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- Common types of corporate fraud that affect investors and business partners
- Common types of corporate fraud that affect consumers
- What types of fraud claims do you file for victims of corporate fraud?
- What damages can victims of corporate fraud receive?
- Do you have a Los Angeles business fraud lawyer near me?
Common types of corporate fraud that affect investors and business partners
Corporate fraud that harms investors and business partners is often more complex and sophisticated. At McNicholas & McNicholas, LLP, we have experience handling complex fraud cases and work with experts to investigate and unravel these complex schemes.
Investment and business relationship fraud by corporations can include the following:
- Accounting fraud. Accounting fraud typically includes providing inflated, inaccurate, or missing information about assets, income, and liabilities. This information is typically relied on by investors, business partners, and financial institutions during business transactions.
- Insurance fraud. This type of misconduct includes making fraudulent claims, selling sham or worthless policies, and other deceptive insurance practices. Wrongful denial of valid claims may also give rise to civil bad-faith liability if the denial was unreasonable or without proper cause.
- Securities and investment fraud. This typically involves false statements and lies to investors when they decide to invest in a company. Common investment schemes include false information about a company’s past financial success, how the investors’ money is going to be used, and diverting investor funds for purposes the investors did not authorize. Investments are generally regulated by the Securities and Exchange Commission (SEC), and, in California, by the Department of Financial Protection and Innovation under state securities laws.
Common types of corporate fraud that affect consumers
Corporations can take advantage of consumers in many ways, including the following:
- False advertising and misrepresentation. The FTC and various federal and state laws regulate how corporations communicate with clients. Advertising must not be false, misleading, or unfair under FTC and California consumer protection laws, and should include necessary information. A common example of this type of corporate misconduct includes claiming products cure or treat medical conditions when they don’t (especially if the drugs are not FDA-approved).
- Deceptive pricing. Examples include claiming product discounts for products that never existed and including hidden fees in the fine print.
- Subscription challenges. Examples include making it easy to subscribe but difficult to cancel, and offering free trials without explaining when the trial ends and pricing begins.
- Defective products. We represent consumers that are harmed when manufacturers make drugs, vehicle parts, equipment, household products, and other products that are defective due to poor design, construction, usage instructions, or the failure to include proper warnings.
- Data breaches and data privacy violations. Businesses collect sensitive personal data and have an obligation to safeguard that information. Data breaches often occur because businesses did not invest in appropriate cyber security tools. When a data breach occurs, businesses have an obligation to notify their customers. Businesses whose negligence results in a data breach can be held accountable for damages under California Consumer Privacy Act and other laws.
- Predatory lending and other comparable types of financial fraud. Examples include loans with deceptively high interest rates or fees, hidden or misleading terms, balloon payments, or penalties that make it difficult to refinance or repay.
- Insurance and warranty fraud. Examples include denying valid insurance claims and selling worthless warranties.
- Healthcare and pharmaceutical fraud. Examples include billing for unnecessary services or services that were not provided, providing kickbacks to induce physicians to recommend a pharmaceutical’s drugs, and other types of healthcare fraud. This type of fraud may violate the False Claims Act, the California False Claims Act, and, in cases involving federal healthcare programs, the Anti-Kickback Statute and the Stark Law.
- Artificial intelligence fraud. Examples include deception through fake images and videos, algorithms/designs that improperly encourage users to try products or services that may be unsafe, and many new harmful uses of AI (that may give rise to fraud, unfair competition, product liability, or false advertising claims under existing law).
What types of fraud claims do you file for victims of corporate fraud?
Our Los Angeles corporate fraud lawyers goal is to seek recovery for financial injuries. Claims include:
- Breach of contract. When a business fails to live up to their obligations to consumers or investors under a contract, they may be liable for breach of contract.
- Violations of federal and state laws. Fraud statutes protect victims from financial harm and deceptive business practices.
- Class action lawsuits. Class action lawsuits are claims on behalf of multiple victims who suffer financial harm due to violations of contracts or violations of the law.
What damages can victims of corporate fraud receive?
At McNicholas & McNicholas, LLP, we seek to help victims recover under federal or state law:
- Statutory damages
- Actual financial damages, which may include:
- Investment losses
- Income losses
- Changes in your financial accounts
- Punitive damages to punish and deter fraudulent conduct
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