In a perfect world, all business would be handled in an ethical matter and with fair practices. All business should be conducted legally, however in the business world, transactions do go wrong and disputes arise. One of the many disputes that arise from business entities is fraud. The law treats fraud very seriously, as they should. Business executives work hard to protect their company, so when something fraudulent occurs, they should feel confident when contacting a litigation lawyer in Orlando to handle their dispute. Fraud may carry both civil and criminal penalties. The three types of fraud are:

 

  1. Fraud in the factum (also known as fraud in the inducement) is a type of fraud that occurs when a person or business enters into a transaction and he or she is not aware of what it entails. Fraud in the factum occurs when the terms of the deal are misleading and they are meant to be misleading. A common example of fraud in the factum is a blind person signing a mortgage agreement when he or she was told it was simply a letter.
  2. Fraud in the execution is when the terms of the deal are not actually fraudulent, but the interactions of the parties involved are. One or more of the parties must act in a dishonest matter and introduce one party or the other to something they do not want to do. An example of fraud in the execution is when say somebody asks you for an autograph, and then they write a note right below your autograph, promising something. That promise is fraudulent because the person who signed the autograph ONLY signed their name, they did not write any promises.
  3. Fraud as a matter of law covers all activities that the law decides are fraudulent by definition. Unlike fraud in the factum, intent may not be a factor in the definition of fraud. Some businesses commit fraud although they did not intend to commit fraud. If you are unsure whether something is illegal or not you should consult your litigation lawyer in Orlando because it’s better to be safe than sorry.

The three types of fraud listed above are legal terms. In layman’s terms, business fraud can be considered embezzlement, payoffs, and skimming, among many other things. Ultimately, fraud can happen any time a deceptive practice causes harm to another business. Anyone can be a victim of fraud because many businesses are simply dishonest. In a court of law there is also the term “doctrine of unclean hands,” which means exactly how it sounds- don’t get your hands dirty. The term means you should never get involved in fraudulent activities. Even the slightest amount of participation can result in heavy jail time.
If you or anyone you know is a victim of business fraud, don’t wait to take action! You can trust Trujillo Vargas Gonzalez & Hevia, LLP as your litigation lawyer in Orlando. Our firm handles all transactional practices for both businesses and individuals. Please visit our website for more information. www.trujillovargas.com or call us at (407) 603-7940.