Law and the Legal Elements of Fraud
The four elements
Common-law fraud requires: (1) a material false statement of fact, (2) knowledge of its falsity (scienter), (3) justifiable reliance by the victim, and (4) damages. If a scenario fails any one element, the fraud claim fails. A promise about the future is generally not a statement of fact; a false statement the victim did not rely on is not actionable fraud even if dishonest.
Burdens and forums
Civil fraud must be proven by a preponderance of the evidence; criminal fraud by beyond a reasonable doubt. Criminal cases also require proof of intent as defined by the statute. Intent is almost always proven circumstantially - through concealment, repeated conduct, and destruction of records - and circumstantial proof is legally sufficient.
Statutes to recognize
Mail and wire fraud (use of an interstate communication in furtherance of a scheme), conspiracy, RICO, the Foreign Corrupt Practices Act (anti-bribery plus books-and-records provisions), the UK Bribery Act (strict liability, no facilitation-payment exception), and Sarbanes-Oxley (CEO/CFO certification, whistleblower protections, anti-shredding). Know which statute requires a bribe of a foreign official versus commercial bribery.
Interview-related legal hazards
False imprisonment, defamation, invasion of privacy, and extortionate threats. Entrapment is a defense against government action and generally does not apply to a private employer's investigator. Promises of leniency can taint a statement and expose the company to liability.
Traps
Assuming intent cannot be shown without a confession; confusing the civil and criminal standards; applying entrapment to private investigators; and assuming attorney-client privilege covers the fraud examiner's own files.
Rule of thumb
Recite the four elements in order, then ask which element the facts attack. That single move resolves most law questions.