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 ?
BAN KI-MOON: Our understanding and assessment is that there has not been such a pattern or irregularity or fraudulence.
Rather, the malice and fraudulence of such unrestrained speech, she suggests, made the necessity of censorship seem self-evident.
The police learned of the two men's fraudulence concerning Otsuka Chemical Holdings Co.
Disenfranchisement, Vote Buying, Intimidation, and Fraudulence
The inescapable conclusion," wrote Norman Podhoretz in Commentary in October 2001, "was that Camp David and its violent aftermath exposed the fraudulence of Arafat's expressed desire for coexistence .
The Palladian shapes, the so-called Apollonian construction of these paintings, the Dionysian colors that fall flat, the do-nothing pinholes posing as essential elements began to reveal a systematic fraudulence.
The Associated Press (AP) recently reported that emissions testing station owners in Connecticut have expressed concern about both state attorney general Richard Blumenthal's investigation into claims of station fraudulence in light of the testing program's controversial shutdown earlier this year, as well as the fairness of the state-appointed advisory board.
It is entitled "Medal of Honour", and it addresses the transparent fraudulence of the conservative majority of the American Supreme Court's legitimization of the Florida "irregularities" in the last American presidential election.
It smacks of fraudulence, but it's fraudulence in a Kafka-esque style," he rants.
Now, two years later, the fraudulence of that promise has been exposed.