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Questions # 1:

Which of the following scenarios is an example of the criminal sanction known as criminal forfeiture?

Options:
A.

As part of his sentence for embezzlement, a defendant is ordered to pay back his employer for the money he stole.

B.

As part of her sentence for bribery a defendant is ordered to transfer a car she received as a bribe to the government

C.

As part of her sentence for money laundering a defendant is sentenced to a three- to five-year term of incarceration

D.

As part of his sentence for tax evasion, a Defendant is ordered to pay a fine of $10,000 to the government

Questions # 2:

One of the purposes of securities regulation is to promote an active and competitive market.

Options:
A.

True

B.

False

Questions # 3:

Alicia has been charged with tax evasion. As a defense, Alicia claims that she made an honest mistake due to the complexity of the tax law and did not intentionally violate the jurisdiction's tax laws. If the court finds that her mistake was made in good faith, then she will most likely NOT be found to have willfully engaged in fraudulent actions to avoid reporting or paying her taxes.

Options:
A.

True

B.

False

Questions # 4:

Which of the following situations would constitute a violation of the US Foreign Corrupt Practices Act (FCPA)

Options:
A.

A private U.S company pays a S2.000 foreign corporation fee that is required in order to do business within the country

B.

A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.

C.

A private U S company transfers $45,000 to a foreign official to influence the award of a public construction contract.

D.

A private U.S company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.

Questions # 5:

Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

Options:
A.

A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer

B.

A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives

C.

A suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).

D.

A suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions

Questions # 6:

Aliyah is an employee at Chatham, a publicly traded corporation, and she owns shares of Chatham's stock. Aliyah learns that Chatham is going to publicly announce low earnings, so she sells her shares of Chatham's stock. If her conduct is illegal in the jurisdiction where she works and resides, then what type of crime did Aliyah MOST LIKELY commit?

Options:
A.

Churning

B.

Insider trading

C.

Trading on margin

D.

Futures fraud

Questions # 7:

Which of the following is a red flag that an entity is operating a security business without the proper license or registration?

Options:
A.

The entity's website contains detailed background information.

B.

There is an unexplained absence of customer complaints against the entity.

C.

There are justified gaps in the work history of promoters at the entity

D.

The agents working at the entity have criminal records.

Questions # 8:

In an inquisitorial judicial proceeding, which of the following parties is primarily responsible for questioning witnesses and generally has a larger role in the evidence-gathering process?

Options:
A.

The defendant's counsel

B.

The grand jury

C.

The prosecution

D.

The judge

Questions # 9:

Which of the following statements concerning digital currencies, such as bitcoin, is MOST ACCURATE?

Options:
A.

Digital currencies are subject to all of the same regulations as payments made through traditional financial institutions

B.

Digital currencies are attractive to money launderers because payments often cross jurisdictional boundaries, making it difficult for authorities to pursue enforcement

C.

Digital currencies are attractive to money launderers because they are a payment method that provides complete anonymity

D.

Digital currencies are not typically used to launder money due to strict customer identification or recordkeeping requirements enforced in all jurisdictions

Questions # 10:

Which of the following statements concerning judgments involving parties that are in multiple jurisdictions is MOST ACCURATE?

Options:
A.

If a party obtains a judgment in one jurisdiction, then that party will automatically be able to enforce the judgment wherever the defendant resides.

B.

Whether a foreign judgment is enforceable always depends on where the defendant's assets are located.

C.

If a party obtains a judgment in one jurisdiction, then that party will automatically be able to enforce the judgment in any jurisdiction.

D.

Whether a foreign judgment is enforceable might depend on whether the two jurisdictions have an enforcement treaty.

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