Legal Definitions - legal fraud

Legal fraud is a type of fraud that involves a knowing misrepresentation of the truth or concealment of a material fact to induce another person to act to their detriment. It can be a tort or a crime, depending on the circumstances.

Examples of legal fraud include:

• A person knowingly lying about the condition of a car they are selling to someone, causing the buyer to pay more than the car is worth.
• A company hiding important information from investors to make their stock seem more valuable than it really is.
• A contractor taking money from a homeowner for a renovation project, but never completing the work.

These examples illustrate how legal fraud involves intentionally deceiving someone for personal gain, causing them harm in the process.