What Evidence Is Necessary to Prove a Misstatement or Omission in a Fraud Case? - Transcript

Proving a misstatement or omission in a fraud case requires thorough evidence that demonstrates what was said or omitted and why it was materially misleading. At Malecki Law, we understand the critical role of evidence in these cases and have extensive experience helping clients build strong claims against the financial professionals who misled them.

To establish fraud based on a misstatement or omission, you must provide evidence of several key elements:

• A False or Misleading Statement: Prove that the defendant made a statement that was materially false or omitted information that was necessary to make a statement truthful.
• Intent to Deceive: Demonstrate that the misleading information was provided knowingly or with reckless disregard for its truthfulness.
• Reliance on the Statement: Show that the plaintiff relied on the false or misleading information when making investment decisions.
• Resulting Damages: Establish that the reliance on the misleading information caused financial harm.

These elements are the foundation of a fraud claim and must be supported by concrete evidence.

The evidence needed to prove a misstatement or omission varies depending on the specifics of the case. Common types include:

• Contracts and Written Communications: Documents such as emails, contracts, and promotional materials can be critical in proving what was represented to investors.
• Testimony from Witnesses: Statements from other investors, employees, or industry experts can corroborate claims of misrepresentation.
• Financial Records: Demonstrating discrepancies in financial records can highlight omissions or false claims, particularly in cases involving Ponzi schemes or other fraudulent schemes.
• Audit and Regulatory Reports: Reports from regulatory agencies or independent auditors can provide third-party validation of discrepancies or wrongdoing.

In cases involving omissions, the challenge is often proving that the defendant knowingly withheld critical information. This may require piecing together circumstantial evidence to demonstrate intent.

A Ponzi scheme offers a clear example of how misstatements and omissions can form the basis of a fraud case. In one notable case handled by Malecki Law, a Ponzi schemer assured investors that their notes were backed by secured real estate investments. However, evidence revealed that no such security interest existed—the company did not own any real estate, and the assets were held in the schemer’s personal name.

By presenting contracts, witness testimony, and financial documentation, we proved that the misstatements were intentional and materially impacted investors’ decisions. This type of comprehensive evidence is crucial in any fraud case.

While evidence is vital, proving fraud is rarely straightforward. Defendants often attempt to obscure their actions, making it difficult to uncover the full scope of their misconduct. Additionally, fraud cases often involve complex financial instruments and regulatory frameworks, requiring specialized knowledge to build a compelling case.

This is why working with experienced legal counsel is essential. At Malecki Law, we are skilled at identifying and gathering the evidence needed to prove fraud and hold wrongdoers accountable.

If you’ve been the victim of a fraudulent misstatement or omission, Malecki Law is here to help. Our team of securities attorneys has the knowledge and experience to build a strong case and fight for the compensation you deserve. We are committed to helping you recover your losses and hold those responsible accountable for their actions.

Call Malecki Law at (212) 943-1233 or reach out online to schedule a consultation. Together, we can build a case that protects your financial future and holds misleading or dishonest advisers and brokers responsible for the harm they’ve caused.

Transcript:

So to prove a misstatement or Omission in a fraud case you have to prove that the statement that made was wrong or it was not said for example um I handled a Ponzi case years ago where the uh Ponzi schemer said that there were secured Investments backing these notes that he was writing to people guaranteeing a certain amount of interest and every investor that I represented and I believe I represented about 110 of them thought that there was a security interest in real estate in the contracts that they signed but there was no security instrument so in that case we proved that he had said that there was a security interest in real estate there was no security interest in real estate in fact the company they were investing in oh no real estate because the Ponzi schemer put everything in his own name and so that’s the type of evidence that you need to proof fraud I mean that’s a specific case every case is different but you need to prove what you’re saying is true Contact Jenice L. Malecki Email This Lawyer (212) 943-1233.