Legal Definitions - fraudulent pretenses

Fraudulent pretenses refers to the act of intentionally making a false statement or misrepresentation about a past or existing fact, with the specific purpose of deceiving another person. The deception must cause the victim to rely on the false information and voluntarily give up money, property, or something else of value to the deceiver. It is a form of fraud where the misrepresentation of a material fact is central to obtaining something from the victim.

Key elements include:

• A false representation of a material fact (not just an opinion or a future promise).
• The person making the statement knows it is false or makes it recklessly without regard for its truth.
• The statement is made with the intent to deceive the victim.
• The victim relies on this false statement.
• The victim suffers a loss or parts with something of value as a direct result of that reliance.

Here are some examples illustrating fraudulent pretenses:

• A car dealer advertises a used luxury sedan as having "only one previous owner and a full service history," knowing that the car was actually a rental fleet vehicle with multiple drivers and an incomplete maintenance record. A customer, impressed by the false claim of single ownership and meticulous care, purchases the car at a premium price.

  This demonstrates fraudulent pretenses because the dealer made a false statement of existing facts (number of owners, service history) with the intent to deceive. The customer relied on these misrepresentations when deciding to buy the car, resulting in a financial loss by paying more than the car's true value given its actual history.

• An individual creates a sophisticated fake website and social media profiles, posing as a representative of a well-known charity dedicated to providing disaster relief. They solicit donations, claiming the funds will go directly to victims of a recent earthquake, but instead, they divert all collected money to their personal bank account.

  Here, the individual used fraudulent pretenses by creating a false identity and fabricating a charitable cause (false statements about who they were and the purpose of the funds) to deceive donors. Donors, believing their money would help earthquake victims, parted with their funds based on these misrepresentations.

• A homeowner selling their property explicitly states in the disclosure documents that the house's foundation was professionally reinforced five years ago and is structurally sound, despite knowing that the "reinforcement" was a shoddy, DIY patch job that failed, leading to ongoing structural issues. The buyer, relying on the seller's written assurance, completes the purchase.

  This is an example of fraudulent pretenses because the seller made a false written statement about a material existing fact (the foundation's condition and repair history) with the intent to mislead the buyer. The buyer relied on this false information when deciding to purchase the property, potentially incurring significant future repair costs due to the undisclosed defect.