Page 163 - 2023 PPIAC RMIC BOOK

IN LAW

• Fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of
a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator
to avoid the fraud or recover monetary compensation) or criminal law (e.g., a fraud
perpetrator may be prosecuted and imprisoned by governmental authorities), or it may
cause no loss of money, property, or legal right but still be an element of another civil or
criminal wrong. The purpose of fraud may be monetary gain or other benefits, for example
by obtaining a passport, travel document, or driver's license, or mortgage fraud, where the
perpetrator may attempt to qualify for a mortgage by way of false statements.

• Internal fraud, also known as "insider fraud", is fraud committed or attempted by
someone within an organization such as an employee.

• A hoax is a distinct concept that involves deliberate deception without the intention of
gain or of materially damaging or depriving a victim.

A BRIEF HISTORY OF FRAUD

• Charles Dickens books in 1844 and 1857
• Charles Ponzi – stamps, sentenced to 5 years - 1920

• Michael Milken – insider trading, sentenced to 10 years, $600
million – 1989

• Enron / Jeffrey Skilling – accounting fraud, sentenced to 24
years, $11 billion - 2001

• Bernie Madoff – securities fraud, sentenced to 150 years, $18
billion - 2008