Certified Fraud Examiner Fraud Law and Legal Elements Flashcards

Under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a 'pattern of racketeering activity' requires at least how many predicate acts within 10 years?

Answer: Two

RICO requires at least two predicate acts of racketeering activity within a 10-year period to establish a 'pattern.'

Which legal concept allows prosecutors to charge co-conspirators with the crimes of their partners, even if they did not personally commit those crimes?

Answer: Pinkerton liability

Pinkerton liability holds each co-conspirator responsible for the foreseeable crimes committed by other members of the conspiracy in furtherance of the agreement.

Which of the following best describes 'mens rea' in the context of fraud?

Answer: The guilty mind or criminal intent required for fraud

Mens rea refers to the criminal intent or guilty mind that must be proven alongside the physical act (actus reus) to establish most fraud offenses.

The statute of limitations for federal wire fraud under U.S. law is generally how many years?

Answer: 5 years

The general federal statute of limitations for wire fraud is five years from the date the offense was committed, though financial institution fraud has a longer period.

Which remedy allows a court to seize property that is the proceeds of fraud before a civil judgment is entered?

Answer: Attachment

Pre-judgment attachment allows a court to seize or freeze a defendant's property before a final civil judgment to preserve assets for potential recovery.

Which law requires U.S. companies to maintain accurate books and records and have adequate internal controls, regardless of whether bribery occurs?

Answer: Foreign Corrupt Practices Act

The FCPA's accounting provisions require companies to keep accurate books and records and maintain a system of internal accounting controls, independently of its anti-bribery provisions.