Webclass 120: Fraud scenarios in construction

Q1. What types of programs were typically defrauded during 2021, 2022?

– Paycheck Protection Program (PPP) – Economic Injury Disaster Loans (EIDL) – Employee Retention Tax Credits (ERTC)

Correct Incorrect Correct answer

– Consumer spending

Correct Incorrect Correct answer

Q2. How did the Flathead Valley Construction fraudster, Carig Mark Draper commit fraud?

By obtaining large deposits for construction projects and then disappearing

Correct Incorrect Correct answer

By creating fictitious bank accounts

Correct Incorrect Correct answer

Q3. How did the General Manager of the Arizona manufacturing company commit fraud?

– Giving away free product – Forgetting to bill customers

Correct Incorrect Correct answer

Stealing money from the bank account

Correct Incorrect Correct answer

Q4. How did the Production Line Manager of the Arizona construction company commit fraud?

– Prioritizing the contractors that provided kickbacks (because there was scarcity of materials) – Damaging inventory and then keeping it (due to the policy that employees can keep damaged inventory) – Selling inventory at reduced rates to family members that were working in the same industry

Correct Incorrect Correct answer

Creating shell companies and fictitious supplier invoices

Correct Incorrect Correct answer

Q5. Why were cancelled open purchase orders an issue?

It meant that the company forgot to bill customers for purchased items that were then sent on to customers

Correct Incorrect Correct answer

Because those open purchase orders were used at a future date to support fictitious invoices

Correct Incorrect Correct answer

Q6. Why is the macro-economy important?

Because it can create pressures that cause people to turn to fraud as a solution

Correct Incorrect Correct answer

Because it can cause companies to recruit more sales staff in order to ensure an increase in sales volume throughout the turbulent period

Correct Incorrect Correct answer

Q7. Why is the behaviour of top-management important?

Because employees are always watching and will justify fraudulent actions on the basis of a corrupt company culture (everyone is doing it)

Correct Incorrect Correct answer

Because most fraud is done by top-management

Correct Incorrect Correct answer

Q8. How did the case of the defrauded home-owner get solved?

The home-owner called the sub-contractors of the general contractor in order to check the amounts received by each subcontractor

Correct Incorrect Correct answer

The home-owner employed the sub-contractors directly

Correct Incorrect Correct answer

Q9. What do general contractors often do to defraud their construction customers?

Adjust the pricing/ cost on the sub-contractor / materials purchased invoices, etc

Correct Incorrect Correct answer

Create shell companies to funnel payments

Correct Incorrect Correct answer

Q10. What is one of the most typical cyber security attacks?

Compromised business email, requesting, for example, a change to a bank account number

Correct Incorrect Correct answer

Hacking of the database server and theft of information

Correct Incorrect Correct answer

Q11. How does Nicole recommend to do a Company Culture Audit?

With an external consultant

Correct Incorrect Correct answer

With an internal employee

Correct Incorrect Correct answer

Webclass 120: Fraud scenarios in construction

Webclass 120: Fraud scenarios in construction

admin June 9, 2026

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question