Corruption and Bribery Schemes Flashcards

Which element is NOT required to prove commercial bribery under most US state laws?

Answer: The bribed party must be a government official

Commercial bribery applies to private-sector employees and agents; the involvement of a government official is not required (that falls under public bribery statutes).

When investigating a potential bribery scheme, which document type is most valuable for identifying undisclosed relationships between an employee and a vendor?

Answer: Conflict of interest disclosure forms

Conflict of interest disclosure forms require employees to declare personal relationships or financial interests in vendors, making them a primary document in bribery investigations.

A 'shell company' scheme most directly supports which type of corruption fraud?

Answer: Billing for services not rendered through a fictitious entity

Shell companies are commonly used to fraudulently bill an employer for goods or services never received, routing payments to an account controlled by the fraudster.

Under the UK Bribery Act 2010, which offense is unique compared to the FCPA?

Answer: Failure of a commercial organization to prevent bribery

Section 7 of the UK Bribery Act creates a strict liability corporate offense for failing to prevent bribery, which has no direct equivalent in the FCPA.

Which analytical technique is most effective for detecting corruption in vendor master files?

Answer: Comparing vendor addresses to employee home addresses

Matching vendor addresses against employee home addresses can reveal shell companies or conflict-of-interest arrangements set up by employees.

In a 'pay-and-return' bribery scheme, which party typically initiates the corrupt payment?

Answer: The vendor initiates by offering payment to the employee

In a pay-and-return (bribery) scheme, the vendor proactively offers a kickback or bribe to the employee to gain a business advantage, distinguishing it from extortion where the employee demands payment.