CHC EXAM QUESTIONS AND ANSWERS
Chapter 8 Federal Sentencing Guidelines (FSG) Correct Answer: Guidelines and policy in this
section apply to sentencing in federal criminal prosecution when the convicted defendant is an
organization
FSG- 4 factors that increase ultimate punishment of an organization Correct Answer:
1.Involvement in or tolerance of criminal activity
2.Prior history of the organization
3.The violation of an order
4.The obstruction of justice
FSG- The two factors that mitigate the ultimate punishment of an organization Correct Answer:
1.The existence of an effective compliance and ethics program
2. Self-reporting,cooperation, or acceptance of responsibility
FSG - The 4 general principles Correct Answer: 1. The court orders the organization to remedy
harm caused by the offense.
2.If the organization operated primary for a criminal purpose or primarily by criminal means the
fine should divest it of all assets.
3. Fine based on seriousness and culpability (6 factors)
4. Probation is appropriate when needed to ensure another sanction is fully implemented or to
ensure steps will be taken to reduce likelihood of future offense.
FSG-High-level personnel of the organization Correct Answer: Individuals who have substantial
control over the organization or who have a substantial role in the making of policy or has
substantial ownership interest
FSG-Substantial authority personnel Correct Answer: Individuals who within the scope of their
authority exercises substantial measure of discretion in acting on behalf of an organization. High-
level included in definition . Examples manager,can negotiate contracts or prices, supervisory
authority. No of these examples is required, determined on a case by case basis.
FSG-Condoned Correct Answer: If individual knew of the offense and didn't take reasonable
steps to prevent or terminate the offense.
FSG- willfully ignorant of the offense Correct Answer: If the individual did not investigate the
possible occurrence of unlawful conduct despite knowledge of circumstances that would lead a
reasonable person to investigate.
FSG-Part B:Methods for remedying harm Correct Answer: 1.Restitution order or probation
requiring restitution.
2.Remedial order or community service when harm would not be otherwise remedied.
, FSG Restitution to identifiable victim Correct Answer: Can be made in lump sum, partial
payments at specifed intervals, in - kind payments or combination of each.
FSG-in-kind payment Correct Answer: 1. Return of property
2. Replacement of property
3. If the victim agrees services rendered to the victim or to a person organization other than the
victim
FSG - Remedial Orders Correct Answer: RO as part of Probation can require organization to
remedy harm and eliminate or reduce the risk the offense will cause future harm. If future harm
can be reasonably estimated then court can require the organization to create a trust fund
sufficient to address that expected harm.
FSG-Community Service Correct Answer: An organization can perform community service
only by employing it's resources or paying it's employees or others to do so.
FSG-Compliance and ethics program. 4 factors to consider in meeting requirements Correct
Answer: A). Applicable Government Regulation and Industry Practice
B).Size of the organization
C).Recurrence of similar misconduct
FSG-Small Organization Correct Answer: <200 employees
FSG-Pervasiveness under subsection b. Correct Answer: Case specific, depends on number and
degree of responsibility, of individuals within substantial authority personnel who participated
in,condoned, or were willfully ignorant of the offense.
Obstruction does not apply to Correct Answer: Individuals hiding from organization
5 most important federal fraud and abuse laws Correct Answer: *False Claims Act (FCA)
*Ant - kickback Statute (AKS)
*Physician Self-referral *Law (Stark I II III )
*Exclusion Authorities
*Civil Monetary Penalties Law (CMPL)
Stark - designated health services (DHS) Correct Answer: *labs
*PT,OT,Outpatient Speech/Language Pathology
*Radiology, some other imaging
*Radiation therapy, supplies
*DME
*Parenteral enteral nutrients supplies
*Prosthetic Orthotic supplies devices
*Home Health services
*Outpatient Rx drugs
*Inpatient and Outpatient Hospital Services
Chapter 8 Federal Sentencing Guidelines (FSG) Correct Answer: Guidelines and policy in this
section apply to sentencing in federal criminal prosecution when the convicted defendant is an
organization
FSG- 4 factors that increase ultimate punishment of an organization Correct Answer:
1.Involvement in or tolerance of criminal activity
2.Prior history of the organization
3.The violation of an order
4.The obstruction of justice
FSG- The two factors that mitigate the ultimate punishment of an organization Correct Answer:
1.The existence of an effective compliance and ethics program
2. Self-reporting,cooperation, or acceptance of responsibility
FSG - The 4 general principles Correct Answer: 1. The court orders the organization to remedy
harm caused by the offense.
2.If the organization operated primary for a criminal purpose or primarily by criminal means the
fine should divest it of all assets.
3. Fine based on seriousness and culpability (6 factors)
4. Probation is appropriate when needed to ensure another sanction is fully implemented or to
ensure steps will be taken to reduce likelihood of future offense.
FSG-High-level personnel of the organization Correct Answer: Individuals who have substantial
control over the organization or who have a substantial role in the making of policy or has
substantial ownership interest
FSG-Substantial authority personnel Correct Answer: Individuals who within the scope of their
authority exercises substantial measure of discretion in acting on behalf of an organization. High-
level included in definition . Examples manager,can negotiate contracts or prices, supervisory
authority. No of these examples is required, determined on a case by case basis.
FSG-Condoned Correct Answer: If individual knew of the offense and didn't take reasonable
steps to prevent or terminate the offense.
FSG- willfully ignorant of the offense Correct Answer: If the individual did not investigate the
possible occurrence of unlawful conduct despite knowledge of circumstances that would lead a
reasonable person to investigate.
FSG-Part B:Methods for remedying harm Correct Answer: 1.Restitution order or probation
requiring restitution.
2.Remedial order or community service when harm would not be otherwise remedied.
, FSG Restitution to identifiable victim Correct Answer: Can be made in lump sum, partial
payments at specifed intervals, in - kind payments or combination of each.
FSG-in-kind payment Correct Answer: 1. Return of property
2. Replacement of property
3. If the victim agrees services rendered to the victim or to a person organization other than the
victim
FSG - Remedial Orders Correct Answer: RO as part of Probation can require organization to
remedy harm and eliminate or reduce the risk the offense will cause future harm. If future harm
can be reasonably estimated then court can require the organization to create a trust fund
sufficient to address that expected harm.
FSG-Community Service Correct Answer: An organization can perform community service
only by employing it's resources or paying it's employees or others to do so.
FSG-Compliance and ethics program. 4 factors to consider in meeting requirements Correct
Answer: A). Applicable Government Regulation and Industry Practice
B).Size of the organization
C).Recurrence of similar misconduct
FSG-Small Organization Correct Answer: <200 employees
FSG-Pervasiveness under subsection b. Correct Answer: Case specific, depends on number and
degree of responsibility, of individuals within substantial authority personnel who participated
in,condoned, or were willfully ignorant of the offense.
Obstruction does not apply to Correct Answer: Individuals hiding from organization
5 most important federal fraud and abuse laws Correct Answer: *False Claims Act (FCA)
*Ant - kickback Statute (AKS)
*Physician Self-referral *Law (Stark I II III )
*Exclusion Authorities
*Civil Monetary Penalties Law (CMPL)
Stark - designated health services (DHS) Correct Answer: *labs
*PT,OT,Outpatient Speech/Language Pathology
*Radiology, some other imaging
*Radiation therapy, supplies
*DME
*Parenteral enteral nutrients supplies
*Prosthetic Orthotic supplies devices
*Home Health services
*Outpatient Rx drugs
*Inpatient and Outpatient Hospital Services
