When we hear about business fraud, we assume that the business was guilty of committing fraud on a consumer. However, businesses are also victims of fraud. Business fraud costs companies billions of dollars in losses each year.
If your business is the victim of fraud or misrepresentation, it is crucial that you take immediate steps to stop the fraud and pursue legal remedies for compensation of damages. Our South Carolina business attorneys can help you pursue claims to hold the responsible parties accountable for their fraudulent acts.
How Do You Prove Business Fraud in South Carolina?
Business fraud includes false representations of a material. The misrepresentation can be intentional or negligent. Business fraud occurs when:
- A party knows that a fact is untrue or fails to use reasonable care to determine if the fact is true or untrue;
- The party misrepresents the fact to a second party as being true;
- The misrepresentation is material or relevant to the transaction or contract;
- The misrepresentation is made to induce the second party into action or inaction; and,
- The second party relies on the false statement and suffers harm because of that trust.
For example, a company falsifies documents and financial records to convince another company to enter a partnership or merger. Another example might be that a seller represents their ability to perform contractual obligations or hides a problem with a product.
A company could be defrauded when employees falsify expense reports to obtain reimbursement checks or skim money from customer payments to the company. Civil fraud could occur when a party intentionally withholds relevant information to get a company to enter into a contract or perform services.
Examples of Ways Companies are Defrauded in South Carolina
Fraud can occur in many ways. Examples of business fraud include, but are not limited to:
- Insurance fraud
- Mail fraud
- Bank fraud
- Wire fraud
- Fraudulent conveyance
- Employment-related fraud
- Securities fraud
- General fraud
Regardless of the type of fraud, the result can devastate a company. The company could sustain a significant financial loss because of the fraud. Furthermore, the company might suffer from harm to its reputation if customers or investors become aware the company was defrauded.
If Your Business Was Defrauded, You Could Pursue Litigation Through the Courts
A business lawyer can help you seek compensation for damages caused by business fraud by filing a civil lawsuit. Depending on the circumstances, you could receive compensation for the actual monetary losses caused by the fraud, reimbursement for attorneys’ fees and costs, and other damages. A judge could order the other party to pay punitive damages as a way to punish the party who committed fraud.
Contact Our South Carolina Business Attorneys for a Free Consultation
Our experienced business lawyers at Willcox, Buyck & Williams, PA, can help you take steps to protect your business now and in the future. If you experience legal problems, we are here to fight to protect you and your company from liability. Contact us today to schedule a free case evaluation with a seasoned South Carolina business attorney.