Scales of Jutice and wooden mallet


David H. Schwartz May 26, 2020

The Federal Bureau of Investigation defines business fraud as illegal and dishonest acts committed by companies or individuals for the purpose of gaining an advantageous financial outcome. The reason they are labeled as fraud is that the perpetrators often appear under the guise of legitimate or legal business practice.

Companies either intentionally try to defraud other companies or customers, or they commit mistakes that appear to look fraudulent. In either case, a company needs to consider securing legal representation when accused of fraud. Likewise, a company or individual who is the victim of fraud also needs to seek legal assistance from an experienced attorney.

The Law Offices of David H. Schwartz, INC. provides legal representation to commercial clients in San Francisco, San Mateo, Santa Clara, San Jose, Oakland, and Alameda County, California.

Common Types of Business Fraud

Companies in San Francisco are often accused of a wide range of acts that are classified as fraud. Some of the acts may include: 

Non-Delivery of Merchandise

A company may take payment but fail to deliver the products that were ordered. With the sharp rise in online shopping, fraud has also skyrocketed, creating problems for consumers and businesses alike. Companies may charge hundreds of thousands of dollars to customers across the San Francisco Bay Area and never deliver a product.

Unauthorized Use

An owner, executive, or another employee may utilize company assets in a manner that is not authorized according to company policy. An example may be using company assets such as a car or condominium for personal use. Another example may be an employee who uses a company credit card for personal purchases.

Falsifying Financial Statements

A company may falsify financial statements to appear more attractive to investors, lenders, or shareholders. A company that wants to partner with another company in a business deal may falsify statements to appear to be fiscally stable.

Misrepresenting a Product or Service

A company may intentionally misrepresent the quality, characteristics, or purpose of a product to make it more appealing to a potential business partner or customer. As a result, the customer may purchase the product or service only to discover that the company committed fraud.

For larger organizations, fraud can be difficult to contain if multiple people are involved in the act. If senior management is willing to engage in fraud, it may be even more difficult to stop once it starts.

Hiring a Business Litigation Attorney

Companies that commit fraud may face criminal charges and stiff penalties from the state of California. In addition, victims of business fraud may be able to file a civil lawsuit against the company to compensate for damages. Likewise, companies that are accused of fraud may seek legal representation from a business litigation attorney.

An attorney can provide a wide range of legal services including:

  • Investigating the claim to uncover the facts

  • Gathering evidence to support the claim

  • Formulating a legal strategy to help the client win the case

  • Engaging with all parties on behalf of the client

  • Negotiating a settlement between the claimant and the defendant

Companies need to hire an attorney that can handle litigation between two parties, representing a client in a civil claim and not a criminal case.

Contact a Business Litigation Attorney in San Francisco, California

The Law Offices of David H. Schwartz, INC. provides legal services for clients who are either victims of fraud or accused of fraud. With over 45 years of experience, David understands the legal system and how to handle a fraud case. Get a free case review from a business litigation attorney by calling the law firm today. The Law Offices of David H. Schwartz, INC. serves the needs of clients in Oakland, Alameda County, San Mateo, Santa Clara, San Jose, and throughout the San Francisco Bay Area.