NCJ Number
37539
Journal
FEDERAL BAR JOURNAL Volume: 35 Issue: 1 Dated: (WINTER 1976) Pages: 21-33
Date Published
1976
Length
13 pages
Annotation
THE AUTHOR REVIEWS THE CASE LAW INVOLVED IN THE EVOLUTION OF STANDARD OF CRIMINAL INTENT IN ECONOMIC CRIME SITUATIONS, AND PRESENTS GUIDELINES FOR ATTORNEYS ADVISING BUSINESSMEN.
Abstract
IT IS NOTED THAT THE CONVICTIONS OF THE AUDITOR DEFENDANTS IN WHAT ARE COMMONLY KNOWN AS THE 'NATIONAL STUDENT MARKETING' AND THE 'EQUITY FUNDING' CASES, AND THE AFFIRMANCE OF A CONVICTION IN THE FORMER CASE EMPHASIZE WHAT HAS BEEN THE GRADUAL EVOLUTION OF A FEDERAL STANDARD FOR PROOF OF CRIMINAL INTENT IN ECONOMIC CRIME CASES. THIS STANDARD LIES BETWEEN THE GROSS NEGLIGENCE STANDARD AND THE FEDERAL COMMON LAW DEFINITION OF 'WILLFULNESS' OR CRIMINAL INTENT. IN BOTH THE CASES MENTIONED ABOVE, THE JURIES WERE INSTRUCTED THEY COULD FIND CRIMINAL INTENT OR WILLFUL CONDUCT IF THEY FOUND A DEFENDANT HAD 'DELIBERATELY CLOSED HIS EYES TO THE OBVIOUS' OR 'RECKLESSLY STATED AS FACTS MATTERS OF WHICH HE WAS IGNORANT'. THE AUTHOR LISTS THE VARIOUS CONDITIONS UNDER WHICH THE FEDERAL COURTS HAVE HELD THAT AN ECONOMIC CRIMES DEFENDANT HAD THE REQUISITE CRIMINAL INTENT, AND REVIEWS RECENT CASE LAW ON SUCH ECONOMIC CRIMES. FINALLY A CHECKLIST FOR BUSINESS LAWYERS IS PRESENTED WHICH LISTS THE SIGNS WHICH MAY INDICATE THE PRESENCE OF FRAUD OR THE NEED FOR CORRECTIVE ACTION. THE APPENDICES PRESENT PERTINENT PORTIONS OF THE JURY INSTRUCTION OR OPINION IN THE 'NATIONAL STUDENT MARKETING', 'EQUITY FUNDING', AND BENTEL V. UNITED STATES CASES. (AUTHOR ABSTRACT MODIFIED)