Page, a Certified Fraud Examiner, is investigating the sources of income of a suspect. Page notices that funds available to the suspect include the suspect's interest in a restaurant/bar. Page has surveiled the establishment several times and notices that the business, even during peak times, is minimal. Yet the income reported from this restaurant/bar is phenomenal. Of the following list, which scheme might the suspect be involved in?

a. Conflict of interest

b. Money laundering

c. Bankruptcy fraud

d. Overstatement of expenses

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23 March, 07:01

Page, a Certified Fraud Examiner, is investigating the sources of income of a suspect. Page notices that funds available to the suspect include the suspect's interest in a restaurant/bar. Page has surveiled the establishment several times and notices that the business, even during peak times, is minimal. Yet the income reported from this restaurant/bar is phenomenal. Of the following list, which scheme might the suspect be involved in?

a. Conflict of interest

b. Money laundering

c. Bankruptcy fraud

d. Overstatement of expenses

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Answers (1)

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Christine Mejia · Answer 1

Answer: Money Laundering

Explanation:Money laundering is the act of disguising the true nature and source of proceeds from a criminal act such that the proceeds from the buisness he fronts appear as though they were obtained legitimately. In this case Page is investigating a suspect and finds out that the proceeds from the restaurant which the suspect claims he has do not match even during minimal times as the income derived is higher than normal which means that the suspect is using his bar to front money laundering operations.