In a shell company scheme, which of the following methods might a fraudster use to get a phony invoice approved for payment?
A) Collusion
B) A "rubber stamp" supervisor
C) Falsification of purchase orders and receiving reports
D) Any of the above

Question

Quizplus · Accepted Answer

All of the listed methods can be used by a fraudster to get a phony invoice approved for payment in a shell company scheme. Collusion involves working with an accomplice to approve the invoice, a "rubber stamp" supervisor blindly approves invoices without verifying their legitimacy, and falsification of purchase orders and receiving reports involves creating fake documentation to support the phony invoice.

In a Shell Company Scheme, Which of the Following Methods