How is Fraud Defined in California Law?
If you have been defrauded, it is possible to recover damages with a civil lawsuit and the help of a San Francisco fraud lawsuit attorney. To prevail with a fraud lawsuit, you and your attorney must prove the elements of fraud and meet the requirements of the California legal system.
The Association of Certified Fraud Examiners estimates that on a global scale, fraud accounts for over $4.7 trillion in annual losses. In 2018, the Association estimated that up to 28 percent of small businesses in the U.S. have been involved in some type of consumer fraud.
What constitutes fraud in California? Fraud is deceit or dishonesty that deprives another person of financial assets, money, property, services, or rights. In California, fraud is sometimes a criminal offense, and depending on the circumstances, it may also be charged as a federal crime.
What Are California’s Fraud Laws?
Fraud laws in California make several different types of fraud illegal. However, unlike criminal fraud, civil fraud is not always considered a crime in this state. Civil fraud can, however, prompt a lawsuit brought by the victim (the “plaintiff”) against the alleged perpetrator (the “defendant”).
In most cases, civil fraud involves the intentional misrepresentation or concealment of fact to deceive someone for financial gain. Civil fraud in California includes but is not limited to:
- Contract fraud: Contract fraud happens when a party misrepresents or fails to disclose pertinent facts when entering a contract.
- Consumer fraud: Consumer fraud occurs when a business deceives its customers about its services or products through false advertising, warranty fraud, or dishonest billing practices.
- Mortgage fraud: Mortgage fraud happens when someone provides false information on a mortgage application to defraud a lender.
- Securities fraud: Securities fraud occurs when an individual or business misrepresents facts that investors use to make investment decisions, and as a result, the investors lose money.
To prevail with a civil fraud lawsuit, you not only have to prove that fraud took place, but you must also prove that you (or your family or business) suffered damage, injury, or harm because of the fraud. You have no grounds for a lawsuit if you suffered no damage, injury, or harm.
What Do You Have to Prove if You Sue for Fraud?
In California, if you bring a civil lawsuit to recover what you lost to fraud, you and your San Francisco fraud lawsuit lawyer must prove that the defendant acted knowingly and specifically to deprive you of money, property, or services.
Fraud is a unique allegation under California law because the specific facts and details – who, what, when, where, and how – must be precisely spelled out in a lawsuit. To prevail with a civil fraud lawsuit, you must prove the defendant:
- negligently or intentionally misrepresented a fact or facts as true
- knew the misrepresented fact or facts were false
- intended for you to rely on the misrepresentation
If you relied on the defendant’s misrepresentation and, as a result, you suffered harm or financial loss, you have the right to file a lawsuit in a civil court and be advised and represented by a San Francisco fraud lawsuit attorney.
If Someone Has Defrauded You, What Steps Should You Take?
If you are a victim of fraud in the San Francisco Bay Area, the specific measures you will need to take will depend on the details and type of fraud. In some cases, you may need to report the fraud to your credit card companies and bank immediately to prevent unauthorized transactions.
However, every fraud victim in the Bay Area should take the following steps as swiftly as possible:
- Compile evidence: Gather all of the related documents, such as receipts, contracts, emails, and other correspondence with the party committing the fraud.
- Maintain records: Keep an account of your interactions with the party allegedly committing the fraud, including times, dates, and relevant details.
- Speak to a fraud lawsuit lawyer: Contact a San Francisco fraud lawsuit lawyer as quickly as possible to discuss your rights, options, and the other steps you should take.
How Will Your Lawyer Help You?
Your lawyer will assess your situation, examine the pertinent documents, interview potential witnesses, and ensure that you have grounds for filing a fraud lawsuit. If you do, your lawyer will file the necessary legal paperwork with the appropriate California civil court.
Your fraud lawsuit attorney will seek to resolve your lawsuit out of court by negotiating with the defendant’s attorney. If no reasonable settlement offer is forthcoming in the negotiations or the defendant denies committing fraud, your attorney will take your fraud lawsuit to trial.
At a civil fraud trial, your lawyer will advocate on your behalf, offer the evidence of fraud, and seek a judgment that compensates you for your losses and related damages. Your attorney will be your advocate, guide you through the legal process, and fight for the justice you need.
The goal of a civil fraud lawsuit is not to penalize the defendant but simply to make sure you receive full compensation for your losses and other damages.
Who Will Make Your Fraud Lawsuit a Priority?
The attorneys at Geonetta & Frucht represent persons and businesses that others have wronged. We have over five decades of combined legal experience representing the victims of fraud. We offer advice and representation to our clients in the Bay Area and across California.
If you are a victim of fraud, your first consultation with the legal team at Geonetta & Frucht is provided without cost or obligation. If you take legal action and file a fraud lawsuit, you will owe Geonetta & Frucht no lawyer’s fee until and unless you receive compensation.
We also handle business disputes, employment discrimination cases, and personal injury claims. If you are a victim of fraud, get the customized legal advice and advocacy you need. Reach out to the law offices of Geonetta & Frucht immediately by calling 510-250-2743 (in Oakland) or 415-237-1212 (in San Francisco), and put our legal team to work for you.
