1) Under the ________________ of the U.S. Constitution, no person shall be compelled to be a witness against himself.

A.First Amendment

B.Fourth Amendment

C.Fifth Amendment

D.Commerce Clause

2) Chiarella worked as a financial printer for Pandick Press. He had possession of about five announcements of corporate takeover bids that he was printing. Pandick concealed the actual names of the companies, but Chiarella was able to figure them out. He bought stock in the target companies and made a profit. He was not an insider of these corporations on whose shares he was trading, therefore, he _________________.

A.had a duty to abstain from trading because he worked for Pandick

B.had no duty to either disclose or abstain from trading

C.should have told his boss that he was going to trade on the stocks

D.still must pay treble damages to the SEC

3) Defendant was in the business of selling a product that functions as a can opener, knife, emery board, compass, and flare gun. As part of his sales scheme, defendant sent a letter through the mail claiming that there was a death in the family and he needed to raise money by selling these items.The item functioned as it was advertised, but there was no death in the family. Since the sale was predicated upon a lie, defendant can be convicted of a crime under _________________.

A.mail fraud statute

B.wire fraud statute

C.false statement statute

D.none of the above

TRUE/FALSE

4) When a witness is called to testify in a civil, parallel, proceeding by the SEC and is required to give over records, there is a good chance that information will be shared with the Department of Justice (DOJ) for a criminal investigation.

5) The SEC has the power to subpoena witnesses, take evidence, and require the production of documents in relation with an investigation of the securities laws. Although, these are not the only powers.

6) Under the mail fraud statute, mere breaches of contracts or sales puffery are not considered a part of a scheme to defraud.

7) To be convicted of suborning perjury, one of the elements the government must show that the suborner knew or believed that the testimony of the witness about to be given is false and he knows the witness is to give the testimony with the knowledge or belief of its falsity.

8) Under the 1934 Act, accountants must certify that all financial reports comply with GAAP (General Accepted Accounting Principles).

9)Under the false statement statute, concealment of a fact can only be prosecuted if there was a legal duty to disclose it in the first place.

10) A tippee assumes a fiduciary duty to the shareholders of a corporation not to trade on material non-public information only when the insider has breached his fiduciary duty to the shareholders by disclosing information to the tippee and the tippee knows or should know that there has been a breach and the tipper derives a benefit.

11)There is no general duty to disclose before trading on material nonpublic information. Such a duty arises only from the existence of a fiduciary relationship.