CFE – Financial Transactions and Fraud Schemes — Question 74

Bob, a purchasing agent for Gallenkamp, steered a large portion of Gallenkamp's business to Oak Company. In exchange for the additional business, Oak Company's sales manager agreed to pay Bob a percentage of the profits from the additional orders. Which of the following BEST describes the type of corruption scheme in which Bob engaged?

Answer options

• A. Kickback scheme
• B. Illegal gratuity scheme
• C. Economic extortion scheme
• D. Diversion scheme

Correct answer: B

Explanation

The correct answer is B, as an illegal gratuity scheme involves a benefit given to an agent for actions taken in their official capacity that are not a direct exchange for business. Options A and C describe different forms of corruption that involve direct payments or threats, while D refers to the redirection of funds, which does not apply in this scenario.