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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.


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.


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


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 ?
This is a council that couldn't even act when City Attorney Rocky Delgadillo found two people working in different city departments who had been found guilty of defrauding the city in workers' comp claims, yet were still on the payroll years after their convictions.
The suit alleges that the Uzans' illegal scheme to defraud Motorola and Nokia fits a pattern of "the Uzans' longstanding practice of defrauding investors and co-venturers by obtaining goods and funds based on false assurances that their debts would be repaid, and then seeking to escape their obligations through criminal fraud and extortion.
NASDAQ: DTII) faces charges of defrauding investors in a pending class action, Berman, DeValerio & Pease LLP (www.
A home-care nurse and her husband will stand trial on charges of defrauding her elderly and mentally disabled patients of thousands of dollars in what investigators called a sophisticated credit card scam.
NASDAQ: GLIA) stands accused of defrauding investors by withholding adverse news about clinical tests on one of its products, according to a pending class action filed by Berman, DeValerio & Pease LLP (www.
Sutton has said Hale is lying to lighten his own punishment for defrauding the government.
NASDAQ: DTII) with defrauding shareholders remained pending today, according to Berman, DeValerio & Pease LLP (www.