Legal Aspects & Regulatory Compliance Flashcards

Under RICO, what is the minimum number of predicate acts required to establish a 'pattern of racketeering activity'?

Answer: Two acts

RICO requires at least two predicate acts of racketeering within a 10-year period to establish a pattern of racketeering activity.

A company executive who turns government informant and cooperates with prosecutors typically receives a formal agreement known as a:

Answer: Cooperation agreement

A cooperation agreement formalizes the terms under which a defendant provides substantial assistance to prosecutors in exchange for sentencing consideration.

The legal principle that prevents prosecutors from trying a defendant twice for the same offense is known as:

Answer: Double jeopardy

The Double Jeopardy Clause of the Fifth Amendment prohibits a second prosecution for the same offense after acquittal or conviction.

Under Dodd-Frank, a whistleblower who voluntarily provides original information leading to an SEC enforcement action yielding over $1 million may receive:

Answer: 10–30% of the sanction

Dodd-Frank's SEC whistleblower program awards between 10% and 30% of sanctions collected in qualifying enforcement actions exceeding $1 million.

Which act established the Public Company Accounting Oversight Board (PCAOB)?

Answer: Sarbanes-Oxley Act

SOX Section 101 created the PCAOB as a nonprofit corporation to oversee audits of public companies and protect investors.

Which type of federal subpoena compels a witness to appear and produce documents before a grand jury?

Answer: Subpoena duces tecum

A subpoena duces tecum compels a person to bring specified documents or records to a grand jury or court proceeding.

An employee who reports suspected fraud internally but is then terminated may have a retaliation claim under which SOX provision?

Answer: Section 806

SOX Section 806 protects employees of publicly traded companies who report suspected securities fraud from retaliation.