Exam 8: Fiduciary Fraud

Why were criminal networks a necessary part of many of the savings and loan frauds? What activities occurred in the criminal network? What were the common methods used to cheat the public?

Reinsurance companies function outside of the formal regulatory system because they do not directly affect consumers.

The traditional crime of embezzlement by low-level employees has been replaced by:

The First Pension Corporation investments was an insider trading scam.

Alan Bond was convicted and sentenced to prison for cheating retirees and workers by "cherry-picking." This term involves:

The Multiple Employer Welfare Agreement enables employers to meet welfare payment requirements for healthcare.

______________ is the process of progressively increasing the sales price of real estate and the size of the loan and defaulting on the final loan.

Distinguish insider thrift fraud from outsider thrift fraud. Who is involved? What are the techniques? What are the motivations?

Wymer and others tried to justify their schemes by saying that there was an economic downturn and it was necessary to pursue risky investments and hide information from regulator to try to recover. This might have been more believable had it not been for:

Regulator reaction to insurance scams can be very slow. In the case of Martin Bramson and his fake malpractice insurance policies for doctors, an insider had tipped regulators for ______________ before action was taken.

The primary investment vehicle for First Pension was:

A number of recognized Caribbean nations such as Belize, Dominica, and Grenada have offered economic citizenships, which have a lot in common with the offerings of nonexistent countries.

Investigate the reinsurance industry.Is it still a common practice in the United States? Have there been any recent insurance scandals that involved the practice of reinsurance?

How does investment and financial services fraud work? Who are the actors typically involved in this sort of fraud?

The Multiple Employer Welfare Arrangement was created by Congress to:

Nominee loans involve loans on real estate to borrowers that do not exist or are not in fact real borrowers.

Alan Teale and his far-flung group of companies took advantage of the public in all of the following ways except:

Like other criminogenic cultures, the savings and loan industry placed a heavy emphasis on:

White-collar crime was not a key instrument in the savings and loan debacle.

Financial institutions are entrusted to properly invest and oversee large amounts of funds which are ________________ in them.