Tracy talks about the definition of fraud, and the four legal elements that are generally required. Laws vary from state to state, so you can see some variation here, but this is the “textbook” definition. The elements of fraud include: intentional misrepresentation, knowledge of the falsehood, reliance on the fact, and damage as a result.
The longer definition (and explanation) of the 4 elements of fraud:
- An intentional misrepresentation of a material fact – A statement of fact that is false, on purpose, and significant enough to matter
- Knowledge that the representation is false – The perpetrator must have known of the falsehood.
- Reliance on the fact by the recipient of the information – The victim either relied on the information, or was supposed to rely on it.
- Damage as a result of the misrepresentation and reliance – Either financial damage or some other harm to the victim.