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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


the gaining of financial advantage by a person who deliberately deceives another person or business, by mispresenting himself.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
"It appears as of art of living after defrauding of banks is the culture under Modi government.
The Yokohama District Court on Monday sentenced a former branch manager of Citibank to seven years in prison for defrauding two customers of about 860 million yen between 1996 and 2002.
VICTORIA -- Income assistance recipient Darlene Lake is not guilty of defrauding the province of almost $34,000, a B.C.
Hurn, in charge of the Cardiff East Division of South Wales Police, denied defrauding the public.
THE jury yesterday retired to consider its verdict in the trial of Ron Dawson and two of his associates accused of defrauding shareholders in a bloodstock company.
Three senior officials accused of defrauding the Nairobi County Government of more than Sh7.3 million have been ordered to be reporting to the DCI until March 5.
figure By RICHARD MUNGUTI Five people have been charged with defrauding a Safaricom subscriber over Sh1.9 million from his bank account.Joseph Kuria Kariuki, Grace Wanjira Mwehia, Meshack Okoth Okuta, Jesse Wanjuki Gitonga and Philip Kogi Njau faced three counts of conspiracy to defraud and irregularly swapping a SIM card belonging to a Safaricom subscriber.
A BUSINESSMAN accused of defrauding hundreds of people - many from Huddersfield - in a council tax refund scheme has appeared in court.
Islamabad, Sep 23 (ANI): The Pakistan High Commission in London has told the Pakistan government that chances of players coming out clean from the spot-fixing allegations are high, as the Royal Prosecution judging the strength of the case against cricketers is not dealing with those allegations, but is instead looking into any player's involvement into defrauding bookies.
A businessman jailed for defrauding taxpayers in a pounds 270,000 scam was free today after Court of Appeal judges quashed his conviction.
A Scotland Yard spokesman said the men, arrested on Saturday, were held in connection with an investigation into various allegations of defrauding lottery grants.