Law Related to Fraud

____________ is any intentional or deliberate act to deprive another of property or money by guile, deception, or other unfair means.

Fraud

Which of the following is considered obstruction of justice?

- Destroying documents related to a future proceeding. - Impeding a government auditor in the performance of his duties. - Influencing a witness with bribes.

Which of the following is an element that must be established to prove fraud based on the concealment of material facts?

- The defendant had knowledge of a material fact that he had a duty to disclose. - The defendant failed to disclose a material fact that he had a duty to disclose. - The defendant acted with intent to mislead or deceive the Victim(s).

Which of the following is a legal element that the government must show to prove a criminal conspiracy?

- The defendant knew the purpose of the agreement and intentionally joined in the agreement. - The defendant entered an agreement to commit an illegal act. - At least one of the conspirators knowingly committed at least one overt act in furtherance of the conspiracy.

Which of the following is a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

- The defendant knew the representation was false. - The victim suffered damages as a result of the misrepresentation . - The victim relied on the misrepresentation.

In the United States, anyone who induces another to commit an offense can be held guilty of:

Aiding and abetting.

A __________ is a tax return that is incorrect on its face or one that does not contain enough information to determine the tax liability.

Frivolous tax return.

For a conflict of interest claim to be actionable against an agent, the agent must have:

Had an undisclosed interest in a matter that could influence his professional role.

Which of the following statements about the UK Bribery Act is not correct?

If an organization's anti-corruption program complies with the Foreign Corrupt Practices Act (FCPA), it will be sufficient for the purpose of complying with the UK Bribery Act.

Which of the following is considered obstruction of justice? The U.S. Foreign Corrupt Practices Act (FCPA) not only prohibits bribes to foreign officials, it also requires publicly traded companies subject to the FCPA's jurisdiction to keep accurate books and records and adopt internal controls to prevent improper use of corporate funds?

Influencing a witness with bribes.

Which of the following is the most accurate statement about the U.S. Truth in Negotiations Act (TINA)?

TINA requires that government contractors submit cost or pricing data and certify that such information is current, accurate, and complete before the award of any negotiated contract.

Which of the following is an element the U.S. federal government must prove to establish a violation of Title 18, U.S. Code, Section 1001 (false statements)?

- The statement concerned a matter within the jurisdiction of a U.S. agency. - The false statement was material. - The defendant willfully made a false statement.

Which of the following is an element that the U.S. government must prove to convict a defendant under Title 18, U.S. Code, Section 1341 for committing mail fraud?

- The defendant used the mail in furtherance of the scheme. - The defendant undertook a scheme to defraud a victim of money or property. - The defendant knowingly participated with the intent to defraud the victim.

Which of the following is an element that must be proven to establish a perjury offense?

- The defendant made a false statement while under oath. - The defendant made the statement with knowledge of its falsity. - The defendant made a false statement that was material.

Which of the following acts would constitute violations under the U.S. Foreign Corrupt Practices Act's (FCPA) anti-bribery provisions?

- To induce a public construction contract award, a U.S. company promises to pay a foreign official $45,000 upon securing the contract. - A U.S. company transfers $45,000 to a foreign official to influence the official to award it a public construction contract. - A German company that is publicly traded on the New York Stock Exchange transfers $45,000 to a foreign official to award it a public construction contract.

Which of the following U.S. laws prohibits deceptive and fraudulent practices commonly used in email?

CAN-SPAM Act.

Which of the following is the federal U.S. statute that criminalizes the theft of commercial trade secrets to obtain an economic advantage?

Economic Espionage Act.

Which of the following offenses occurs when a person steals property for which he has legal custody or possession?

Embezzlement

A private UK company transfers $60,000 to a Chinese public official to influence the award of a public construction contract. This act would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA).

False

Anderson, a lawyer, is in possession of funds that belong to his client, Mullins. Anderson subsequently misappropriates those funds with the intent to defraud Mullins. Under these facts, Anderson has committed larceny.

False

Generally, to establish an illegal gratuity violation, the government must prove that the gratuity was given for the purpose of influencing an official act.

False

In addition to prohibiting bribes to foreign officials for business purposes, the U.S. Foreign Corrupt Practices Act (FCPA) prohibits facilitating payments, or grease payments, made to foreign officials to facilitate the officials' ability to perform their duties.

False

In the United States, false statements made to the government can only be prosecuted under the Criminal False Claims Act (18 U.S.C. § 287).

False

In the United States, the federal government prosecutes all white-collar crimes, such as embezzlement, larceny, and false pretenses.

False

Officers and directors of a corporation have a fiduciary duty to act solely in the best interest of non-shareholder constituencies.

False

The U.S. Foreign Corrupt Practices Act (FCPA) has two major parts. The first part criminalizes the bribery of a foreign public official to obtain or retain business. The second part pertains to money laundering, requiring publicly traded companies to adopt policies, procedures, and internal controls reasonably designed to prevent money laundering.

False

Theft is any intentional or deliberate act to deprive another of property or money by guile, deception, or other unfair means.

False

To be guilty of larceny, the perpetrator must have lawful possession of the cash or property that he steals.

False

To convict a defendant under Title 18, U.S. Code, Section 1341 for committing mail fraud, the mailing must contain a false or fraudulent representation.

False

To convict a defendant under Title 18, U.S. Code, Section 1341 for committing mail fraud, the victim must suffer a loss.

False

To establish that a defendant violated Section 1001 of Title 18, U.S. Code (false statements), the U.S. government must prove that the defendant made a false statement (or used a false document) regarding a matter within the jurisdiction of a U.S. agency, and the agency relied on the false statement to its detriment.

False

To establish the crime of embezzlement, the government must prove that there was a fiduciary relationship between the perpetrator and the victim resulting from the perpetrator's lawful possession of the property when it was stolen/misappropriated.

False

To prove a criminal conspiracy, the government must prove that the defendant knew all the details or objectives of the conspiracy, that the defendant knew the identity of all the participants in the conspiracy, and that the conspirators accomplished the purpose of the conspiracy.

False

To prove a defendant is guilty of accepting an illegal gratuity, the prosecution must show that the defendant was influenced by the acceptance of the improper payment.

False

To prove that a defendant committed criminal perjury, the government prosecutor must show that the defendant, while in a court of law, knowingly made a false statement that influenced the jury's decision.

False

Unlike the U.S. Foreign Corrupt Practices Act, the UK Bribery Act makes it a crime to bribe a foreign public official in connection with international business transactions.

False

In the United States, all federal criminal laws are the products of statutes and the common law.

False.

The ABC Company, a U.S. company, transferred $40,000 to a Japanese public official to influence the award of lucrative overseas contracts. Which of the following laws did the ABC Company most likely violate?

Foreign Corrupt Practices Act (FCPA)

Wright, a CFE, was retained to investigate a fraud at the ABC Company, a U.S. company. The perpetrator used the telephone in connection with the fraud, but he did not engage in any interstate communication. Also, the perpetrator used a private mail carrier in connection with the fraud, but he did not use the U.S. postal system. Wright advises the company officials that the perpetrator can be charged federally with:

Mail fraud, but not wire fraud.

A wire communication does not violate the U.S. federal wire fraud statute unless it traveled via _________________ commerce in furtherance of the scheme.

Interstate or international.

Davis sends people information about an "investment opportunity" via the U.S. postal system, but the communication is part of a scam Davis devised to defraud victims. If the U.S. government decides to prosecute Davis, which of the following would provide the most likely basis for the charges?

Mail Fraud

Spencer knowingly omits $15,000 of income from his U.S. federal income tax return. He signs the return and remits it with the understated amount of tax due. Which of the following offenses did Spencer most likely commit?

Making a false return.

Michael, a salesman for the Pearl Company, conspired with the president of Pearl Company to defraud the federal government, and Michael fraudulently billed a government intelligence agency for defective work in furtherance of the agreement. Which of the following statements is most accurate?

Michael and Pearl Company may be liable for making false statements to the government, but not for conspiracy to defraud the government.

In the United States, a tax preparer can be liable for an understatement penalty if he acted in bad faith and knew or reasonably should have known that a position taken on the return was which of the following?

Not realistically possible of being sustained on its merits.

Delta, a fraud suspect, has been charged with committing a federal crime. Before her trial, she contacted witnesses against her and tried to get them to change their stories by threatening them. Based on her actions, the government would most likely bring additional charges against Delta for:

Obstruction of justice.

Which of the following is not a legal element that must be shown to prove a claim for commercial bribery?

The principal suffered damages as a result of the bribe.

Which of the following is an element that must be established to prove fraud based on the concealment of material facts?

The defendant acted with intent to mislead or deceive the victim(s)

Under Title 18, U.S. Code, Section 1001 (false statements), a statement is false if:

The defendant knew the statement was untrue when he made it.

Which of the following is a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

The defendant made a false statement (i.e., a misrepresentation of a fact).

All the following are elements required to prove that a defendant violated the U.S. federal wire fraud statute except:

The defendant used, or caused the use of, the mail in furtherance of the scheme.

Which of the following most accurately describes the legal elements that must be shown to prove a claim for commercial bribery?

The defendant, while acting with corrupt intent and without the victim's knowledge or consent, gave or received something of value that was intended to influence the recipient's action in a business decision.

Which of the following most accurately describes the legal elements that must be shown to prove a claim for official bribery?

The defendant, while acting with corrupt intent, gave or received a thing of value that was intended to influence an act or duty of the recipient who was ( or was selected to be) a public official.

Which of the following is not a legal element that must be shown to prove a claim for official bribery?

The government suffered damages as a result.

Which of the following is not an element of an offense under the bribery of public officials statute, Title 18, U.S. Code, Section 201(b)?

The recipient performed a favorable action on behalf of the defendant.

In the United States, there are several federal statutes related to false claims and statements made to the federal government. Which of the following is the most accurate statement concerning the false statements statute under Title 18, U.S. Code, Section 1001?

The statement can be actionable even if the government did not suffer a loss in reliance on it.

A qui tam suit is a suit in which a private individual sues on the government's behalf to recover damages for criminal or fraudulent actions.

True

For a conflict of interest claim to be actionable, the conflict must be undisclosed.

True

For a false statement to violate the U.S. False Statements statute (Title 18, U.S. Code, Section 1001), it need not be made directly to the government; it can be made to a third party as long as it involves a matter within the jurisdiction of any governmental department or agency.

True

Moore, a transportation officer for the U.S. Army National Guard, is responsible for awarding contracts to private freight carriers for Guard freight shipments. Moore awarded Zantigo Freight a shipment contract to transport Guard equipment, and as a gesture of thanks, Zantigo gave Moore a new laptop computer. Based on these facts, the government would be more likely to bring illegal gratuity charges against Moore than bribery charges.

True

Prosecution under the criminal fraud statutes in the U.S. Code, which is a consolidation and codification of the general and permanent federal laws of the United States, requires a federal jurisdictional basis.

True

Richard, a computer programmer, works in an office environment with cubicles. While on his way back from the restroom, Richard notices that Alice, one of his coworkers, left her purse unattended on her desk. Richard steals $50 from Alice's purse. Richard committed larceny.

True

The U.S. federal wire fraud statute makes it a crime to use telephone, radio, or television communications to perpetrate a scheme to defraud a victim of money or property.

True

The UK Bribery Act has broader application than the U.S. Foreign Corrupt Practices Act (FCPA) because, unlike the FCPA, it makes commercial bribery a crime.

True

Paul is on the boards of two companies that compete in the highway construction industry. Paul does not disclose this conflict, and he does not step down from the board of either company. If Paul's acts are discovered and he is sued for violating his fiduciary duties, under what theory is the suit most likely to be filed?

Violating the duty of loyalty.

The major distinction between larceny and embezzlement lies in the issue of:

Whether the thief had been legally entrusted with the stolen items.