White Collar Crimes: Corruption, Money Laundering, Fraud, and National Security

Flashcards covering public corruption, money laundering, securities and bank fraud, and international national-security white collar crimes.

Bribery (18 U.S.C. Section 201(b))

A federal crime that penalizes both the briber and bribee; occurs when someone corruptly gives, offers, or promises something of value, or a public official corruptly demands, seeks, receives, or accepts value, to influence an official act, commit fraud, or violate a legal duty through a future-oriented quid pro quo.

Illegal Gratuity (18 U.S.C. Section 201(c))

A crime consisting of giving, offering, promising, demanding, or receiving something of value as a token of appreciation or compensation to a public official for an official act already performed or decided to be performed, lacking the future quid pro quo required for bribery.

Federal Program Bribery (18 U.S.C. Section 666)

A federal statute covering theft and bribery in programs receiving federal funding; as decided by the Supreme Court in the Snyder case, it applies solely to bribery and does not criminalize gratuities.

Hobbs Act Extortion (18 U.S.C. Section 1951)

The offense of obtaining property from another with the intent to extort or blackmail, committed either through the wrongful use of actual or threatened fear (physical or economic harm) or under 'color of official right.'

Color of Official Right

A basis for extortion liability under the Hobbs Act (not limited to federal officials) where a public official induces or obtains property by using the authority of public office, where the acceptance of a bribe can constitute an implicit promise to act.

Obstruction of Justice (18 U.S.C. Sections 1503, 1505)

Corruptly endeavoring to interfere with a judicial, grand jury, administrative, or congressional proceeding, requiring a nexus (connection in time, causation, or logic) between the act and a proceeding known to be pending or actually pending.

Witness Tampering (18 U.S.C. Section 1512)

Knowingly acting corruptly to persuade, attempt to persuade, or mislead another person with the intent to influence, delay, or prevent testimony in an official proceeding, or to induce them to withhold, alter, destroy, or conceal documents or objects.

Placement

The first step in money laundering, which involves introducing illicitly acquired cash or dirty funds directly into the financial system.

Layering

The second step in money laundering, consisting of moving funds through multiple complex financial transactions, accounts, or entities to conceal the audit trail and obscure the illicit source.

Integration

The final stage of money laundering, where illicit funds are commingled with legitimate ('clean') funds and reintroduced into the economy to appear as legal wealth or legitimate business proceeds.

Currency Transaction Report (CTR)

A mandatory reporting document filed with the Internal Revenue Service by financial institutions under 31 U.S.C. Section 5313 for currency transactions exceeding the $10{,}000$ threshold.

Currency or Monetary Instrument Report (CMIR)

A mandatory report filed under 31 U.S.C. Section 5316 when physically transporting, mailing, or shipping currency or monetary instruments exceeding $10{,}000$ into or out of the United States.

Form 8300

An IRS report required under 26 U.S.C. Section 6050I for any trade or business that receives more than $10{,}000$ in cash in a single transaction or related transactions.

Structuring (31 U.S.C. Section 5324)

The criminal act of breaking down currency transactions into increments below $10{,}000$ with the specific intent to evade Bank Secrecy Act currency reporting requirements.

Suspicious Activity Report (SAR)

A report filed with the Financial Crimes Enforcement Network (FinCEN) by financial institutions under 31 U.S.C. Section 5318(g) upon detecting known or suspected violations of law, which grants a legal 'safe haven' from civil liability to the reporting institution.

18 U.S.C. Section 1956(a)(1)

A transaction-focused money laundering statute that penalizes conducting a financial transaction involving proceeds from a specified unlawful activity, knowing the funds are derived from unlawful activity, with the intent to conceal the proceeds, promote the unlawful activity, commit tax violations, or evade reporting laws; carries a penalty of up to $20$ years.

18 U.S.C. Section 1957

A use-focused money laundering statute penalizing knowingly engaging in a monetary transaction (such as a deposit, withdrawal, or transfer through a financial institution) involving criminally derived property of a value greater than $10{,}000$ derived from a specified unlawful activity; carries a penalty of up to $10$ years.

Specified Unlawful Activity (SUA)

A statutory category of predicate crimes enumerated under federal law (including drug trafficking, foreign bribery, crimes of violence, fraud, and smuggling) whose proceeds trigger liability under federal money laundering statutes.

Politically Exposed Person (PEP)

Defined under the Anti-Money Laundering Act (AMLA) of 2020 as a senior foreign political figure, an immediate family member, or a close associate who possesses authority over policy, operations, or the use of government-owned resources.

Stock

An equity instrument representing an ownership interest in a company, divided into shares, whose value is based on how well the company performs.

Bond

A debt instrument representing an investor's loan to a company or government, paying regular interest for a specified duration until the total purchased amount is repaid.

Stockbroker

A licensed financial professional who has passed mandatory licensing exams to buy and sell stocks and other securities on behalf of clients, usually charging a fee or commission.

Stock Exchange

An organized marketplace (such as the NYSE or Over the Counter) providing a centralized location for businesses to raise capital and for investors to trade securities.

Securities Fraud (18 U.S.C. Section 1348)

A Sarbanes-Oxley criminal provision that penalizes knowingly executing or attempting to execute a scheme to defraud or obtain money/property through false pretenses in connection with the purchase or sale of a security; carries a penalty of up to $25$ years.

Insider Trading

The illegal practice of buying or selling securities based on material, non-public information (MNPI) in breach of a fiduciary duty to shareholders and the company, providing the trader an unfair market advantage.

Material Non-Public Information (MNPI)

Confidential information not available to the public where there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision based on the totality of circumstances.

Tipper

An insider, temporary insider, or misappropriator who discloses material non-public information to a third party in breach of a fiduciary duty in exchange for a personal benefit (which can be money, gifts, or future reciprocal advantages).

Tippee

An individual who receives material non-public information from a tipper who breached their fiduciary duty in exchange for a personal benefit, and who trades on or uses that information.

Ponzi Scheme

An investment fraud that pays supposed returns to existing investors using money collected from new investors rather than genuine profits from an underlying business, collapsing when new capital inflows slow down.

Accounting Fraud

A scheme occurring when insiders deliberately manipulate or 'cook' a company's financial records—such as inflating revenues, hiding debts, or falsifying expenses—to make the company appear healthier to investors and creditors.

Pump-and-Dump Scheme

A fraud scheme where perpetrators buy low, spread false or misleading statements online to artificially inflate ('pump') the stock's price and demand, and then sell ('dump') their shares at a profit before the market corrects.

Classified Information Procedures Act (CIPA)

A federal procedural framework—not a substantive crime—that establishes pretrial rulings, protective orders, in camera private reviews, redactions, and substitutions to protect national security secrets while safeguarding a criminal defendant's constitutional right to a fair trial.

Graymail

A legal defense tactic where a defendant threatens to disclose sensitive classified information during open-court proceedings to pressure the government into dismissing criminal charges.

Trade Secret Theft (18 U.S.C. Section 1832)

The unlawful taking of a proprietary trade secret tied to interstate or foreign commerce with the intent to confer an economic benefit on an unauthorized party and knowledge or intent that the owner will be injured.

Economic Espionage (18 U.S.C. Section 1831)

The unlawful theft or receipt of a trade secret with the intent or knowledge that the offense will benefit a foreign government, foreign instrumentality, or foreign agent; unlike section 1832, it does not require an interstate commerce nexus.

Linwei Ding Case

A federal prosecution of a former Google engineer who stole confidential AI trade secrets; convicted by a jury in January 2026 of theft and economic espionage, though the judge overturned the espionage convictions in August 2026 for lack of proof of intended benefit to China's government.

Foreign Agents Registration Act (FARA)

A federal disclosure and transparency statute requiring individuals and entities acting in the U.S. as agents of a foreign principal to disclose covered activities such as political advocacy, public relations, consulting, and government contacts.

International Emergency Economic Powers Act (IEEPA)

A federal statute granting the President emergency authority to regulate or prohibit economic transactions and freeze foreign-owned assets in response to an unusual and extraordinary foreign-sourced threat declared as a national emergency.

Asset Blocking under IEEPA

The emergency power under IEEPA to freeze or immobilize property and prohibit transactions involving foreign entities or regimes, which is legally distinct from permanent property confiscation.