fraud

(redirected from defraud)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Idioms, Wikipedia.
Related to defraud: forge, fraudulence, incontinency

fraud,

in law, willful misrepresentation intended to deprive another of some right. The offense, generally only a torttort,
in law, the violation of some duty clearly set by law, not by a specific agreement between two parties, as in breach of contract. When such a duty is breached, the injured party has the right to institute suit for compensatory damages.
..... Click the link for more information.
, may also constitute the crime of false pretenses. Frauds are either actual or constructive. An actual fraud requires that the act be motivated by the desire to deceive another to his harm, while a constructive fraud is a presumption of overreaching conduct that arises when a profit is made from a relation of trust (see fiduciaryfiduciary
, in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. Among the common fiduciary relationships are guardian to ward, parent to child, lawyer to client, corporate director to corporation, trustee to trust, and business
..... Click the link for more information.
). The courts have found it undesirable to make a rigid definition of the type of misrepresentation that amounts to actual fraud and have preferred to consider individually the factors in each case. The misrepresentation may be a positive lie, a failure to disclose information, or even a statement made in reckless disregard of possible inaccuracy. Actual fraud can never be the result of accident or negligencenegligence,
in law, especially tort law, the breach of an obligation (duty) to act with care, or the failure to act as a reasonable and prudent person would under similar circumstances.
..... Click the link for more information.
, because of the requirement that the act be intended to deceive. The question of commission may depend upon the competence and commercial knowledge of the alleged victim. Thus dealings with a minor, a lunatic, a feeble-minded person, a drunkard, or (in former times) a married woman are scrutinized more closely than dealings with an experienced businessman. A lawsuit based upon actual or constructive fraud must specify the fraudulent act, the plaintiff's reliance on it, and the loss suffered. The remedy granted to the plaintiff in most cases is either compensatory (and possibly punitive) damagesdamages,
money award that the judgment of a court requires the defendant in a suit to pay to the plaintiff as compensation for the loss or injury inflicted. Damages are the form of legal redress most commonly sought.
..... Click the link for more information.
 for the injury or cancellation of the contract or other agreement and the restoration of the parties to their former status. In a few states of the United States both damages and cancellation are available. In certain suits based upon a contract, fraud may be introduced as a defense.
References in periodicals archive ?
Fitzwater, 34, of Hendham Drive, Altrincham, was found guilty after trial of conspiracy to defraud motor traders.
She faces charges of conspiracy to defraud and money-laundering.
Peter Harvey, 66, of Pen Ffordd Coch, Manod, Blaenau Ffestiniog and Julie Joyce Harvey, 53, of Benar View, Blaenau Ffestiniog both face two charges of conspiracy to defraud between 1993 and 2009.
Kieren Fallon, 42, jockey, County Tipperary Conspiracy to defraud Betfair customers
In the Fleishman-Hillard case, none of the prosecution witnesses testified that Dowie specifically told them to defraud the utility, but they said his instructions to find more money after billing periods had closed left them no choice.
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.
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.
A furniture buyer from Birmingham appeared in court yesterday accused of taking bribes in an alleged phantom trading racket to defraud Ikea of pounds 7 million.
SIX people appeared in court over a plot to defraud an insurance company out of pounds 1.
Arson--Any willful or malicious burning or attempt to burn, with or without intent to defraud, a dwelling house, public building, motor vehicle or aircraft, personal property of another, etc.
were found guilty of one count of conspiracy to defraud the IRS and subscribing to false personal and corporate tax returns for their two corporations, 95-45 Roosevelt Corp.
Under Colorado law, a conveyance is fraudulent when it is "made with the intent to hinder, delay, or defraud creditors," in this case, the IRS.