Fraud

Fraud

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Encyclopedia
In criminal law
Criminal law
Criminal law, is the body of law that relates to crime. It might be defined as the body of rules that defines conduct that is not allowed because it is held to threaten, harm or endanger the safety and welfare of people, and that sets out the punishment to be imposed on people who do not obey...

, a fraud is an intentional deception
Deception
Deception, beguilement, deceit, bluff, mystification, bad faith, and subterfuge are acts to propagate beliefs that are not true, or not the whole truth . Deception can involve dissimulation, propaganda, and sleight of hand. It can employ distraction, camouflage or concealment...

 made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime
Crime
Crime is the breach of rules or laws for which some governing authority can ultimately prescribe a conviction...

, and also a civil law
Civil law (common law)
Civil law, as opposed to criminal law, is the branch of law dealing with disputes between individuals or organizations, in which compensation may be awarded to the victim...

 violation. Defrauding people or entities of money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g., in science, to gain prestige rather than immediate monetary gain.

A hoax
Hoax
A hoax is a deliberately fabricated falsehood made to masquerade as truth. It is distinguishable from errors in observation or judgment, or rumors, urban legends, pseudosciences or April Fools' Day events that are passed along in good faith by believers or as jokes.-Definition:The British...

 also involves deception, but without the intention of gain or of damaging or depriving the victim.

Cost of fraud


The typical organization loses five percent of its annual revenue to fraud, with a median loss of $160,000. Frauds committed by owners and executives were more than nine times as costly as employee fraud. The industries most commonly affected are banking, manufacturing, and government.

Types of fraudulent acts


Fraud can be committed through many media, including mail, wire
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....

, phone
Phone fraud
Whether in the form of the consumer attempting to defraud the telephone company, the telephone company attempting to defraud the consumer, or a third party attempting to defraud either of them, fraud has been a part of the telephone system almost from the beginning....

, and the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...

 (computer crime
Computer crime
Computer crime, or cybercrime, refers to any crime that involves a computer and a network. The computer may have been used in the commission of a crime, or it may be the target. Netcrime refers to criminal exploitation of the Internet. Such crimes may threaten a nation’s security and financial health...

 and Internet fraud
Internet fraud
Internet fraud refers to the use of Internet services to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme....

). The international dimensions of the web and ease with which users can hide their location, the difficulty of checking identity and legitimacy online, and the simplicity with which crackers can divert browsers to dishonest sites and steal credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...

 details have all contributed to the very rapid growth of Internet fraud.

Types of criminal fraud include:
  • Advance-fee fraud
  • Bait and switch
    Bait and switch
    Bait-and-switch is a form of fraud, most commonly used in retail sales but also applicable to other contexts. First, customers are "baited" by advertising for a product or service at a low price; second, the customers discover that the advertised good is not available and are "switched" to a...

  • Bankruptcy fraud
  • Benefit fraud
    Benefit fraud
    Benefit fraud is a form of welfare fraud as found within the system of government benefits paid to individuals by the UK welfare state.- What is benefit fraud? :...

    , committing fraud to get government benefits
  • Counterfeit
    Counterfeit
    To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...

    ing of currency, documents or valuable goods
  • Charlatanism
  • Confidence trick
    Confidence trick
    A confidence trick is an attempt to defraud a person or group by gaining their confidence. A confidence artist is an individual working alone or in concert with others who exploits characteristics of the human psyche such as dishonesty and honesty, vanity, compassion, credulity, irresponsibility,...

    s such as the 419 fraud
    Advance fee fraud
    An advance-fee fraud is a confidence trick in which the target is persuaded to advance sums of money in the hope of realizing a significantly larger gain...

     and Spanish Prisoner
    Spanish Prisoner
    The Spanish Prisoner is a confidence trick originating in the late 19th century. In its original form, the con-man tells his victim that he is in correspondence with a wealthy person of high estate who has been imprisoned in Spain under a false identity...

  • creation of false companies or "long firm
    Long firm
    A long firm is a trading company set up for fraudulent purposes; the basic operation is to run the company as an apparently legitimate business, gradually extending the amount of cash advances from customers at the same time as increasing the amount of credit from suppliers; when the pot is large...

    s"
  • Embezzlement
    Embezzlement
    Embezzlement is the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted....

    , taking money which one has been entrusted with on behalf of another party
  • False advertising
    False advertising
    False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or...

  • False billing
    False billing
    False billing is a fraudulent act of invoicing or otherwise requesting funds from an individual or firm without showing obligation to pay. Such notices are often sent to owners of domain names, purporting to be legitimate renewal notices, although not originating from the owner's own registrar....

  • False insurance claims
    False insurance claims
    Insurance fraud or false insurance claims are insurance claims filed with the intent to defraud an insurance provider.-Health insurance fraud:...

  • Forgery
    Forgery
    Forgery is the process of making, adapting, or imitating objects, statistics, or documents with the intent to deceive. Copies, studio replicas, and reproductions are not considered forgeries, though they may later become forgeries through knowing and willful misrepresentations. Forging money or...

     of documents or signatures,
  • Franchise fraud
    Franchise fraud
    Franchise fraud is defined by the United States Federal Bureau of Investigation as a pyramid scheme.- Franchise fraud in U.S. federal law :The FBI website states:...

     where the real profit is earned, not by the sale of the product, but by the sale of new franchise licenses.
  • Fraud upon the court
  • Health fraud, for example selling of products known not to be effective, such as quack
    Quackery
    Quackery is a derogatory term used to describe the promotion of unproven or fraudulent medical practices. Random House Dictionary describes a "quack" as a "fraudulent or ignorant pretender to medical skill" or "a person who pretends, professionally or publicly, to have skill, knowledge, or...

     medicines,
  • Identity theft
    Identity theft
    Identity theft is a form of stealing another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name...

  • Insurance fraud
    Insurance fraud
    Insurance fraud is any act committed with the intent to fraudulently obtain payment from an insurer.Insurance fraud has existed ever since the beginning of insurance as a commercial enterprise. Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions...

  • Investment frauds, such as Ponzi scheme
    Ponzi scheme
    A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...

    s and Pyramid scheme
    Pyramid scheme
    A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public...

    s
  • Marriage fraud
    Sham marriage
    A sham marriage or fake marriage is a marriage of convenience entered into with the intent of deceiving public officials or society about its purpose. Arranging or entering into such a marriage to deceive public officials is itself a separate violation of the law of some countries...

     to obtain immigration rights without entitlement
  • Moving scam
    Moving Scam
    A moving scam is a scam by a moving company in which company provides an estimate, loads the goods, then states a much higher price to deliver the goods, effectively holding the goods hostage.-History:...

  • Religious fraud
    Religious fraud
    A term used for civil or criminal fraud carried out in the name of a religion or within a religion, e.g. false claims to being Kosher or tax fraud....

  • Rigged gambling games such as the shell game
    Shell game
    The shell game is portrayed as a gambling game, but in reality, when a wager for money is made, it is a confidence trick used to perpetrate fraud...

  • Securities fraud
    Securities fraud
    Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....

    s such as pump and dump
    Pump and dump
    "Pump and dump" is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price....

  • Tax fraud, not reporting revenue or illegally avoiding taxes. In some countries, tax fraud is also prosecuted under false billing or tax forgery

England and Wales and Northern Ireland


The offence of fraud is created by the Fraud Act 2006
Fraud Act 2006
The Fraud Act 2006 is an Act of the Parliament of the United Kingdom. It affects England and Wales and Northern Ireland. It was given Royal Assent on 8 November 2006, and came into effect on 15 January 2007.-Purpose:...

.

The government's 2006 Fraud Review concluded that fraud is a significantly under-reported crime, and while various agencies and organisations were attempting to tackle the issue, greater co-operation was needed to achieve a real impact in the public sector. The scale of the problem pointed to the need for a small but high-powered body to bring together the numerous counter-fraud initiatives that existed. The National Fraud Authority
National Fraud Authority
The National Fraud Authority is an executive agency of the United Kingdom government responsible for increasing protection for the UK economy from the harm caused by fraud. Formerly the National Strategic Fraud Authority, it was set up in October 2008 in response to the government's Fraud Review in...

 was established as a result of this recommendation.

Serious Fraud Office


See Serious Fraud Office (United Kingdom) is an arm of the Government of the United Kingdom, accountable to the Attorney-General.

National Fraud Authority


The National Fraud Authority
National Fraud Authority
The National Fraud Authority is an executive agency of the United Kingdom government responsible for increasing protection for the UK economy from the harm caused by fraud. Formerly the National Strategic Fraud Authority, it was set up in October 2008 in response to the government's Fraud Review in...

 (NFA) is the government agency co-ordinating the counter-fraud response in the UK.

CIFAS - The UK's Fraud Prevention Service


CIFAS
CIFAS
CIFAS - The UK's Fraud Prevention Service, is a not-for-profit membership association representing the private and public sectors. CIFAS is dedicated to the prevention of fraud, including staff fraud, and the identification of financial and related crime...

 - The UK's Fraud Prevention Service, is a not-for-profit membership association representing the private and public sectors. CIFAS is dedicated to the prevention of fraud, including staff fraud, and the identification of financial and related crime.

United States


Common law fraud has nine elements:
  1. a representation of an existing fact;
  2. its materiality;
  3. its falsity;
  4. the speaker's knowledge of its falsity;
  5. the speaker's intent that it shall be acted upon by the plaintiff;
  6. plaintiff's ignorance of its falsity;
  7. plaintiff's reliance on the truth of the representation;
  8. plaintiff's right to rely upon it; and
  9. consequent damages suffered by plaintiff.


Most jurisdictions in the United States require that each element be pled with particularity and be proved with clear, cogent, and convincing evidence (very probable evidence) to establish a claim of fraud. The measure of damages in fraud cases is to be computed by the "benefit of bargain" rule, which is the difference between the value of the property had it been as represented, and its actual value. Special damages may be allowed if shown proximately caused by defendant's fraud and the damage amounts are proved with specificity.

Notable fraudsters

  • Frank Abagnale Jr., US impostor
    Impostor
    An impostor or imposter is a person who pretends to be somebody else, often to try to gain financial or social advantages through social engineering, but just as often for purposes of espionage or law enforcement....

     who wrote bad checks and falsely represented himself as a qualified member of professions such as airline pilot, doctor, and attorney. The film Catch Me If You Can
    Catch Me If You Can
    Catch Me If You Can is a 2002 American biographical comedy-drama film based on the life of Frank Abagnale Jr., who, before his 19th birthday, successfully performed cons worth millions of dollars by posing as a Pan American World Airways pilot, a Georgia doctor, and a Louisiana parish prosecutor...

     
    is based on his life.
  • John Bodkin Adams
    John Bodkin Adams
    John Bodkin Adams was an Irish-born British general practitioner, convicted fraudster and suspected serial killer. Between the years 1946 and 1956, more than 160 of his patients died in suspicious circumstances. Of these, 132 left him money or items in their will. He was tried and acquitted for...

    , British doctor and suspected serial killer
    Serial killer
    A serial killer, as typically defined, is an individual who has murdered three or more people over a period of more than a month, with down time between the murders, and whose motivation for killing is usually based on psychological gratification...

    , but only found guilty of forging wills and prescriptions
  • Eddie Antar, founder of Crazy Eddie
    Crazy Eddie
    Crazy Eddie is the name of a consumer electronics retailer conducting business through the internet and by telephone. The venture is the most recent to be doing business under the Crazy Eddie name, with the most well known being a chain of retail stores that operated throughout New York, New...

    , who has about $1 billion worth of judgments against him stemming from fraudulent accounting practices at that company.
  • Cassie Chadwick
    Cassie Chadwick
    Cassie L. Chadwick is the infamous name used by a Canadian woman who defrauded several U.S. banks out of millions of dollars by claiming to be an illegitimate daughter and heiress of Andrew Carnegie.-Early life:...

    , who pretended to be Andrew Carnegie
    Andrew Carnegie
    Andrew Carnegie was a Scottish-American industrialist, businessman, and entrepreneur who led the enormous expansion of the American steel industry in the late 19th century...

    's illegitimate daughter to get loans.
  • Columbia/HCA
    Hospital Corporation of America
    Hospital Corporation of America is the largest private operator of health care facilities in the world, It is based in Nashville, Tennessee and is widely considered to be the single largest factor in making that city a hotspot for healthcare enterprise.-History:The founders of HCA include Jack C....

     Medicare
    Medicare (United States)
    Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...

     fraud. Columbia/HCA pleaded guilty to 14 felony counts and paid out more than $2 billion to settle lawsuits arising from the fraud. The company's board of directors forced then–Chairman and CEO Rick Scott to resign at the beginning of the federal investigation; Scott was subsequently elected Governor of Florida in 2010.
  • Salim Damji
    Salim Damji
    Salim Damji is a convicted fraud artist who defrauded millions of dollars in an affinity fraud. The money came mostly from relatives and members of the close-knit Ismaili community. His $75 million scam was among the largest in Canadian history....

     is a convicted fraud artist who defrauded millions of dollars in an affinity fraud. The money came mostly from relatives and members of the close-knit Ismaili community. His $78 million scam was among the largest in Canadian history.
  • Charles Dawson
    Charles Dawson
    Charles Dawson was an amateur British archaeologist who is credited and blamed with discoveries that turned out to be imaginative frauds, including that of the Piltdown Man , which he presented in 1912...

    , an amateur British archeologist who claimed to have found the Piltdown man
    Piltdown Man
    The Piltdown Man was a hoax in which bone fragments were presented as the fossilised remains of a previously unknown early human. These fragments consisted of parts of a skull and jawbone, said to have been collected in 1912 from a gravel pit at Piltdown, East Sussex, England...

    .
  • Marc Dreier, Managing founder of Attorney firm Dreir LLP. Prosecutors allege that from 2004 through December 2008, He sold approximately $700 million worth of fictitious promissory notes.
  • Bernard Ebbers
    Bernard Ebbers
    Bernard John "Bernie" Ebbers is a Canadian-born businessman. He co-founded the telecommunications company WorldCom and is a former chief executive officer of that company....

    , founder of WorldCom, which inflated its asset statements by about $11 billion.
  • Ramón Báez Figueroa
    Ramón Báez Figueroa
    Ramón Báez Figueroa is the former president of Banco Intercontinental from the Dominican Republic, accused in 2003 of masterminding the country's most spectacular banking fraud scandal, amounting to more than USD$ 2.2 billion....

    , banker from the Dominican Republic
    Dominican Republic
    The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...

     and former President of Banco Intercontinental. Sentenced on October 21, 2007 to ten years in prison for a US $2.2 billion fraud case that drove the Caribbean nation into an economic crisis in 2003.
  • Martin Frankel
    Martin Frankel
    Martin R. "Marty" Frankel is an American financial criminal who conducted a series of investment frauds in the late 20th century, causing hundreds of millions of dollars in losses...

     is a former U.S. financier
    Financier
    Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...

    , convicted in 2002 of insurance fraud worth $208 million, racketeering and money laundering.
  • Pearlasia Gamboa
    Pearlasia Gamboa
    Pearlasia Gamboa is a Filipino American business woman involved in controversial international banking, investment, and financial development transactions, including bank fraud, securities fraud, and passport fraud, from 1990 through 2010...

    , president of the micronation of Melchizedek
    Dominion of Melchizedek
    The Dominion of Melchizedek is a micronation known for facilitating large scale banking fraud in many parts of the world. The president was Pearlasia Gamboa, wife of vice-president David Korem...

    , hundreds of alias
    Pseudonym
    A pseudonym is a name that a person assumes for a particular purpose and that differs from his or her original orthonym...

    es; in 2002, one of Gamboa’s banking and investor fraud schemes was described by the Italian newspaper La Republica
    La República
    La República is a center-left newspaper published in Lima, Peru. It is one of the two main national dailies sold all over the country since it was founded on May 3, 1981. The paper was founded by Gustavo Mohme Llona, a former member of the Peruvian Congress...

    as "one of the most diabolical international scams ever devised in recent years", and in 2000, the Asia Times
    Asia Times Online
    Asia Times Online is a bilingual English‒Chinese, Internet-based newspaper covering geopolitics, politics, economics and business "from an Asian perspective"...

    described Gamboa’s operations as "an astonishing series of worldwide swindles".
  • Robert Douglas Hartmann, an American con man and felon implicated in a real estate mortgage investment Ponzi scheme
    Ponzi scheme
    A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...

     which defrauded both private lenders and banks in excess of $34 million.
  • Samuel Israel III
    Samuel Israel III
    Samuel Israel III is a former hedge fund manager for the fraudulent Bayou Hedge Fund Group, which he founded in 1996. He was born in Louisiana....

    , former hedge fund manager that ran the former fraudulent Bayou Hedge Fund Group
    Bayou Hedge Fund Group
    The Bayou Hedge Fund Group was a group of companies and hedge funds founded by Samuel Israel III in 1996. Approximately $450m was raised by the group from investors. Its investors were defrauded from the start with funds being misappropriated for personal use...

    . He faked suicide.
  • Ashok Jadeja
    Ashok Jadeja
    Ashok Jadeja , popularly known as Ashok Maadi and Mataji Ashok, is a self-proclaimed 'Godman', who has been accused of swindling money from thousands of people from across India by claiming to have the divine blessings of a goddess of a local caste in Ahmedabad.-Method:Jadeja would sit outside the...

     has been accused of cheating people from across India of scores of rupees on the pretext of having divine blessings.
  • Konrad Kujau
    Konrad Kujau
    Konrad Paul Kujau was an illustrator and forger who became famous in 1983 as the creator of the so-called Hitler Diaries, for which he received DM 2.5 million from a person who in turn sold it for DM 9.3 million to the magazine Stern.-Early life:"Konny" Kujau was one of five children of Richard...

    , German fraudster and forger responsible for the "Hitler Diaries
    Hitler Diaries
    In April 1983, the West German news magazine Stern published excerpts from what purported to be the diaries of Adolf Hitler, known as the Hitler Diaries , which were subsequently revealed to be forgeries...

    ".
  • Kenneth Lay
    Kenneth Lay
    Kenneth Lee "Ken" Lay was an American businessman, best known for his role in the widely reported corruption scandal that led to the downfall of Enron Corporation. Lay and Enron became synonymous with corporate abuse and accounting fraud when the scandal broke in 2001...

    , the American businessman who built energy company Enron
    Enron
    Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...

    . He was one of the highest paid CEOs in America until he was ousted as Chairman and was convicted of fraud and conspiracy, although as a result of his death, his conviction was vacated.
  • Nick Leeson
    Nick Leeson
    Nicholas "Nick" Leeson is a former derivatives broker whose fraudulent, unauthorized speculative trading caused the collapse of Barings Bank, the United Kingdom's oldest investment bank, for which he was sent to prison...

    , English trader whose unsupervised speculative trading caused the collapse of Barings Bank.
  • James Paul Lewis, Jr.
    James Paul Lewis, Jr.
    James Paul Lewis, Jr. operated one of the largest and longest running "Ponzi schemes" in United States history.Over approx. 20 years, Lewis collected around $311 million U.S. dollars from investors. He operated under the name of Financial Advisory Consultants in Lake Forest, Calif., and promised...

    , ran one of the biggest ($311 million) and longest running Ponzi Schemes (20 years) in US history.
  • Gregor MacGregor
    Gregor MacGregor
    Gregor MacGregor was a Scottish soldier, adventurer, land speculator, and colonizer who fought in the South American struggle for independence. Upon his return to England in 1820, he claimed to be cacique of Poyais...

    , Scottish conman who tried to attract investment and settlers for the non-existent country of Poyais.
  • Bernard Madoff
    Bernard Madoff
    Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S...

    , creator of a $65 billion Ponzi scheme – the largest investor fraud ever attributed to a single individual.
  • Colleen McCabe
    Colleen McCabe
    Colleen McCabe is a British fraudster who spent £500,000 on herself from the budget of the school where she was the headteacher.- Early years :...

    , British headmistress who stole £½ million from her school.
  • Gaston Means
    Gaston Means
    Gaston Bullock Means was an American private detective, salesman, bootlegger, forger, swindler, murder suspect, blackmailer, and con artist....

    , a professional conman during U.S. President Warren G. Harding
    Warren G. Harding
    Warren Gamaliel Harding was the 29th President of the United States . A Republican from Ohio, Harding was an influential self-made newspaper publisher. He served in the Ohio Senate , as the 28th Lieutenant Governor of Ohio and as a U.S. Senator...

    's administration.
  • Matt the Knife
    Matt the Knife
    "Matt the Knife" was born in Massachusetts and grew up in Boston, but now resides in Rhode Island. He is a magician and mentalist as well as the breaker of a multitude of Guinness World Records...

    , American born con artist, card cheat and pickpocket who, from the ages of approximately 14 through 21, bilked dozens of casinos, corporations and at least one Mafia crime family out of untold sums.
  • Barry Minkow
    Barry Minkow
    Barry Jay Minkow is a former businessman, pastor and convicted felon. While still in high school, he founded ZZZZ Best , which appeared to be an immensely successful carpet-cleaning and restoration company. However, it was actually a front to attract investment for a massive Ponzi scheme...

     and the ZZZZ Best scam.
  • Michael Monus, founder of Phar-Mor
    Phar-Mor
    Phar-Mor was a United States chain of discount drug stores, based in Youngstown, Ohio, and founded by Michael "Mickey" Monus and David S. Shapira in 1982. Some of its stores used the names Pharmhouse and Rx Place...

    , which ultimately cost its investors more than $1 billion.
  • F. Bam Morrison, who conned the town of Wetumka, Oklahoma
    Wetumka, Oklahoma
    Wetumka is a city in Hughes County, Oklahoma, United States. The population was 1,451 at the 2000 census. It is the headquarters for two federally recognized tribes, the Alabama-Quassarte Tribal Town and the Kialegee Tribal Town...

     by promoting a circus that never came.
  • Lou Pearlman
    Lou Pearlman
    Louis Jay "Lou" Pearlman is a former impresario of the successful 1990s boy bands such as The Backstreet Boys, *NSYNC, Take 5, O-Town and US5. In 2006, it was discovered that Pearlman had perpetrated one of the largest and longest-running Ponzi schemes in American history, leaving more than $300...

    , former boy-band manager indicted by a federal grand jury in Orlando on charges that he schemed to bilk banks out of more than $100 million.
  • Frederick Emerson Peters
    Frederick Emerson Peters
    Frederick Emerson Peters was an American impostor who wrote bad checks masquerading as scholars and famous people. In an age before mass communication, few store owners bothered to ID check writers....

    , US impersonator who wrote bad checks.
  • Thomas Petters is an American masquerading as a business man who turned out to be a con man and was the former CEO and chairman of Petters Group Worldwide
    Petters Group Worldwide
    Petters Group Worldwide was a diversified company based in Minnetonka, Minnesota that was turned into a $3.65 billion Ponzi scheme by its founder and CEO, Tom Petters. It currently has 3,200 employees and investments or full ownership in 60 companies, of which it actively managed 20, with offices...

    . Petters resigned his position as CEO on September 29, 2008, amid mounting criminal investigations. He later was convicted for turning Petters Group Worldwide into a $3.65 billion Ponzi scheme
    Ponzi scheme
    A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...

     and was sentenced to 50 years in federal prison.
  • Charles Ponzi
    Charles Ponzi
    Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi, , commonly known as Charles Ponzi, was a businessman and con artist in the U.S. and Canada. Born in Italy, he became known as a swindler in North America for his money making scheme. His aliases include Charles Ponei, Charles P. Bianchi, Carl and Carlo...

     and the Ponzi scheme
    Ponzi scheme
    A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...

    .
  • Alves Reis, who forged documents to print 100,000,000 PTE in official escudo
    Portuguese escudo
    The escudo was the currency of Portugal prior to the introduction of the Euro on 1 January 1999 and its removal from circulation on 28 February 2002. The escudo was subdivided into 100 centavos....

     banknotes (adjusted for inflation, it would be worth about US$150 million today).
  • John Rigas, cable television entrepreneur, cofounder of Adelphia Communications Corporation and owner of the Buffalo Sabres
    Buffalo Sabres
    The Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. They are members of the Northeast Division of the Eastern Conference of the National Hockey League .-Founding and early success: 1970-71—1980-81:...

     hockey team. Defrauded investors of over $2 billion and was sentenced to a 12 year term in federal prison.
  • Christopher Rocancourt
    Christopher Rocancourt
    Christophe Thierry Rocancourt, sometimes also called Christopher Rocancourt, is an impostor, confidence man and gentleman thief who scammed affluent people by masquerading as a French member of the Rockefeller family.-Biography:He told Dateline NBC in a 2006 broadcast that his mother sometimes...

    , a Rockefeller impersonator who defrauded Hollywood celebrities.
  • Joseph Rothe, of Fonthill, Ontario, ordered to pay $500,000 in restitution, received a four-year prison sentence, along with Ewaryst Prokofiew, of Mississauga, Ontario, in the biggest GST fraud in Canadian history. Code named Project Phantom for the lengthy police investigation, the organizers lined up a steady supply of vehicles that were to be sold at the auctions. The cars never materialized and were never purchased. But the operators of the fraud claimed that they had been sold, and because of the natives' tax-exempt status were able to claim the GST exemption. Authorities could only guess at the full loss sustained by the Canada Revenue Agency. Madam Justice Lynda Templeton of Superior Court said the scheme siphoned at least $11-million from Ottawa, possibly a great deal more.
  • Scott W. Rothstein
    Scott W. Rothstein
    Scott W. Rothstein is a disbarred lawyer and the former managing shareholder, chairman, and chief executive officer of the now-defunct Rothstein Rosenfeldt Adler law firm. He was accused of funding his philanthropy, political contributions, law firm salaries, and an extravagant lifestyle with a...

    , a disbarred lawyer from Ft. Lauderdale, Florida, who perpetrated a Ponzi scheme which defrauded investors of over $1 billion.
  • Michael Sabo
    Michael Sabo
    Michael John Sabo is an American consultant and speaker on identity theft and fraud in the business sector. He is currently Executive Director of US Prison Consultants, a principal resource for individuals charged with white-collar crime....

    , best known as a check, stocks and bonds forger. He became notorious in the 1960s throughout the 1990s as a "Great Impostor" over 100 aliases, and earned millions from such.
  • John Spano
    John Spano
    John A. Spano, Jr. is a businessman and swindler who briefly bought control of the NHL's New York Islanders in 1997 before he was exposed as a fraud...

    , a struggling businessman who faked massive success in an attempt to buy out the New York Islanders
    New York Islanders
    The New York Islanders are a professional ice hockey team based in Uniondale, New York. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League...

     of the NHL.
  • John Stonehouse
    John Stonehouse
    John Thomson Stonehouse was a British politician and minister under Harold Wilson. Stonehouse is perhaps best remembered for his unsuccessful attempt at faking his own death in 1974...

    , the last Postmaster-General of the UK and MP who faked his death to marry his mistress.
  • Kevin Trudeau
    Kevin Trudeau
    Kevin Mark Trudeau is an American author, radio personality, and infomercial salesman best known for promoting alternative medicine. A number of his television infomercials and several of his books, including Natural Cures "They" Don't Want You to Know About, allege that both the U.S...

    , US writer and billiards promoter, convicted of fraud and larceny in 1991, known for a series of late-night infomercials and his series of books about "Natural Cures "They" Don't Want You to Know About".
  • Andrew Wakefield
    Andrew Wakefield
    Andrew Wakefield is a British former surgeon and medical researcher, known as an advocate for the discredited claim that there is a link between the measles, mumps and rubella vaccine, autism and bowel disease, and for his fraudulent 1998 research paper in support of that claim.Four years after...

    , UK physician who claimed links between the MMR vaccine
    MMR vaccine
    The MMR vaccine is an immunization shot against measles, mumps, and rubella . It was first developed by Maurice Hilleman while at Merck in the late 1960s....

    , autism and inflammatory bowel disease
    Inflammatory bowel disease
    In medicine, inflammatory bowel disease is a group of inflammatory conditions of the colon and small intestine. The major types of IBD are Crohn's disease and ulcerative colitis.-Classification:...

    . He was found guilty of dishonesty in his research and banned from medicine by the UK General Medical Council
    General Medical Council
    The General Medical Council registers and regulates doctors practising in the United Kingdom. It has the power to revoke or restrict a doctor's registration if it deems them unfit to practise...

     following an investigation by Brian Deer
    Brian Deer
    Brian Deer is a British investigative reporter, best known for inquiries into the drug industry, medicine and social issues for the Sunday Times of London.- Career :...

     of the London Sunday Times.
  • Richard Whitney
    Richard Whitney (financier)
    Richard Whitney was an American financier, president of the New York Stock Exchange from 1930 to 1935, and a convicted embezzler.-Biography:He was born on August 1, 1888 in Boston, Massachusetts to George Whitney, Sr....

    , who stole from the New York Stock Exchange Gratuity Fund
    New York Stock Exchange
    The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

     in the 1930s.

Related


Apart from fraud, there are several related categories of intentional deception
Deception
Deception, beguilement, deceit, bluff, mystification, bad faith, and subterfuge are acts to propagate beliefs that are not true, or not the whole truth . Deception can involve dissimulation, propaganda, and sleight of hand. It can employ distraction, camouflage or concealment...

s that may or may not include the elements of personal gain or damage to another individual:
  • obstruction of justice
    Obstruction of justice
    The crime of obstruction of justice, in United States jurisdictions, refers to the crime of interfering with the work of police, investigators, regulatory agencies, prosecutors, or other officials...

     which criminalizes false representation of being been awarded any decoration or medal authorized by Congress for the Armed Forces of the United States

See also



  • Advance fee fraud
    Advance fee fraud
    An advance-fee fraud is a confidence trick in which the target is persuaded to advance sums of money in the hope of realizing a significantly larger gain...

  • Caper stories
    Caper story
    The caper story is a subgenre of crime fiction. The typical caper story involves one or more crimes perpetrated by the main characters in full view of the reader...

     (such as The Sting
    The Sting
    The Sting is a 1973 American caper film set in September 1936 that involves a complicated plot by two professional grifters to con a mob boss . The film was directed by George Roy Hill, who previously directed Newman and Redford in the western Butch Cassidy and the Sundance Kid.Created by...

    )
  • Contract fraud
    Breach of contract
    Breach of contract is a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance....

  • Corruption
    Political corruption
    Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

  • Cramming (fraud)
    Cramming (fraud)
    Cramming is a form of fraud in which small charges are added to a bill by a third party without the subscriber's consent or disclosure. These may be disguised as a tax or some other common fee, and may be several dollars or even just a few cents. The crammer's intent is that the subscriber will...

  • Creative accounting
    Creative accounting
    Creative accounting and earnings management are euphemisms referring to accounting practices that may follow the letter of the rules of standard accounting practices, but certainly deviate from the spirit of those rules...

  • Crimestoppers
    Crimestoppers
    Crime Stoppers or Crimestoppers is a program separate from the emergency telephone number system, that allows a member of the community to provide anonymous information about criminal activity. It thereby allows the person to provide crime solving assistance to the authorities without being...

  • Electoral fraud
    Electoral fraud
    Electoral fraud is illegal interference with the process of an election. Acts of fraud affect vote counts to bring about an election result, whether by increasing the vote share of the favored candidate, depressing the vote share of the rival candidates or both...

  • False Claims Law
  • Federal Bureau of Investigation
    Federal Bureau of Investigation
    The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...

     (FBI)
  • Financial crimes
    Financial crimes
    Financial crimes are crime against property, involving the unlawful conversion of the ownership of property to one's own personal use and benefit...

  • Franchise fraud
    Franchise fraud
    Franchise fraud is defined by the United States Federal Bureau of Investigation as a pyramid scheme.- Franchise fraud in U.S. federal law :The FBI website states:...

  • Fraud deterrence
    Fraud deterrence
    Fraud deterrence has gained public recognition and spotlight since the 2002 inception of the Sarbanes-Oxley Act. Of the many reforms enacted through Sarbanes-Oxley, one major goal was to regain public confidence in the reliability of financial markets in the wake of corporate scandals such as...

  • Fraud in the factum
    Fraud in the factum
    Fraud in the Factum is a type of fraud where misrepresentation causes one to enter a transaction without accurately realizing the risks, duties, or obligations incurred...

  • Fraud in parapsychology
  • Fraud Squad
    Fraud Squad
    A Fraud Squad is a police department which investigates fraud and other economic crimes. The largest Fraud Squad in the United Kingdom is run by the City of London Police who are responsible for policing London's and the UK's main financial hub....

  • Friendly fraud
    Friendly Fraud
    Friendly fraud, also known as friendly fraud chargeback, is a credit card industry term used to describe a consumer who makes an Internet purchase with his/her own credit card and then issues a chargeback through his/her card provider after receiving the goods or services...

  • Front running
    Front running
    Front running is the illegal practice of a stock broker executing orders on a security for its own account while taking advantage of advance knowledge of pending orders from its customers...

  • Geneivat da'at
    Geneivat da'at
    Geneivat da'at or g'neivat daat or genebath da'ath is a concept in Jewish law and ethics that refers to a kind of dishonest misrepresentation or deception...

  • Great Stock Exchange Fraud of 1814
    Great Stock Exchange Fraud of 1814
    The Great Stock Exchange Fraud of 1814 was a hoax or fraud centered on false information about the then-ongoing Napoleonic Wars, affecting the London Stock Exchange in 1814.-The du Bourg hoax:...

  • Guinness share-trading fraud
    Guinness share-trading fraud
    The Guinness share-trading fraud was a famous British business scandal of the 1980s. It involved an attempt to manipulate the stock market on a massive scale to inflate the price of Guinness shares and thereby assist a £2.7 billion take-over bid for the Scottish drinks company Distillers...

    , famous British business scandal of the 1980s
  • Hoax
    Hoax
    A hoax is a deliberately fabricated falsehood made to masquerade as truth. It is distinguishable from errors in observation or judgment, or rumors, urban legends, pseudosciences or April Fools' Day events that are passed along in good faith by believers or as jokes.-Definition:The British...

  • Identity and Access Management

  • Impersonator
    Impersonator
    An impersonator is someone who imitates or copies the behavior or actions of another. There are many reasons for someone to be an impersonator, some common ones being as follows:...

  • Internal Revenue Service
    Internal Revenue Service
    The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...

     (IRS)
  • Interpol
    Interpol
    Interpol, whose full name is the International Criminal Police Organization – INTERPOL, is an organization facilitating international police cooperation...

  • Journalism fraud
  • Money Laundering
    Money laundering
    Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...

  • Organized Crime
    Organized crime
    Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...

  • Phishing
    Phishing
    Phishing is a way of attempting to acquire information such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an electronic communication. Communications purporting to be from popular social web sites, auction sites, online payment processors or IT...

    , attempt to fraudulently acquire sensitive information
  • Political corruption
    Political corruption
    Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

  • Quatloos.com
  • Racketeer Influenced and Corrupt Organizations Act
    Racketeer Influenced and Corrupt Organizations Act
    The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization...

     (RICO)
  • SAS 99
    SAS 99
    Statement on Auditing Standards No. 99: Consideration of Fraud in a Financial Statement Audit, commonly abbreviated as SAS 99, is an auditing statement issued by the Auditing Standards Board of the American Institute of Certified Public Accountants in October 2002. The original exposure draft was...

  • Scam
  • Secret profit
    Secret profit
    In English law, a secret profit is a profit made by an employee who uses his employer's premises and business facilities in order to engage in unauthorised trade on his own behalf. A common example is a bar manager who purchases beer from a brewery in his own right and sells it in the bar in...

    s
  • Shell company
    Shell (corporation)
    A shell corporation is a company which serves as a vehicle for business transactions without itself having any significant assets or operations. Shell corporations are not in themselves illegal and have legitimate business purposes. However, they are a main component of the underground economy,...

  • Swampland in Florida
    Swampland in Florida
    Swampland in Florida refers to decades-old but still recurring real estate scams involving swamp lands misrepresented as being possible to develop, or "buildable"...

  • The National Council Against Health Fraud
    The National Council Against Health Fraud
    The National Council Against Health Fraud is a 501 non-profit, US-based organization registered in California, that describes itself as a "private nonprofit, voluntary health agency that focuses upon health misinformation, fraud, and quackery as public health problems." The NCAHF has been...

  • Tobashi scheme
    Tobashi scheme
    A Tobashi scheme is a financial fraud where a client's losses are hidden by an investment firm by shifting them between the portfolios of other clients. Any real client with portfolio losses can therefore have their accounts flattered by this process. This cycling cannot continue indefinitely and...

    , concealing financial losses
  • U.S. Securities and Exchange Commission (SEC)
  • United States Postal Inspection Service
    United States Postal Inspection Service
    The United States Postal Inspection Service is the law enforcement arm of the United States Postal Service. Its jurisdiction is defined as "crimes that may adversely affect or fraudulently use the U.S...

  • United States Secret Service
    United States Secret Service
    The United States Secret Service is a United States federal law enforcement agency that is part of the United States Department of Homeland Security. The sworn members are divided among the Special Agents and the Uniformed Division. Until March 1, 2003, the Service was part of the United States...

  • Web fraud detection
    Web fraud detection
    Web Fraud Detection defines technological solutions, meant to detect criminal activities carried out against websites and web applications over the World Wide Web. Traditionally, fraud detection solutions were essentially rule-based expert systems...

  • White Collar Crime


External links