Fraud involves the false representation of facts, by intentionally withholding essential information or providing false statements to someone to gain something undeserved or unwarranted. Business fraud refers more specifically to illegal activities perpetrated by individuals or companies in a dishonest or unethical way in order to provide an expedient financial gain. Also known as corporate fraud, fraud often is disguised as or couched in legitimate business practices, making it exceptionally difficult to discover. According to the 2020 Report to the Nations from the Association of Certified Fraud Examiners (ACFE), business fraud is a global issue, affecting businesses of every size and type worldwide. Organizations that fall prey to fraudsters can respond to it internally, through civil litigation, and by referring the case to law enforcement. In Texas, many types of business fraud are directly covered by Texas law.

Types of Business Fraud

Business fraud often is achieved by exploiting sensitive or confidential information and using that information to maximum advantage for unmerited gain. The 22 specific types of business fraud encompassed by Texas law include the following:

  • Forgery

  • Criminal simulation

  • Traemark Counterfeiting

  • Stealing or Receiving Stolen Check or Similar Sight Order

  • Credit Card or Debit Card Abuse

  • False Statement to Obtain Property or Credit

  • Hindering Secured Creditors

  • Fraudulent Transfer of a Motor Vehicle

  • Credit Card Transaction Record Laundering

  • Issuance of Bad Check

  • Deceptive Business Practices

  • Commercial Bribery

  • Rigging Publicly Exhibited Contest

  • Illegal Recruitment of an Athlete

  • Misapplication of Fiduciary Property or Property of Financial Institution

  • Securing Execution of Document by Deception

  • Fraudulent Destruction, Removal, or Concealment of Writing

  • Simulating Legal Process

  • Refusal to Execute Release of Fraudulent Lien or Claim

  • Deceptive Preparation and Marketing of Academic Product

  • Fraudulent Use or Possession of Identifying Information

  • Fraudulent, Substandard, or Fictitious Degree

Fraudulent actions cause harm to consumers as well as businesses. Individual states have laws that criminalize fraud, as does the federal government; however fraudulent actions may not always be addressed by way of a criminal trial. Perpetrators of fraud who are held criminally accountable for their actions when proven to have engaged in such illicit activity will face severe punishments. But the victims of fraud who want to seek compensation must do so through business litigation. The victims of these crimes must engage the services of a qualified attorney to take the perpetrator to court to achieve the justice they deserve.

Business fraud litigation and all types of commercial litigation cases can be extremely complicated, which makes it exceptionally important to have legal representation in your case from an attorney who is committed to getting you meaningful results. At Reeves Law, the experienced legal team is skilled in business litigation, including business fraud claims. Attorney Brad Reeves understands the business objectives of defense litigation and is committed to using his knowledge and expertise to help his clients reach the best outcome in their cases. If you have questions about how an attorney can help your business deal with legal issues including fraud claims, contact Reeves Law for a free consultation.