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ACFE CFE-Law - Certified Fraud Examiner (CFE) - Law

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Total 158 questions

Which of the following scenarios MOST ACCURATELY represents a suitability violation in a jurisdiction that imposes a suitability requirement on broker-dealers?

A.

A broker-dealer is unfamiliar with their client's risk appetite, so they refuse to make any investments on the client's behalf without additional information.

B.

A broker-dealer learns about a promising investment and recommends it to their new client without knowing the client's relevant personal and financial information.

C.

A broker-dealer makes an extremely conservative recommendation to a client that aligns with their risk profile and financial information.

D.

A broker-dealer makes an investment for a client without first obtaining the client's approval to make that specific transaction on their behalf.

Under the World Bank Principles for Effective Insolvency and Credit/Debtor Regimes (World Bank Principles), which of the following parties should administer the debtor's estate in liquidation bankruptcy proceedings?

A.

The jurisdiction's commerce department or equivalent agency

B.

The creditor with the largest claim against the debtor

C.

The debtor, supervised by an independent insolvency representative

D.

An independent insolvency representative

Which of the following is a red flag that might be indicative of an entity operating a security business without the proper license or registration?

A.

There are justified gaps in the work history of promoters at the entity.

B.

The entity is known to have a history of regulatory problems.

C.

There is a lack of customer complaints against the entity.

D.

The entity's website contains detailed background information.

A prosecutor died criminal charges against Rosa calming that she stole Juan's personal information and sold his identity on the dark web Juan wants to file a civil lawsuit against Rosa to recover damages arising from the identity theft Can Juan file the civil action before the criminal action against Rosa is completed?

A.

Yes, the evil action can be filed if the jurisdiction permits parallel proceedings.

B.

No, the civil action cannot be filed if the jurisdiction prohibits counterclaims.

C.

Yes, the evil action can be filed if the jurisdiction permits analogous cairns.

D.

No, the civil action cannot be filed if the jurisdiction prohibits double jeopardy.

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

A.

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

B.

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

C.

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

D.

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

Dodd is a Certified Fraud Examiner (CFE) who works for Weathervane, a private company Dodd suspects that Burton a Weathervane employee has embezzled money from the company Dodd plans to conduct an internal investigation into the missing funds Based on these facts which of the following is the MOST ACCURATE statement?

A.

Burton has a duty to cooperate with the investigation even if what is requested from him is not reasonable

B.

Burton can refuse to cooperate with the investigation because he has a fundamental right to privacy

C.

Burton likely has a duty to cooperate with the investigation as part of the employer-employee relationship

D.

Burton can refuse to cooperate with the investigation because he has a fundamental right to remain silent

Which of the following statements concerning money services businesses (MSBs) is INCORRECT?

A.

MSBs tend to have a tower money laundering risk than other financial institutions.

B.

MSBs are generally less strictly regulated than traditional financial institutions.

C.

A check cashing company is classified as an MSB.

D.

A currency exchange is classified as an MSB.