ACFE Law 4

Question 1

Which of the following best describes 'constructive fraud' as distinguished from actual fraud?

Accepted Answer

A breach of legal or equitable duty that the law treats as fraudulent regardless of intent to deceive

Answer

Constructive fraud involves a breach of fiduciary or legal duty that the law treats as fraudulent without requiring proof of actual intent to deceive.

Question 2

The statute of limitations for civil RICO claims under federal law is:

Accepted Answer

4 years from discovery of the injury

Answer

The Supreme Court established a four-year statute of limitations for civil RICO claims, running from when the plaintiff discovered or should have discovered the injury.

Question 3

Under Federal Rule of Evidence 404(b), evidence of prior bad acts is generally inadmissible to prove character but may be admissible to prove:

Accepted Answer

Intent, knowledge, identity, motive, or absence of mistake

Answer

Rule 404(b) permits prior bad act evidence for purposes such as proving motive, opportunity, intent, preparation, plan, knowledge, identity, or absence of mistake or accident.

Question 4

A grand jury subpoena issued in a federal fraud investigation requires the recipient to:

Accepted Answer

Produce documents or testimony as specified, unless a valid privilege applies

Answer

Recipients of grand jury subpoenas must comply by producing the requested documents or testimony, though they may invoke valid privileges such as the Fifth Amendment or attorney-client privilege.

Question 5

Which of the following is considered a 'predicate offense' under the federal money laundering statutes (18 U.S.C. § 1956)?

Accepted Answer

Specified unlawful activities (SUAs) such as drug trafficking and fraud

Answer

Federal money laundering statutes require that the funds involved proceed from a 'specified unlawful activity' (SUA), which includes drug trafficking, fraud, and over 200 other predicate offenses.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Law 4