In Fraud A statement need not be affirmative to be fraudulent. When a person has a duty to speak, silence may be treated as a false statement. In Fraud this can arise if a party who has knowledge of a fact fails to disclose it in Fraud to another party who is justified in assuming its nonexistence. For example of Fraud, if a real estate agent fails to disclose that a home is built on a toxic waste dump, may be regarded as a fraud in fraudlent statement.
In Fraud Even if the agent does not know of the dump, the omission may be considered fraudulent. This is constructive fraud, and it is usually inferred when a party is a fiduciary and has a duty to know of, and disclose, particular facts. Fraud is an independent criminal offense, but Fraud also appears in different contexts as the means used to gain a legal advantage or accomplish a specific crime. For example, it is fraud for a person to make a false statement on a license application in Fraud in order to engage in the regulated activity.
A person who did so would not be convicted of fraud. Rather, fraud would simply describe the method used to break the law or in Fraud regulation requiring the license. Fraud resembles theft in that both involve some form of illegal taking, but the two should not be confused. Fraud requires an additional element of False pretenses created to induce a victim to turn over property, services, or money.