CFE-LAW Online Practice Questions and Answers

Grant, a fraud examiner, is investigating Beatrice for embezzlement on his employer's behalf. During his investigation, Grant learns that Beatrice has cheated on her spouse, and he tells several of Beatrice's coworkers about it. Beatrice discovers that Grant revealed the unflattering (albeit true) information about her and decides to file a claim of defamation against Grant. Which of the following is the BEST explanation of why Beatrice will not win her defamation case?

A. The information was true.

B. The communications to the subject's coworkers were privileged.

C. The statement was not printed and distributed.

D. The news was not communicated to enough people.

A prosecutor filed criminal charges against Rosa, claiming that she stole Juan's personal information and sold his identity on the dark web. Juan wants to file a civil lawsuit against Rosa to recover damages arising from the identity theft. Can Juan file the civil action before the criminal action against Rosa is completed?

A. Yes, the civil action can be filed if the jurisdiction permits parallel proceedings.

B. No, the civil action cannot be filed if the jurisdiction prohibits double jeopardy.

C. No, the civil action cannot be filed if the jurisdiction prohibits counterclaims.

D. Yes, the civil action can be filed if the jurisdiction permits analogous claims.

Which of the following is the MOST ACCURATE statement about the circumstances under which a conflict of interest claim would be actionable against an agent?

A. The agent must have informed the principal of their actions.

B. The agent must have had an undisclosed interest in a matter that could influence their professional role.

C. The agent must have purported to act on behalf of, or as an agent for, an identified principal.

D. The agent must have been authorized by someone with actual authority to carry out the transaction at issue.

Ethan, a U.S. resident, is running a Ponzi scheme. As part of the scheme, he uses the U.S. mail system to send promotional materials to potential victims in France. If the U.S. government decides to prosecute Ethan, which of the following would provide the MOST LIKELY basis for the charges?

A. Wire fraud

B. Communications fraud

C. Mail fraud

D. Insider trading fraud

Which of the following statements about the International Organization of Securities Commissions (IOSCO) is TRUE?

A. IOSCO is recognized as the international standard-setter for securities markets.

B. IOSCO is an oversight body responsible for issuing and enforcing regulations that govern all international securities markets.

C. IOSCO provides a forum for regular cooperation on banking supervisory matters affecting developing nations.

D. IOSCO is a self-regulatory organization for companies that have securities traded on international securities markets.

Nora, a health care provider, is convicted of health care fraud in criminal court. After her conviction, the national health agency begins a proceeding to prohibit Nora from seeking reimbursement from government health care programs for five years. Which type of administrative penalty is the national health agency seeking?

A. License revocation

B. License suspension

C. Disenfranchisement

D. Debarment

The most common bankruptcy fraud scheme is:

A. A planned bustout

B. A credit card bustout

C. Forged filing

D. Concealment of assets

In systems using adversarial processes, an attorney may impeach an opposing party's witness by showing that the witness:

A. Made prior consistent statements

B. Is influenced by bias or self-interest

C. Has a keen ability to observe

D. Testified from personal knowledge

Which of the following is NOT an element generally required to establish a claim alleging the common law civil wrong for intentional infliction of emotional distress?

A. The defendant acted intentionally or recklessly.

B. The victim suffered distress as a result of the defendant's conduct.

C. The victim was an employee of the defendant.

D. The defendant engaged in extreme and outrageous conduct.

Which of the following situations would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA)?

A. A private U.S. company pays a $2,000 foreign corporation fee that is required in order to do business within the country.

B. A private U.S. company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.

C. A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.

D. A private U.S. company transfers $45,000 to a foreign official to influence the award of a public construction contract.