When you are entering into a contract with another person, you have to make sure that you are being fully honest about all aspects of the matters at hand. Failing to be truthful can lead to claims of you making fraudulent claims. People might not realize that they might end up facing criminal charges in relation to these claims.
While it isn’t likely that fraudulent misrepresentation is going to result in a criminal case on its own, it could play a part in a white collar crime case, such as insider trading. This is one of the reasons why it is so important for people who are in the finance industry, as well as executives in any industry, to be completely honest.
There are six elements to fraudulent misrepresentation. These include:
- There was a representation involved in the matter
- That representation wasn’t truthful
- The representation was made recklessly or knowingly false
- It was made for the purpose of the other party relying on the information
- The other party did rely on the representation
- There were damages caused by the misrepresentation
In some cases, false misrepresentation might also be an element in a civil matter. When this occurs, you might have to be prepared to deal with two cases related to the incident. This can be difficult, so make sure that you are learning about the options you have in each case. These will vary based on the circumstances, but you might find that some elements have to be addressed in both cases. Since these matters are usually very complex, it might be beneficial to begin planning your defense early.