FRAUD – What Constitutes Fraud in California? What does a Cause of Action for Fraud by False Promise in California Mean? December 19, 2019 A common question we get is “[w]hat is Fraud in California” and “[w]hat constitutes Fraud in California”. Fraud occurs in a wide range of settings, such as business transactions, contract inducement, property purchases and other similar transactions. A cause of action for fraud arises when a party misrepresents material facts, makes false promises, or otherwise deceives another party with the intention of depriving them of their money, property, and/or rights. Fraud by False Promise: A cause of action of Fraud by False Promise arises: When a defrauding party makes a promise that they do not intend to perform at the time they make the promise. The defrauding party made the promise with the intention that the fraud victim would rely on the promise. The fraud victim did, in fact, reasonably rely on the promise. The defrauding party making the promise does not fulfill that promise. The fraud victim suffered harm and the false statement was a substantial factor in causing such harm. California Civil Code Section 1710: encapsulates legal liability for fraud via false promise or promissory fraud as follows: “A deceit, within the meaning of the last section, is either: 1. The suggestion, as a fact, of that which is not true, by one who does not believe it to be true; 2. The assertion, as a fact, of that which is not true, by one who has no reasonable ground for believing it to be true; 3. The suppression of a fact, by one who is bound to disclose it, or who gives information of other facts which are likely to mislead for want of communication of that fact; or, 4. A promise, made without any intention of performing it.” A link to our article discussing FRAUD VIA FALSE PROMISE OR PROMISSORY FRAUD is embedded herein: Causes of Action for Fraud in California: For other articles discussing the various causes of action for Fraud in California, links are included below: • INTENTIONAL FRAUD AND DECEIT: • FRAUDULENT CONCEALMENT OR CONCEALMENT FRAUD: • CONVERSION OR BREACH OF FIDUCIARY DUTY • CONSTRUCTIVE FRAUD OR NEGLIGENT MISREPRESENTATION For Fraud Verdicts in California: Our articles discussing Fraud verdicts in California are included below: • BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action: • BREACH OF CONTRACT I BUSINESS LAW – FRAUD DAMAGES IN BREACH OF CONTRACT – COMPANY FAILS TO PAY FORMER PRESIDENT’S SHARES, PRESIDENT SECURES VERDICT FOR $553,000: Fraud Damages: Our articles discussing Fraud damages in California are included below: • FRAUD I DAMAGES I CIVIL LITIGATION – Punitive Damages Vs. Compensatory Damages: • FRAUD I DAMAGES I CIVIL LITIGATION – What Are Punitive Damages? Recovery from the Victims Of Corporate Fraud Compensation Fund of California: For articles discussing damages: • BUSINESS FRAUD I CORPORATE FRAUD – Payment From The Victims Of Corporate Fraud – VCFCF: Victims Of Corporate Fraud Compensation Fund: • BUSINESS FRAUD I CORPORATE FRAUD I DAMAGES – Compensation For “Aggrieved Person” Who Has Obtained A “Final Judgment” Against A Corporation Based Upon The Corporation’s Fraud, Misrepresentation Or Deceit – VCFCF: Victims Of Corporate Fraud Compensation Fund: If you have fallen victim to fraud or have questions about legal liability as it relates to constructive fraud, negligent misrepresentation, concealment fraud, fraudulently concealment, Intentional Fraud and Deceit, Promissory Fraud, False Promise, Conversion or breach of fiduciary we encourage you to contact our offices at 619-432-5145 for a free consultation with one of our civil fraud attorneys and fraud lawyers. TAGS: California Fraud Attorney, San Diego Fraud Attorney, Fraud by making false representations, Intentional Failure to disclose, Contract induced by fraud, False representations in contracts, Fraudulent Inducement in Investments, Fraudulent tactics in Investment transactions, Fraudulent Agreements, misappropriation of funds, financial mismanagement, misappropriation of funds attorney, financial mismanagement attorney, San Diego Breach of Fiduciary Attorney, California Fiduciary Attorney, San Diego Fiduciary Attorney, California Fiduciary Lawyer, San Diego Fiduciary Lawyer, Breach of Fiduciary, WHAT IS FRAUD, Is Fraud Civil, What is Fraud Litigation, Fraud Litigation, A Civil Fraud Claim, Fraud Claim, Legal Liability for Fraud, constructive fraud, negligent misrepresentation, concealment fraud, fraudulently concealment, Intentional Fraud and Deceit, Promissory Fraud, False Promise, Conversion or breach of fiduciary, What Constitutes Fraud in California, What does a Cause of Action for Fraud by False Promise in California Mean, What is a Cause of Action for Fraud in California

Fraud Claims

Fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

• Advance Fee Schemes – An advance fee scheme occurs when the victim pays money to someone in anticipation of receiving something of greater value—such as a loan, contract, investment, or gift—and then receives little or nothing in return.
• Business Fraud – Business fraud consists of activities undertaken by an individual or company in a dishonest or illegal manner designed to be advantageous to the perpetrating person or establishment.
• Contract Fraud – Involves deceptive practices in which a party induces another party to execute a contract and make an agreements based on false information or intentionally withheld material information.
• Consumer and Business Related Fraud – Fraud can ruin a business. Consumer fraud embodies any type of deceptive business practice that can cause consumers to suffer financial or other losses. Such deceptive business practices are committed by various parties; including: employee(s), contractor(s), executive(s) or at times business competitors. Fraud not only jeopardizes the profits of the corporation while depleting shareholder returns, it compromises the integrity of the business.
• Credit Card Fraud– Credit card fraud is the unauthorized use of a credit or debit card, or card number, to fraudulently obtain money or property.
• Foreign Investment Fraud – Investment fraud is an offer using false or fraudulent claims to solicit investments or loans, or providing for the purchase, use, or trade of forged or counterfeit securities.
• Fraud Against Seniors / Elder Abuse – Senior citizens are susceptible victims of fraud and should be especially aware of fraud schemes targeting their lifestyle and savings.
• Fraud Against People with Disabilities / Disabilities Abuse – Individuals with disabilities are susceptible victims of fraud and often targeted.
• Identity Theft – Identity theft occurs when someone assumes your identity to perform a fraud or other criminal act.
• Internet Fraud – Internet fraud is the use of Internet services or software with Internet access to defraud victims or to otherwise take advantage of them. Consumers are strongly cautioned against entering into Internet auction transactions with subjects exhibiting irregular behavior or making odd payment requests.
• Investment Fraud – Investment fraud is an offer using false or fraudulent claims to solicit investments or loans, or providing for the purchase, use, or trade of forged or counterfeit securities.
• Market Manipulation (“Pump and Dump”) Fraud – This scheme—commonly referred to as a “pump and dump”—creates artificial buying pressure for a targeted security, generally a low-trading volume issuer in the over-the-counter securities market largely controlled by the fraud perpetrators.
• Ponzi Schemes – “Ponzi” schemes promise high financial returns or dividends not available through traditional investments. Instead of investing the funds of victims, however, the con artist pays “dividends” to initial investors using the funds of subsequent investors.
• Pyramid Schemes – As in Ponzi schemes, the money collected from newer victims of pyramid schemes is paid to earlier victims to provide a veneer of legitimacy. In pyramid schemes, however, the victims themselves are induced to recruit further victims through the payment of recruitment commissions.
• Real Estate Fraud – Victims of real estate fraud suffer a financial loss due to a misrepresentation, concealment or intentional omission by a party to a real estate transaction as it relates to the sale, purchase, lease or acquisition of a land, property or residence. The misrepresentation or concealment would relate to a material fact that would have changed a party’s mind as to the purchase/sale price, the value of the property and/or their decision to enter the transaction.
• Redemption / Strawman / Bond Fraud – This scheme predominately uses fraudulent financial documents—often referred to as “bills of exchange,” “promissory bonds,” “indemnity bonds,” “offset bonds,” “sight drafts,” or “comptrollers warrants”—that appear to be legitimate.
• Reverse Mortgage Scams – Reverse mortgage scams are engineered by unscrupulous professionals in a multitude of real estate, financial services, and related companies to steal the equity from the property of unsuspecting senior citizens or to use these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property.
• Securities Fraud – also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws.
• Telemarketing Fraud – When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud.

Types of Fraud Cases:

In some instances, businesses are victims of fraud committed by a partner or co-owner. In other cases, fraud perpetrated by a supplier or an employee brings a business to its knees. In other instances, a real estate agent will misrepresent the condition of a house or a business will conceal its profit statements to attract buyers. We have handled cases of consumer fraud.

It is Essential to Retain a Fraud Attorney Immediately

The fraud related statutes in California and federal sometimes allow the victim to obtain pre-judgment remedies that keep the fraudulent actor from disappearing with the property or money stolen.

Pre-judgment remedies and Provisional Remedies Include:

• Writ of Attachment,
• Garnishment,
• Replevin,
• Receivership,
• Notice of pendency or Lis Pendens
• Temporary injunctions
• Preliminary injunctions
• Restraining Orders
• Levy or Writ of Execution

Our goal is simple: to protect our clients’ interests from further damage and obtain compensation for their losses. Our clients include small businesses, partnerships, entrepreneurs and consumers who have been victimized by fraud.

If you have fallen victim fraud we invite you to reach out to our offices today. Our experienced fraud and consumer rights attorneys are ready to help. Please complete our online form or call today for a free consultation at 619-432-5145.

Diana Legal