ACFCS Financial Crime SpecialistExam CFCS Question # 98 Topic 5 Discussion

ACFCS Financial Crime SpecialistExam CFCS Question # 98 Topic 5 Discussion

CFCS Exam Topic 5 Question 98 Discussion:
Question #: 98
Topic #: 5

The CEO of a major publicly traded shipping company becomes awarethatsome of the contracts she negotiated are becomingunfavorableto the company In additionTradehas declined in her country due to the strong U.S. dollar.

Because the CEO believedthatthese contracts were strong and would increaseprofits,she shared this insider knowledge with her family and encouraged them to buy stock in the company Once it was clear the contracts wereunfavorable. she informed her family to sell all of their stock in small amounts to remain "under the radar" and avoid losing their investments. The CEO resigned andthe shipping company declared bankrupt within a few months.

Which are possible legal consequencesofthe CEO's ethical lapses? Choose 2 answers


A.

Lawsuits will be filed by shareholders


B.

The shipping company will be barred from doing business in the other country


C.

Investigations will be made by the bank that processed the sale of the stock


D.

Criminal charges will be brought against the CEO and her family


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