Business frauds can affect almost everyone including business owners, professionals and consumers. There can be breaches of contract or warranty, false representations, or any kind of transactional frauds. All these come under the broad category of “business fraud.” The team of business fraud lawyers represent both plaintiffs and defendants in business fraud litigation. They carefully review the facts and legal theories to expose the acts of fraud in order to provide particular and aggressive representation for their clients.
The general elements of fraud under law are: (1) That the speaker has made a blatant material misrepresentation, (2) That he was aware that he was false when he made it, (3) With the intention that the other party acts upon it, (4) That the opposition party will act in accordance to the misrepresentation, (5) Therefore, suffered injury.
Business fraud usually occurs based on false statements, but can also be committed by removing the material facts. Fraudulent inducement is a form of fraud in which a party makes a fraudulent statement to induce the other party into an agreement. These frauds can occur in a variety of contexts such as business fraud, business relationships, contracts and many other situations. The business fraud lawyers are well-experienced in handling the wide range of fraud issues and successfully prosecute and defend business fraud cases.
Business Fraud Lawsuits
Business Fraud Lawsuits can comprise a number of legal issues and claims. These include:
- Fraudulent Inducement
- Misrepresentation, Omission, and Non-Disclosure
- Fraudulent Concealment
- Tortious Interference
- Fraud committed by Business Partner
The allegations of business frauds can be quite serious. Business fraud litigation can often result in monetary damages, injunctive relief, and potential disgorgement. It can also include damage to the reputation of a business. A successful plaintiff can sometimes recover exemplary damages at trial. But if fraud occurs once, business owners should be consulting experienced business fraud lawyers to provide them the appropriate required solutions. A business fraud lawyer will investigate and identify issues as early as possible to help ensure the case is handled properly right from the beginning. They also ensure that any kind of injunctive or restraining order relief should be necessary to stop further damage from occurring.
Helping small businesses handle complex fraud claims
The general claims of business fraud should always be supported by a great amount of documentation which are basically required to prove such claims. These also require fraud lawyers to reveal the intention of the fraud. This requires extraordinary in-depth knowledge of business practices and the instincts that a business fraud lawyer can develop only with years of experience. They have the experience and complete knowledge to help business clients in situations of litigation. There can be claims of fraud that require particular intention of the accused. Business Fraud Lawyers seldom uncover the evidence that particularly indicates the intention of fraud. Generally, a business fraud lawyer reveals the intention by looking through the records to find occasion of conduct to reveal the true objective of the parties. The law considers these allegations of fraud very seriously, demanding particular proof as these allegations can be pretty damaging.
How can allegations of fraud affect a business?
When businesses are accused of fraud, there are a number of consequences that extend beyond the legal consequences. These allegations of conduct largely affect the reputation and goodwill of any business. The business fraud lawyers diligently defend the clients facing allegations of fraud.
Forms of Business Fraud
Business frauds can occur in any type of business and commercial transaction. These include:
1. Business-to-Business: A business can commit fraud by misrepresenting the material facts in a negotiation or in transactions with another business. This includes the basic routine transactions, such as a vendor-to-customer relationship, or special transactions including the sale of a business.
2. Business-to-Consumer: A business can often breach warranties and make false representations in a transaction with a consumer. Therefore, an extensive body of law governs these allegedly fraudulent and deceptive methods that victimize consumers.
3. Consumer-to-Consumer: There can be individuals who are engaged in financial or commercial transactions and may commit fraudulent acts in the sale of residential real estate or products like an automobile.
Business Fraud Examples
The major examples of business frauds mainly occur in any of the types of transactions which have already been discussed above. The consumers often have specific protections under the law, so, in these situations, the businesses must rely on common-law claims such as the breach of contract. Some common examples of business fraud include:
· Consumer fraud mainly which includes alleged violations of deceptive trade practices.
· Breach of contract.
· Breach of express warranty.
· Fraud in the sale of a business or franchise or company.
· Investment fraud, including the misrepresentations regarding the financial projections of an investment.
· Financial fraud, such as the misappropriation of funds, forgery, or various forms of wire fraud.
· Disputes between business partners in all types of partnership and ventures.
· Disputes among shareholders in a corporation.
· Disputes in a limited liability company among members.
· Fraudulent advertising and marketing schemes.
· False representations about goods offered for sale.
· Mortgage frauds like fraud and deceptive offers to refinance a mortgage.
· Real estate fraud, such as the false representations regarding ownership of real property and failure to disclose known defects.
All businesses, particularly the smaller businesses which are in the growth mode, are prone to experiencing fraud. Most of the businesses encounter fraud disputes at some point or the other. The consultation of a lawyer for advice on implementing protections from fraud litigations is considered a proactive approach to lesser damages and help prevent fraud activities. The business fraud lawyers help the clients with business strategies to prevent any type of fraud litigation and fraud disputes in the future through services such as:
· The review of contracts and other commercial agreements
· Forensic accounting and financial analysis to uncover fraud
· Investigation of business partners and departed employees for evidence of malpractices.
· Protecting the intellectual property assets
· Diligent reviews and analysis of computer forensics related to potential business frauds.