Can You Unknowingly Commit a Fraudulent Crime?

Many people might accidentally fail to conduct total due diligence, fail to know their responsibilities under the law, or make other errors when communicating with other parties, leading to allegations of fraud. But if you unknowingly engaged in conduct that is against the law, does it constitute a fraudulent offense?

The good news is that fraud crimes involve a key element of intent, which means the conduct must be intentional to constitute a criminal offense. If the conduct was accidental or unknowing, there is no crime and therefore, no criminal conviction.

While fraud charges are based on intent, misunderstandings, mistakes, or misinformation can often lead to accusations and federal criminal charges. New Jersey fraud defense lawyer Peter Katz can make a significant difference in your defense if you find yourself in this situation.

How Wrongful Charges Might Arise from Unintentional Conduct

Fraud generally involves deception for personal gain, but unintentional acts can sometimes appear fraudulent. Here are some ways unintentional fraud might occur and lead to wrongful criminal cases.

Errors in Financial Reporting

Even minor errors can raise suspicion if you’re responsible for financial documents. A simple mistake, like misreporting numbers or failing to update financial information, might be seen as an attempt to deceive. Financial fraud cases often hinge on discrepancies, and innocent errors can lead to serious accusations if they impact others financially.

Misunderstanding Rules or Regulations

Regulations in finance, healthcare, and other sectors are complex and constantly changing. You might be charged with fraud if you unknowingly violate a rule or guideline. For example, you may file paperwork or submit claims that don’t comply with specific requirements, which could lead to accusations of insurance or billing fraud.

Acting on Misinformation

You might unknowingly make errors if someone provides you with incorrect information. For instance, if a third party instructs you to cite certain tax deductions, but you later discover those deductions were unauthorized, you might wrongfully face tax fraud charges. Acting in good faith doesn’t always protect you from accusations, but a New Jersey fraud lawyer can help present your defense accurately.

Miscommunication in Business Transactions

Clear communication is essential in business. Misunderstandings or unclear contracts can sometimes lead to unintentional fraud. For instance, if you enter into an agreement and don’t fully understand the terms, actions you believed were compliant might later be seen as fraudulent. Miscommunication in deals, purchases, or contracts can create legal trouble, especially if one party feels misled.

Defenses for Unintentional Fraud

If you’ve been accused of fraud without intending to deceive, your defense will focus on showing that you lacked intent. If your attorney can successfully challenge the intent element, the prosecutor should not secure a conviction.

Some common defense strategies include:

• Gathering evidence showing that your actions were accidental or that you believed you were acting within the law.
• If you relied on incorrect information from someone else, your lawyer can show that you didn’t intentionally misrepresent facts.
• An attorney can argue that misunderstandings or unclear communication led to unintended actions that appeared fraudulent.

Why You Need a Lawyer if You’re Accused of Fraud

Facing wrongful fraud charges without intent can be frustrating, and having a New Jersey fraud lawyer on your side is essential. Fraud cases involve complex legal arguments and often rely on subtle distinctions in evidence and intent. Attorney Peter Katz can examine the details of your case, identify factors that prove you didn’t act maliciously, and work to protect you from unnecessary penalties.

Please call the Law Offices of Peter Katz at 609-547-3077 or contact us online so we can review your case and help you determine the best course of action.