Featured News 2014 What is Fraud?

What is Fraud?

A person may be accused of fraud if they have stolen something through misrepresentation or deceit. Oftentimes, this involves money or other physical property but can apply to any instance where someone gives up something that belongs to them due to a falsehood told by another. Many types of fraud are completed by those that are aware of how their actions may affect others, but some are accused of fraud when they exaggerate claims or fail to disclose relevant information.

Criminal Fraud Can Lead to Prison Time and Fines

Fraud can be considered on a criminal level or a civil level. Criminal fraud means that the person that is charged with fraud intended to deceive another. This can lead to fines and imprisonment. In order for a criminal fraud conviction to be charged, it must be proven that a misrepresentation occurred, that the misrepresentation was committed by someone that knew it to be false, that the other party made a decision based on this misrepresentation, and that they lost something as a result of this information.

Common examples of fraud include:

  • Identity theft by stealing personal or financial information
  • Contest schemes that make a person pay a fee for money they have allegedly won
  • Ponzi schemes where investors are promised large returns which are only paid by new investors, not through legitimate business practices
  • Mail fraud that uses the postal system to solicit or exchange payments

Not every instance of someone making a poor decision with their money based on the claims of a salesperson can be considered fraud. A company is allowed to make exaggerated claims as long as it can be determined that it is more an expression of opinion than a fact. For example, if a car dealer says that a car will make the buyer the envy of every other driver in town and then the car makes a screeching noise as it drive, the seller did not fraud the buyer since the buyer could not reasonably expect to be the envy of every other driver.

Fraud can be convicted as a misdemeanor or a felony depending on the value of the property stolen. If you have been convicted of fraud, you will need an experienced and aggressive criminal defense attorney by your side. Be sure to check the directory for attorneys in your area that can provide the defense you need for this charge.

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