What is Fraud: Part 4

This continues the series, What is Fraud?  (Go to the “What is Fraud?” category on this blog for earlier posts.)  Fraud can be proven using what are known as the ‘badges of fraud.’

Badges of fraud. A circumstance or other fact accompanying a transfer of property that the courts recognize as an especially reliable indicator of the transferror’s actual intention to hinder, delay, or defraud [] in making the transfer.  It is defined as a fact tending to throw suspicion upon a transaction, and calling for an explanation.

Above is the first part of the definition from Black’s Law Dictionary (Sixth Ed., West Publishing Co., 1990).  In a situation where numerous badges of fraud are observed, fraud is inferred.  I will, in later posts, discuss the badges of fraud, and give them some context.

green dollar sign being pulled by three white people

May 13, 2013.  No derivatives works are authorized by copyright holder(s).