	(1)
Note on Double Jeopardy	674	(1)
Judicial Fact Finding	675	(1)
Blakely v. Washington	676	(9)
Notes and Questions	685	(1)
Memorandum to all Federal Prosecutors from James Comey, Deputy Attorney General Re: Departmental Legal Positions and Policies in Light of Blakely v. Washington (July 2, 2004)	686	(1)
Notes and Questions	687	(1)
United States v. Booker: Motion to Expedite Consideration of Petitions for Certiorari and to Establish Expedited Schedule for Briefing and Argument if Certiorari is Granted (July 2004)	687	(2)
United States v. Booker: Opinion of the Court	689	(8)
Notes and Questions	697	(2)
Post-Booker Adjustments	699	(1)
United States v. Ebbers: Government's Memorandum of Law in Opposition to Defendant's Sentencing Motions	699	(2)
Enhancements	701	(1)
United States v. Ebbers: Government's Memorandum of Law in Opposition to Defendant's Sentencing Motions	701	(5)
Notes and Questions	706	(1)
Downward Departures	707	(1)
United States v. Ebbers: Government's Memorandum of Law in Opposition to Defendant's Sentencing Motions	707	(7)
Notes and Questions	714	(1)
The Feeney Amendment	715	(1)
Notes and Questions	716	(1)
Non-Guidelines Considerations	716	(1)
United States v. Ebbers: Government's Memorandum of Law in Opposition to Defendant's Sentencing Motions	716	(4)
Notes and Questions	720	(1)
United States v. Ebbers: Transcript of Sentencing Hearing	721	(1)
Notes and Questions	722	(1)
Fines	722	(8)
Authorized Levels	722	(1)
Corporate Fines	723	(1)
Notes and Questions	724	(1)
Kathleen F. Brickey, Enron's Legacy	725	(1)
Notes and Questions	726	(1)
United States v. Eureka Laboratories, Inc.	726	(3)
Notes and Questions	729	(1)
Note on Corporate Death Penalty	729	(1)
Notes and Questions	730	(1)
Loss of License	730	(13)
Case Study on the Aftermath of Corporate Conviction: United States v. E. F. Hutton & Co.	732	(1)
The Federal Investigation	732	(1)
Department of Justice Press Release	732	(2)
Statement of Stephen S. Trott	734	(1)
Notes and Questions	735	(1)
E. F. Hutton 1985 10-K Report	736	(3)
Notes and Questions	739	(1)
The State Investigations	739	(1)
Still More Grief	740	(3)
Table of Cases	743	(6)
Table of Statutes	749	(2)
Index	751