Certified Fraud Examiner Fraud Law and Legal Elements Flashcards
6 cards from real CFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Certified Fraud Examiner Fraud Law and Legal Elements flashcards as text
Under U.S. law, the Dodd-Frank Act whistleblower program provides financial awards to eligible whistleblowers who provide original information leading to SEC enforcement actions resulting in sanctions exceeding what amount?
Answer: $1,000,000
Dodd-Frank whistleblowers are eligible for awards of 10–30% of sanctions collected in SEC enforcement actions that exceed $1 million in sanctions.
Which of the following is an example of 'constructive fraud'?
Answer: Breaching a fiduciary duty even without fraudulent intent
Constructive fraud occurs when a fiduciary breaches their duty in a way that operates as a fraud on the other party, even without actual fraudulent intent.
Which federal agency has primary jurisdiction for investigating securities fraud in the United States?
Answer: Securities and Exchange Commission (SEC)
The SEC has primary civil and regulatory authority over securities fraud, though the FBI handles criminal investigations often in parallel with SEC civil enforcement.
A CFE testifying as an expert witness in a fraud case must ensure their opinions are based on which standard introduced by the Federal Rules of Evidence?
Answer: Daubert standard (reliable methodology)
Under Federal Rules of Evidence Rule 702 and Daubert v. Merrell Dow, expert testimony must be based on sufficient facts, reliable methodology, and proper application of methods to the facts.
Which doctrine prevents the use of illegally obtained evidence in a criminal proceeding?
Answer: Exclusionary rule
The exclusionary rule bars the use of evidence obtained in violation of a defendant's constitutional rights, particularly under the Fourth Amendment, in criminal proceedings.
Under the Bank Secrecy Act, U.S. financial institutions must file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?
Answer: 30 days
Financial institutions must file a SAR within 30 calendar days after the date of initial detection of a suspicious transaction, with a 60-day extension if no suspect is identified.