FRAUD – Legal Liability for Fraud – Civil Tort for Conversion or Breach of Fiduciary Duty
August 22, 2019
The most common question we get is: “What is Fraud”? Civil fraud arises in various settings, one of which is when an entrusted person fraudulently acquires funds or property of another. While embezzlement is a criminal charge there is often a civil counterpart arising from the same situation, common causes of action include conversion and breach of fiduciary duty. Conversion and breach of fiduciary duty occurs when a wrongdoer has fraudulently appropriated funds or property from an entrusted person. In other words, conversion and breach of fiduciary duty occurs when a wrongdoer has intentionally utilized their relationship to a fraud victim to fraudulently acquire property or monetary funds. In this situation the fraudster is subject to legal liability for civil fraud for conversion, breach of fiduciary duty or other equivocal fraud related causes of action.
There are various grounds for which a wrongdoer can be held legally liable for fraud, one of which is fraud via conversion or breach of fiduciary duty. A fraudster is held legally liable for fraud when money, property or personal gain is acquired by conversion or a breach of fiduciary duty.
California Civil Code Section 1573:encapsulates legal liability for fraud via conversion or breach of fiduciary dutyas follows:
Conversion or Breach of Fiduciary Dutyis a form of Fraud that “… consists: 1. In any breach of duty which, without an actually fraudulent intent, gains an advantage to the person in fault, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him”
This post is one of a series of Fraud blogs discussing the specific California Civil Code Sections that encapsulate civil liabilities for fraud. Additional posts in this Fraud series are linked below:
If you have fallen victim to fraud or have questions about legal liability as it relates to fraud via conversion or breach of fiduciary duty 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.