Your Fort Worth criminal defense lawyer will explain the different types of fraud crimes.
Understanding Fraud Crimes
When a person is tricked into surrendering various forms of property, it is known as fraud. This generally involves money, but can involve other types of property as well. Often, this will mean a person makes a misrepresentation that is known to be untrue. This can be a felony or a misdemeanor depending on property value. The following are common fraud crimes:
With a Ponzi scheme, the person committing the fraud will approach investors promising easy returns on investment. As investors provide money, part of it will be pocketed by the fraudster and the rest will be provided to the earlier investors as returns on their investment. This only seems to be a profitable endeavor. However, since there is no product or a lackluster product, it will eventually fail because the money will inevitably run out faster than the investors can be paid.
As more people use electronic means for banking, purchasing and communication, it is a growing threat that personal information will be stolen and used by someone else. This can compromise Social Security numbers, bank information and credit card information.
Some acts involving fraud will utilize the U.S. Postal Service to seek possible victims, send correspondence and receive payments. Congress is allowed to regulate commerce between states through the U.S. Constitution and these schemes will therefore be prosecuted.
Pigeon Drop Schemes
The victim is known as the pigeon and will be told that a scammer has won a significant amount of money in a contest. The person committing the fraud will then tell the victim that in exchange for some money, the scammer and the victim can split the winnings. In reality, there is no contest or prize.
Contact An Experienced Fort Worth Criminal Defense Lawyer
If you have been accused of fraud, call (877) 208-3382 to speak to a Fort Worth criminal defense attorney at the Law Office of Bryan P. Hoeller.