What is fraud?

Fraud is most common in the buying or selling of property, including real estate, Personal Property, and intangible property, such as stocks, bonds, and copyrights. State and federal statutes criminalize fraud, but not all cases rise to the level of criminality. Prosecutors have discretion in determining which cases to pursue. Victims may also seek redress in civil court. Fraud must be proved by showing that the defendant's actions involved five separate elements. First is false statement of a material fact, Second is knowledge on the part of the defendant that the statement is untrue, Third is intent on the part of the defendant to deceive the alleged victim, Fourth is justifiable reliance by the alleged victim on the statement, and the fifth is injury to the alleged victim as a result.