Legal Definitions - fraudfeasor

A fraudfeasor is an individual or entity that has intentionally committed an act of fraud. This means they have deliberately used deception, misrepresentation, or false statements to gain an unfair advantage, cause harm to another person or organization, or obtain something of value unlawfully.

• Example 1: Investment Scam

  Imagine a person who sets up a fake investment company, creating a professional-looking website and brochures. They then solicit funds from unsuspecting individuals, promising incredibly high returns on investments that do not actually exist. After collecting a significant amount of money, the person disappears with the funds.

  Explanation: In this scenario, the individual who created the fake company and collected the money through false pretenses is a fraudfeasor. They intentionally deceived investors about the nature of the investment and their intentions, causing financial harm to others for their own unlawful gain.

• Example 2: Insurance Claim Deception

  Consider a homeowner who intentionally sets fire to their own house to collect a large insurance payout, falsely reporting to the insurance company and authorities that the fire was accidental or caused by an intruder.

  Explanation: The homeowner is a fraudfeasor because they deliberately misrepresented the cause of the fire and the circumstances surrounding it. Their intent was to deceive the insurance company into paying out a claim based on false information, thereby gaining an undeserved financial benefit.

• Example 3: Identity Theft for Credit

  A person obtains someone else's personal information, such as their Social Security number and date of birth, and then uses that information to open multiple credit card accounts in the victim's name. They then make large purchases and never pay the bills, leaving the victim with significant debt and a damaged credit score.

  Explanation: The individual who used the stolen identity to open credit accounts is a fraudfeasor. They engaged in deception by impersonating another person and making false representations to financial institutions, intending to obtain credit and goods without paying for them, causing financial harm to both the victim and the lenders.