Deck 9: Conversion Investigation Methods

Question 1

Mandy calls a local newspaper and pretends to be a neighbor who is away for the winter. She obtains account history and orders the newspaper for six months. Has Mandy committed a fraud? If yes, under which act?

A) No, the newspaper has not yet been delivered or paid.
B) Yes, she is in violation of the Gramm-Leach-Bliley Act of 1999.
C) No, as the neighbor has not served any written notice to keep the information private.
D) Yes, she is in violation of Fair and Accurate Credit Transactions Act of 2003.

Answer 1

B

Question 2

From the following, identify an item that does NOT go into current net worth calculations?

A) Preliminary expenses
B) Prior year's net worth
C) Funds from known sources
D) Assets

Answer 2

A

Question 3

Which of the following agencies is responsible for protecting the president of the United States and other federal dignitaries?

A) CIA
B) NCIC
C) FBI
D) Secret Service

Answer 3

D

Question 4

Funds from unknown sources equal:

A) assets less liabilities.
B) net worth increase plus living expenses.
C) income less funds from known sources.
D) net worth less prior year's net worth.

Question 5

Which of the following information is NOT contained in the Social Security numbers issued by the Social Security Administration?

A) Area of person's residence at time of issuance
B) Person's serial number
C) Age
D) Group

Question 6

Which of the following is NOT information maintained by credit-reporting agencies?

A) Supplier or creditor information, such as sales volume and credit policies
B) Account information, such as payment schedules, items purchased, and buying habits
C) Marketing information, such as customer breakdowns by age, sex, and income levels
D) Consumer information, such as addresses, ages, family members, and incomes

Question 7

The Gramm-Leach-Bliley Act prohibits:

A) telemarketers from selling information to corporations.
B) the use of false pretenses to access the personal information of others.
C) the public from accessing the criminal database of the FBI.
D) customers to opt out of information sharing.

Question 8

Which of the following does NOT constitute a federal source of information?

A) County clerk
B) Central Intelligence Agency
C) Secret Service
D) Department of Justice

Question 9

Identify the principal investigative agency of the Department of Justice.

A) CIA
B) NCIC
C) FBI
D) Secret Service

Question 10

Using the net worth method, calculate an individual's funds from unknown sources. The following information is available:

A) $0
B) $10,000
C) $20,000
D) $40,000

Question 11

Which of the following is NOT one of the major credit-reporting agencies?

A) Experian
B) Equifax
C) TransUnion
D) ProQuest

Question 12

Which federal agency maintains information on individuals who may be a threat to national security?

A) Department of Justice
B) Bureau of Prisons
C) Department of Defense
D) Secret Service

Question 13

Which of the following will be useful in ascertaining whether a doctor is legitimate?

A) Department of Business Regulation
B) Secretary of State
C) State Medical Registry
D) County Clerk

Question 14

Which of the following is classified as a state source of information?

A) Bureau of Alcohol, Tobacco, and Firearms
B) County clerk's office
C) Department of Motor Vehicles
D) Permit departments

Question 15

What is the main objective of the net worth method?

A) To determine the income and expenditures of an individual
B) To determine the extent of stolen funds
C) To determine the financial position of the organization
D) To determine the change in net worth

Question 16

Identify the usual order of net worth calculations used to determine stolen funds.

A) Find net worth, find the net worth increase, find income, find the funds from unknown sources
B) Find net worth, find income, find the funds from known sources, find the net worth increase
C) Find income, find net worth, find the net worth increase, find the funds from unknown sources
D) Find net worth, find the net worth increase, find the funds from known sources, find income

Question 17

To find marital and voting records, one would need to look at the records maintained by the:

A) county sheriff and other officers.
B) Social Security Administration.
C) county clerk.
D) local courts.

Question 18

Income from known sources subtracted from total income gives a reasonable estimate of:

A) funds from unknown sources.
B) liabilities.
C) living expenses.
D) net worth.

Question 19

When is searching through someone's garbage considered a legal activity?

A) When the trash is left unattended inside the suspect's home
B) When the trash is in the possession of the suspect
C) When the trash has left the suspect's home or sidewalk
D) Searching through a person's trash is never considered as a legal activity

Question 20

Net Worth Increase + Living Expenses =

A) Income
B) Funds from Known Sources
C) Liabilities
D) Assets

Question 21

Which Act governs the information maintained by credit-reporting agencies?

A) The Sarbanes-Oxley Act of 2002
B) The Gramm-Leach-Bliley Act of 1999
C) The Fair and Accurate Credit Transactions Act of 2003
D) The Fair Credit Reporting Act of 1971

Question 22

Military records are not confidential and provide valuable information that can help you trace a person's whereabouts through changing addresses. Which government agency furnishes such information?

A) Central Intelligence Agency
B) Federal Bureau of Investigation
C) Department of Defense
D) Department of Justice

Question 23

Which of the following is NOT a publicly available means of fine tuning a Google search?

A) By entering specific phrases
B) By placing a minus sign before unique terms
C) By utilizing domain restrictions
D) By utilizing internal database restrictions

Question 24

Name the agency of the Department of Justice charged with enforcing laws against narcotics trafficking.

A) NCIC
B) Secret Service
C) DEA
D) SSA

Question 25

Using the data below, calculate living expenses. Assets $100,000 Liabilities 37,500
Prior year's net worth 32,500
Income 55,000

A) $57,500
B) $17,500
C) $20,000
D) $25,000

Question 26

What is meant by the term "opting out"?

A) Serving a written notice, denying the bank the right to sell your personal information
B) Withdrawing from a fraud being perpetrated by a colleague
C) A bidder denying to pay the proceeds of the bid on becoming bankrupt
D) Whistle-blowing by a person who was part of a fraud

Question 27

Identify the state agency that maintains licensing information about various professionals.

A) Department of vital statistics
B) Department of business regulation
C) Permit department
D) County clerk

Question 28

Which of the following statements regarding the U.S. Postal Service is NOT accurate?

A) Because the use of mail is so common in frauds, the federal mail statutes are the workhorse statutes in federal crimes.
B) The U.S. Postal Service is a quasi-governmental organization.
C) Postal inspectors share jurisdiction with other federal, state, and local agencies.
D) Postal inspectors are some of the best and most helpful state investigators.

Question 29

Name the government agency whose information is valuable in tracing assets, establishing conflicts of interest, identifying dummy companies, and determining changes in financial status.

A) Department of business regulation
B) Permit department
C) Secretary of State
D) County clerk

Question 30

Name the major database maintained by the FBI.

A) CIA
B) UCC filings
C) DEA
D) NCIC

Question 31

Which of the following is a limitation to the net worth method?

A) Computations only include assets and liabilities that can be discovered.
B) The resulting amounts are not acceptable as evidence in court.
C) The net worth method only gives an estimate of net worth increases or decreases.
D) When presented with the net worth amount(s), suspects sometimes confess.

Question 32

Which of the following is NOT public information on record with the Secretary of State through the Uniform Commercial Code?

A) A company's articles of incorporation
B) A company's current board of directors
C) A company's registered agent
D) A company's bylaws

Question 33

Using the data given below, calculate the funds from unknown sources for Year 2.

Question 34

Data Set 9-1

Refer to Data Set 9-1. Calculate the net worth of the individual at the end of Year 1.

A) $3,000
B) $8,000
C) $0
D) $288,000

Question 35

The Department of Vital Statistics maintains:

A) licensing information.
B) military records.
C) fraud-related information.
D) birth records.

Question 36

Which of the following is NOT a form of database access?

A) Subscription-based fees apply before access is granted
B) There is a per-use fee charged
C) A set number of searches are free followed by a daily charge for use thereafter
D) Unlimited free access to search is granted

Question 37

Which of the following is a primary reason for conducting conversion searches?

A) To find out the suspect's feelings about the organization
B) To understand the suspect's reaction to crisis
C) To check the extent of the suspect's debt
D) To gather evidence that can be used in interrogations to obtain a confession

Question 38

How are permit departments helpful in conversion investigation efforts?

A) By identifying the nature and location of businesses, new leases, and recent construction
B) By providing information about chattel mortgages and loans to individuals or businesses on equipment
C) By providing license numbers used for identification in transactions
D) By identifying owned assets, indebtedness, mortgage holders, trustees, or straw buyers

Question 39

What is meant by the term "trashing" in relation to fraud investigation?

A) A broad search on the Internet to obtain valuable information
B) Looking through a suspect's garbage for possible evidence
C) Destroying hard copies of important documents, so as to leave no evidence
D) Gaining financial information through previous acquaintances

Question 40

Which of the following makes the net worth method ineffective in some situations?

A) It gives a conservative estimate of stolen funds that is not readily accepted as evidence by courts.
B) It rarely facilitates obtaining confessions from suspects.
C) When people have income, they either purchase additional assets, pay off liabilities, or improve their lifestyle, thus increasing living expenses.
D) Embezzlers typically spend their money on food, jewelry, vacations, and other luxuries that are difficult to track.

Question 41

Using the data given below, calculate the funds from unknown sources for Year 3.