WCC FINAL EXAM Questions and
Answers Graded A+
What is the general definition of fraud? - Correct answer-The voluntary taking of
money or property from another person using lies or deception.
What types of taking are excluded from the definition of fraud? - Correct answer-
Involuntary taking (burglary, theft) and voluntary taking by threats (robbery,
extortion).
Why is fraud considered a crime despite voluntary exchanges? - Correct answer-
Lying is generally accepted as wrong, and fraud causes financial harm to victims
and costs taxpayers.
What is the inchoate nature of fraud? - Correct answer-Fraud can be charged
without showing that there is a victim, similar to conspiracy.
What is the difference between state and federal jurisdiction in fraud cases? -
Correct answer-State crimes are often violent and personal, while federal crimes
are more complex and involve interstate commerce.
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,What is required for federal jurisdiction in fraud cases? - Correct answer-There
must be a constitutional basis, such as an act affecting interstate commerce.
What does the term 'interstate commerce' mean in the context of fraud? - Correct
answer-An act involving travel between states or transportation of goods across
state lines, regardless of its impact on the national economy.
What are mail fraud and wire fraud? - Correct answer-Federal offenses that involve
the use of the mails or interstate wires to commit fraud.
What are the elements the government must prove in a mail or wire fraud case? -
Correct answer-1) Scheme to defraud, 2) Material misstatements or omissions, 3)
Specific intent to defraud, 4) Resulting loss of money, property, or honest services,
5) Use of mails or wires in furtherance.
What constitutes a 'scheme' in fraud? - Correct answer-A plan or arrangement to
defraud, which must be based on lies or deception.
What is the significance of the case United States v. Takhalov? - Correct answer-It
involved 'Bar Girls' misrepresenting prices to lure businessmen, leading to wire
fraud charges against the bar owners.
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,What was the ruling in Kelly v. United States regarding wire fraud? - Correct
answer-The Supreme Court ruled on the deceptive actions of employees shutting
down a bridge, which constituted wire fraud.
What is the 'Schmuck Rule' in fraud cases? - Correct answer-A legal principle
established in United States v. Tavares regarding the use of mails or wires in fraud.
What does the 'Lulling Rule' refer to? - Correct answer-Established in United
States v. Bradshaw, it addresses the use of communication to reassure victims
during a fraudulent scheme.
What is meant by 'causation' in fraud cases? - Correct answer-The requirement to
show that the fraudulent actions resulted in a loss of money, property, or honest
services.
What is the role of materiality in fraud? - Correct answer-Materiality refers to the
importance of misstatements or omissions in influencing a victim's decision.
What is the 'puffery' defense in fraud cases? - Correct answer-Claims that are
exaggerated or subjective, which are not considered sufficient for fraud.
What is the purpose of fraud punishment? - Correct answer-To deter fraudulent
schemes and protect the financial interests of victims and society.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, What is the significance of the phrase 'in furtherance' in mail and wire fraud? -
Correct answer-It indicates that the use of mails or wires must be part of the
fraudulent scheme's execution.
What is the importance of intent in fraud cases? - Correct answer-The defendant
must have acted with the specific intent to defraud for a conviction.
What does 'deprivation of something of value' mean in the context of fraud? -
Correct answer-It refers to the loss of money or property as a result of deceitful
actions.
How does fraud affect taxpayers? - Correct answer-Fraudulent schemes can lead to
significant financial losses that ultimately impact taxpayers.
What is the relationship between fraud and interstate communications? - Correct
answer-Many fraudulent schemes involve interstate communications, which can
establish federal jurisdiction.
What is the significance of the term 'material misstatements' in fraud? - Correct
answer-They are false statements that are significant enough to influence a victim's
decision.
What is the impact of fraudulent schemes on victims? - Correct answer-Fraud can
ruin victims' finances and lead to significant emotional and psychological harm.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Answers Graded A+
What is the general definition of fraud? - Correct answer-The voluntary taking of
money or property from another person using lies or deception.
What types of taking are excluded from the definition of fraud? - Correct answer-
Involuntary taking (burglary, theft) and voluntary taking by threats (robbery,
extortion).
Why is fraud considered a crime despite voluntary exchanges? - Correct answer-
Lying is generally accepted as wrong, and fraud causes financial harm to victims
and costs taxpayers.
What is the inchoate nature of fraud? - Correct answer-Fraud can be charged
without showing that there is a victim, similar to conspiracy.
What is the difference between state and federal jurisdiction in fraud cases? -
Correct answer-State crimes are often violent and personal, while federal crimes
are more complex and involve interstate commerce.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,What is required for federal jurisdiction in fraud cases? - Correct answer-There
must be a constitutional basis, such as an act affecting interstate commerce.
What does the term 'interstate commerce' mean in the context of fraud? - Correct
answer-An act involving travel between states or transportation of goods across
state lines, regardless of its impact on the national economy.
What are mail fraud and wire fraud? - Correct answer-Federal offenses that involve
the use of the mails or interstate wires to commit fraud.
What are the elements the government must prove in a mail or wire fraud case? -
Correct answer-1) Scheme to defraud, 2) Material misstatements or omissions, 3)
Specific intent to defraud, 4) Resulting loss of money, property, or honest services,
5) Use of mails or wires in furtherance.
What constitutes a 'scheme' in fraud? - Correct answer-A plan or arrangement to
defraud, which must be based on lies or deception.
What is the significance of the case United States v. Takhalov? - Correct answer-It
involved 'Bar Girls' misrepresenting prices to lure businessmen, leading to wire
fraud charges against the bar owners.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,What was the ruling in Kelly v. United States regarding wire fraud? - Correct
answer-The Supreme Court ruled on the deceptive actions of employees shutting
down a bridge, which constituted wire fraud.
What is the 'Schmuck Rule' in fraud cases? - Correct answer-A legal principle
established in United States v. Tavares regarding the use of mails or wires in fraud.
What does the 'Lulling Rule' refer to? - Correct answer-Established in United
States v. Bradshaw, it addresses the use of communication to reassure victims
during a fraudulent scheme.
What is meant by 'causation' in fraud cases? - Correct answer-The requirement to
show that the fraudulent actions resulted in a loss of money, property, or honest
services.
What is the role of materiality in fraud? - Correct answer-Materiality refers to the
importance of misstatements or omissions in influencing a victim's decision.
What is the 'puffery' defense in fraud cases? - Correct answer-Claims that are
exaggerated or subjective, which are not considered sufficient for fraud.
What is the purpose of fraud punishment? - Correct answer-To deter fraudulent
schemes and protect the financial interests of victims and society.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, What is the significance of the phrase 'in furtherance' in mail and wire fraud? -
Correct answer-It indicates that the use of mails or wires must be part of the
fraudulent scheme's execution.
What is the importance of intent in fraud cases? - Correct answer-The defendant
must have acted with the specific intent to defraud for a conviction.
What does 'deprivation of something of value' mean in the context of fraud? -
Correct answer-It refers to the loss of money or property as a result of deceitful
actions.
How does fraud affect taxpayers? - Correct answer-Fraudulent schemes can lead to
significant financial losses that ultimately impact taxpayers.
What is the relationship between fraud and interstate communications? - Correct
answer-Many fraudulent schemes involve interstate communications, which can
establish federal jurisdiction.
What is the significance of the term 'material misstatements' in fraud? - Correct
answer-They are false statements that are significant enough to influence a victim's
decision.
What is the impact of fraudulent schemes on victims? - Correct answer-Fraud can
ruin victims' finances and lead to significant emotional and psychological harm.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
