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 classic literature ?
So glister'd the dire Snake and into fraud Led EVE our credulous Mother, to the Tree Of prohibition, root of all our woe; Which when she saw, thus to her guide she spake.
som cursed fraud Of Enemie hath beguil'd thee, yet unknown, And mee with thee hath ruind, for with thee Certain my resolution is to Die; How can I live without thee, how forgoe Thy sweet Converse and Love so dearly joyn'd, To live again in these wilde Woods forlorn?
What words have past thy Lips, ADAM severe, Imput'st thou that to my default, or will Of wandering, as thou call'st it, which who knows But might as ill have happ'nd thou being by, Or to thy self perhaps: hadst thou bin there, Or bere th' attempt, thou couldst not have discernd Fraud in the Serpent, speaking as he spake; No ground of enmitie between us known, Why hee should mean me ill, or seek to harme.
There was the false hope of making the inevitable atonement by some other means than by the confession of the fraud.
A few minutes since," said the captain, pointing complacently to his own composition with the feather end of his pen, "I had the honor of suggesting a pious fraud on Mrs.
What do you think, my dear sir, of pious frauds in general?
It's as though in all the public assistance programs -- be it welfare, food stamps, child care or Section 8 housing -- someone put a pot of gold in the middle of the street and walked away from it with very little integrity controls,'' said James Cosper, head deputy in the District Attorney's Office Welfare Fraud Division.
Executives who strip corporations of money for their own use (called "looting control frauds" in criminological circles) use accounting fraud as a weapon of choice to inflate income and net worth.
With the projected increases in expenditures and the rising number of Medicare and Medicaid program participants, the United States Department of Justice (DOJ), the Office of the Inspector General of the United States Department of Health and Human Services (OIG) and state Medicaid Fraud Control Units (MFCU) continue to expend significant resources pursuing fraud and abuse.
Furthermore, in the process of confirming internal control effectiveness, management can and should increase antifraud efforts to identify and halt manipulation of financial reporting and asset misappropriation, since the most common incarnations of fraud in today's companies are "inside jobs.
Property/casualty insurance fraud cost insurers about $ 31 billion in 2002, according to the Insurance Information Institute.
99: Consideration of Fraud in a Financial Statement Audit (No.