fraud

(redirected from phony)
Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia.

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 ?
Many of the fraudulent documents are believed to have been used to obtain visas illegally, and officials said they suspect the trailers surrounding the house were used to harbor illegal aliens until their phony documents were ready.
approved several personal loans to phony clients, saying that they worked for N.
The Phony Fisherman is also in Patent Pending status within the United States Patent and Trademark Office.
Poor woman, she trusted her son and son-in-law and invested all her saving in this phony project.
He also filed a phony mortgage record and a "revocation of power of attorney," in 2008 with the City Register, the DA's office said.
The phony Web page's anonymous developers must be identified in order for the archdiocese to determine if additional legal action is required to protect and restore Puntarelli's reputation, Otolski said.
The men allegedly used a fictitious identity to create at least three phony credit cards in the past several months and went on a shopping spree, Balian said.
Disabled veterans may be the targets of those phony calls because they are frequent users of the VA health care system.
And that raises a final difference between phony patriots and real patriots: Real patriots understand that the one thing that can never be excused is an activity that these days is the favorite pastime of phony patriots: placing our fundamental freedoms at risk to score cheap political points.
To avoid publishing phony research, scientific journals require experts to review all research papers before they are published, says Monica Bradford, executive editor of Science.
The dialogue is often laced with humor that characters deliver without sounding like phony television creatures, and the show promises to be fun to watch .
What we are up against is not just phony arguments but a vast strategy of deception.