Fraud is the purposeful misrepresentation of facts in order to commit a crime. In order for fraud to have occurred, it is not necessary for there to have been damages incurred by another person. Regardless of whether or not a fraud is considered criminal or civil, fraud itself has various legal elements. This includes:
- Misrepresentation of material facts
- The misrepresentation is being made purposely with the intention of tricking a victim
- An individual concealing the material truth
- Knowledge on the part of the defendant that they were misrepresenting facts
- A victim believing the misrepresentation and relying on it
- A victim that suffered or could have suffered based on the misrepresentation
There are differences between criminal fraud and civil fraud that we want to discuss here.
What is Criminal Fraud?
Criminal fraud is a crime in Arizona, and this typically involves various types of schemes to deceive or cheat another individual or business in order to obtain financial gain or another similar advantage. You will often hear criminal fraud refer to as a “white-collar crime.”
There are various types of criminal charges a person can face for fraud, and some of the most common types of criminal fraud include the following:
- Tax evasion
- Check fraud
- Charity fraud
- Embezzlement
- Mail fraud
- Bankruptcy fraud
- Mortgage fraud
- Romance scam fraud
- Wire fraud
- Identity theft
- Gambling fraud
- Racketeering
- Bank fraud
- Forgery
- Welfare fraud
- Credit or debit card fraud
- Counterfeiting
- Securities fraud
- Insurance fraud
If a person is found guilty of criminal fraud, they face the possibility of imprisonment or probation as well as the possibility of having to pay fines as well as restitution to any victims who have sustained losses.
What is Civil Fraud?
The types of activities that can result in a person facing criminal fraud charges are the same types of activities that lead to civil fraud claims. However, unlike criminal fraud charges, civil fraud claims do not revolve around prosecutors pursuing charges against individual defendants. That said, it is entirely possible for there to be a civil fraud claim against an individual also facing criminal charges for the same fraud.
In a civil fraud case, a plaintiff (fraud victim) will file a lawsuit against the defendant (that person alleged to have committed the fraud) in order to recover compensation for their losses. In order to prove a civil fraud claim, there must be damages that occurred as a result of the fraud perpetrated by the defendant.
Civil court is separate from criminal court, and there does not necessarily have to be a criminal charge associated with the fraud in order for a civil court claim to proceed and be successful.
If a plaintiff is successful with their civil fraud case, then they may be awarded significant compensation that the defendant will have to pay out of their own assets.
Contact a Criminal Defense Attorney Today
If you or somebody you care about is facing criminal or civil fraud charges, you need to reach out to a skilled lawyer as soon as possible. An experienced Chandler criminal defense attorney can examine the facts of your case and work to establish a solid defense on your behalf. You need to take these cases seriously come out regardless of whether or not the charges are criminal or you are facing a civil fraud claim.