ACFE Exam CFE-Law Topic 1 Question 38 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 38
Topic #: 1

Tatiana is the chief executive officer (CEO) of Mattress World Warehouse, a retail mattress store that has been struggling financially A week before Mattress World Warehouse files for bankruptcy Tatiana sets ten mattresses to her husband at 80% below market value Which type of fraud scheme has Tatiana MOST LIKELY committed?

AA fraudulent bankruptcy

BA fraudulent conveyance

CA planned bustout

DA concealed transfer

Show Suggested Answer

Suggested Answer: A

by Anastacia at Jun 01, 2024, 10:05 AM

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Arthur

9 days ago

Hmm, I'm not sure. Could it be a planned bustout? Seems like she's trying to strip the company's assets before it goes under.

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Erick

10 days ago

I'm not sure, but it could also be a planned bustout since she sold the mattresses at a significant discount.

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Jamal

14 days ago

Tatiana's actions of selling the mattresses at 80% below market value right before filing for bankruptcy definitely sounds like a fraudulent conveyance to me. She's trying to hide assets from creditors.

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Dannie

17 days ago

I agree with Shawnda. It seems like Tatiana was trying to hide assets before filing for bankruptcy.

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Shawnda

19 days ago

I think Tatiana has committed a fraudulent conveyance by selling mattresses to her husband below market value.

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