What You Need to Know About Fraud in California

Fraud is something that can get anyone tangled up. Most fraud cases do not come at the hands of random people or strangers, but occur through someone who was trusted and then got swindled. This is a big issue because people who are victims can quickly become embarrassed and unwilling to share what happened to the proper authorities.

Across many jurisdictions, fraud is both a criminal and civil matter, even though fraud has a narrow legal definition. In California, there are activities that seem like they constitute as fraud, but are not seen as such in a court of law.

There are a few different categories of fraud. These include a deliberate misrepresentation of a fact that was knowingly false, especially if an individual believed that fact to be true.

Another is the deliberate hiding of a fact by a fiduciary, or the negligent misrepresentation of one, that a victim relied on and was harmed as a result.

These definitions can be a bit vague, but the important fact about fraud is that it takes place when another party betrays the trust of someone. Fraud can also take place amid complex transactions, making it even harder for people to pick up on.

One of the best ways to catch fraud is to simply keep detailed records, especially with your financial transactions. Holding onto receipts, bank statements, and any other financial records makes it a lot easier for an experienced professional to get a grip on fraudulent activity and take the proper steps to remedy an issue.

Click here to learn why you should have a lawyer review your contracts!

Always make sure to have a clear grasp of any terminology in a contract before signing, especially if it has to do with a large sum of money. Many people get tricked through deceptive or confusing language. Do not hesitate to enlist the advice of our experienced attorneys to look over an agreement or deal before you sign.

Another way to cut down on risks of fraud is to simply make sure you deal with the right people. Check out reviews and recommendations before engaging with a business, and make sure they have proper licensing as it pertains to California law.

The legal system in California gives people a few options if they have been defrauded, as most of the recovery from such a case will come in the form of damages.

The most common measure is the “out of pocket” rule in California. This makes sure people get compensated in a fraud case for the money they actually lost.

Another one is called the “benefit of the bargain” rule, which gives people the difference in what they thought they would get minus what was actually received. It is important to note that debt is not able to be discharged during bankruptcy for instances of fraud. People who have committed fraud are mandated to pay back their debts, even if they go into bankruptcy.

If you feel like a victim of fraud, be sure to talk to our legal experts for your case. Our attorneys will be able to review and give you advice in the pleading stage of your case.

Do you have a question about fraud in California? Click here to contact Von Esch Law today!

Courtesy of Cuselleration

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