What is Fraud?
Fraud means misleading someone through a contract or false statements with or without knowledge of the actual truth that causes loss or harm to someone else. You cannot lie to someone or mislead them about the truth if it benefits you and they suffer a loss, whether financially or through property or other kinds of loss. Omitting the truth under such circumstances is fraud.
Is Fraud a White Collar Crime?
You may hear fraud called a “white collar crime.” This just means fraud that involves the victim suffering financial loss. For example, insider trading is fraud, which means someone—usually someone working for a company— shares information that would affect stock sales. Perhaps the company plans to diversify or merge. If that person working for the company was to sell his or her stock, knowing that the stock is about to lose its value, then that is securities fraud. Similar information about buying stock is the same.
If someone tries convince you to invest in a company, but withholds information that you need to make a good decision, such as stating the company is about to be bought by another company that would make the stock more valuable, this is also fraud.
I Didn't Know It Was Fraud
You may have made a mistake and are now being charged with fraud. This is a serious crime can result in fines and jail time. Make sure your mistake doesn’t ruin your life.