Question 1

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?

Accepted Answer

The answer of Why were criminal networks a necessary part...

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The traditional crime of embezzlement by low-level employees has been replaced by:

Accepted Answer

A) thefts masterminded by outsiders. 
B) low-level employees engaging in stock fraud. 
C) company owners building up companies and selling them to the highest bidder with consequent job loss. 
D) mismanagement and looting by upper-level management.

Question 4

The First Pension Corporation investments was an insider trading scam.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) keeping profitable investments and investing others money in unprofitable ones. 
B) favoring some clients' accounts over others when making investments. 
C) directing investment funds to brokerage houses with the highest fees and getting kickbacks. 
D) deliberately mixing unprofitable investments in with profitable ones to increase fees.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) Nominee loans 
B) Land flips 
C) Linked financing 
D) Reciprocal lending

Question 8

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

Accepted Answer

The answer of Distinguish insider thrift fraud from outsider thrift...

Question 9

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:

Accepted Answer

A) amassing of personal fortunes. 
B) lack of fraud in investments. 
C) insolvency in a time of great economic prosperity. 
D) other firms' ability to weather the tough financial times.

Question 10

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.

Accepted Answer

A) 15 years 
B) 10 months 
C) 10 years 
D) 5 years

Question 11

The primary investment vehicle for First Pension was:

Accepted Answer

A) penny stock. 
B) nonexistent mortgages. 
C) deal stocks. 
D) junk bonds.

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

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?

Accepted Answer

The answer of Investigate the reinsurance industry.Is it still a...

Question 14

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

Accepted Answer

The answer of How does investment and financial services fraud...

Question 15

The Multiple Employer Welfare Arrangement was created by Congress to:

Accepted Answer

A) enable small business owners to avoid the requirement to provide insurance. 
B) enable employers to provide life insurance. 
C) enable employers to meet welfare payments requirements for health care. 
D) enable employers to provide group medical insurance.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) avoiding the reinsurance scam. 
B) disability plans for professional athletes. 
C) liability policies for high school athletes. 
D) securing claims with treasury notes secured by the Sovereign Cherokee Nation Tejas.

Question 18

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

Accepted Answer

A) presence of organized crime interests. 
B) intricate government regulations. 
C) reduced competition. 
D) profit.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

The answer of Financial institutions are entrusted to properly invest...

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.