Actionable Fraud

What does Actionable Fraud mean?

Actionable fraud occurs when a claim is asserted and the moving party is able to establish five elements including: 1) a material misrepresentation of a current or past fact; 2) the defendant knew the belief was false; 3) the intention that the other individual would rely on the belief or knowledge; 4) reasonable reliance thereon by the other person; and (5) resulting harm (Jewish Ctr. of Sussex Cty v. Whale, 86 N.J. 619, 624-625 (1991)).

Fraud can be a criminal or civil offense. Criminal charges can be punished with fines and penalties and jail sentences. Civil offenses generally involve issues of bad-faith and any compensation assessed against the defendant is generally meant to reinstate the plaintiff to their original position.

Common types of fraud

Fraudulent actions can include bankruptcy and tax fraud, identify theft, elderly fraud, Medicare fraud, insurance fraud, securities and commodities fraud, job scams, charity fraud, mortgage fraud, internet fraud, and credit card fraud. State laws and penalties vary, depending on the nature of the fraudulent action.

Social Security Disability Fraud

Another common type of fraud is Social Security Disability fraud. This occurs when a claimant claims they are disabled, knowing it is not true, and the federal government relies on this fact and pays benefits to the clamant. Disability fraud can also include a person taking another person’s disability benefits and using if for their own purpose.

Social Security Disability fraud is a criminal action, and if convicted, the accused may have to pay penalties and fines or serve prison time. Disability fraud is investigated by the Office of the Inspector General (OIG), generally after receiving a complaint.

What do you do if you are the victim of fraud?

Unfortunately, anyone can be the victim of fraud, especially credit card fraud, where any person or group may have their identity stolen and used for nefarious purposes. Unfortunately, due to the excessive number of fraudulent actions, it is unlikely most victims will recover their lost or stolen property. Credit card companies or banks, however, may limit the liability for many credit card holders who are victims of fraud.

Steps to prevent actionable fraud

You can take several steps to reduce the chance that you will be the victim of actionable fraud:

  • Know who you are dealing with before sending money or agreeing to purchase a service.
  • Do not wire money to anyone you do not know.
  • Verify all of your monthly statements.
  • Do not donate to charities which are not established.
  • Understand all of your investments.
  • Do not supply personal information to anyone you do not know.
  • Report all scams to the proper authorities including the Federal Trade Commission or the State Attorney General.

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Criminal Law Attorneys near Ashburn VA

Greenspun Shapiro PC

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3955 Chain Bridge Rd
Fl 2 Fairfax, VA 22030

The Flynn Law Firm

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2045 15th Street North
Arlington, VA 22201

Carleton Penn III

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4103 Chain Bridge Road
Suite 100 Fairfax, VA 22030

Defense Attorney Scott Porter

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10605 Judicial Drive Suite A1 222
Fairfax, VA 22030

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