Evidence and Legal Systems Flashcards

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

Answer: Sarbanes-Oxley Act Section 806

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.

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?

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

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.

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

Answer: 5 years from the date of the last fraudulent act

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.

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

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

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.

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

Answer: Probable cause

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.

The 'attorney-client privilege' in a fraud investigation protects which type of communication from compelled disclosure?

Answer: Confidential communications between a client and attorney made for the purpose of seeking legal advice

Attorney-client privilege protects confidential communications between a client and their attorney made for the purpose of seeking or providing legal advice, but does not protect documents prepared for business purposes.

Which legal concept holds that an employer can be held liable for fraudulent acts committed by an employee acting within the scope of their employment?

Answer: Respondeat superior

Respondeat superior (Latin: 'let the master answer') makes employers vicariously liable for torts committed by employees during the course and scope of their employment.