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Related to defraud: forge, fraudulence, incontinency


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 ?
| Syed Ahmed, 35, of Oban Street, Tower Hamlets, admitted conspiracy to defraud and acquiring criminal property and was sentenced to nine months.
Stephen Brooks, 45, from Llanedeyrn, guilty of conspiracy to defraud, was sentenced to six months in prison, suspended for two years, and ordered to obey a curfew.
The evidence was passed on to officers at Warwickshire Police who then charged the defendants with conspiracy to defraud in relation to the mis-selling of advertising A sixth member of the gang - 34-year-old Kulbinder Rai, of Clayton Grove, Leamington - will be sentenced at a later date.
"The crown has called evidence as to how they [victims] were defrauded of money.
The indictment alleges that Washington defrauded multiple financial institutions by running up credit card balances and later claiming he hadn't made the charges, but had instead been a victim of identity theft.
The two are charged with conspiring together to defraud Gwynedd Council (and formerly Meirionnydd District Council) of benefits totalling pounds 35,104.41 between January 1, 1993 and October 1, 2009.
According to the prosecution records, three other defendants -- a Turkish owner of CCH (a private finance brokerage firm) who is at large, and two British businessmen -- managed to defraud the DIB of more than $500 million.
* Having devised or intending to devise a scheme to defraud (or to perform specified fraudulent acts)
Notice, here, that Jesus has replaced the more familiar Old Testament commandment against "coveting" with the word "defraud." Is Jesus implying that if a rich person is so rich it may well be the result of having defrauded the poor?
Morgan Stanley's repeated failures to produce e-mails were the proverbial final straw for Judge Elizabeth Maas, who issued a pretrial ruling that Morgan Stanley had conspired with Sunbeam to defraud Perelman.
Parker, of Glebe Rise, Austrey, Coventry, admitted a charge of conspiracy to defraud. As well as imprisonment, she was disqualified from being a company director for the next 15 years.
Spitzer's suit alleged the world's largest insurance broker constructed elaborate schemes to rig bids, defraud clients and indulge in "kickbacks" that came in the form of market service and contingent-commission agreements.