Fraud involves using information or some other resource to engage in the theft of money or data.
It is a deliberate deception intended to benefit the perpetrator.
Fraud, rather than being categorized as a physical act, is conducted based on misrepresentation.
An act that is considered fraud must incorporate these factors:
- A fact was misrepresented.
- The perpetrator knew the information presented was false or was reckless about its truth.
- They intended to gain the victim’s trust.
- The victim believed and was harmed by the misrepresentation.
How Does a Fraud Lawsuit Work?
Criminal fraud must be proven beyond a reasonable doubt and being convicted by a jury can result in fines and jail time.
There’s a much lower burden of proof and the goal is to reimburse the victim for losses they sustained as a result of the crime.
A fraud case can involve different variables and degrees of guilt.
Some lawsuits may claim negligent misrepresentation took place; others may claim concealment, non-disclosure, or a false promise.
If a person misrepresented a fact, they must have been fully aware they were doing so.
When To Invest in Fraud Defense Attorney Services
In general, you should hire a fraud defense lawyer whenever you face accusations of fraud.
An attorney with experience in fraud defense can assist you with your participation in any relevant investigation, whether from a civil lawsuit, law enforcement, or a professional association.
They can also help you prepare a strong case for a potential trial.
Exaggerated Or False Claims Are Made
Many times, an innocent misstep or simple misunderstanding can lead to an accusation of fraud.
There are also situations where a client will make an exaggerated allegation against a professional service provider.
In these circumstances, hiring a fraud defense lawyer is essential.
Facing Prison Time, Fines, Or Other Severe Penalties
Most states have enacted civil or criminal laws which penalize various fraudulent activities.
Some examples of conduct that is often categorized as a fraud crime by states include:
- FORGERY
- CHECK FRAUD
- CREDIT CARD FRAUD
Property Or Reputation Of Business Is At Stake
In addition to individuals, fraud accusations can also have collateral consequences for businesses.
A company’s business practices can also lead to accusations of fraudulent conduct.
Fraud claims have the potential to cause significant harm to your corporation.
Many times, your business’s reputation or assets could be at risk.
A civil fraud attorney is familiar with handling private party disputes.
What Are the Most Common Types Of Fraud Charges?
Fraud is a broad term that encompasses many crimes.
A fraud crime involves using deceitful words or conduct to obtain an unlawful benefit.
While there are different types of fraud, the most common types of business fraud claims are:
Financial Fraud
This type of fraud affects many individuals and businesses resulting in malpractice claims against professionals like lawyers and accountants.
For accountants, accounting fraud is a form of accounting malpractice.
In addition to accounting fraud, accounting malpractice includes many kinds of corporate or financial fraud.
These fraud crimes are usually (but not always) committed by accountants and include:
- BILLING FRAUD:
INVOICING AN EMPLOYER FOR PERSONAL EXPENSES OR FALSE SERVICES PERFORMED.
- TAX FRAUD/EVASION:
WILLFULLY FAILING TO FILE A CORPORATE TAX RETURN OR FALSIFYING INCOME TO AVOID TAX LIABILITIES.
- EMBEZZLEMENT
TAKING CONTROL OF OR USING ENTRUSTED CORPORATE (OR INDIVIDUAL) ASSETS FOR A DIFFERENT PURPOSE.
Mortgage Fraud
Mortgage fraud refers to any fraudulent activity committed during the mortgage lending process.
It occurs when individuals or groups intentionally provide false or misleading information to obtain a mortgage or to influence the terms and conditions of a mortgage loan.
The main goal of mortgage fraud is usually to secure a larger loan, or a better interest rate, or to deceive the lender for personal gain.
Mortgage fraud is illegal and can have serious consequences. It not only harms lenders and financial institutions but can also lead to significant losses for homeowners and investors.
Insurance fraud
Insurance fraud refers to any deceptive or illegal activity committed with the intent to obtain fraudulent benefits or financial gain from an insurance company.
It involves making false or exaggerated claims, providing misleading information, or using other dishonest tactics to receive insurance payouts or benefits to which the fraudster is not entitled.
Insurance fraud can occur in various types of insurance, including health insurance, auto insurance, property insurance, and more.
Insurance fraud is considered a serious criminal offense in Illinois.
Hire a Civil Fraud Attorney When Harmed Financially by Another’s False Representations
Civil fraud is common and filing a fraud case can be complicated.
You need an attorney who is familiar with state law and experienced in getting victims compensated.
At OakTree Law, we provide various law services in Los Angeles to help deal with financial, real estate, insurance, and other matters.
We specialize in business and civil litigation as well.
business civil litigation specialists can help in misrepresentation and fraud cases.
Request a free evaluation online or call 888-348-2609.