When a business in Connecticut is accused of committing dishonest or unlawful activities, it could give rise to a corporate fraud claim. Corporate fraud can affect consumers and other businesses who may invest in the business or purchase goods or services from the business.
Corporate fraud takes many forms. For example, a business could be accused of falsifying accounting information or making misrepresentations regarding the goods or services it provides. The motive behind corporate fraud is to give the individual or business committing the fraud some sort of advantage either personally or in the marketplace.
Corporate fraud may occur if an individual or business takes advantage of the business’ confidential information or other sensitive assets for the perpetrator’s own gain. Often these acts are disguised as legitimate business activities. For example, accounts may be falsified in order to encourage investors and consumers to do business with the company at issue.
People in Connecticut may remember the Enron scandal, which was a form of corporate fraud. Enron used loopholes and other means to disguise its billions of dollars in debts to the point of persuading auditors to hide the debt and destroyed financial documents.
Corporate fraud, like other types of business fraud, can be difficult to uncover. It may take the assistance of legal professionals to uncover acts of malfeasance committed by individuals or other businesses. Forensic investigators may also be consulted when it comes to corporate fraud. Those who are accused of committing corporate fraud or those who feel they have been the victim of corporate fraud may want to seek legal advice, which this post does not provide.