Question 1

Which of the following is true of bankruptcy/divorce fraud?

Accepted Answer

A)  It involves only criminal proceedings 
B)  It is growing at an alarming rate 
C)  The main motivation is to keep assets from being taken 
D)  Both a and c 
E)  Both b and c 
A)  It involves only criminal proceedings 
B)  It is growing at an alarming rate 
C)  The main motivation is to keep assets from being taken 
D)  Both a and c 
E)  Both b and c

Question 2

Entering false financial information on bankruptcy petitions and schedules occurs in approximately what percent of bankruptcy cases?

Accepted Answer

A)  10 percent 
B)  30 percent 
C)  50 percent 
D)  70 percent 
A)  10 percent 
B)  30 percent 
C)  50 percent 
D)  70 percent

Question 3

Which of the following is the strongest indication of a bust-out?

Accepted Answer

A)  The company has one permanent residential street address. 
B)  Management suddenly changes without public notice. 
C)  Inventory suddenly and dramatically increases. 
D)  One of the credit references is an out-of-town bank. 
A)  The company has one permanent residential street address. 
B)  Management suddenly changes without public notice. 
C)  Inventory suddenly and dramatically increases. 
D)  One of the credit references is an out-of-town bank.

Question 4

Which of the following statements correctly depicts duties of court-appointed trustees?

Accepted Answer

A)  Trustees identify and collect a debtor's assets and then allocate those assets to creditors in an orderly manner. 
B)  Trustees review fee applications, motions to appoint trustees and examiners, motions to convert or dismiss a case, and other pleadings. 
C)  Trustees investigate criminal compliance in bankruptcy cases. 
D)  Trustees testify in bankruptcy cases. 
A)  Trustees identify and collect a debtor's assets and then allocate those assets to creditors in an orderly manner. 
B)  Trustees review fee applications, motions to appoint trustees and examiners, motions to convert or dismiss a case, and other pleadings. 
C)  Trustees investigate criminal compliance in bankruptcy cases. 
D)  Trustees testify in bankruptcy cases.

Question 5

Who holds a valid claim against someone filing a Chapter 11 bankruptcy?

Accepted Answer

A)  Examiner 
B)  Debtor 
C)  Creditor 
D)  Adjuster 
A)  Examiner 
B)  Debtor 
C)  Creditor 
D)  Adjuster

Question 6

Criminal bankruptcy fraud cases are generally prosecuted by the:

Accepted Answer

A)  U.S. Attorney's office 
B)  FBI 
C)  CIA 
D)  District Attorney's office 
A)  U.S. Attorney's office 
B)  FBI 
C)  CIA 
D)  District Attorney's office

Question 7

Which of the following is usually the most complex step in the money laundering process?

Accepted Answer

A)  Integration 
B)  Layering 
C)  Placement 
D)  Transferring 
A)  Integration 
B)  Layering 
C)  Placement 
D)  Transferring

Question 8

The Concealment of Assets, False Oaths and Claims, and Bribery section of the U.S. Code makes it a crime to "knowingly and fraudulently" do all of the following EXCEPT:

Accepted Answer

A)  Receive property from the debtor after bankruptcy is filed 
B)  Conceal records or property 
C)  Transfer property to the debtor 
D)  Make a false statement 
A)  Receive property from the debtor after bankruptcy is filed 
B)  Conceal records or property 
C)  Transfer property to the debtor 
D)  Make a false statement

Question 9

The Office of the U.S. Trustee is responsible for all but which of the following functions?

Accepted Answer

A)  Administering bankruptcy cases 
B)  Officiating in court on matters of interest to the debtor's estate and creditors 
C)  Overseeing and monitoring trustees 
D)  Reviewing employees and fee applications 
A)  Administering bankruptcy cases 
B)  Officiating in court on matters of interest to the debtor's estate and creditors 
C)  Overseeing and monitoring trustees 
D)  Reviewing employees and fee applications

Question 10

Bankruptcy fraud makes it a crime to do any of the following to execute or conceal a fraud scheme EXCEPT:

Accepted Answer

A)  File a bankruptcy petition 
B)  Make a false account in a bankruptcy case 
C)  File a document in a bankruptcy proceeding 
D)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding, either before or after the bankruptcy petition is filed 
A)  File a bankruptcy petition 
B)  Make a false account in a bankruptcy case 
C)  File a document in a bankruptcy proceeding 
D)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding, either before or after the bankruptcy petition is filed

Question 11

If reorganization does not work under Chapter 11 bankruptcy, judges may order which form of bankruptcy?

Accepted Answer

A)  Chapter 5 
B)  Chapter 9 
C)  Chapter 10 
D)  Chapter 13 
E)  None of the above 
A)  Chapter 5 
B)  Chapter 9 
C)  Chapter 10 
D)  Chapter 13 
E)  None of the above

Question 12

The Office of the U.S. Trustee is an agency in which of the following departments?

Accepted Answer

A)  Department of Homeland Security 
B)  Department of Justice 
C)  Department of the Treasury 
D)  Department of Agriculture 
A)  Department of Homeland Security 
B)  Department of Justice 
C)  Department of the Treasury 
D)  Department of Agriculture

Question 13

Which of the following is NOT a participant in the bankruptcy process?

Accepted Answer

A)  U.S. Trustee 
B)  Bankruptcy court 
C)  Creditors 
D)  All of the above are participants in the bankruptcy process 
A)  U.S. Trustee 
B)  Bankruptcy court 
C)  Creditors 
D)  All of the above are participants in the bankruptcy process

Question 14

Which of the following is one of the court-appointed or panel trustee's duties or characteristics?

Accepted Answer

A)  Investigate the acts, conduct, liabilities, assets, and financial condition of the debtor, the operation of the debtor's business, and the desirability of the continuance of that business 
B)  Approve reorganization plans 
C)  Administer bankruptcy cases and review employees and fee applications 
D)  Hold a valid claim against a debtor 
A)  Investigate the acts, conduct, liabilities, assets, and financial condition of the debtor, the operation of the debtor's business, and the desirability of the continuance of that business 
B)  Approve reorganization plans 
C)  Administer bankruptcy cases and review employees and fee applications 
D)  Hold a valid claim against a debtor

Question 15

Which of the following is NOT a purpose of bankruptcy?

Accepted Answer

A)  Give debtors relief from the creditors 
B)  Protect debtors from unfair collection efforts by other creditors 
C)  Give debtors relief from foreclosure activities 
D)  Give debtors the ability to safeguard their most important assets 
E)  All of the above are purposes of bankruptcy 
A)  Give debtors relief from the creditors 
B)  Protect debtors from unfair collection efforts by other creditors 
C)  Give debtors relief from foreclosure activities 
D)  Give debtors the ability to safeguard their most important assets 
E)  All of the above are purposes of bankruptcy

Question 16

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Accepted Answer

A)  Increases in operating losses that are not explained by economic factors 
B)  The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease 
C)  A sudden change in management is made without public notice 
D)  The company sells goods at large discounts 
A)  Increases in operating losses that are not explained by economic factors 
B)  The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease 
C)  A sudden change in management is made without public notice 
D)  The company sells goods at large discounts

Question 17

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

Accepted Answer

A)  Fraudsters don't have accurate records. 
B)  Assets are taken away from one party and given to others. 
C)  The perpetrators do not feel that a fraud investigator will find them out. 
D)  There is anger aimed at the other parties involved. 
A)  Fraudsters don't have accurate records. 
B)  Assets are taken away from one party and given to others. 
C)  The perpetrators do not feel that a fraud investigator will find them out. 
D)  There is anger aimed at the other parties involved.

Question 18

Which of the following is NOT a part of the mission of the IRS's Criminal Investigation Division?

Accepted Answer

A)  To investigate potential criminal violation of the Internal Revenue Code 
B)  To investigate potential financial statement fraud related to revenue and expenses 
C)  To investigate in a manner that fosters confidence in the system 
D)  To investigate in a manner that fosters compliance with the law 
A)  To investigate potential criminal violation of the Internal Revenue Code 
B)  To investigate potential financial statement fraud related to revenue and expenses 
C)  To investigate in a manner that fosters confidence in the system 
D)  To investigate in a manner that fosters compliance with the law

Question 19

Which of the following is NOT an indicator of possible asset or income concealment?

Accepted Answer

A)  Missing, inaccurate, or damaged records 
B)  Travel to off-shore tax havens or locations that allow secret bank accounts 
C)  Transactions frequently made in cash but normally made on account 
D)  Unusual increases in reported assets 
E)  All of the above are indicators of possible asset or income concealment 
A)  Missing, inaccurate, or damaged records 
B)  Travel to off-shore tax havens or locations that allow secret bank accounts 
C)  Transactions frequently made in cash but normally made on account 
D)  Unusual increases in reported assets 
E)  All of the above are indicators of possible asset or income concealment

Question 20

Which of the following is NOT a duty of the court-appointed trustee in a Chapter 11 case?

Accepted Answer

A)  Investigate the acts, assets, liabilities, and financial condition of the debtor 
B)  Examine proofs of claims 
C)  Collect and liquidate the property of the debtor's estate 
D)  All of the above are duties of a court-appointed trustee 
A)  Investigate the acts, assets, liabilities, and financial condition of the debtor 
B)  Examine proofs of claims 
C)  Collect and liquidate the property of the debtor's estate 
D)  All of the above are duties of a court-appointed trustee

Which of the following is true of bankruptcy/divorce fraud?

Entering false financial information on bankruptcy petitions and schedules occurs in approximately what percent of bankruptcy cases?

Which of the following is the strongest indication of a bust-out?

Which of the following statements correctly depicts duties of court-appointed trustees?

Who holds a valid claim against someone filing a Chapter 11 bankruptcy?

Criminal bankruptcy fraud cases are generally prosecuted by the:

Which of the following is usually the most complex step in the money laundering process?

The Concealment of Assets, False Oaths and Claims, and Bribery section of the U.S. Code makes it a crime to "knowingly and fraudulently" do all of the following EXCEPT:

The Office of the U.S. Trustee is responsible for all but which of the following functions?

Bankruptcy fraud makes it a crime to do any of the following to execute or conceal a fraud scheme EXCEPT:

If reorganization does not work under Chapter 11 bankruptcy, judges may order which form of bankruptcy?

The Office of the U.S. Trustee is an agency in which of the following departments?

Which of the following is NOT a participant in the bankruptcy process?

Which of the following is one of the court-appointed or panel trustee's duties or characteristics?

Which of the following is NOT a purpose of bankruptcy?

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

Which of the following is NOT a part of the mission of the IRS's Criminal Investigation Division?

Which of the following is NOT an indicator of possible asset or income concealment?

Which of the following is NOT a duty of the court-appointed trustee in a Chapter 11 case?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 16: Bankruptcy, Divorce, and Tax Fraud

Which of the following is true of bankruptcy/divorce fraud?

Entering false financial information on bankruptcy petitions and schedules occurs in approximately what percent of bankruptcy cases?

Which of the following is the strongest indication of a bust-out?

Which of the following statements correctly depicts duties of court-appointed trustees?

Who holds a valid claim against someone filing a Chapter 11 bankruptcy?

Criminal bankruptcy fraud cases are generally prosecuted by the:

Which of the following is usually the most complex step in the money laundering process?

The Concealment of Assets, False Oaths and Claims, and Bribery section of the U.S. Code makes it a crime to "knowingly and fraudulently" do all of the following EXCEPT:

The Office of the U.S. Trustee is responsible for all but which of the following functions?

Bankruptcy fraud makes it a crime to do any of the following to execute or conceal a fraud scheme EXCEPT:

If reorganization does not work under Chapter 11 bankruptcy, judges may order which form of bankruptcy?

The Office of the U.S. Trustee is an agency in which of the following departments?

Which of the following is NOT a participant in the bankruptcy process?

Which of the following is one of the court-appointed or panel trustee's duties or characteristics?

Which of the following is NOT a purpose of bankruptcy?

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?

Which of the following is NOT a part of the mission of the IRS's Criminal Investigation Division?

Which of the following is NOT an indicator of possible asset or income concealment?

Which of the following is NOT a duty of the court-appointed trustee in a Chapter 11 case?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

E-Commerce Fraud

Legal Follow-Up

Filters