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Exam CFE - Financial Transactions and Fraud Schemes All Questions

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Exam CFE - Financial Transactions and Fraud Schemes topic 1 question 181 discussion

Actual exam question from ACFE's CFE - Financial Transactions and Fraud Schemes
Question #: 181
Topic #: 1
[All CFE - Financial Transactions and Fraud Schemes Questions]

Several parties in the real estate business collude to obtain a construction loan to build a residential development on a property that does not actually exist. The co-conspirators split the proceeds, leaving the lender with no collateral to foreclose on. Which of the following BEST describes this scheme?

  • A. Property flopping
  • B. Daisy chain
  • C. Phantom lien
  • D. Air loan
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Suggested Answer: C 🗳️
by vynyfulu at April 5, 2025, 12:27 p.m.

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_denw
1 week, 2 days ago
Selected Answer: D
An air loan is a fraudulent loan made for a nonexistent property or borrower. In this case: • The conspirators colluded to obtain a construction loan for a property that does not exist. • They pocketed the loan proceeds, leaving the lender with nothing to foreclose on — no real collateral.
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