Deck 9: Conversion Investigation Methods

Question 1

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

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

Answer 1

A

Question 2

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

A)Area
B)Person's serial number
C)Race
D)Group

Answer 2

C

Question 3

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

A)Information on suppliers and creditors who belong to the external environment.
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 income.

Answer 3

A

Question 4

Net Worth Increase + Living Expenses =

A)Income
B)Funds from known sources
C)Liabilities
D)Assets

Question 5

Which of the following is NOT one of the major credit reporting agency?

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

Question 6

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

A)County clerk
B)CIA
C)Secret service
D)FBI

Question 7

Funds from unknown sources equals:

A)Assets - liabilities.
B)Net worth increase + living expenses.
C)Income - funds from known sources.
D)Net worth -prior year's net worth.

Question 8

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

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

Question 9

Mandy calls a local newspaper and pretends to be a neighbor who is away for the winter.She obtains account history and orders newspaper for six month.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 Credit Reporting Act of 1971.

Question 10

Identify the principal investigative agency of the Department of Justice.

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

Question 11

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

A)Social Security Administration
B)Utility records
C)Department of Motor Vehicles
D)Permit departments

Question 12

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)public from accessing the criminal database of FBI.
D)customers to opt out of information sharing.

Question 13

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

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

Question 14

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

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

Question 15

What is the main objective of the net worth method?

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

Question 16

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

A)Unknown funds
B)Liabilities
C)Living expenses
D)Net worth

Question 17

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 18

When is searching through someone's garbage considered as 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 19

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

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

Question 20

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

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

Question 21

What do you understand by the term trashing?

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 important documents,so as to leave no evidence.
D)Gaining financial information through previous acquaintances.

Question 22

What do you mean by opting out?

A)Serving a written notice,denying the bank the right to sell 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 earlier..

Question 23

Name the major database maintained by the FBI.

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

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

Data Set 9-1 Refer Data Set 9-1.The income from unknown sources for years 2 and 3 respectively are:

A)$255,200;$300,200
B)$171,200;$307,200
C)$73,800;$179,800
D)$65,800;$47,800

Question 26

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

A)It gives a conservative estimate of stolen funds which are not readily accepted as evidence by courts.
B)It rarely facilitates obtaining confessions from the 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,jewelery,vacation,and other luxuries that are difficult to track.

Question 27

The Department of Vital Statistics maintains:

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

Question 28

Data Set 9-1 Refer 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 29

How are permit departments helpful in conversion investigation efforts?

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

Question 30

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 31

Using the data below,calculate living expenses.

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

Question 32

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 33

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 34

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

A)To determine the extent of embezzlement.
B)To identify how perpetrators conceal frauds.
C)To develop a vulnerability chart.
D)To understand the suspect's reaction to crisis.

Question 35

Using the data given below,calculate the income from unknown sources for years 2 and 3 respectively.

A)(i)-3,200;-26,200
B)(i)65,800;47,800
C)(i)76,600;56,600
D)(i)69,000;74,000

Question 36

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

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