fraud


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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 ?
The acknowledgment that county fraud is a growing problem follows a warning three years ago by the Citizen's Economy and Efficiency Commission about workers' compensation scams.
We need to be eternally vigilant against fraud and work cooperatively with other nations.
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In securities fraud cases, federal prosecutors at present must use statutes relating to mail and wire charges that carry maximum penalties of only five years' imprisonment and require prosecutors to directly link the securities fraud to the use of mail or interstate telephony to carry out the fraud.
Additionally, several of the Big Six accounting firms conduct periodic fraud surveys to determine the current white-collar crime climate and future potential for fraud throughout various industries.
Few states have quantified how much they lose every year to premium fraud, but the Los Angeles County district attorney's office, which has recently made prosecuting these kinds of fraud cases a priority, estimates that California residents lose about $240 million every year to premium fraud.
While the IRS will routinely assert tax fraud against a corporation based on such acts committed by a responsible person, the likelihood of the Service actually prevailing in litigating this position in court is less certain.
Lori is recognized as one of the online advertising industry's top experts on combating click fraud and we are honored to have her lead our product management team," said Tom Cuthbert, president and CEO of Click Forensics.
Does that mean fraud schemes familiar in the United States are functioning in the European economies?