Money Laundering
What is Money Laundering?
This makes “dirty” money look “clean” by making it appear to come from legitimate sources.
What is Embezzlement?
When someone trusted with property or money steals it for themselves.
Who created the Ponzi Scheme?
Charles Ponzi
What is Bribery?
This is when someone offers money, gifts, or favors to influence a decision.
What is placement?
This is the first stage of money laundering, where criminals put illegal cash into the financial system.
True or False: Embezzlement can only be done after the asset is entrusted to the criminal.
True.
How much money did Ponzi collect in just eight months?
Roughly $15 million.
Which global soccer organization was the center of a major corruption scandal involving $150 million in bribes?
FIFA.
What is layering?
The second stage in the money laundering process, where criminals use complex or international transactions to confuse the audit trail.
Embezzlement is different from theft because the person originally received the money or property in what way?
Legally or through trust?
Who had the largest Ponzi scheme in history?
Bernie Madoff.
Who is usually targeted for bribery?
People in power.
What is international trade?
Buying and selling goods between countries (often with fake invoices).
Embezzlement and what crime are the two most common financial institution frauds?
Misapplication of funds.
What caused Ponzi’s scheme to collapse?
A newspaper exposed the scam.
The FIFA scandal led to arrests, resignations, and reforms after being exposed by which U.S. agency?
The U.S. Department of Justice.
What is integration?
The third and final stage of laundering, when illegal funds appear to return as legitimate income.
What law enforcement agency usually investigates this crime?
The FBI.
How many years was Bernie Madoff sentenced to prison for?
150 years.
Bribery often seeks something someone wouldn’t get fairly, such as
A contract, a promotion, a spot on a team, an approval.