Commercial fraud is a crime that can have a devastating effect on a business, its shareholders, and various other parties. An executive who is engaged in commercial fraud will attempt to conceal their actions in a multitude of ways. If they are successful, their fraudulent actions will eventually cause their company to falter. If you or your business was affected by commercial fraud, you should consult with an experienced Baltimore commercial fraud lawsuit attorney.
The Heyman Law Firm acknowledges the damage that incidences of commercial fraud can cause, and we are here to help you hold a fraudulent company executive responsible for their actions. Our firm possesses a wealth of experience litigating a wide range of commercial fraud cases and we will efficiently use this knowledge to represent you. To schedule a confidential legal consultation to discuss your claim, contact the Heyman Law Firm at (410) 305-9287.
Types of Commercial Fraud Schemes
Commercial fraud cannot be encapsulated into a single type of crime. There are multiple offenses that can meet the criteria of commercial fraud. However, there are certain factors that are common across all types of commercial fraud. For example, commercial fraud will usually carry severe economic consequences for the parties being deceived. Additionally, the person or parties that commit commercial fraud will often misuse a company’s systems to perpetuate the fraud.
The following is a list of common types of commercial fraud.
Misappropriation of Corporate Funds
Misappropriation of corporate funds occurs when a corporate executive steals money that the business has legitimately earned to further their personal goals. This type of commercial fraud can be committed in a variety of ways. However, this type of fraud almost always involves the use of irregular documents.
An irregular document is a form that is not normally used to carry out a certain transaction. For example, a company executive may create a counterfeit expense report to explain why a certain amount of money was used. In actuality, the executive withdrew the money from the corporation’s account and used the fake expense documents to cover his or her tracks. That is why it is important to examine documents that inexplicably appear to be different from others that a company typically uses.
If an executive has access to corporate systems that allow for the reporting of sales and other revenue, they can also use these systems to conceal payments from clients. This would free up more money that they can personally utilize.
False Claims Concerning Company Performance
If you are engaged in business with a company that often makes public claims of the high yields that investors can earn with little to no risk, this could be a form of commercial fraud. A fraudulent executive may also use their position to make false claims that their company is performing well above average.
The result of these false statements is that stock prices and company revenue climbs because investors believe the company is doing well. Once investors discover that the company executive was lying, they will likely have lost all or a substantial sum of their investment.
Kickbacks
Kickbacks are a type of commercial fraud that is dependent upon a third party offering a corrupt executive a large sum of money to influence company policy and contracts. For example, if a company wants a low-interest rate on a loan and they pay off a company officer to achieve this goal, this is considered a kickback.
Insider Trading
Insider trading occurs when a company officer offers confidential information to a third party in exchange for some benefit. These transactions usually involve a company insider selling valuable information about company stock to another person or company. This would allow that party to either sell or buy their stock before the rest of the market discovers the important information from the company.
To learn more about the types of commercial fraud and filing a lawsuit for commercial fraud, you should continue reading and consult with an experienced Baltimore business lawyer.
When to File a Lawsuit for Commercial Fraud
Knowing when to file a lawsuit for commercial fraud can be difficult. Due to the many types of commercial fraud, the filing deadline for your case can change depending on what type of claim you wish to file. For example, the Securities and Exchange Commission may impose a statute of limitations depending on when a victim discovered the fraud.
To ensure you are aware of your full rights when filing a commercial fraud lawsuit, you should consult with an experienced commercial fraud lawyer.
Our Maryland Commercial Fraud Attorneys are Prepared to Represent You
If you require assistance filing a commercial fraud lawsuit, you should contact an experienced Maryland commercial fraud attorney today. The Heyman Law Firm is devoted to providing our clients with the unique legal representation they need to pursue their claim. To schedule a confidential legal consultation, call the Heyman Law Firm at (410) 305-9287, or contact us online.