7 Types Of Business Fraud And When To Seek A Criminal Lawyer – Scooptimes

Business fraud accusations can lead to a criminal conviction. This offense can take various forms, from embezzlement to tax evasion and insurance fraud. If you are accused of business fraud in Los Angeles County, find a Los Angeles criminal lawyer to help build a defense for your case:

Types of Business Fraud

Fraud generally includes making false or misleading statements that others rely on for personal benefit or another person’s disadvantage. Individuals, companies, and government agencies can press fraud charges against individuals or corporations. Here are seven typical cases of fraud in a business context:

1. Wire Fraud

Wire fraud refers to any fraudulent activity that uses the internet, phone, email, or fax. Wire fraud includes social media, text messages, and phone scams. A person may be found guilty of wire fraud if they pretend to be a reliable source and ask for personal information that is then used to access funds.

2. Insurance Fraud

Insurance fraud involves making inflated claims, giving incorrect information, or employing other dishonest practices to get insurance payouts to which one is not legally entitled. A defendant may commit this crime under duress or unknowingly. A criminal defense lawyer can defend them in court and potentially help save them from jail terms and fines.

3. Healthcare Fraud

Healthcare fraud involves making false medical claims to make money. Healthcare fraud may take many forms, from wrongful billing to illegally obtaining medical supplies and selling them. The healthcare provider must have purposefully passed on the costs to its clients for it to be healthcare fraud.

4. Embezzlement

Embezzlement involves taking something given to you in trust. The prosecution must show an employer/employee relationship between the accused and the victim to secure a conviction for embezzlement. The defendant had to be given money or another valuable item, which they then robbed the rightful owner of.

5. Tax Fraud

Tax fraud is a deliberate effort to avoid paying taxes. The key to proving tax fraud is proving that the defendant deliberately or consciously took actions to evade paying taxes. Tax fraud may be a civil or criminal matter, while tax evasion is a criminal offense that needs both affirmative action and the intention to evade taxes.

6. Securities Fraud

Securities fraud involves misleading investors to persuade them to invest in unsuitable assets for one’s financial advantage. One can avoid being charged with the offense if they can show they believed the scheme was real or were unaware of the securities rule.

7. Bank Fraud

Bank fraud is using illegal methods to acquire money or other assets a financial organization holds. In contrast to bank robbery or theft, bank fraud frequently refers to actions that use a plan or scheme, such as credit card scams. The defendant must have intended to deceive the financial institution to be found guilty of bank fraud.

When To Seek a Los Angeles Criminal Lawyer

Hire a criminal defense lawyer if you face accusations of fraud in Los Angeles. An experienced Los Angeles criminal lawyer may help you prepare a strong case for a potential trial. There are certain situations where a fraud defense lawyer can be extremely valuable:

The Claims Are False or Exaggerated

A simple oversight or misunderstanding can result in a business fraud charge. A client may also commit wildly inflated accusations against a service provider. Fraud defense attorneys can use various defenses to have the accusations against you dropped or reduced.

The Penalties Are Severe

Business fraud charges are felonies in some states, resulting in substantial fines and a lengthy prison sentence. The federal government also considers certain types of fraud criminal offenses. When facing a federal or state fraud allegation with a serious penalty, you need a skilled criminal defense attorney to build a strong case.

A Business’ Reputation Is at Stake

Allegations of fraud may have unintended consequences for business entities. If your firm gets caught in a fraud dispute, you need to contact a criminal defense attorney due to the nature and delicacy of these cases. They may help in defending your company against serious reputational or financial losses.

Seek Help for Business Fraud Charges

Most business fraud cases are federal offenses that carry lengthy prison sentences. Depending on the defendant’s prior criminal history, a prosecutor may file a misdemeanor or felony charge. If you have been charged with fraud in Los Angeles County, find a skilled attorney to guide you.