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NYC Financial Fraud Lawyers

Understanding Financial Fraud

Individuals who have committed financial fraud have performed an intentional act of deception. The act of financial fraud involves illegal transactions with a goal of personal financial benefit. Financial fraud is often conducted by business professionals who possess specialized knowledge and use it for criminal purposes. Anyone accused of financial fraud should seek legal counsel.

Types of Financial Fraud


This happens when an individual intentionally defrauds a person by executing a signature on various documents that are real or have been altered. This is done without an owner’s consent or knowledge. It also occurs when a letter, note or another type of writing is fraudulently presented as the work of a victim. A writing can involve a signature on credit card, bank drafts, deeds, bonds, stock certificates and more.

Internet Investment

This happens when fraudulent operators of investment schemes attract victims to purchase investments products on-line after receiving false advice. Victims are told they will receive high returns at the initial stage of a financial product’s development. In most cases, those operating such a scheme eventually close down their operation and move on with the victim’s money.

Insurance Fraud

This involves individuals lying with the goal of obtaining money from an insurance company. This type of fraud can happen with every type of insurance product. There are two different types of insurance fraud. There is soft fraud and hard fraud. Soft fraud involves things such as exaggerating losses after a house fire. Hard fraud would involve planning a house fire for the purpose of financial reimbursement.

Unauthorized Financial Transactions

This involves the fraudulent transfer or withdrawal of funds from a person or entity’s bank account without their consent. This often happens when bank account holders are tricked into divulging their banking personal identification number (PIN) or password. A common scheme is to inform a bank account holder they’ve won a cash prize. The fraudster will help the victim set up a bank account for the prize. The victim will be asked to register the fraudster’s cell phone number with their current account so they can finish setting up the new account. Doing this provides the fraudster total access to the victim’s bank account.

Wire Fraud

A person can be charged with this crime if they use an interstate communication device such as the internet or telephone with the intention of defrauding another person or entity for something of value. People have been charged with wire fraud when they used their cell phone to send emails trying to get people to purchase things they do not own such as property, vehicles, jewelry and more. This is classified as a federal crime.

Securities And Investment Fraud

This happens when corporate entities or individuals utilize fraudulent stock values as a way to obtain money from investors. This type of fraud also happens when individuals have insider knowledge that provides them with an unfair investment advantage. This is known as insider trading. A Ponzi scheme involves paying investors from personal funds and claiming it came from an investment. This is done to attract more investors. Financial fraud can also involves making unauthorized stock trades and more.

Credit Card Fraud

This is a common type of financial fraud. It involves the buying, selling or forging of credit card information. This type of fraud also involves using a credit card or debit card information to make unauthorized purchases, cash advances and more. There are many different types of credit card fraud. Should someone be convicted of this, the facts of the case will determine their punishment. An individual’s criminal history, the amount of property obtained and more will be used to determine their punishment.

Legal Implications and Punishment

New York State Penal Code

There are a number of laws covering financial fraud under New York’s penal code. Should a person break one of these laws, they could be charged with something as major as a felony down to a misdemeanor. Should a person be convicted of financial fraud, they will have a criminal record. They could also face time in jail.


In the state of New York, a person found guilty of a financial fraud could be facing a variety of charges. They could get everything from a warning to community service. The court has the discretion of giving a sentence of up to 3 years probation. In some cases, they could spend 15 days up to a maximum of a year in county jail.

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