Continuing the series “What is Fraud?” (go to that category on this blog for earlier posts), and continuing the ‘badges of fraud,’ the next ‘badge’ is:
false statements as to consideration
False statements in consideration points up the false promise, or the way in which the fraud is going to con the victim out of their property.
In the example of the person who comes to the door claiming to be selling shoes (then takes your money and the shoes never arrive), the ‘false statement as to consideration’ is the con man’s statement that he will send the shoes. If he knew he was never going to send the shoes, if that was just a false promise to get your money, that is a badge of fraud.
Let’s take another example. If a court demands a filing fee to “file” a case. Then it takes your money (much more than the price of most shoes – let’s say $550), but intends never to have the case ruled upon by judge(s), that is a false promise as to consideration. You believe that by filing your case and paying the filing fee that the court will rule on the case. (Your justification for believing that will be discussed in later posts.)
Your money is taken based on the belief that your case will be heard. The court had an opportunity to, but failed to disclose that the case would never be heard. In that situation, the fraud is by silence (you are not told that there is a shadow system that sidelines cases, and you are not told that case your case has been sidelined – when that occurs), and by gesture (the clerk nods and receives the papers and the money, implying you have filed a ‘case’ or motion, or writ).
You leave, having paid your money (not to mention the time and attorney fees already spent on the paperwork), believing the false statement as to consideration: that your case will be ruled upon by a judge(s).
In this situation, the failure, the refusal to tell you before you pay your money that the case is not going to be decided by judge(s), is a false statement – by omission – as to consideration.
May 16, 2013. No derivative works are authorized by copyright holder(s).
Jill Clark continues 