e. none of the other choices are correct
157. When a person deals in a security when in possession of non-public information, and they have an obligation not to
reveal or use the information it is:
a. embezzlement
b. racketeering
c. money laundering
d. money fraud
e. none of the other choices
158. When a insurance policy holder lies about the condition of their property to get lower rates it is an example of:
a. insurance fraud
b. banking fraud
c. embezzlement
d. money fraud
e. money laundering
159. When a insurance policy holder lies about the condition of their property to get lower rates it is an example of:
a. money laundering
b. banking fraud
c. embezzlement
d. money fraud
e. none of the other choices are correct
160. A company bids on projects and submits false information in the bids in order to help win the bids. When this
“scheme or artifice” occurs, there would most likely be a conviction for:
a. money laundering
b. mail fraud
c. insider trading
d. embezzlement
e. none of the other choices
161. Sending materials containing false information through the post office can lead to a conviction of:
a. embezzlement
b. money laundering
c. mail fraud
d. insider trading
e. false representation
162. Sending materials containing false information through the mails can lead to a conviction of:
a. embezzlement
b. money laundering
c. false representation
d. insider trading
163. If a person engages in illegal activities, such as drug dealing, and one hides the origins of the income, besides tax
problems, there may be a crime of:
a. embezzlement
b. insider trading
c. fraud
d. money laundering
e. none of the other choices are likely to be correct
164. If a person engages in illegal activities, such as drug dealing, and one hides the origins of the income by creating a
fictional paper trail, besides tax problems, there may be a crime of:
a. embezzlement
b. insider trading
c. insurance fraud
d. economic espionage
e. none of the other choices are likely to be correct
165. Money laundering is:
a. hiding the truth about the origins of money
b. embezzlement
c. hiding the truth about the amount of taxes paid
d. hiding money in offshore tax havens
e. none of the other choices are correct
166. The Racketeer Influenced and Corrupt Organizations (RICO) Act provides:
a. an extra weapon against organized crime
b. an ineffective weapon against organized crime
c. an extra weapon against embezzlement
d. an extra weapon against environment violations
e. none of the other choices are correct
167. A law that was originally intended as a weapon against organized crime, but has come to have broader application,
including in civil claims for a wide range of activities is:
a. Laundering of monetary Instruments Act
b. Financial Abuse Act
c. Racketeer Influenced and Corrupt Organizations Act
d. Federal Bribery and Corruption Act
e. none of the other choices
168. Racketeering includes:
a. bribery
b. extortion
c. mail fraud
d. all of the other specific choices are correct
e. none of the other specific choices are correct
169. In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents related to tax lien
purchases, the Supreme Court held that:
a. the plaintiffs could state a claim as victims of the fraud and sue under RICO
b. the plaintiffs could not state a claim as victims of the fraud and sue under RICO
c. RICO did not apply to the case
d. RICO is unconstitutional
e. none of the other choices are correct
170. In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents related to tax lien
purchases, the Supreme Court held that:
a. RICO’s text provides no basis for imposing a first-party reliance requirement
b. RICO’s text provides a basis for imposing a first-party reliance requirement
c. RICO is unconstitutional
d. RICO does not apply under these circumstances
e. none of the other choices are correct
171. Securities fraud includes:
a. market rigging
b. theft of accounts from clients of securities firms
c. violations of securities laws
d. all of the other specific choices are correct
e. none of the other specific choices are correct
172. Failing to file tax returns, failing to report all income and overstating expenses are examples of:
a. tax evasion
b. embezzlement
c. telephone fraud
d. money laundering
e. wire fraud
173. Which of the following can be an example of tax evasion:
a. failing to file tax returns
b. failing to report all income
c. overstating expenses
d. all of the other specific choices are correct
e. none of the other specific choices are correct
174. Fraud committed by electronic means may fall under:
a. internet fraud
b. wire fraud
c. telephone fraud
d. telemarketing fraud
e. any of the other choices
175. Anti–money laundering goals include which of the following:
a. identifying the beneficial owner of all assets
b. tracing the transmission of assets
c. reporting suspicious transactions
d. all of the other specific choices are correct
e. none of the other specific choices are correct
176. Identifying the beneficial owner of all assets, tracing the transmission of assets and reporting suspicious transactions
are all goals of:
a. anti-embezzlement measures
b. anti-fraud measures
c. anti-money laundering measures
d. anti-theft measures
e. anti-wire fraud measures
177. The beneficial owner of an asset is:
a. the person who makes money from the asset
b. the person listed on the legal paperwork as the owner
c. the person who buys the asset
d. the person who sells the asset
e. the person who enjoys the benefits of ownership
178. France’s assessment of criminal liability for corporations differs from the U.S.‘s assessment in that:
a. the requirement that individuals play a key function within a corporation‘s decision-making structure before
liability attaches significantly restricts corporate criminal liability
b. the requirement that individuals play a key function within a corporation‘s decision-making structure before
liability attaches significantly increases corporate criminal liability
c. the requirement that individuals play a key function within a corporation‘s decision-making structure before
liability means that there is no corporate criminal liability
d. it has no requirement that individuals play a key function within a corporation‘s decision-making structure
before liability attaches
e. none of the other choices are correct
179. Which of the following is listed as suspicious activity by the Internal Revenue Service:
a. the customer pays cash for products/services using bills having an unusual or chemical-like odor
b. a 16–year-old brings bags of cash to a money transmitter to make a transfer from New York City to Miami
c. a customer conducting an $11,000 cash transaction attempts to bribe a Money Services Business employee
not to file a Currency Transaction Report
d. all of the other specific choices are correct
e. none of the other specific choices are correct
180. Failing to file a suspicious activity report:
a. can lead to both civil and criminal penalties
b. can only lead to civil penalties
c. can only lead to criminal penalties
d. cannot lead to more than one penalty, regardless of the number of violations
e. none of the other choices are correct
181. Which of the following is not a Justice Department factor for an effective corporate compliance program that can
help a company reduce legal problems and punishment when violations occur:
a. when offenses occur, steps taken to respond and to prevent further offenses
b. effective communication of standards and procedures to all employees
c. consistent communication with Justice about program achievements
d. high-level persons in the organization have responsibility to oversee compliance
e. all of the other choices are part of an effective program
182. Which of the following is not a Justice Department factor for an effective corporate compliance program that can
help a company reduce legal problems and punishment when violations occur:
a. when offenses occur, steps taken to respond and to prevent further offenses
b. effective communication of standards and procedures to all employees
c. consistent enforcement of standards within the organization
d. high-level persons in the organization have responsibility to oversee compliance
e. all of the other choices are part of an effective program
183. The Sentencing Guidelines were created to:
a. make sentencing consistent across the country
b. prevent favoritism to state residents in cases with out–of–state residents
c. make sentencing consistent within each state, but not across the whole country
d. prevent bias against foreign companies
e. none of the other choices are correct
184. The use of whistleblower “hotlines” that allow employees to report possible legal problems with a company
anonymously:
a. violate Fourth Amendment search and seizure rules
b. are used in the U.S.
c. are used in France and other European countries, which is where the practice began
d. are used in both the U.S. and European countries such as France
e. none of the other choices
185. The use of whistleblower “hotlines” that allow employees to report possible legal problems with a company
anonymously:
a. violate Fourth Amendment search and seizure rules
b. violate the U.N. rules on human rights
c. are widely used in France and other European countries, which is where the practice began
d. are widely used in both the U.S. and European countries such as France
e. none of the other choices
186. The Supreme Court has held that the Sentencing Guidelines:
a. are unconstitutional
b. are advisory
c. must be followed closely in criminal cases
d. must be followed closely in cases of crimes by corporations
e. none of the other choices
187. In U.S. v. Allmendinger, involving an insurance scam run by Allmendinger and others, Allmendinger received a
much longer prison sentence than a co–conspiriator, which he appealed. The appeals court held that the
sentence:
a. violated the Sentencing Guidelines and would be recalculated
b. was justified because Allmendinger did not cooperate in the investigation
c. was justified because the loss suffered by victims exceeded $100 million
d. violated equal protection of the 14th amendment as the defendants were equally guilty so the sentences
should be similar for all
e. none of the other choices are correct
188. In U.S. v. Allmendinger, involving an insurance scam run by Allmendinger and others, Allmendinger received a
much longer prison sentence than a co–conspiriator, which he appealed. The appeals court held that the
sentence:
a. violated the Sentencing Guidelines and would be recalculated
b. was not justified because Allmendinger cooperated in the investigation of the crime
c. was justified because the loss suffered by victims exceeded $100 million
d. violated equal protection of the 14th amendment as the defendants were equally guilty so the sentences
should be similar for all
e. none of the other choices are correct
189. In U.S. v. Allmendinger, involving an insurance scam run by Allmendinger and others, Allmendinger received a
much longer prison sentence than a co–conspiriator, which he appealed. The appeals court held:
a. that his sentenced was to be reduced because of “extensive cooperation” with authorities investigating the
matter
b. that because the Sentencing Guidelines were unconstitutional, he should be resentenced
c. that because no personal injury only financial, was inflicted on any person, the sentence should be reduced
d. the sentence was justified under the Sentencing Guidelines
e. none of the other choices
190. In U.S. v. Allmendinger, involving an insurance scam run by Allmendinger and others, Allmendinger received a
much longer prison sentence than a co–conspiriator, which he appealed. The appeals court held:
a. that his sentenced was to be reduced because of “extensive cooperation” with authorities investigating the
matter
b. that because the Sentencing Guidelines were unconstitutional, he should be resentenced
c. that because no personal injury was inflicted on any person, only financial injury, the sentence should be
reduced
d. the sentence should be increased to a higher level than originally imposed because the losses involved
exceeded $100 million
e. none of the other choices