Fraud and Misrepresentation

Fraud and misrepresentation, sometimes called fraud or deceit, is an area of law designed to protect the rights of individuals and businesses and ensure that they’re treated honestly and fairly. Fraud and misrepresentation can cause severe economic consequences for a business.

To present a claim for fraud, there must be certain facts present. First, there must be an intention to deceive on the part of the person who committed the wrong. In addition, the misrepresentation must be of a material fact. Material facts are those that, if known, would cause a person to decide for or against engaging in a particular transaction. The wronged party must show that he or she relied on the misrepresented fact and suffered harm as a result.

The simplest example is that of a stockbroker and his client. If the broker paints a rosy picture of a particular company, with the knowledge that the company is in fact about to file bankruptcy, and with the intent of selling the company’s stock to the client, he is engaged in fraud and misrepresentation. Despite this being a financial crime, the stockbroker can only be held civilly liable for his behavior if the client actually buys the stock and suffers an economic loss when the company in question fails.

If you or your business has been harmed by fraud or misrepresentation, you may have a right to compensation. Contact us today for a free consultation and discussion of your rights under the law.