A fraud attorney prosecutes or defends cases where a defendant is accused of fraudulent activities causing economic harm. They handle cases ranging from securities fraud to unfair business practices and must prove their case with evidence of economic losses suffered by the plaintiff. Reasonable reliance on misrepresentation must also be demonstrated.
Common law fraud consists of the misrepresentation of a material fact intentionally made by one party to induce another party to act to its detriment. A fraud attorney is an attorney who prosecutes or defends cases where a defendant is accused of engaging in fraudulent activities that caused economic harm to others. The underlying deception that forms the basis of the legal action may be common law fraud or fraudulent conduct prohibited by a specific state or federal statute.
In the United States, an attorney may represent plaintiffs or defendants in civil fraud cases or, if the defendant’s fraudulent conduct is a violation of a statute that carries criminal penalties, he may work in the office of a federal or state attorney. The scope of cases a fraud attorney handles can range from fraud claims related to the purchase or sale of securities, to unfair and deceptive business practices committed by companies that violate state consumer protection statutes. This attorney can also handle cases where a defendant fraudulently conceals the true financial condition of a company by publishing misleading and inaccurate financial statements to induce individuals to invest in the company. A civil fraud lawyer must prove his case with a preponderance of evidence.
Because the rules of civil procedure require that the circumstances surrounding the fraud be described specifically and completely, an attorney must carefully examine the facts of the underlying case. As part of preparing the case for trial, he must also interview witnesses and review relevant documents associated with the matter to determine the likelihood of proving the necessary elements of fraud. In addition, an attorney must examine the nature of the alleged statements made by the defendant – as well as the context in which they were made – in order to verify that the alleged false statements by the plaintiff were made by the defendant with intent to deceive. Often, an attorney must demonstrate that the defendant personally profited from misstatements in order to prove such an allegation. To prevail in the case, the fraud attorney must provide clear evidence documenting the economic losses suffered by the plaintiff as a result of the fraud.
A fraud attorney must demonstrate not only that a plaintiff relied on misrepresentation to his detriment, but also that his reliance was reasonable. What constitutes reasonable reliance will depend on the facts and circumstances of each case, as well as the nature or status of the individuals to whom fraudulent representations were made. Meeting the burden of proof in a case involving the average consumer typically differs from the degree of proof required to demonstrate fraud and reasonable reliance on a commercial transaction.
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