CFE-LAW EXAM QUESTIONS AND
ANSWERS
Larceny is defined as: - Correct Answers -The unlawful taking of money or property of
another with the intent to convert or to deprive the owner.
Embezzlement is defined as: - Correct Answers -The wrongful appropriation of money
or property by a person to whom it has been lawfully entrusted (or to whom lawful
possession was given).
One of the requirements to prove a criminal violation under Section 1962(c) of the
Racketeer Influenced and Corrupt Organizations (RICO) statute? - Correct Answers -
The defendant had some involvement in the commission of TWO or more predicate
offenses through an enterprise.
Work product protection applies only to: - Correct Answers -Documents and things
prepared in ANICIPATION of litigation or for trial.
A party can raise the Fifth Amendment privilege in civil proceedings but, - Correct
Answers -his refusal may be disclosed to the jury.
The Office of the United States Trustee is a DOJ agency responsible for many tasks in
bankruptcy proceedings. Those tasks include: - Correct Answers -Appointing examiners
and Chapter 11 committees, overseeing and monitoring trustees, and appearing in court
regarding matters of interest to the estate and creditors.
The ________________ is an office within the Department of the Treasury charged with
administering and enforcing U.S. sanction policies against targeted foreign
organizations and individuals that sponsor terrorism and international narcotics
traffickers. - Correct Answers -Office of Foreign Assets Control.
There are three basic forms, as distinguished from types: of evidence, they are: -
Correct Answers -Testimonial, real, and demonstrative
To determine if an investment contract is a security subject to registration under the
Securities Act of 1933, a court might apply the ________ test. - Correct Answers -
Howey.
All bankruptcy cases are filed in: - Correct Answers -Federal court.
, A financial advisor knows of a large order to sell a particular security. Knowing that the
order will certainly cause the stock price to fall, the advisor sells his shares of the stock
at the higher price before he places the customer's order. This practice is called: -
Correct Answers -Front running
The most common bankruptcy crime is: - Correct Answers -The concealment of assets.
The tort of public disclosure of private facts occurs when: - Correct Answers -One party
makes public statements about another party's private life that are not of public concern.
The tort of intrusion into seclusion occurs when: - Correct Answers -An individual
intentionally intrudes into an area where another individual has a reasonable
expectation of privacy and the intrusion would be highly offensive or objectionable to a
reasonable person.
All federal criminal laws are: - Correct Answers -The product of statues, there is no
common law for federal criminal crimes.
During a deposition, the deponent or counsel can object to particular questions as in a
trial, but: - Correct Answers -even if an objection is made, the deponent must answer
the questions.
In closing arguments, the defense argument ofen focuses on: - Correct Answers -
Attacking the motives and credibility of the government's witnesses and emphasizes the
heavy burden of proof the government bears.
To determine if a misrepresentation in the offer or sale of any securities is ________,
the fraud examiner should answer the following question: "Would a reasonable investor
wish to know this information to make an informed decision?" - Correct Answers -
Material.
The element that the government must prove to convict a defendant under Title 18, U.S.
Code, Section 1341 for committing mail fraud are? - Correct Answers -The defendant
knowingly participated with the intent to defraud the victim, the defendant used the mail
in furtherance of the scheme, and the defendant undertook a scheme to defraud a
victim of money or property.
What is the proper sequence of cycles in a money laundering process? - Correct
Answers -Placement, layering, and integration.
Under Title 18, U.S. Code Section 1001 (false statements), a statement is false if: -
Correct Answers -The defendant knew the statement was untrue when he made it.
During a criminal trial involving allegations of corruption, the prosecution introduces a
diagram illustrating the organizational structure of a company allegedly involved in the
ANSWERS
Larceny is defined as: - Correct Answers -The unlawful taking of money or property of
another with the intent to convert or to deprive the owner.
Embezzlement is defined as: - Correct Answers -The wrongful appropriation of money
or property by a person to whom it has been lawfully entrusted (or to whom lawful
possession was given).
One of the requirements to prove a criminal violation under Section 1962(c) of the
Racketeer Influenced and Corrupt Organizations (RICO) statute? - Correct Answers -
The defendant had some involvement in the commission of TWO or more predicate
offenses through an enterprise.
Work product protection applies only to: - Correct Answers -Documents and things
prepared in ANICIPATION of litigation or for trial.
A party can raise the Fifth Amendment privilege in civil proceedings but, - Correct
Answers -his refusal may be disclosed to the jury.
The Office of the United States Trustee is a DOJ agency responsible for many tasks in
bankruptcy proceedings. Those tasks include: - Correct Answers -Appointing examiners
and Chapter 11 committees, overseeing and monitoring trustees, and appearing in court
regarding matters of interest to the estate and creditors.
The ________________ is an office within the Department of the Treasury charged with
administering and enforcing U.S. sanction policies against targeted foreign
organizations and individuals that sponsor terrorism and international narcotics
traffickers. - Correct Answers -Office of Foreign Assets Control.
There are three basic forms, as distinguished from types: of evidence, they are: -
Correct Answers -Testimonial, real, and demonstrative
To determine if an investment contract is a security subject to registration under the
Securities Act of 1933, a court might apply the ________ test. - Correct Answers -
Howey.
All bankruptcy cases are filed in: - Correct Answers -Federal court.
, A financial advisor knows of a large order to sell a particular security. Knowing that the
order will certainly cause the stock price to fall, the advisor sells his shares of the stock
at the higher price before he places the customer's order. This practice is called: -
Correct Answers -Front running
The most common bankruptcy crime is: - Correct Answers -The concealment of assets.
The tort of public disclosure of private facts occurs when: - Correct Answers -One party
makes public statements about another party's private life that are not of public concern.
The tort of intrusion into seclusion occurs when: - Correct Answers -An individual
intentionally intrudes into an area where another individual has a reasonable
expectation of privacy and the intrusion would be highly offensive or objectionable to a
reasonable person.
All federal criminal laws are: - Correct Answers -The product of statues, there is no
common law for federal criminal crimes.
During a deposition, the deponent or counsel can object to particular questions as in a
trial, but: - Correct Answers -even if an objection is made, the deponent must answer
the questions.
In closing arguments, the defense argument ofen focuses on: - Correct Answers -
Attacking the motives and credibility of the government's witnesses and emphasizes the
heavy burden of proof the government bears.
To determine if a misrepresentation in the offer or sale of any securities is ________,
the fraud examiner should answer the following question: "Would a reasonable investor
wish to know this information to make an informed decision?" - Correct Answers -
Material.
The element that the government must prove to convict a defendant under Title 18, U.S.
Code, Section 1341 for committing mail fraud are? - Correct Answers -The defendant
knowingly participated with the intent to defraud the victim, the defendant used the mail
in furtherance of the scheme, and the defendant undertook a scheme to defraud a
victim of money or property.
What is the proper sequence of cycles in a money laundering process? - Correct
Answers -Placement, layering, and integration.
Under Title 18, U.S. Code Section 1001 (false statements), a statement is false if: -
Correct Answers -The defendant knew the statement was untrue when he made it.
During a criminal trial involving allegations of corruption, the prosecution introduces a
diagram illustrating the organizational structure of a company allegedly involved in the
