fraud

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Related to defraud: forge, fraudulence, incontinency

Fraud

Any attempt to deceive another for financial gain. A clear example of fraud is selling a new issue that does not really exist. That is, the company can collect money from investors and, rather than use it to finance operations, pocket the money and do nothing. There are a number of types of fraud. Common types include forgery of documents, false claims in insurance, and filing bankruptcy to avoid debt rather than because of financial hardship.

fraud

Deception carried out for the purpose of achieving personal gain while causing injury to another party. For example, selling a new security issue while intentionally concealing important facts related to the issue is fraud.

fraud

the gaining of financial advantage by a person who deliberately deceives another person or business, by mispresenting himself.

fraud

A deceitful practice. Fraud consists of a misrepresentation of a material fact that is relied upon by another party to his or her detriment.There is no requirement that the misrepresentation be intentional.The thing misrepresented must be a fact; it is very difficult to prove fraud when one fails to fulfill his or her obligations but had good intentions in the beginning.

There are three types of fraud:

1. Intentional fraud. Punitive damages may be assessed for this type of fraud.

2. Negligent fraud. As when one makes a statement recklessly but without any intention to deceive, and someone relies on that statement and is injured when it turns out to be false. One example would be a real estate agent telling a buyer that all appliances are new when, in reality, the agent didn't know but thought they looked new. Depending on the degree of recklessness involved, this type of fraud may or may not support punitive damages.

3. Innocent fraud. As when one takes steps to confirm facts but is perhaps mistaken or given mistaken information, and then relays that information to someone else who relied on it and was injured.

The Statute of Frauds is a rule that says certain contracts must be in writing, including contracts having to do with real estate. It has nothing to do with fraud, per se, except to protect against possible fraud by requiring a writing.

References in periodicals archive ?
Agent David Sheron was cleared of conspiracy to defraud, cheating the public revenue and two counts of perverting the course of justice.
Philip Sherkle, 40, barman, Tamworth, Staffordshire Conspiracy to defraud Betfair customers
Maria Brenda Brown (46) of Greenock Mews, Cronton, Cheshire, was accused of conspiracy to defraud.
Darren Pritchard, 35,of Carstairs Road, Fairfield, faces one count of conspiracy to defraud and one of transferring criminal property.
Simon Lilley, 39, of Sowerby Bridge got 16 months for conspiracy to defraud RBSI and conspiracy to defraud RSA.
A second charge alleges that Berwyn Owen, jointly with architect Derwyn Vaughan Owen, 41, of Sn-y-Don, Benllech, conspired to defraud Anglesey County Council in relation to a grant for the purposes of constructing changing rooms at Pentraeth Football Club.
It is also alleged that Berwyn Owen, with architect Derwyn Vaughan Owen, 41, of Swn-y-Don, Benllech, conspired to defraud Anglesey council over a grant for changing rooms at the football club.
The information alleges that Race participated with Rossmiller in a scheme to defraud Hill and Main Line in connection with loans obtained from those institutions.
They are charged with conspiracy to defraud between December 2002 and September 2004, by interfering with the running of horses to ensure they lost races, and defrauding Betfair punters.
He is accused of conspiring to defraud Betfair customers and an offence relating to money laundering allegations.
The first charge alleges that he, jointly with Peter Hart, 38, a quantity surveyor formerly of Moelfre but now of Cyprus Avenue, Great Sutton The Wirral, conspired to defraud in relation to the grant of lease of land by Pentraeth community council to Pentraeth Football Club.
The first charge alleges that he and Peter Hart, 38, a quantity surveyor formerly of Moelfre but now of Cyprus Avenue, Great Sutton, Wirral, conspired to defraud over the lease of land by Pentraeth community council to Pentraeth Football Club.