What is fraud
INTROFraud is "the promotion, for profit, of something known to be false or unproven." Not all illegitimate martial arts organizations and pseudo-masters are committing the crime of fraud since fraud requires a deliberate deception and many of these people sincerely believe in what they are doing. However, just because one sincerely believes in what is being he or she is saying or doing, that does not mean that what is being said or done is correct, scientific, proper, or otherwise legal.
While not every example of dishonesty is criminal fraud, knowing the warning signs may help prevent someone from deceiving you.
THE CRIME OF FRAUDFraud is a broad term that refers to a variety of offenses involving dishonesty or "fraudulent acts." Basically, it is intentional deception made for monetary or personal gain.
Fraud offenses always include some sort of false statement, misrepresentation, or deceitful conduct that the fraud perpetrator knows to be false and there must be the gain something of value (usually money or property) from the fraudulent activity.
Laws against fraud vary from state to state and can be criminal or civil in nature. Criminal fraud requires criminal intent on the part of the perpetrator and is punishable by fines or imprisonment. Civil fraud, on the other hand, applies more broadly to circumstances where bad-faith is usually involved, and where the penalties are meant to punish the perpetrator and put the victim back in the same position before the fraud took place.
While the exact wording of fraud charges varies among state and federal laws. the essential elements needed to prove a fraud claim in general include:
- a misrepresentation of a material fact;
- by a person or entity who knows or believes it to be false;
- to a person or entity who justifiably relies on the misrepresentation; and
- actual injury or loss resulting from his or her reliance.
Most states require that each element is proven with "particularity" -- meaning that each element must be separately proven for a fraud charge to stand.
FRAUD IS EVERYWHEREWhile you are driving on the streets of your city, look carefully at the luxury cars you see. Some are fakes. Using eBay and other online sites, it is possible to buy any type of car emblem you want, and then, after using a hair dryer and dental floss to remove the old emblem, you can attach the fake one can be attached with some tape, and presto, you have a luxury car.
Mercedes 8-cylinder coupes can be re-badged as the more expensive 12-cylinder version, or a sedan may be re-badged as a coupe or, for just $60 you could have a high-performance AMG or Brabus model. Fords are re-badged as Acura and, for $12, a Chrysler 300 may be re-badged as a Hemi-powered 300C. But as with other types of fakes, if you look carefully at the outside or look at the inside, you will be able to identify the fakes.