CFS Legal Aspects & Regulatory Compliance 3

Question 1

Under RICO, what is the minimum number of predicate acts required to establish a 'pattern of racketeering activity'?

Accepted Answer

Two acts

Answer

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

Question 2

A company executive who turns government informant and cooperates with prosecutors typically receives a formal agreement known as a:

Accepted Answer

Cooperation agreement

Answer

A cooperation agreement formalizes the terms under which a defendant provides substantial assistance to prosecutors in exchange for sentencing consideration.

Question 3

The legal principle that prevents prosecutors from trying a defendant twice for the same offense is known as:

Accepted Answer

Double jeopardy

Answer

The Double Jeopardy Clause of the Fifth Amendment prohibits a second prosecution for the same offense after acquittal or conviction.

Question 4

Under Dodd-Frank, a whistleblower who voluntarily provides original information leading to an SEC enforcement action yielding over $1 million may receive:

Accepted Answer

10–30% of the sanction

Answer

Dodd-Frank's SEC whistleblower program awards between 10% and 30% of sanctions collected in qualifying enforcement actions exceeding $1 million.

Question 5

Which act established the Public Company Accounting Oversight Board (PCAOB)?

Accepted Answer

Sarbanes-Oxley Act

Answer

SOX Section 101 created the PCAOB as a nonprofit corporation to oversee audits of public companies and protect investors.

(CFS) Certified Fraud Specialist Practice Test

(CFS) Certified Fraud Specialist Practice Test

CFS Legal Aspects & Regulatory Compliance 3