CFE – Financial Transactions and Fraud Schemes — Question 61

Bayan finds a residential property with an owner who lives far away. She forges the owner’s signature on property transfer documents that purport to give Bayan full ownership of the property. Bayan then takes the falsified documents to the bank and obtains a loan using the property as collateral. Which of the following BEST describes this scheme?

Answer options

• A. Property flopping
• B. Fraudulent sale
• C. Daisy chain
• D. Air loan

Correct answer: B

Explanation

The correct answer is 'Fraudulent sale' because Bayan's actions involve deception to illegally transfer property ownership and secure a loan. The other options do not accurately describe her actions: 'Property flopping' refers to purchasing properties at inflated prices, 'Daisy chain' involves multiple transactions to sell properties, and 'Air loan' pertains to loans secured by non-existent properties.