White Collar Crime Exam 2 Notes Retail Crime and Service Fraud Retail businesses like corporations engage in many deceptive and illegal activities Fraudulent advertising Illegal pricing practices Sale of fraudulently represented merchandise Purchase and resale of stolen goods Employee Theft unauthorized taking control or transfer of money and or property of the work organization by an employee during the course of employment Employee theft occurs on a number of different levels Pilfering refers to petty theft Chiseling refers to cheating swindling Theft by employees makes up approximately 50 of companies losses Embezzlement refers to the destruction or fraudulent appropriation of another s money which has been entrusted to one s care can happen aa all levels of SES Auto Repair Sales Fraud Early 1990 s auto repair rip offs were the most frequently reported consumer complaint Estimated loss of 20 billion annually Auto repair fraud includes 1 billing for services not provided 2 unnecessary repairs 3 airbag fraud 4 auto insurance fraud Auto Recalls General Motors Delayed the recall on an ignition switch defect that is now blamed on at least 31 crashes and 13 deaths in small cars from mostly the 2003 2007 year models GM CEO Mary Barra s Congressional testimony last week was the subject of the opening skit on Saturday Night Live Transportation Products and Services 130 Americans die daily in automobile accidents Defects in automobile products contribute to accidents and fatalities despite greater attention to safety features Ex 1960 s Ford Pinto and 2000 s Toyota Mazda Honda and Nissan Food Products The Meat Inspection Act of 1906 prohibits Bribery of government meat inspectors Deception through the use of dye and by other means Four Loko lawsuits FDA determined that caffeine as used in Four Loko was an unsafe food additive therefore the product is considered adulterated Pharmaceutical Products and Medical Devices Spend millions of dollars on advertising Persuade physicians to prescribe specific drugs through kickbacks The Federal Anti kickback Act AKS Prohibits the offer solicitation payment or receipt of anything of which is intended to induce the ordering or prescribing of an item that falls under a federal healthcare program Cases FenPhen 1997 weight loss product tens of thousands suffered lung and heart problems Johnson Johnson DePuy Hip Replacement 12 13 failure rate DePuy has also illegally marketed an unapproved knee device and sold a hip implant for unapproved use How do companies get away with selling these products These statements have not been evaluated by the FDA Dietary Supplement Health and Education Act of 1994 Removes regulatory authority of FDA over weight control supplements unless someone dies Environmental Crimes Corporate Violence against the Public Unsafe Environment Practices The most common form is poisoning the environment The lack of proper disposal of wastes contribute to Unsanitary living conditions Spread of disease Premature death Deepwater Horizon BP Oil Spill Gulf of Mexico 2010 Largest offshore oil spill in US history Wal Mart 2013 San Andreas Fault Air Pollution Safety evaluations were missing Received 5 citations from non compliance Last 3 evaluations were not initially produced in records less than 2 hours each Corporate violence fracking for natural gas Injecting high pressure water and chemicals into the earth to release natural gas chemicals contaminate water sources Research has been unable to show a clear connection between fracking and liver disease blindness and cancer but the jury is still out on its effects Fined 82 million over mishandling of hazardous waste Violated Clean Water Act in California and Missouri Dumper fertilizers pesticides and bleach into trash and sewer systems Walmart 2012 Revenue 128 B 82 mil is pocket change All states and continents have fault lines but California have more than most Also it is a plate boundary on land whereas most plate foundries are in the ocean Automobile emissions constitute a significant portion of the air pollution problem By 1970 s the damage of automobile emissions became evident and the Clean Air Act was passed What s in car emissions Nitrogen gas carbon dioxide and water vapor Smaller amounts of carbon monoxide hydrocarbons and nitrogen oxides 60 of US transportation emissions come from cars and light trucks Transportation generates 30 of American s global warning emissions 1 gallon of gas 24 pounds of global warming emissions Medical Crimes Physicians Conflict of Interest professional role conflicts with own private interests as an individual Physicians fraudulent activities include Taking or offering kickbacks False and fraudulent billing Unnecessary Procedures Physicians are the most common occupation charged with fraud abuse FBI a year Primary agency for investigating health related fraud estimated to cost the country 80B Medical Crime Upcoding billing for higher procedure codes than performed Family ganging trying to get a whole family in for checkups Unbundling billing for a particular services are submitted in pieces in order to charge more MJ Conrad Murray Case Conrad Murray was accused of giving Michael Jackson a lethal dose of propofol What is propofol A risky and potentially addictive sedative milk of amnesia used to sedate people before surgical procedures Fraud by the Medical Fields Do doctors commit more or less white collar crime Why do we as patients invest so much trust in a profession that runs rampant with illegal acts Medicare federal program to aid elderly citizen with medical costs Medicaid state program to aid the poor Fraud vs Abuse Fraud intentional criminal behaviors by physicians Abuse unintentional misuse of program funds Fertility Fraud Fertility clinic scandal at the University of California Irvine 1990 s First report by staff to the university ignored the allegations Second report to the press led to an internal investigation that revealed major breaches of policy human subjects violations financial frauds and unauthorized use of eggs to impregnate other patients Doctors Ricardo Asch Jose Balmaceda and Sergio Stone Additional Illegal Deceptive Practices Phantom treatment fake medical practices for more Ping Ponging sending patients to different doctors several times for more Short Counting less pills in a bottle than proclaimed Generic Drug Substitution proscribing generic drug instead of FDA pills Abuse by Health Care Providers Sexual abuse can include