Business Fraud and Fiduciary Duty Claims in Washington, DC

Business fraud and embezzlement arise when someone abuses the trust placed in them during a business relationship. Fraud generally involves deliberate deception, such as false financial information or misleading statements about how money will be used. Embezzlement generally involves fraudulently taking or using money or property that was entrusted to someone, such as an employee diverting customer payments or using company funds for unauthorized personal expenses.

Key takeaways

• Fraud generally involves deliberate deception, such as false financial information or misleading statements about how money will be used.
• Embezzlement generally involves fraudulently taking or using money or property that was entrusted to someone.
• Recovery may come through civil lawsuits or through criminal proceedings, and neither route guarantees full recovery.

What is the difference between business fraud and embezzlement?

Fraud generally involves deliberate deception, such as false financial information or misleading statements about how money will be used. Embezzlement generally involves fraudulently taking or using money or property that was entrusted to someone, such as an employee diverting customer payments or using company funds for unauthorized personal expenses.

The impact can extend well beyond the missing money. Fraud and embezzlement can disrupt payroll and daily operations, lead to costly business decisions, and damage relationships with customers, employees, lenders, and investors. Investigating the misconduct and addressing the losses can also take time and resources away from running the business.

Two of the more complex types of business fraud are securities fraud, involving deception connected to stocks or other investments, and government contract fraud, involving misconduct in dealings with government agencies. Government contract fraud is often addressed through False Claims Act cases, including qui tam cases—lawsuits brought by private whistleblowers on the government’s behalf.

Recovery may come through civil lawsuits seeking compensation or the return of property, or through criminal proceedings that may require an offender to repay victims. Neither route guarantees full recovery, and the available options depend on the facts and governing law.

Where does Waxman Litigation handle business fraud and embezzlement matters?

Waxman Litigation handles business fraud and embezzlement matters for owners and companies in Washington, DC, Maryland, Virginia, and New York from its office in Chevy Chase, Maryland.