Law Related To Fraud Flashcards
Which of the following is considered obstruction of justice?
A. Influencing a witness with bribes
B. Showing disrespect to a judge
C. Contacting a government investigator
D. Subpoenaing a government witness
A. Influencing a witness with bribes
The duty of loyalty means that people in a fiduciary relationship must act with such care as an ordinarily prudent person would employ in similar positions.
A. True
B. False
False
Which of the following is an element the government must prove to establish that an individual violated a law that criminalizes making false statements to government agencies?
A. The defendant made a false statement
B. The statement concerned a matter within the jurisdiction of a government agency
C. The false statement was material
D. All of the above
D. All of the above
Which of the following is one of the areas of primary concern in which the Organisation for Economic Co-operation and Development’s (OECD) Recommendation on Combating Bribery in International Business (the Recommendation) urges member states to take steps to combat the bribery of foreign public officials?
A. Tax systems and regulations
B. Laws and regulations regarding e-commerce
C. Public safety systems and regulations
D. Sensitive data protection laws
A. Tax systems and regulations
The UK Bribery Act has a broader application than the U.S. Foreign Corrupt Practices Act (FCPA) because, unlike the FCPA, it makes commercial bribery a crime.
A. True
B. False
True
Which of the following is an element that must be proven to establish a perjury offense?
A. The defendant made the statement with knowledge of its falsity
B. The defendant made a false statement while under oath
C. The defendant made a false statement that was material
D. All of the above
D. All of the above
Which of the following is an element that must be established to prove fraud based on the concealment of material facts?
A. The defendant failed to disclose a material fact that they had a duty to disclose
B. The defendant acted with intent to mislead or deceive the victim(s)
C. The defendant had knowledge of a material fact that they had a duty to disclose
D. All of the above
D. All of the above
The ABC Company, a UK company with securities that are registered in the United States, transferred $40,000 to a Japanese public official to influence the award of overseas contracts. This act would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act.
A. True
B. False
True
An action for fraud may be based on the concealment of material facts, but only if:
A. The victim had a duty in the circumstances to disclose.
B. The defendant had a duty in the circumstances to disclose.
C. The victim relied on the misrepresentation.
D. The defendant had a duty to investigate the material facts.
B. The defendant had a duty in the circumstances to disclose.
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.
A. True
B. False
False
The Organisation for Economic Co-operation and Development’s (OECD) Recommendation on Combating Bribery in International Business (the Recommendation) urges member states to combat the bribery of foreign public officials by taking steps to improve which of the following areas?
A. Banking and accounting requirements and practices
B. Tax systems and regulations
C. Laws and regulations related to public subsidies, licenses, and contract procurement
D. All of the above
D. All of the above
Craig and Donna each own 40% of the shares of Indiewealth and serve on its board of directors. Georgia is also a shareholder, but she is not a member of the board of directors. Donna dies, and her son, Steven, inherits her shares of Indiewealth and replaces her on the board. Steven, however, is inattentive to Indiewealth’s corporate affairs. During this time, Craig diverts corporate funds for personal use, and consequently, Indiewealth becomes insolvent. If Georgia decides to sue Steven for violating his fiduciary duties, under what theory is she likely to file the suit?
A. Violating the duty of loyalty
B. Violating the duty of reasonableness
C. Violating the duty of care
D. Violating the duty of responsibility
C. Violating the duty of care
Which of the following is a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?
A. The victim failed to exercise due care in relying on the representation.
B. The defendant made a false statement (i.e., a misrepresentation of fact).
C. The defendant acted negligently.
D. The defendant had a duty to disclose the information.
B. The defendant made a false statement (i.e., a misrepresentation of fact).
To prove a conspiracy claim, 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.
A. True
B. False
False
To prove that a defendant committed 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.
A. True
B. False
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.
A. True
B. False
False
Which of the following is an element that must be established to prove fraud based on the concealment of material facts?
A. The defendant had knowledge of a material fact that concerned a matter within the jurisdiction of a government agency.
B. The defendant knew for certain the victim would be harmed.
C. The defendant acted with intent to mislead or deceive the victim(s).
D. The victim failed to exercise due care in relying on the defendant’s actions.
C. The defendant acted with intent to mislead or deceive the victim(s).
For a conflict of interest claim to be actionable, the conflict must be undisclosed.
A. True
B. False
True
Wire fraud is generally defined as the use of a country’s mail system to perpetrate fraud.
A. True
B. False
False
A defendant who destroys material documents or records that are intended to be used in a future criminal proceeding might be charged with obstruction of justice by the government.
A. True
B. False
True
Which of the following statements about the UK Bribery Act is INCORRECT?
A. Unlike the FCPA, the UK Bribery Act does not contain an explicit exception for facilitating payments.
B. The UK Bribery Act has a broader application than the FCPA because, unlike the FCPA, it makes commercial bribery a crime.
C. The UK Bribery Act exercises jurisdiction over all individuals and corporate entities for acts of corruption when any part of the offense occurs in the United Kingdom.
D. If an organization’s anti-corruption program complies with the FCPA, then it will also comply with the UK Bribery Act.
D. If an organization’s anti-corruption program complies with the FCPA, then it will also comply with the UK Bribery Act.
Which of the following is a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?
A. The victim suffered damages because of the misrepresentation
B. The defendant knew the representation was false
C. The victim relied on the misrepresentation
D. All of the above
D. All of the above
In most countries, which of the following is something that a government prosecutor must prove to convict someone of the crime of making a false statement to the government?
A. The government was influenced by or suffered a loss because of the statement.
B. The statement was the result of a mistake or other innocent reason.
C. The individual acted knowingly and willfully when making the statement.
D. The individual made the statement directly to the government.
C. The individual acted knowingly and willfully when making the statement.
Which of the following is NOT a legal element that must be shown to prove a claim for official bribery?
A. The defendant gave or received something of value.
B. The government suffered damages as a result.
C. The defendant acted with corrupt intent.
D. The recipient was (or was selected to be) a public official.
B. The government suffered damages as a result.
Paula is on the boards of two companies that compete in the highway construction industry. Paula does not disclose this conflict, and she does not step down from the board of either company. If Paula’s acts are discovered and she is sued for violating her fiduciary duties, under what theory is the suit MOST LIKELY to be filed?
A. Violating the duty of care
B. Violating the duty of loyalty
C. Violating the duty of fair competition
D. Violating the duty to disclose
B. Violating the duty of loyalty
For a false statement to violate a law that criminalizes making false statements to government agencies, it need NOT be made directly to the government; it can be made to a third party if it involves a matter within the jurisdiction of a governmental department or agency.
A. True
B. False
True
To establish that a defendant violated a law that criminalizes making false statements to government agencies, the government must prove that the defendant made a false statement regarding a matter within the jurisdiction of a government agency and that the agency relied on the false statement to its detriment.
A. True
B. False
False
Which of the following MOST ACCURATELY describes the legal elements that must be shown to prove a claim for official bribery?
A. The defendant, while acting without due care, gave or received something of value that was intended to influence an act or duty of the recipient who was (or was selected to be) a public official.
B. The defendant, while acting with corrupt intent, gave or received something of value that was intended to influence an act or duty of the recipient who was (or was selected to be) a public official.
C. The defendant, while acting negligently, gave or received something of value that was intended to influence an act or duty of the recipient who was (or was selected to be) a public official, causing the government to suffer damages.
D. The defendant, while acting negligently, gave or received something of value that was intended to influence an act or duty of the recipient who was (or was selected to be) a public official.
B. The defendant, while acting with corrupt intent, gave or received something 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 the MOST ACCURATE statement about laws that criminalize making false statements to government agencies?
A. An individual can be found guilty of making a false statement only if the statement was made directly to a governmental department or agency.
B. An individual can be found guilty of making a false statement only if the statement was made under oath.
C. An individual can be found guilty of making a false statement even if the individual did not know the statement was false at the time the statement was made.
D. An individual can be found guilty of making a false statement even if the government did not suffer a loss for relying on it.
D. An individual can be found guilty of making a false statement even if the government did not suffer a loss for relying on it.
The U.S. federal wire fraud statute makes it a crime to use telephone, television, internet, or other electronic communications to perpetrate a scheme to defraud a victim of money or property.
A. True
B. False
True
A fraudster uses the U.S. mail system as a key part of an international bribery scheme. If the U.S. government decides to prosecute the fraudster, which of the following would provide the MOST LIKELY basis for the charges?
A. Mail fraud
B. Wire fraud
C. Interstate deceit
D. Securities deceit
charges?
A. Mail fraud
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).
A. True
B. False
False
For a conflict of interest claim to be actionable against an agent, the agent must have:
A. Purported to have acted on behalf of, or as an agent for, an identified principal
B. Informed the principal of their actions
C. Breached the duty of fidelity that they owed to their principal
D. Had an undisclosed interest in a matter that could influence their professional role
D. Had an undisclosed interest in a matter that could influence their professional role
Which of the following is considered obstruction of justice?
A. Destroying documents related to a future proceeding
B. Impeding a government auditor in the performance of their duties
C. Influencing a witness with bribes
D. All of the above
D. All of the above
Unlike the U.S. Foreign Corrupt Practices Act (FCPA), the UK Bribery Act makes it a crime to bribe a foreign public official in connection with international business transactions.
A. True
B. False
False
Officers and directors of a corporation have a fiduciary duty to act solely in the best interest of non-shareholder constituencies.
A. True
B. False
False
Which of the following is a legal element that the government must show to prove a conspiracy claim?
A. At least one of the conspirators knowingly committed at least one overt act in furtherance of the conspiracy
B. The defendant entered into an agreement to commit an illegal act
C. The defendant knew the purpose of the agreement and intentionally joined in the agreement
D. All of the above
D. All of the above
Which of the following acts would constitute violations under the U.S. Foreign Corrupt Practices Act’s (FCPA) anti-bribery provisions?
A. A U.S. company transfers $45,000 to a foreign official to influence the official to award it a public construction contract
B. To induce a public construction contract award, a U.S. company promises to pay a foreign official $45,000 upon securing the contract
C. A German company that is publicly traded on the New York Stock Exchange transfers $45,000 to a foreign official to influence the official to award it a public construction contract
D. All of the above
D. All of the above
Which of the following MOST ACCURATELY describes the legal elements that must be shown to prove a claim for commercial bribery?
A. 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.
B. The defendant, while acting negligently 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.
C. The defendant, while acting with corrupt intent, gave or received something of value that was intended to influence the recipient’s action in a business decision, causing their principal to suffer damages.
D. The defendant, while acting without due care, gave or received something of value that was intended to influence the recipient’s action in a business decision, causing their principal to suffer damages.
bribery?
A. 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.
The Organisation for Economic Co-operation and Development’s (OECD) Recommendation on Combating Bribery in International Business (the Recommendation) urges member states to combat the bribery of foreign public officials by taking steps to improve certain areas within their respective infrastructures. Which of the following is NOT one of those primary areas?
A. Tax systems and regulations
B. Banking and accounting requirements and practices
C. Laws and regulations covering the handling of sensitive protected data
D. Criminal, civil, commercial, and administrative laws
C. Laws and regulations covering the handling of sensitive protected data
Which of the following is NOT a legal element that must be shown to prove a claim for commercial bribery?
A. The defendant acted with corrupt intent.
B. The principal suffered damages because of the bribe.
C. The defendant gave or received something of value.
D. The defendant acted without the victim’s knowledge or consent.
B. The principal suffered damages because of the bribe.
The U.S. Foreign Corrupt Practices Act (FCPA) not only prohibits bribes to foreign officials but 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.
A. True
B. False
True
