The most common type of legal fraud occurs when, in the course of entering into a business transaction, one party promises they have done or can do things they actually cannot. Business fraud occurs in any business activity that causes economic damages. And, while legal disputes are an inevitable part of business, fraud can be especially malicious and harmful.
Have you been defrauded during the course of a business transaction? Fraud involves false representations intended to make another take action. If false representations were made to you and you took action and suffered consequences as a result, you may be able to maintain a business fraud lawsuit.
This frequently happens in business transactions involving the sale of goods or services, lending, and real property transactions. Even if the false representations that were made were the result of negligence, a lawsuit to recover your losses may be available. If you think you have been defrauded, the sooner you act to protect yourself the better your odds of recovery will be.
Most types of fraud are intentional, but fraud also occurs through reckless representations. Fraud is sometimes referred to as “fraudulent misrepresentation” or “fraudulent inducement.” Allegations of fraud are extremely serious. Oftentimes those committing the fraud have teams of lawyers to protect them and prevent victims from getting justice. If you believe you are a victim of fraud, you need to reach out to an experienced Houston fraud attorney.
Types of Fraud
A person or a business could be the victim of numerous types of fraud. One of the most common types of fraud we see at Feldman & Feldman is real estate fraud. This can involve a variety of schemes and manifest in different forms. Typically, it involves some form of artifice in connection with the acquisition or use of real property, where fraud is perpetrated on the purchaser or later on the owner.
Embezzlement is another form of fraud. It occurs when an individual entrusted with another person’s money takes it for his or her own personal gain instead of for the intended purpose. This type of fraud can lead to millions of dollars in losses for the victims.
Employees cannot accept bribes, kickbacks, or payoffs in exchange for influencing financial business decisions, which may constitute another type of fraud. Companies should avoid providing special treatment or favors to anyone, but especially to family members, friends, and government or state officials.
Additionally, businesses can also commit fraud. Business fraud can occur when a business intentionally falsifies its records with the intent to deceive. This deceit can come via improper billing practices, unfair trade practices, misleading documents, falsified records, and/or coercive or deceitful business tactics.
According to the Association of Certified Fraud Examiners, private companies and small business rank highest in fraud frequency and will lose an average of 5% of their gross revenues to fraud. Hiring a Houston fraud lawyer if you suspect something can help combat those losses.
In order to prove business fraud, a plaintiff must show there was a:
- False representation of fact made by another
- The party had knowledge the representation was false when it was made
- The party intended to induce the plaintiff to act or avoid acting because of the false information
- The plaintiff suffered damage as a result of relying on the false information
Business fraud typically occurs due to false statements, but it can also be committed when someone omits material facts.
How a Houston Fraud Attorney Can Help
There are few things as devastating as learning someone you trusted has put their own interests ahead of yours. Fraud attorneys can work with you to investigate the situation and file a lawsuit against the deceptive party. The lawsuit will seek to obtain compensation for the money lost and damages caused by the fraud. Many victims of fraud do not come forward because they are embarrassed, but there is no reason to put any blame on yourself.
A variety of situations can involve the possibility of fraud. Understanding the nuances of a civil fraud case requires experience prosecuting and/or defending fraud claims. We evaluate fraud claims and build successful strategies to help our clients succeed in such claims, regardless of which side they are on.
Feldman & Feldman’s experience handling civil and business litigation has resulted in successful verdicts and settlements in Houston and surrounding areas. Our firm’s trial attorneys are committed to delivering the best possible result for every client. We fight for justice and to preserve the right to a trial by jury.
Houston Business Fraud Attorneys
Texas has the one of the highest incidences of fraud per capita. Chances are, someone you know has been the victim of fraud; maybe even you have. A victim may or may not know there are fraud remedies available. Fraudulently inducing someone into a transaction is against the law, and if it happens, your best option is to hire an experienced Houston fraud lawyer.
In order to mitigate your company’s exposure and/or your personal exposure, act quickly. If you’ve been a victim of fraud, no matter what type, the attorneys at Feldman & Feldman are equipped to investigate your claim and pursue compensation. When you hire a Houston fraud lawyer, you can rest assured we will customize a legal strategy for your case. We understand the stress of pursuing legal action in court, so we work as efficiently as possible. Contact us today to schedule a consultation to discuss your options.