CFE Evidence and Legal Systems 5

Question 1

Which federal statute specifically protects employees of publicly traded companies from retaliation for reporting fraud to supervisors, law enforcement, or regulatory agencies?

Accepted Answer

Sarbanes-Oxley Act Section 806

Answer

SOX Section 806 prohibits retaliation against employees of publicly traded companies who report fraud or violations of securities laws to supervisors, federal agencies, or Congress.

Question 2

Under the False Claims Act's qui tam provisions, who is entitled to file a lawsuit on behalf of the U.S. government and potentially receive a portion of any recovery?

Accepted Answer

A private individual (relator) who has inside knowledge of fraud

Answer

The False Claims Act's qui tam provisions allow private whistleblowers (relators) with inside knowledge to sue on the government's behalf and collect 15–30% of any recovery.

Question 3

What is the statute of limitations for wire fraud under federal law (18 U.S.C. § 1343)?

Accepted Answer

5 years from the date of the last fraudulent act

Answer

The general federal statute of limitations for wire fraud is 5 years from the date of the offense, extended to 10 years if the fraud affected a financial institution.

Question 4

In a civil fraud case, the doctrine of 'fraudulent concealment' is legally significant because it:

Accepted Answer

Can toll (pause) the statute of limitations until the fraud is discovered

Answer

Fraudulent concealment tolls the statute of limitations, preventing the clock from running while the fraud remains hidden, so the limitations period begins when the victim discovers or should have discovered the fraud.

Question 5

A search warrant in a fraud investigation must be supported by which legal standard before a judge will issue it?

Accepted Answer

Probable cause

Answer

The Fourth Amendment requires that search warrants be issued only upon a showing of probable cause — a reasonable belief, based on specific facts, that evidence of a crime will be found.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Evidence and Legal Systems 5