ACFCS Financial Crime SpecialistExam CFCS Question # 6 Topic 1 Discussion

ACFCS Financial Crime SpecialistExam CFCS Question # 6 Topic 1 Discussion

CFCS Exam Topic 1 Question 6 Discussion:
Question #: 6
Topic #: 1

A large banking institution retains a collections law firm to determine if a $25 million default on a commercial loan is fraud. The attorneys need to determine if the defaulting parly is worth pursuing in civil litigation by first determining if the defaulting entity and/or individual committed fraud by intentionally defaulting.

Which is an indicator or a red flag that the defaulting party could be committing fraud?


A.

The loan IS collateralized by accounts receivable


B.

The payments toward the loan have been delinquent many times over several years of maintaining Ihe loan


C.

A history of bankruptcies is found relating to the defaulting entity or individual


D.

The individual or entity involved in the default loan maintains numerous holding companies


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