1. © 2004 West Legal Studies in Business A Division of Thomson Learning 1 Chapter 8 Criminal Law and Cyber Crimes Chapter 8 Criminal Law and Cyber Crimes

2. © 2004 West Legal Studies in Business A Division of Thomson Learning 2 §1: Civil and Criminal Law Major differences: Civil (Tort)Criminal PreponderanceBeyond Reasonable Doubt DamagesJail or Prison Private (parties hire their own attorneys) Public (Prosecutor represents community)

3. © 2004 West Legal Studies in Business A Division of Thomson Learning 3 FeloniesMisdemeanors Serious crimes, punishable by Death or prison for more than one (1) year. Non-serious (petty) crimes punishable by jail for less than one(1) year and/or by fines. §2: Classification of Crimes An act can have both civil and criminal consequences. (O.J. Simpson trials)

4. © 2004 West Legal Studies in Business A Division of Thomson Learning 4 §3: Essentials of Criminal Liability To be convicted of a crime, a person must:  Commit a guilty act (actus reus).  Have the guilty mind (mens rea) during commission of the guilty act. To be convicted of a crime, a person must:  Commit a guilty act (actus reus).  Have the guilty mind (mens rea) during commission of the guilty act.

5. © 2004 West Legal Studies in Business A Division of Thomson Learning 5 §4: Corporate Criminal Liability A corporation is creature of state statute. A corporate entity may be convicted of a crime. Punishment would be fines and/or denial of certain legal privileges. A corporation is creature of state statute. A corporate entity may be convicted of a crime. Punishment would be fines and/or denial of certain legal privileges.

6. © 2004 West Legal Studies in Business A Division of Thomson Learning 6 Liability of Corporate Entity Corporations may be convicted of criminal activity if:  Crime is within agent/employee’s scope of employment;  Corporation fails to perform a legally required duty; or  Crime authorized or requested by corporate principal/officer. Corporations may be convicted of criminal activity if:  Crime is within agent/employee’s scope of employment;  Corporation fails to perform a legally required duty; or  Crime authorized or requested by corporate principal/officer.

7. © 2004 West Legal Studies in Business A Division of Thomson Learning 7 Liability of Corporate Officers Corporate officers and directors are personally liable for crimes they commit. Also, they may be criminally liable for acts of their under the “Responsible Corporate Officer” doctrine. U.S. v. Park (1975). Case 8.1: U.S. v. Hanousek (1999). Corporate officers and directors are personally liable for crimes they commit. Also, they may be criminally liable for acts of their under the “Responsible Corporate Officer” doctrine. U.S. v. Park (1975). Case 8.1: U.S. v. Hanousek (1999).

8. © 2004 West Legal Studies in Business A Division of Thomson Learning 8 §5: Types of Crimes Violent Crimes.  Murder, sexual assault, rape, robbery. Property Crimes.  Burglary, larceny, theft of trade secrets, theft of services, arson, receipt of stolen goods, forgery. Violent Crimes.  Murder, sexual assault, rape, robbery. Property Crimes.  Burglary, larceny, theft of trade secrets, theft of services, arson, receipt of stolen goods, forgery.

9. © 2004 West Legal Studies in Business A Division of Thomson Learning 9 “White Collar” Crimes Crimes occurring in the business context using non-violent means to obtain personal or business advantage.  Embezzlement.  Mail or Wire Fraud (federal). MailWire  Bribery.  Bankruptcy Fraud (federal).  Insider Trading (federal).  Theft of Trade Secrets (federal). Theft of Trade Secrets Crimes occurring in the business context using non-violent means to obtain personal or business advantage.  Embezzlement.  Mail or Wire Fraud (federal). MailWire  Bribery.  Bankruptcy Fraud (federal).  Insider Trading (federal).  Theft of Trade Secrets (federal). Theft of Trade Secrets

10. © 2004 West Legal Studies in Business A Division of Thomson Learning 10 Organized Crime Operates illegitimately by providing illegal goods and services:  Money Laundering.  RICO(criminal and civil liability). Operates illegitimately by providing illegal goods and services:  Money Laundering.  RICO(criminal and civil liability).

11. © 2004 West Legal Studies in Business A Division of Thomson Learning 11 §6: Defenses to Criminal Liability Infancy (juvenile). Involuntary Intoxication: is a defense if person was incapable of understanding act. Insanity: defendant lacked substantial capacity to appreciate the wrongfulness of act or to conform act to law. Mistake. Duress. Consent. Infancy (juvenile). Involuntary Intoxication: is a defense if person was incapable of understanding act. Insanity: defendant lacked substantial capacity to appreciate the wrongfulness of act or to conform act to law. Mistake. Duress. Consent.

12. © 2004 West Legal Studies in Business A Division of Thomson Learning 12 Defenses [2] Self-Defense of People and Property: use deadly force if reasonable belief of imminent death or serious injury; cannot use deadly force to protect property alone. Necessity: criminal act necessary to prevent greater harm. Self-Defense of People and Property: use deadly force if reasonable belief of imminent death or serious injury; cannot use deadly force to protect property alone. Necessity: criminal act necessary to prevent greater harm.

13. © 2004 West Legal Studies in Business A Division of Thomson Learning 13 Defenses [3] Entrapment: prevents government from encouraging crimes. Key issue: was the defendant pre-disposed to commit the act? Statute of Limitations. Immunity. Entrapment: prevents government from encouraging crimes. Key issue: was the defendant pre-disposed to commit the act? Statute of Limitations. Immunity.

14. © 2004 West Legal Studies in Business A Division of Thomson Learning 14 §7: Criminal Procedures U.S. Constitution provides specific safeguards for those accused of crimes at federal and state level. Criminal procedures are designed to protect against the arbitrary use of power by the government. Case 8.2: People v. McFarlan (2002). U.S. Constitution provides specific safeguards for those accused of crimes at federal and state level. Criminal procedures are designed to protect against the arbitrary use of power by the government. Case 8.2: People v. McFarlan (2002).

15. © 2004 West Legal Studies in Business A Division of Thomson Learning 15 Fourth Amendment The Fourth Amendment protects against unreasonable search and seizures.Fourth Amendment No warrant for search or arrest can issue without probable cause. The Fourth Amendment protects against unreasonable search and seizures.Fourth Amendment No warrant for search or arrest can issue without probable cause.

16. © 2004 West Legal Studies in Business A Division of Thomson Learning 16 Exclusionary Rule Evidence obtained in violation of Constitutional amendments is excluded from trial. Deter police from warrantless searches, seizures and misconduct. “Inevitability” and “good faith” are exceptions to the rule. Evidence obtained in violation of Constitutional amendments is excluded from trial. Deter police from warrantless searches, seizures and misconduct. “Inevitability” and “good faith” are exceptions to the rule.

17. © 2004 West Legal Studies in Business A Division of Thomson Learning 17 The “Miranda” Rule Case 8.3: Miranda v. Arizona (1966) required police to inform suspects of their constitutional rights.Miranda v. Arizona The Supreme Court upheld Miranda in Dickerson v. U.S. (2000). Case 8.3: Miranda v. Arizona (1966) required police to inform suspects of their constitutional rights.Miranda v. Arizona The Supreme Court upheld Miranda in Dickerson v. U.S. (2000).

18. © 2004 West Legal Studies in Business A Division of Thomson Learning 18 Criminal Process

19. © 2004 West Legal Studies in Business A Division of Thomson Learning 19 §8: Cyber Crime Computer crime: any act directed against computers or that uses computers as an instrumentality of a crime.  Cyber Theft  Financial Crimes.  Identity Theft.  Cyber Stalking.  Hacking and Cyber Terrorism. Computer Fraud and Abuse Act (1996. Computer crime: any act directed against computers or that uses computers as an instrumentality of a crime.  Cyber Theft  Financial Crimes.  Identity Theft.  Cyber Stalking.  Hacking and Cyber Terrorism. Computer Fraud and Abuse Act (1996.

20. © 2004 West Legal Studies in Business A Division of Thomson Learning 20 Law on the Web Department of Justice statistics. Department of Justice CourtTV.com “Anatomy of a Murder.”Anatomy of a Murder Findlaw.com U.S. DOJ CyberCrimes site. Legal Research Exercises on the Web. Department of Justice statistics. Department of Justice CourtTV.com “Anatomy of a Murder.”Anatomy of a Murder Findlaw.com U.S. DOJ CyberCrimes site. Legal Research Exercises on the Web.