ACFE ACFE Certifications CFE-LAW Questions & Answers

• Question 71:

  Smith, a Certified Fraud Examiner (CFE), works for the ABC Company a private entity that operates in a jurisdiction with civil laws for defamation, invasion of privacy, and conflict of interest. Smith seizes and searches the personal smartphone of Green, an employee of ABC, even though Green was not suspected of any wrongdoing. Assuming that Green had a reasonable expectation of privacy in the smartphone and Smith conducted the search without a legitimate interest or authority, under which of the following claims would Green MOST LIKELY be able to recover damages against Smith?

  A. Slander

  B. Intrusion into Green's private matters

  C. Conflict of interest

  D. Public disclosure of private facts

  Correct Answer: B

• Question 72:

  Which of the following statements concerning digital currencies, such as bitcoin, is MOST ACCURATE?

  A. Digital currencies are attractive to money launderers because they are a payment method that provides complete anonymity.

  B. Digital currencies are attractive to money launderers because payments often cross jurisdictional boundaries, making it difficult for authorities to pursue enforcement.

  C. Digital currencies are not typically used to launder money due to strict customer identification or recordkeeping requirements enforced in all jurisdictions.

  D. Digital currencies are subject to all of the same regulations as payments made through traditional financial institutions.

  Correct Answer: A

• Question 73:

  Allison works for a government contractor. She informs the government that her employer has been submitting false claims to the government for payment. Later, it is discovered that Allison has misappropriated more than $50,000 of her employer's money. Allison qualifies as a whistleblower entitled to anti-retaliation protection under the law because of her report to the government. Which of the following statements about Allison is CORRECT?

  A. Allison cannot be fired for misappropriating funds from her employer

  B. Allison cannot be fired for any reason

  C. Allison cannot be fired for informing the government of her employer's fraud

  D. None of the above

  Correct Answer: C

• Question 74:

  One of the purposes of securities regulation is to maintain market confidence.

  A. True

  B. False

  Correct Answer: A

• Question 75:

  Which of the following is a legal element that must be shown to prove a claim for commercial bribery?

  A. The defendant acted negligently.

  B. The principal suffered damages as a result of the bribe.

  C. The defendant gave or received a thing of value.

  D. The defendant failed to exercise due care.

  Correct Answer: B

• Question 76:

  Which of the following statements concerning fact finders in criminal trials in common law jurisdictions is MOST ACCURATE?

  A. The presence of a jury is always required to make factual findings in a common law criminal trial.

  B. A judge is typically responsible for factual findings.

  C. Juries usually serve as the fact finder in serious cases.

  D. A panel of a professional judge and lay judges usually serves as the fact finder in serious cases.

  Correct Answer: C

• Question 77:

  Greg is serving as an expert witness and is being cross-examined at trial. The questioning party gets Greg to state that he spent considerable time working on a certain issue in the case. Then, the questioning party asks many questions on a tangential issue in the case that Greg knows little about. Which of the following describes the questioning party's method?

  A. Myopic vision

  B. Personal attack

  C. Bias

  D. Sounding board

  Correct Answer: C

• Question 78:

  Tatiana is the chief executive officer (CEO) of ABC Warehouse, a retail mattress store that has been struggling financially. A week before ABC Warehouse files for bankruptcy, Tatiana sells ten mattresses to her husband at 80% below market value. Which type of fraud scheme has Tatiana MOST LIKELY committed?

  A. A fraudulent bankruptcy

  B. A planned bustout

  C. A concealed transfer

  D. A fraudulent conveyance

  Correct Answer: D

• Question 79:

  Claude stole a large amount of cash from his employer and then deposited the funds into a domestic bank account. Next, he wired the illicit funds to a foreign bank account and engaged in several other transactions using foreign accounts to make them difficult to trace. Finally, he transferred the funds back to a domestic account and then spent the money. Which of the following actions was the layering stage of Claude's money laundering scheme?

  A. When he first deposited the funds into a domestic account

  B. When he spent the money

  C. When he moved the funds through several transactions using foreign accounts

  D. When he first stole the cash from his employer

  Correct Answer: C

• Question 80:

  ABC Manufacturing is a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. An investigator at ABC searches the desk of Denise, an ABC employee, and finds illegal narcotics. The investigator seizes the narcotics and turns them over to members of law enforcement. The investigator violated Denise's rights by failing to obtain a search warrant before conducting the search.

  A. True

  B. False

  Correct Answer: A