Fraud is the general term used to define a range of offenses involving dishonesty or misrepresentation of fact, a falsified statement, or deceitful behavior (“fraudulent acts”). Somebody commits fraud when they intentionally deceive another person to make personal gain or to damage that person. People commit fraud in many settings, and people are committing more fraud on the internet than ever before. Depending on the nature of the fraudulent activity, fraud can be charged at the federal or state level. Fraud crimes charged at the federal level include counterfeiting and crimes that cross state lines.

General Categories and Types of Fraud

Crimes that involve fraud encompass a wide variety of actions that can range from white-collar crimes to grand theft. Because of this wide range of crimes, fraud charges are divided into three general categories: consumer fraud, employee fraud, and fraud committed against a governmental institution or entity.

Consumer fraud  includes instances where individual consumers are defrauded. Examples of this include identity theft, telephone scams, securities fraud, credit card fraud, check fraud, and Ponzi schemes.

Employee fraud covers instances when an employee violates his or her fiduciary duty to the company or its clients by embezzling funds, accepting bribes, or selling trade secrets. Fraud committed against the government or businesses includes tax fraud, insurance fraud, tax evasion, healthcare fraud, counterfeiting, welfare fraud, bankruptcy fraud, and Medicare and Social Security fraud.

Second, at the initial appearance, a judge will inform you of your charges and constitutional rights. These rights are the same as the ones that an officer should have read after you were arrested. You have the right to remain silent and to have an attorney. If you are charged with a felony, or with a misdemeanor but cannot afford to post the set bond, then the judge will appoint an attorney to you. During the last portion of the initial appearance, the judge determines whether probable cause exists for release purposes and then whether you may be released on bond or are to remain in jail pending trial.

Some of the most common types of fraud include the following offenses: tax fraud (i.e. tax evasion), insurance fraud, credit card fraud, identity theft, securities fraud, mail fraud, bankruptcy fraud, bank fraud, bribery, counterfeiting, embezzlement, government fraud, political corruption, pyramid schemes, wire fraud, and unemployment fraud. As seen, there are many different types of fraud but some of the most common are identity theft, bank fraud, bankruptcy fraud, computer fraud, and tax evasion.

Fraud Scheme

When the state charges an individual with any type of fraud, it is also common to charge the individual with fraud scheme. Fraud schemes, found under Arizona Statute § 13-2310, is a broad charge that requires three things: (1) knowingly obtaining any benefit (2) by false or fraudulent pretenses, promises, or material omissions (3) pursuant to a scheme or artifice to defraud. A “scheme or artifice” is defined as some plan, device, or trick to perpetrate a fraud. So, when an individual plans or prepares a way to defraud a person or system by false or incorrect information and receives any benefit, whether financial, physical, or any other kind, they will be charged with fraud scheme.

Elements of a Fraud Charge

1. The person has knowingly taken, purchased, manufactured, recorded, possessed or used any personal identifying information of another person;
2. Without the consent of that person; and
3. With the intent to obtain, use, sell or transfer the other person's identity for any unlawful purpose, to obtain employment, or to cause loss to a person, regardless of whether the person actually suffered a loss.

For almost every fraud charge, there is a requisite mental state the prosecution must prove in order to convict the individual. For example, identity theft is governed by A.R.S. § 13-2008 and has three main elements that the State must prove beyond a reasonable doubt before a guilty verdict can be secured. These elements are:

Challenging the Mental State

Intentionally or With Intent
“Intentionally” or “with intent to” as used in these instructions means that a defendant's objective is to cause that result or to engage in that conduct.

Knowingly
“Knowingly” means that a defendant acted with awareness of, or belief in, the existence of conduct or circumstances constituting an offense. It does not mean that a defendant must have known the conduct is forbidden by law.

Recklessly or Reckless Disregard
“Recklessly” or “reckless disregard” means that a defendant is aware of and consciously disregards a substantial and unjustifiable risk that conduct will result in. The risk must be of such nature and degree that disregarding it is a gross deviation from what a reasonable person would do in the situation.

The hardest mental state to prove is that the individual committed the act intentionally. The State must have evidence that shows the accused wanted to commit the fraudulent activity that he is accused of. One of the best defenses is challenging this intent or knowledge or calling into question any evidence the state may present.

Other defenses to an accusation of fraud often times falls in line with challenging the mental state. A person can argue that the act was committed by mistake or unaware of the results of the act. Also, a person may challenge the evidence by stating there was no fraud committed because the other party was aware and participated as well or no fraudulent activity occurred. A final common defense is lack of identity and the accused person is not the party that committed fraud. Most times, any evidence that supports this will make the case resolve before trial.

One of the most important factors a person can have in challenging any accusation of fraud is an experienced attorney to assist. Even when no charges have formerly been brought, an attorney can counsel a person to know what steps to take next. An attorney will know what evidence is most crucial and will know how to challenge each piece. Having the attorney to communicate with the prosecutor will also help to get the best deal possible. It is especially vital to have an attorney that has experience prosecuting fraudulent charges. At Tucson Criminal Lawyer, defense attorneys that have experience in prosecution will be best capable to assist in any type of criminal fraud case.

Let Us Help

A conviction for any type of fraud, depending on the type, can result in a serious felony conviction that can carry a sentence of incarceration. Fighting any fraud charge requires a team of highly experienced, white-collar lawyers to ensure you receive the best results possible. Let  Tucson Criminal Lawyer’s criminal law team, which includes former prosecutors, and their knowledge of Arizona’s fraud laws guide you through the process. The legal battle ahead will be led by strong representation and diligence.