There are many ways for people in North Carolina to break the law. They could steal from other people or hurt them. They could decide to drive home after drinking with friends at a bar. Unlawful possession or distribution of drugs is also a criminal offense.
Many people cannot even imagine intentionally stealing from others or harming them through physical violence. They may avoid drugs, impaired driving and other types of conduct that might open them up to criminal prosecution. However, even intelligent and ethical people sometimes find themselves accused of fraud.
There are many different types of fraud prosecuted at the state level in North Carolina. There are also certain types of fraud, such as mortgage fraud and wire fraud, that could lead to federal criminal charges. People who understand how the state defines fraud can avoid conduct that could put them at risk of prosecution.
What behaviors constitute fraud?
North Carolina State statutes very clearly define fraud. Intentionally making a false statement about a material fact for the purposes of economic gain could lead to fraud charges. Fraud can also involve the intentional misrepresentation of material facts.
Lying about personal financial circumstances to acquire a loan could constitute fraud. Misrepresenting a company’s prospects when it is on the edge of bankruptcy to lure in investors could also constitute fraud. Even intentionally misrepresenting the state of a product for sale, such as a motor vehicle, by covering up defects with cosmetic repairs could constitute fraud.
State-level fraud allegations can lead to Class 1 misdemeanor charges. However, if the goods or capital involved add up to more than $1,000, then the state could potentially pursue Class H felony charges.
In some cases, people may face allegations of specific types of fraud that are more serious. Fraud involving interstate infrastructure, financial institutions or government entities could lead to federal charges. Health care fraud allegations could result from something as simple as separating bundled medical services to bill for each one separately. Lying about income and personal assets to secure a mortgage could lead to mortgage fraud charges.
Anyone accused of a white-collar crime at the state or federal level may need help fighting back to avoid a conviction. Understanding how the state defines fraud can help people determine if the criminal charges they’re facing are appropriate and how to counter them effectively.