Certified Fraud Examiner Fraud Law and Legal Elements Flashcards

Which element is NOT required to prove civil fraud in the United States?

Answer: A criminal conviction of the perpetrator

Civil fraud does not require a criminal conviction; it only requires proof of the core elements by a preponderance of the evidence.

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is explicitly permitted?

Answer: Facilitating payments to expedite routine governmental actions

The FCPA contains a narrow exception for facilitating payments (also called grease payments) made to expedite routine, non-discretionary governmental actions.

The Sarbanes-Oxley Act Section 806 primarily protects which group?

Answer: Employees of publicly traded companies who report securities fraud

SOX Section 806 protects whistleblower employees of publicly traded companies who report fraud or securities law violations from retaliation.

Which doctrine holds that a corporation is criminally liable for crimes committed by its employees acting within the scope of their employment?

Answer: Respondeat superior

Respondeat superior ('let the master answer') is the doctrine under which corporations can be held criminally liable for employee misconduct within the scope of employment.

Which standard of proof applies in a civil fraud lawsuit in the United States?

Answer: Preponderance of the evidence

Civil fraud cases require proof by a preponderance of the evidence, meaning it is more likely than not that fraud occurred.

Which federal statute criminalizes the use of mail or wire communications in furtherance of a scheme to defraud?

Answer: Mail and Wire Fraud Statutes (18 U.S.C. §§ 1341, 1343)

The federal mail fraud (18 U.S.C. § 1341) and wire fraud (18 U.S.C. § 1343) statutes prohibit using mail or wire communications in furtherance of a scheme to defraud.