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Fraud

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Business Fraud Attorney

Most business owners believe they will never fall victim to fraud. While in fact, business fraud is all too common. Those that fall victim to business fraud action will need an experienced lawyer. Fraud allegations are very serious and can sometimes include criminal charges. If you believe you are victim of fraud, or have been accused of fraud, it is important to immediately engage the help of a business fraud attorney. Kirkpatrick Law is well-versed in the complexities of business fraud cases. He has helped many businesses recover from fraud claims.

 

What Does the Term Fraud Mean in Business Law?

Fraud is the intentional deception by an individual or a business entity for profit or to gain an advantage. Those involved in commercial transactions and contractual relationships face inherent risks related to fraud. This can also include fraud that comes from within an organization and its employees.

There are five elements that lead to a Fraud case:

  1. False representation of an important fact made by a party
  2. The party knew that the representation was false, or made the representation recklessly without knowledge of the truth
  3. The party made the representation with the intention of convincing another to make a decision based on the false representation
  4. This action caused the deceived party to suffer damages.

 

What Do I Do If My Business Is in A Fraud Dispute?

Fraud can have a tremendous negative impact on your business’ financial future. You need to take steps to pursue legal options and compensation for any losses immediately.  Acting as soon as you become aware of any fraudulent actions is critical to your business. Also, if you are unjustly accused of fraud such accusations can hurt your businesses reputation and financial future as well.  In either case, you need an attorney with experience that can fight for you.

Located in Houston, Texas, Kirkpatrick Law will fight for you. His practice focuses in part on business law and protecting companies from business fraud. Additionally, he can help protect your business from a breaches of fiduciary duty, misrepresentation, and other losses through proactive counseling and the development of enforceable contracts. Business fraud can jeopardize your most important assets, call (713) 893-0305 for a consultation.

Common Types of Business Fraud Include:

Embezzlement – Embezzlement occurs when an individual steals or misappropriates money or assets of a company.

Securities Fraud – This is also called stock fraud or investment fraud. Securities fraud occurs when an individual or business convinces investors to make a buy or sell based on false information. In Texas securities laws are particularly nuanced. Transactions are subject to the Texas Security Act. Often individuals and businesses are unaware of this. This is because Texas defines the term “security” broadly. In Texas, the term includes, for example, securities can be created in an interest in oil and gas well production, as well as many joint venture interests, regardless of whether the security is covered by a written agreement. Unlike federal securities laws, the Texas Securities Act does not require proof of scienter (bad intent) or reliance.

Fraudulent Inducement – This occurs when a party lies about financial assets, performance, or other factors to get another to agree to a contract.

Insider Trading – Some types of insider trading are legal, however there are strict reporting requirements. Other forms of insider trading are illegal. Those that perform illegal insider trading can face serious fines and even jail time if convicted.

Fraudulent Transfers – Sometimes those that want to avoid paying a debt owed to a third-party will transfer their assets to a relative, business partner, or even another legal entity. Their hope is to keep the assets safe from collection. These transfers can constitute a fraudulent conveyance. Fraudulent transfer laws allow creditors to unwind these asset transfers and recover property. You can recover from initial and subsequent transferees who did not receive the property in good faith and for a reasonably equivalent value.

Corporate Misconduct – If an individual at a company acts in a dishonest or illegal manner, in order to gain an advantage, it is considered corporate misconduct. Corporate misconduct can lead to both criminal and civil actions.

 

What Do I Do If I Suspect Fraud?

People can be unscrupulous. Sometimes it is impossible to avoid becoming a victim of fraud. If you believe your business has been impacted by fraud you need to protect your financial future. Contact a business law attorney today. They can help you understand your legal options.

Conversely, allegations of fraud can cause a business many issues. Your assets may be frozen, or company production may be forced to stop. Your business may even be forced to shut down. Again, hiring a knowledgeable and seasoned business law attorney is your best hope for avoiding such outcomes.

 Houston Fraud Attorney

An experienced attorney, like Kirkpatrick Law, can help you preserve communications with the other party, as well as gather documentation about the underlying transaction and the damage to you or your business. This is critical information that at Kirkpatrick Law, we know how to handle. If you find yourself a victim of fraud or accused of fraud, call Kirkpatrick Law today. We have helped many companies recover or save their financial future.