Bankruptcy, Divorce, And Tax Fraud
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- The Nature of FraudWhy People Commit FraudFighting Fraud: An OverviewPreventing FraudRecognizing the Symptoms of FraudData-Driven Fraud DetectionInvestigating Theft ActsInvestigating ConcealmentConversion Investigation MethodsInquiry Methods and Fraud ReportsFinancial Statement FraudRevenue- and Inventory-Related Financial Statement FraudsLiability, Asset, and Inadequate Disclosure FraudsFraud Against OrganizationsConsumer FraudBankruptcy, Divorce, and Tax FraudFraud in E-CommerceLegal Follow-Up
Question 1
Free
Multiple Choice
All bankruptcy petitions are subject to
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Federal claims court jurisdiction
U.S. Tax court jurisdiction
Supreme court jurisdiction
U.S. district court jurisdiction
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Question 2
Free
Multiple Choice
Which of the following describes the result of a Chapter 7 filing?
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"a complete liquidation or shutting down of the business"
"courts give debtor time to reorganize"
"2 years probation and/or up to 300 hours community service"
"Debtors make regular payments for a number of years:"
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Question 3
Free
Multiple Choice
When a bankrupt company only listed address and phone number as a post office box and an answering service, we may see this as a flag of what type of fraud?
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Illegal concealment of assets
Planned bankruptcy fraud
Fraudulent transfers
None of the above
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Question 4
Free
Multiple Choice
The Office of U.S. Trustee is an agency in which of the following departments?
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Homeland Defense
Department of Justice
Department of the Treasury
Department of Agriculture
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Question 5
Free
Multiple Choice
The Office of U.S. Trustee is responsible for all but which of the following functions?
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Administering bankruptcy cases
Officiating in court on matters of interest to the debtor's estate and creditors
Overseeing and monitoring trustees
Reviewing employees and fee applications
The Office of U.S. Trustee is responsible for all of the above functions
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Question 6
Multiple Choice
Section 548 of the Bankruptcy Code defines as fraudulent certain transfers made, or obligations incurred, within ______ month(s) before the bankruptcy petition's filing date?
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12
9
6
3
1
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Question 7
Multiple Choice
Most divorce fraud cases are:
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Civil cases.
Criminal cases.
Protected by Chapter 7.
Rarely investigated through surveillance.
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Question 8
Multiple Choice
When fraud examiners investigate a bankruptcy or divorce resulting from fraud where do they focus?
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Activity shortly before the bankruptcy filing or divorce
Activity after the bankruptcy filing or divorce
Activity several years prior to the bankruptcy filing or divorce
Activity throughout the individual's entire life
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Question 9
Multiple Choice
Fraud is common in:
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Divorces
Bankruptcies
Both A and B
Neither A nor B
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Question 10
Multiple Choice
The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?
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File a bankruptcy petition
File a document in a bankruptcy proceeding
Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding
All of the above
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Question 11
Multiple Choice
As a participant in divorce cases, an adjustor can be best described as a person who
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Investigates allegations of fraud or misconduct by the debtor or its principals
Is the subject of a chapter 11 filing
Is the one who holds a valid claim against a debtor
Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtors estate and arranging asset sales
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Question 12
Multiple Choice
Who holds a valid claim against someone filing a chapter 11 bankruptcy?
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Examiner
Debtor
Creditor
Adjuster
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Question 13
True/False
True or false: In a "bust-out," fraud perpetrators plan to retain a business' assets while filing for bankruptcy in order to avoid responsibility for company liabilities.
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True
False
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Question 14
Multiple Choice
"Bust-out" refers to:
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A planned bankruptcy
Jailbreak planned by fraud perpetrators
Skipping out on bail
Fraud prevention program for convicted fraudsters
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Question 15
Multiple Choice
Court appointed trustees are individuals or firms, who:
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Identify and collect a debtor's assets and then allocate those assets to creditors in an orderly manner.
Review fee applications, motions to appoint trustees and examiners, motions to convert or dismiss a case, and other pleadings
Investigate criminal complaint in bankruptcy cases
Makes a false oath or account in a bankruptcy case
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Question 16
Multiple Choice
Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?
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Chapter 3
Chapter 5
Chapter 7
Chapter 11
Chapter 13
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Question 17
Multiple Choice
One type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less. This type of bankruptcy is defined in _____ of the Bankruptcy Code.
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Chapter 3
Chapter 5
Chapter 7
Chapter 11
Chapter 13
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Question 18
Multiple Choice
In dealing with divorce and bankruptcy, when books and records of the debtor/marital partner have been destroyed or are hard to locate it generally means:
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Fraud has caused the bankruptcy or divorce
The bankruptcy or divorce is used to perpetrate the fraud
The bankruptcy or divorce is used to conceal the fraud
None of the above
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Question 19
Multiple Choice
Which of the following best explains why pressure to commit fraud exists in bankruptcy and divorce cases?
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Fraudsters don't have accurate records
Assets are taken away from one party and given to others
To see if private investigators can find the hidden asset
None of the above
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Question 20
Multiple Choice
Jim Salazar is the majority shareholder of XYZ Co. XYZ Co. filed for Chapter 11 Bankruptcy on January 1, 2008. Which of the following would be considered a fraudulent transfer?
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Transfer of land to Jim's sister Alice on July 1, 2006 with the intent to place the land beyond the reach of creditors.
Sale of inventory at regular price to a new customer on February 15, 2008.
Transfer of fixed assets to Jim's brother John on December 15, 2007 with the intent to place the fixed assets beyond the reach of creditors.
Transfer of inventory to a subsidiary for less than fair value on August 1, 2006.
Two of the above
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