Lying is a frustrating but common human behavior. Some people lie so often that it becomes their standard response to any question or challenge. They just fabricate what they think is the best possible answer with little regard for the truth.
Such behavior can make someone an excellent salesperson or social climber, but it can also damage their reputation and harm the people on the receiving end of those lies. Any instance in which lying affects someone’s financial decisions could result in them facing criminal fraud charges.
When does an untruth cross the line and put someone at risk of facing fraud charges in the future?
Fraud involves intentional misrepresentation
You want to start a new business and need investment capital. You might exaggerate your professional background, what investments you have already secured, or the company’s prospects. Maybe you have a job at a medical office, and you start billing for more expensive, upgraded medical procedures or break apart bundled charges. These are just two examples of potential fraud.
Fraud involves misrepresentation for financial gain, whether it aims to deprive someone else of property or prevent them from asserting their rights. Fraud comes in many different forms, and not all of them will directly benefit you as an individual. They might instead benefit your employer.
However, if your misrepresentation affects someone’s financial decisions or results in financial losses for an individual or a business, then you could find yourself accused of fraud. Knowing what constitutes different kinds of white-collar criminal offenses can help you avoid making a mistake that could affect your freedom.