Federal investigators uncovered an embezzling scheme in the insurance

Magoosh Official Explanation

Split #1: idiom with “account.” The correct idiom is account for: when we say “X accounts for Y,” we are saying that X explains Y or gives the reason for Y. That’s the meaning here. The construction “account with” is wrong, so choices (A) & (C) are incorrect.

Split #2: contrast. The first half of the sentence tells us that the Feds arrived and uncovered embezzling —that’s good! It means that crimes are being stopped. Then, the second half tells that that crimes are still going on. That’s a contrast, and we need the contrast word “but” at the beginning of the underlined section, so choices (A) & (D) are incorrect.

Split #3: placement of the word “even.” The word “even” connotes an extreme that defies expectation. Here, we would expect that the “embezzling scheme” uncovered by the Feds would “account for” the other missing funds, but contrary to expectation, it does not. Even though the “embezzling scheme” is a major discovery, presumably bigger than previous problems uncovered, it is not enough to solve all the problems. The word “even” needs to be in front of “scheme” or its representative, the pronoun, “that”. Choices (A) & (C) & (D) & (E) are incorrect.

The only correct answer that conveys the logic and the natural flow of words is choice (B), the best answer.