CFE-LAW Online Practice Questions and Answers

Davis is an employee at Waccamaw Homeplace, a publicly traded corporation. Davis knows that Waccamaw is about to publicly announce a new joint venture project in China, so he buys shares of Waccamaw stock. Assuming that his conduct was illegal in the jurisdiction in which he works and resides, what type of crime did Davis MOST LIKELY commit?

A. Insider trading

B. Trading on margin

C. Futures fraud

D. Churning

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

The government filed a civil action against a politician for accepting real estate as a bribe. There is a possibility that the politician could transfer the real estate to a third party before the court enters a final judgment. Which type of order should the government seek from the court to prevent the politician from transferring the real estate?

A. Preservation order

B. Litigation hold

C. Prejudgment attachment

D. Declaratory relief

Company A sued Company B to recover damages for the breach of a contract. In the same proceeding, Company B sought damages for an allegation that Company A fraudulently induced Company B into entering the contract. In this case, what would Company B's claim against Company A be called?

A. Collateral attack

B. Reversal

C. Counterclaim

D. Cross-claim

Which of the following statements concerning judgments involving parties in multiple jurisdictions is MOST ACCURATE?

A. If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment wherever the defendant resides.

B. If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment in any jurisdiction.

C. Whether a foreign judgment is enforceable might depend on whether the two jurisdictions have an enforcement treaty.

D. Whether a foreign judgment is enforceable always depends on where the defendant's assets are located.

Before her criminal trial for embezzlement, Monique contacts witnesses against her and offers to pay them if they change their stories. Based on her actions, the government would MOST LIKELY bring additional charges against Monique for:

A. Conspiracy to influence the court

B. Obstruction of justice

C. Fraudulent misrepresentation

D. Judicial extortion

Which of the following statements concerning front businesses as a method of laundering money is the LEAST accurate?

A. Front businesses provide cover for delivery and transportation related to illegal activity.

B. A red flag of a front business is the observation of a large number of customers during peak operating hours.

C. From criminals' perspective, a disadvantage to front businesses is that they generally must pay taxes on the illicit income.

D. Front businesses benefit launderers by providing a safe place to manage criminal activities.

In most countries, employers must provide notice to their employees before they implement an employee monitoring program.

A. True

B. False

Which of the following is NOT one of the elements that the government must prove to establish a violation of a law criminalizing false statements to government agencies?

A. The defendant made a false statement.

B. The defendant knew the statement was false.

C. The false statement was material.

D. The government relied on the false statement.

During a trial in an adversarial system, an attorney calls an expert witness to the stand and asks, "Could you please describe the procedures you performed in your examination?" Based on this question, which type of testimony is MOST LIKELY being presented?

A. Request for admission

B. Cross-examination

C. Impeachment

D. Direct examination