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

Limited Time Offer

25%

Off

Get Premium CFE-Law Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Elvera

2 months ago

I'm going with B) Fraudulent conveyance. Transferring assets at below market value to avoid creditors is a classic move in a bankruptcy scheme.

upvoted 0 times

Mitsue

6 days ago

Tatiana was trying to hide those assets from creditors for sure.

upvoted 0 times

...

Royce

18 days ago

Definitely, transferring assets at below market value is a red flag.

upvoted 0 times

...

Ressie

1 months ago

That sounds like a fraudulent conveyance.

upvoted 0 times

...

Stevie

2 months ago

Haha, can you imagine Tatiana trying to explain this to the bankruptcy court? 'But your honor, I was just giving my husband a really good deal on some mattresses!'

upvoted 0 times

Marti

1 months ago

C: I wonder if her husband knew what he was getting into.

upvoted 0 times

...

Janessa

1 months ago

B: Yeah, that's a clear case of fraudulent conveyance.

upvoted 0 times

...

Ezekiel

1 months ago

A: She's definitely in hot water for that one.

upvoted 0 times

...

Arthur

2 months 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.

upvoted 0 times

Cory

2 months ago

B: Yeah, she's definitely trying to hide those assets before filing for bankruptcy.

upvoted 0 times

...

Charlesetta

2 months ago

A: I think you're right, it does sound like a planned bustout.

upvoted 0 times

...

Erick

2 months ago

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

upvoted 0 times

...

Jamal

2 months 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.

upvoted 0 times

...

Dannie

2 months ago

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

upvoted 0 times

...

Shawnda

2 months ago

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

upvoted 0 times

...