Basic legal concepts of fraud

Basic Legal Concepts

BEWARE INSUFFICIENT KNOWLEDGE OF THE LAW.

CPA was hired to be an expert witness in a civil fraud case. On cross-examination the opposing attorney asked the expert a seemingly simple question: “Would you please define ‘fraud’ for the jury?” The CPA replied, “Do you want to know the legal definition or my definition?” The attorney countered, “You mean there is a difference?” The expert’s answer provoked a snicker from the judge and jury, and the CPA’s credibility went downhill from there. Before the cross-examination was over, the expert was made to look like an idiot. The truth is, the CPA knew a lot about accounting and he was well-versed in the facts of the case, but he knew little about the legal aspects of fraud—a crucial element for an antifraud witness. As a result, the case was lost. This article will summarize the basic common-law concepts of fraud, beginning with the requisite: The purpose of this article is to familiarize you with the law, not to provide legal advice. For that, check with your attorney.

Definition of Fraud

All multifarious means which human ingenuity can devise, and which are resorted to by one individual to get an advantage over another by false suggestions or suppression of the truth. It includes all surprises, tricks, cunning or dissembling, and any unfair way which another is cheated.

Source: Black’s Law Dictionary, 5th ed., by Henry Campbell Black, West Publishing Co., St. Paul, Minnesota, 1979.

Appeals courts direct trial judges to closely examine the qualifications of purported experts before allowing them to testify. Failure to answer the basic question above could mean the “expert” might not be allowed to testify. Imagine the implications if the case had been lost because the time for naming new experts had passed.

https://www.lawweb.in/2012/12/basic-legal-concepts-of-fraud.html