A fraud case refers to a dispute in which the plaintiff alleges that the defendant committed a fraudulent act. Fraud schemes can be extremely damaging to businesses, individuals and organizations. It is critical to detect and address them as soon as they are discovered. Failure to do so can result in significant financial losses, reputational damage and regulatory intervention. Well-known cases like Enron, WorldCom and Bernie Madoff’s Ponzi scheme serve as cautionary tales. The repercussions of these deceitful acts can impact all stakeholders, from shareholders to employees and customers.
Fraud investigations are complex and can involve a variety of different records and data. It is important to preserve evidence properly and avoid tampering with it to ensure it can be used in court. For digital information, this includes emails, transaction logs and bookkeeping journal entries. Physical items can also be useful, such as forged documents or altered contracts. An attorney can help ensure that physical or digital information is collected in compliance with Texas law and federal law, when applicable.
The Association of Certified Fraud Examiners estimates that companies lose five per cent of their revenues each year to fraud. The goal of any fraud investigation is to prove or disprove each element of the alleged behavior. For example, if an employee is accused of stealing funds from a till, the investigator will need to review work schedules, security footage and other documentation to see if Bob actually worked at till number four on March 31 and stole money from it.