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I have been sued for civil fraud. Is civil fraud a crime? What are the criminal penalties for civil fraud charges?
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Civil actions, by definition, are those legal claims that are not criminal in nature, so civil fraud charges are not criminal charges. A civil fraud action is filed by a private plaintiff, who claims that you have deceived it for purposes of getting something of value for yourself. The plaintiff in a civil fraud case asks for money damages to compensate it for losses caused by your actions. However, the same conduct that constitutes civil fraud may also give rise to criminal fraud charges. For example, writing a bad check, or making a false claim with an insurance company, are both civil frauds, but they are also crimes. There are many similar laws, both state and federal, that criminalize behavior that also constitutes civil fraud. In general, you can be both prosecuted by the government for the criminal conduct involved as well as being sued by the victim for damages. The seriousness of the crime penalties for civil fraud depend on the classification of the crime that fits, which in turn usually depends on the value of the harm done. For example, many states make writing a bad check for less than a certain amount (some use $300) a misdemeanor, while a bad check for more than that amount is a felony. There are also some hybrid situations. For example, if you make a false statement to the IRS on a tax return to reduce your taxes, the federal government can both sue you to collect its money and civil penalties and prosecute you to punish you with jail time and criminal fines. An attorney in your state can advise you on your best defenses to fraud claims, which can have a serious effect on your future credit or even your ability to obtain employment.
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