Can Business Litigation Be Used to Recover Fraud-Related Losses?

 Posted on September 28, 2021 in Business Law

There are multiple types of fraudulent activity that can affect a business. Fraud may be committed by an officer or employee of a company, another company that has misrepresented information during a transaction, or any other party that engages in theft of a company’s money or assets. These actions can result in significant losses for a company. While a person who commits fraud may face criminal charges, a company may also be able to pursue civil litigation to address the damages resulting from fraud.

Forms of Fraud That Can Affect a Business

Some common types of fraud that may be addressed through business litigation include:

• Embezzlement - An employee, officer, or partner of a company may steal or misappropriate money or other assets belonging to the company. This type of theft may involve physically taking cash or property, redirecting a business’s funds into a personal account, or deceptive practices by one partner that deprive other partners of their rightful share of a company’s earnings or profits.

• Misrepresentation involving investments or transactions - Another person or company may willfully misrepresent material facts when encouraging a company to make certain investments or entering into a transaction with the company. This misrepresentation may be considered fraud if it results in the other party obtaining money or property from the company through false pretenses.

• Failure to pay for goods or services - If another party does not uphold the terms of a contract requiring them to compensate a company for goods provided or services rendered, this may be considered fraud.

In many cases, fraud will be covered under Florida’s theft statutes. A company that has been the victim of fraud can pursue civil litigation to recover damages resulting from theft. In these cases, a company may receive treble damages, or three times the amount of losses sustained as a result of the fraud, as well as compensation for attorney’s fees and court costs for matters handled in civil or appellate courts. A court may also order a party that committed fraud to sell or divest itself of its ownership interests in a company or real estate property, and it may force a business to dissolve or reorganize or suspend an offender’s professional licenses or permits.

Contact Our Broward County Commercial Fraud Litigation Attorneys

If your company has been the victim of fraudulent activity, The Elliot Legal Group, P.A. can help you determine your options for recovering damages through civil litigation. We will provide you with legal representation to ensure that you will be able to recover any losses you have experienced. Contact our Surfside, FL business litigation lawyers at 754-332-2101 to schedule a consultation and learn more about our legal services.

Sources:

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0772/Sections/0772.11.html

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0800-0899/0812/Sections/0812.035.html

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0800-0899/0812/Sections/0812.012.html