fraud

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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.
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, 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
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). 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.
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, 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.
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 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 ?
Furlong pleaded guilty to false accounting between November 2014 and October 2015 and was given eight months suspended for 12 months with a three month curfew and a rehabilitation requirement.
Liverpool Crown Court to two counts of false accounting and one count of failure to notify the Department for Work and Pen-sions of a change in circumstance.
Bonner faced four counts of theft amounting to pounds 61,158 and six of false accounting. He denied all the charges - the most serious of which alleged he stole an invoice valued at pounds 37,893 on May 15 2003, made out in the name of Globe Industrial Limited.
The SFO said it had charged the men with one count of Fraud by Abuse of Position, contrary to section 1 and 4 of the Fraud Act 2006 and one count of False Accounting contrary to s17 Theft Act 1968.
Teesside Crown Court heard yesterday that Abbott was put in charge of the practice accounts and began the false accounting soon afterwards.
The offence of false accounting covered 19 "knowingly misleading" receipts that Mac-Shane filed between January 2005 and January 2008.
The court heard that MacShane incurred "genuine expenses" but chose to recoup them by dishonest false accounting rather than through legitimate claims.
More than 100 people claim they have been wrongly accused of theft, fraud and false accounting because of problems with the Horizon computer software leading to shortfalls being generated in their accounts.
Mel Hughes, prosecuting, said the alleged false accounting charges resulted from Randall failing to register transactions on a till in the shop.
A DISTRICT court judge pleaded not guilty yesterday when she was charged with false accounting and theft.
Now he has admitted a charge of false accounting after Royal Mail investigators found almost pounds 170,000 missing from the books of his Huddersfield premises.
They face charges of false accounting under the Theft Act.