Fraudulent misrepresentation and securities fraud go hand in hand when it comes to white collar crimes. Firstly, however, you should understand what a white collar crime is and why they are handled so seriously. They are crimes that are committed through deceit and give some financial gain to the criminal. Securities fraud sometimes occurs when someone seeks investment in a company – and misstates the prospects or finances of the company to do so, as a way to falsely represent what the company does or stands for. A criminal will give false or misleading information as a way to lure in an investor, which becomes an easy way to make money, though illegally.
What Fraudulent Misrepresentation Encompasses
When a criminal knowingly makes false statements as a way to lure in these investors, they are then engaging in fraudulent misrepresentation. Let’s take a look at a good example of fraudulent misrepresentation, for example: A drug company tells everybody that there are many promising drugs available for a disease; however, there have been disappointing results, so they never make it to the market. This is false representation because the company knew the truth but withheld it as a way to get companies and patients excited about new drugs.
To have a case, the plaintiff must be able to prove that representation was made, that it was fault and possibly reckless, and that the promise was made with the intention that the other party would rely on it, such as a life-changing drug. However, the last element is that the party must have relied on the representation and suffered damages as a result.
As with any white collar crime, you could find yourself in a battle with the judge if you have been charged with falsely misrepresenting anybody into purchasing a product or more. In many cases, the party will sue you for damages, as they may have been harmed or let down by the product in mentioning. You could experience a wide range of possible punishments, even down to prison time and fines, especially those that repay the victim. This is why it is important to speak to a defense attorney today at The Law Office of Peter Blair for more information on how we can help.