CFE – Financial Transactions and Fraud Schemes — Question 29

Jones is an accounts payable clerk at Smith Company. He intentionally sent the wrong vendor a check for some supplies. He then called the vendor, explained his “mistake”, and requested that the vendor mail back the check. Jones then intercepted the returned check and deposited it in his own account. What type of scheme did he commit?

Answer options

• A. A shell company scheme
• B. A pay and return scheme
• C. An altered payee scheme
• D. A pass-through scheme

Correct answer: B

Explanation

Jones committed a pay and return scheme by intentionally sending a check to the wrong vendor and then intercepting the return. The other options do not accurately describe his actions: a shell company scheme involves fictitious companies, an altered payee scheme entails changing the payee on a check, and a pass-through scheme involves routing transactions through a third party.