Question 1

Which of the following statements is true concerning divorce cases?

Accepted Answer

A) Bankruptcy laws and statutes are much simpler than divorce laws and statutes 
B) Divorce fraud never involves hiding or transferring assets 
C) Most divorce cases are civil cases, with no criminal charges filed 
D) It is illegal for divorce attorneys to hire investigators to help them find hidden assets 
A) Bankruptcy laws and statutes are much simpler than divorce laws and statutes 
B) Divorce fraud never involves hiding or transferring assets 
C) Most divorce cases are civil cases, with no criminal charges filed 
D) It is illegal for divorce attorneys to hire investigators to help them find hidden assets C

Question 2

What is generally indicated in a divorce or bankruptcy when books and records of the debtor/marital partner have been destroyed or are hard to locate,it generally means:

Accepted Answer

A) Fraud has caused the bankruptcy or divorce 
B) The bankruptcy or divorce is used to perpetrate the fraud 
C) The bankruptcy or divorce is used to conceal the fraud 
D) None of the above 
A) Fraud has caused the bankruptcy or divorce 
B) The bankruptcy or divorce is used to perpetrate the fraud 
C) The bankruptcy or divorce is used to conceal the fraud 
D) None of the above C

Question 3

Bankruptcy and divorce can be which of the following categories?

Accepted Answer

A) Criminal matters 
B) Civil matters 
C) Either of the above 
D) Neither of the above 
A) Criminal matters 
B) Civil matters 
C) Either of the above 
D) Neither of the above C

Question 4

Which of the following is not true regarding bankruptcy and divorce frauds?

Accepted Answer

A) Bankruptcy or divorce is used to justify the fraud. 
B) Bankruptcy or divorce is used to perpetuate the fraud. 
C) Bankruptcy or divorce is used to conceal fraud. 
D) Bankruptcy or divorce is used to cash out of the fraud. 
A) Bankruptcy or divorce is used to justify the fraud. 
B) Bankruptcy or divorce is used to perpetuate the fraud. 
C) Bankruptcy or divorce is used to conceal fraud. 
D) Bankruptcy or divorce is used to cash out of the fraud.

Question 5

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 6

​What is the penalty for tax fraud?

Accepted Answer

A) ​It is 20% of the tax bill. 
B) ​It is 25% of the tax bill. 
C) ​It is 50% of the tax bill. 
D) ​It is 75% of the tax bill. 
A) ​It is 20% of the tax bill. 
B) ​It is 25% of the tax bill. 
C) ​It is 50% of the tax bill. 
D) ​It is 75% of the tax bill.

Question 7

The Concealment of Assets,False Oaths and Claims,and Bribery section of the USC 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 8

Karl Mathers set up a new company and obtained loans to buy inventory with the intention of filing for bankruptcy after 2 years and selling the inventory later to a close friend at deep discounts.What is the term for this type of bankruptcy fraud?

Accepted Answer

A) Commercial loan fraud 
B) Inventory dumping fraud 
C) Bust-out 
D) None of the above 
A) Commercial loan fraud 
B) Inventory dumping fraud 
C) Bust-out 
D) None of the above

Question 9

Which of the following actions is NOT prohibited for a trustee or other official overseeing bankruptcy proceedings?

Accepted Answer

A) Refusing to permit inspection of documents of the estate in the person's charge 
B) Refusing to sell assets in the person's charge 
C) Purchasing, indirectly, any property of the debtor's estate 
D) Purchasing, directly, any property of the debtor's estate 
A) Refusing to permit inspection of documents of the estate in the person's charge 
B) Refusing to sell assets in the person's charge 
C) Purchasing, indirectly, any property of the debtor's estate 
D) Purchasing, directly, any property of the debtor's estate

Question 10

Which of the following is NOT and 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 11

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

Accepted Answer

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

Question 12

According to government statistics,which of the following estimates the losses to creditors from bust-outs?

Accepted Answer

A) $100,000/day 
B) $50 billion/year 
C) $1 million/ year 
D) $10,000/day 
A) $100,000/day 
B) $50 billion/year 
C) $1 million/ year 
D) $10,000/day

Question 13

Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

Accepted Answer

A) To pay for the all of the legal fees in filing a chapter 7, 11, or 13 bankruptcy or to pay the legal fees of a divorce 
B) To protect the assets of the party filing bankruptcy so that no further losses are realized 
C) To settle the debts of the debtor or divorce partner of which the Bankruptcy or Divorce Court has control 
D) To hold only the physical assets of the divorce partner or debtor for the period of the bankruptcy or divorce 
A) To pay for the all of the legal fees in filing a chapter 7, 11, or 13 bankruptcy or to pay the legal fees of a divorce 
B) To protect the assets of the party filing bankruptcy so that no further losses are realized 
C) To settle the debts of the debtor or divorce partner of which the Bankruptcy or Divorce Court has control 
D) To hold only the physical assets of the divorce partner or debtor for the period of the bankruptcy or divorce

Question 14

​Which of the following is NOT involved in money laundering?

Accepted Answer

A) ​engaging in financial transactions to conceal the source of the funds involved 
B) ​engaging in financial transactions to conceal the amount of the funds involved 
C) ​engaging in financial transactions to conceal the identity of the funds involved 
D) ​engaging in financial transactions to conceal the destination of the funds involved 
A) ​engaging in financial transactions to conceal the source of the funds involved 
B) ​engaging in financial transactions to conceal the amount of the funds involved 
C) ​engaging in financial transactions to conceal the identity of the funds involved 
D) ​engaging in financial transactions to conceal the destination of the funds involved

Question 15

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 16

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) Administering bankruptcy cases and reviewing employees and fee applications. 
D) Holds 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) Administering bankruptcy cases and reviewing employees and fee applications. 
D) Holds a valid claim against a debtor.

Question 17

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

Accepted Answer

A) The debtor knew the debts could not be repaid at maturity 
B) The debtor becomes insolvent as a result of the transfer 
C) The debtor misstates the value of the transfer on the books 
D) The debtor's capital remaining after the transfer is unreasonably small 
A) The debtor knew the debts could not be repaid at maturity 
B) The debtor becomes insolvent as a result of the transfer 
C) The debtor misstates the value of the transfer on the books 
D) The debtor's capital remaining after the transfer is unreasonably small

Question 18

All of the following are examples of ways to conceal assets in a bankruptcy or divorce fraud except which one?

Accepted Answer

A) Not reporting sales on the debtor's books but dispersing them to another entity 
B) Damaging or hiding the books and records of the debtor 
C) Dispersing cash received from receivables to third party 
D) Not disclosing interests held in other partnerships, corporations, or other assets 
E) All of the above are ways to conceal assets 
A) Not reporting sales on the debtor's books but dispersing them to another entity 
B) Damaging or hiding the books and records of the debtor 
C) Dispersing cash received from receivables to third party 
D) Not disclosing interests held in other partnerships, corporations, or other assets 
E) All of the above are ways to conceal assets

Question 19

Jim Salazar is the majority shareholder of XYZ Co.XYZ Co.filed for Chapter 11 Bankruptcy on January 1,2008.Which of the following may be considered a fraudulent transfer?

Accepted Answer

A) Transfer of land to Jim's sister Alice on July 1, 2006. 
B) Sale of inventory at regular price to a new customer on February 15, 2008. 
C) Transfer of fixed assets to Jim's brother John on December 15, 2007. 
D) Transfer of inventory to a subsidiary for less than fair value on August 1, 2006. 
E) Both a and c are correct. 
A) Transfer of land to Jim's sister Alice on July 1, 2006. 
B) Sale of inventory at regular price to a new customer on February 15, 2008. 
C) Transfer of fixed assets to Jim's brother John on December 15, 2007. 
D) Transfer of inventory to a subsidiary for less than fair value on August 1, 2006. 
E) Both a and c are correct.

Question 20

Which of the following is true concerning a Chapter 11 bankruptcy?

Accepted Answer

A) Constitutes a complete shutdown of the organization 
B) Requires the entity to reorganize to pay creditors 
C) Is available only to persons 
D) Requires debtors to repay creditors over a specified period 
A) Constitutes a complete shutdown of the organization 
B) Requires the entity to reorganize to pay creditors 
C) Is available only to persons 
D) Requires debtors to repay creditors over a specified period

Which of the following statements is true concerning divorce cases?

What is generally indicated in a divorce or bankruptcy when books and records of the debtor/marital partner have been destroyed or are hard to locate,it generally means:

Bankruptcy and divorce can be which of the following categories?

Which of the following is not true regarding bankruptcy and divorce frauds?

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

What is the penalty for tax fraud?

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

Karl Mathers set up a new company and obtained loans to buy inventory with the intention of filing for bankruptcy after 2 years and selling the inventory later to a close friend at deep discounts.What is the term for this type of bankruptcy fraud?

Which of the following actions is NOT prohibited for a trustee or other official overseeing bankruptcy proceedings?

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

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

According to government statistics,which of the following estimates the losses to creditors from bust-outs?

Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

Which of the following is NOT involved in money laundering?

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

Which of the following is one of the Court-Appointed or Panel Trustee's duties or characteristics?

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

All of the following are examples of ways to conceal assets in a bankruptcy or divorce fraud except which one?

Jim Salazar is the majority shareholder of XYZ Co.XYZ Co.filed for Chapter 11 Bankruptcy on January 1,2008.Which of the following may be considered a fraudulent transfer?

Which of the following is true concerning a Chapter 11 bankruptcy?

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 statements is true concerning divorce cases?

What is generally indicated in a divorce or bankruptcy when books and records of the debtor/marital partner have been destroyed or are hard to locate,it generally means:

Bankruptcy and divorce can be which of the following categories?

Which of the following is not true regarding bankruptcy and divorce frauds?

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

​What is the penalty for tax fraud?

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

Karl Mathers set up a new company and obtained loans to buy inventory with the intention of filing for bankruptcy after 2 years and selling the inventory later to a close friend at deep discounts.What is the term for this type of bankruptcy fraud?

Which of the following actions is NOT prohibited for a trustee or other official overseeing bankruptcy proceedings?

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

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

According to government statistics,which of the following estimates the losses to creditors from bust-outs?

Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

​Which of the following is NOT involved in money laundering?

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

Which of the following is one of the Court-Appointed or Panel Trustee's duties or characteristics?

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

All of the following are examples of ways to conceal assets in a bankruptcy or divorce fraud except which one?

Jim Salazar is the majority shareholder of XYZ Co.XYZ Co.filed for Chapter 11 Bankruptcy on January 1,2008.Which of the following may be considered a fraudulent transfer?

Which of the following is true concerning a Chapter 11 bankruptcy?

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

What is the penalty for tax fraud?

Which of the following is NOT involved in money laundering?