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- Is fraud a crime?
- What is fraudulent intent?
For the most part, there is no single crime called
"fraud." However, fraud is an intrinsic part of a number of
offenses, most notably those in the theft category. The early theft
crime of larceny required a taking of property from the possession of
another; therefore using deceit to take the property of another that
had been entrusted to the offender was not punishable because it was
not larceny. The crime of embezzlement was created to plug this
loophole in theft law. Embezzlement is committed when the
offender fraudulently converts the property of another, which is
already in the offender's possession. Fraudulent conversion
occurs when the offender seriously interferes with the victim's rights
over the property by using it up, giving it away, unreasonably
withholding possession from the victim, or seriously damaging the
property with the intent to benefit himself and deprive the victim.
Fraudulent intent requires a finding that the offender had the
specific intent to deceive the victim, and mere negligence in the
handling of the property will not sustain a conviction.
Fraud is also at the heart of the crime of false pretenses,
which is committed when the offender knowingly makes a false
representation of fact with the intent to cause the victim to pass
title to his or her property to the offender. False pretenses requires
a false representation; making misleading statements or merely
remaining silent does not satisfy the requirement of a false
misrepresentation. Neither are opinions enough to make a false
representation; "In my opinion, your property is worthless,"
is not a false representation for the purposes of the crime. The false
representation must be about an important fact. A false statement
about an unimportant fact generally will have little impact on the
victim's decision to complete the transaction, and therefore will not
support a charge of false pretenses.
Fraud is an important part of the federal mail and wire fraud
statutes. The scope of fraud under those statutes is broader than
under embezzlement and false pretenses since it includes using tricks,
schemes, or devices to defraud; therefore an unimportant misstatement
can serve as one element of a scheme to defraud. In addition, the
federal crimes can be charged when the offender secures a service
through fraud, not just takes property. Other federal crimes that
prohibit fraud protect the banking industry and stock market
transactions. Statutes prohibit the use of fraud in obtaining
government goods or services and the filing of fraudulent tax returns.
You
can call H. Michael Steinberg @ (303) 627-7777, or send E-mail to hmsteinberg@hotmail.com
or
Fax him a note Toll Free @ 1- (877)533-6276.
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