1. According to the article, “Wall Street Knew Madoff was a Fraud”: a. Madoff claimed to be hedging his investment with long-term options. b. Markopolos knew that Madoff was buying options in the over-the-counter market. c. Markopolos asked numerous traders if they had ever seen his volume, and they all responded negatively. d. Markopolos’ motive to continue this investigation wasn’t self-defense.

2. According to the article, “Wall Street Knew Madoff was a Fraud”: a. The fact that there was something strange going on with Bernie Madoff’s operation was a secret on Wall Street. b.As soon as he started asking questions, he discovered that people had been questioning Madoff’s claims for a long time. c. The response Madoff heard most often from “people at the funds” was that his returns weren’t accurate. d. Madoff didn’t pay for order flow for his broker-dealer firm, so he didn’t have unique access to market information.

3. According to the opening case history in the article, “SARS can Help Put Fraudsters Behind Bars”: a.In a single month, the defendant made 40 deposits at a number of banks, totaling more than $320,000. b. Ultimately, the defendant admitted making numerous deposits of less than $10,000 each to avoid triggering bank filing of the Currency Transaction Reports required for all activity involving five figures or more. c. In almost 30 transactions at various branches of a single bank, the defendant deposited an additional $210,000. d. The mortgage broker structured more than $750,000 into one account at one bank.

4. According to the article, “SARs can Help Put Fraudsters Behind Bars”: a. In 1996, the first year SARs were required upon discovery of suspicious activity, FIs submitted 78,000 of them. b. BSA confidentiality provisions prohibit release of most SAR-related information, and investigators work best in relative obscurity. c. The USA PATRIOT Act and the Bank Secrecy Act, which amended it, require financial institutions to file SARs and other reports with FinCEN in specific situations. d. The FBI and Immigrations and Customs Enforcement routinely publicize detailed proof of how SARs help them detect and prevent financial crime.

5. According to the article, “Workplace Bullying and Fraud: Intimidation in the Office”: a. Statistical data varies, but available literature estimates that one out of every eight employees is bullied at

work in some form. b. Even when employees believe they’re being bullied, only 3 percent formally complain. c. Most schoolyard bullies become workplace bullies. d. Even in extreme cases, victims of workplace bullying never resort to violence.

6. According to the article, “Workplace Bullying and Fraud: Intimidation in the Office,” bullying can affect employees’ willingness to report suspicious of fraud. a.true b.false

7. According to the opening case in the article, “Latin American Corruption and Corporate Fraud”: a. The agreement between the corporation and the company included installing the former owner, an Argentine native, as president of the metal structure company. b.The corporation didn’t trust the new president. c. The corporation placed many limitations on the new president. d. The corporation modified its rules for control and auditing to fit the new situation.

8. According to the article, “Latin American Corruption and Corporate Fraud,” corruption has become an urgent concern not only for the judiciary system of each Latin American country but also for many local political institutions. a. true b. false

9. According to the interview article with Isabel Cumming, she said: a. “My philosophy is that you not only have to find the schemes but you have to educate the victims so it won’t happen again.” b.“I started working for KPMG during the Enron crisis.” c. “In 1989, I attended a conference in Washington, D.C., where I met Jim Ratley.” d. “I always dreamed of being an accountant.”

10. According to the interview article with Isabel Cumming, she said: a. “Maryland has the third-highest amount of foreclosures in the nation.” b. “More than 60 percent of the reported mortgage scams in the state were happening in our county.” c. “Members of the team each spend at least two days of the month out in the community.” d.“Our senior attorney and the state’s attorney petitioned the national TARP committee to obtain the grant to construct the team.”

Fraud Magazine CPE Quiz No. 89 ( Vol. 24, No. 2 )

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