A misrepresentation of a material fact made intentionally one party to induce another party to act to his detriment is known as common law fraud. A fraud lawyer is a lawyer who either prosecutes or defends cases in which a defendant is accused of defrauding others engaging in fraudulent activity. The deception that underpins the legal action can be either common law fraud or fraudulent behavior that is prohibited a specific state or federal statute.
In the United States, a lawyer can represent plaintiffs or defendants in civil fraud cases, or work in the office of a federal or state prosecutor if the defendant’s fraudulent conduct is a violation of a statute that carries criminal penalties. A fraud lawyer’s cases can range from actions for fraud in connection with the purchase or sale of securities to unfair and deceptive trade practices perpetrated businesses in violation of state consumer protection statutes. In cases where a defendant fraudulently conceals the true financial condition of a business publishing misleading and inaccurate accounting statements in order to entice individuals to invest in the business, a lawyer like this may be able to help. A civil fraud attorney must show that his client is guilty a preponderance of the evidence.
Because the rules of civil procedure demand that the circumstances surrounding the fraud be described in detail, a lawyer must examine the facts of the underlying case carefully. He must interview witnesses and review relevant documents associated with the case as part of preparing the case for trial to determine the likelihood of proving the required elements of fraud. In order to determine whether the defendant made the plaintiff’s alleged misrepresentations with the intent to deceive, a lawyer must examine the nature of the alleged statements made the defendant — as well as the context in which they were made. To prove such a claim, a lawyer must often show that the defendant personally profited from the misstatement. To win the case, the fraud lawyer must present clear evidence of the plaintiff’s economic losses as a result of the fraud.
A fraud lawyer must show not only that a plaintiff was harmed as a result of the misrepresentation, but also that his reliance was reasonable. The facts and circumstances of each case, as well as the nature or status of the individuals to whom the fraudulent representations were made, will determine what constitutes reasonable reliance. The degree of proof required to demonstrate fraud and reasonable reliance in a commercial transaction differs from that required to meet the evidentiary burden in a case involving the average consumer.