Fraud is an illegal act that occurs when someone intentionally uses deception for personal gain that results in some sort of harm to another person, such as financial loss. There are many types of fraud that exist. Misrepresenting the truth, withholding information, and concealing information for the purpose of personal gain are forms of fraud. If you have been accused of committing fraud, it is essential to understand the potential consequences. Understanding different types of fraud is also crucial for individuals who are hoping to protect themselves from fraud
Types Of Fraud
There can be several different ways that fraud is organized, but fraudulent schemes relating to business typically fall within two categories- misappropriation of assets and false financial reporting. Continue reading to learn more about these types of fraud and the consequences of committing fraud.
Misappropriation Of Assets
The first type of fraud would be misappropriation of assets. This is simply a fancy way of saying that an organization has experienced an internal theft of its assets. Several different examples of this type of fraud are:
- Payroll fraud
- Theft of cash funds
- Inventory theft
- False invoices
Improper Financial Reporting
Improper financial reporting tends to be a less common form of fraud, but it still happens occasionally in different businesses. Improper financial reporting basically involves misrepresenting a company’s income statement, the balance sheet, the statement of cash flows, and other financial statements. This can be problematic for multiple reasons, but it can specifically cause a company to begin to break down as investors and other important outside organizations lose faith in the company.
Other Types Of Fraud
The two types of fraud listed above are directly related to businesses and the problems that businesses can face due to fraud. However, there are other types of fraud that can occur on a more personal level, between individuals. Examples of fraud that can occur on this level include:
- Bankruptcy fraud
- Identity theft
- Wire fraud
- Tax evasion
- Credit card fraud
- Insurance fraud
- Internet fraud
Consequences Of Committing Fraud
If a person is convicted of committing fraud there can be a variety of potential charges in Utah. The severity of the charge will depend on how serious the fraud offense was, which usually relates to how much money was involved. Who has been deceived and how they have been deceived will also play a role in the severity of the case.
Most types of fraud including credit card fraud, bribery, fraudulent records, and forgery can result in a felony charge. If convicted, a person may face the possibility of imprisonment, the length of which depends on the degree of the felony. Even if prison is not imposed, a person may be ordered to pay a fine of up to $10,000.
Some forms of fraud, such as knowingly issuing a bad check, can result in a misdemeanor charge. Although not as severe as a felony, a conviction of a misdemeanor could result in up to a year in jail and a fine of up to $2,500.
Are You In Need Of Criminal Defense Services?
If you are in need of criminal defense services, please reach out to me. I, Zachary Holbrook, am a qualified and knowledgeable attorney. I have the experience to help you navigate the sometimes confusing and nerve-wracking legal process. I can help you learn more about your specific situation and educate you on any part of the legal process that you may be unfamiliar with. For legal services including representation, advice, and counsel, feel free to contact me today.