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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.


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 ?
Potential licensees interested in obtaining more information about the Phony Fisherman and discussing licensing opportunities with respect to the product can contact the Manufacturer Response Department of Innovation Direct[TM] at (877) 991-0909 ext.
Brown said that Charlotte Murphy also attempted to register a car at the Motor Vehicle Commission with a phony Prudential Insurance Card.
The book's introduction is a rather brilliant presentation of an engaging thesis: that the Phony War was not the earliest phase of a world war; rather it was a completely separate affair, over by May 1940.
But we must now ask ourselves why phony arguments and, more generally, the gay strategy, have succeeded in making such an impact on our Western societies.
It seems to some of us that it's time to abandon the sporting spirit and begin to regard these phony letters as a coordinated campaign to compromise the integrity of our pages by flooding them with mass-produced letters--letters that advance a partisan, commercial, or ideological agenda.
Despite the growing number of mills, using a phony degree to get a job or promotion is illegal in only six states, punishable by fines.
If you're concerned about spare, avoid FTP sites until you put a phony email address in your browser.
The defendants allegedly purchased health care information from recent car accident victims, steered the victims to corrupt medical clinics, and referred them to personal injury lawyers to file phony claims and lawsuits, according to court records.
There was a Mexican who concocted a phony passport application, a former court employee who shoved a judge, the babbling man who walked into an FBI office and threatened to kill President Bill Clinton--though he didn't realize Clinton was no longer president.
Therefore, it is understandable how busy employees can be easy prey for phony invoice schemes if they aren't careful.
In one of the more prominent phony Vietnam vet impersonator cases, a well-known college professor was recently exposed as an impostor.