Houston Business Fraud Lawyers
Fraud is unfortunately a common experience for U.S. businesses; in fact, one 2009 survey estimated that 88% of companies have been impacted by fraud at some point. Small businesses are particularly vulnerable to fraud and are more severely affected when it does occur.
Fraud can have a substantial and lasting impact on any size business. The two most common types of fraud are misappropriation of assets by employees and fraudulent financial reporting by management, whereby misleading or inaccurate financial information is disseminated to investors, stakeholders, and the public. Whether it is without management knowledge or without employee knowledge, both can devastate a company.
In the event that fraud is committed, businesses typically experience the following:
This is the most obvious effect of fraud. When company assets have been misappropriated, it is fairly easy to quantify. However, the costs of fraudulent financial reporting may be harder to determine. Fines assessed for misleading investors, civil suits, and the reluctance of companies to extend credit to the business in the future all add up to severe financial loss.
After fraud has been uncovered, public trust in the organization becomes a difficult and ongoing problem. Even if a business might not be a victim or perpetrator of additional fraud, its public image might be irreparably tainted. They may have to pay a higher price for credit or refused membership in trade associations and other alliances.
The culture and morale of a company is vital to its success, so when fraud is discovered the effects on its employees and associates can be shattering. Any association with a company that has perpetrated or suffered fraud can be difficult and embarrassing for its employees, even if they move on to a new employer.
Increased audit costs
Businesses that have experienced audit and have experienced fraud are likely to be assessed as high audit risk, which means auditors will more closely scrutinize company books before signing off on their financial statements. When an auditor is required to perform more procedures, the cost of the audit will increase.
Regardless of the circumstances your Houston business has faced, the Houston business fraud attorneys at Williams Hart wants you to know that you have options if you have been stolen from, misled, or defrauded in any way. Our experienced team of Houston commercial litigation lawyers may work tirelessly on your behalf to recover what you have lost.
Filing a Business Fraud Claim
For the best chance at filing a successful business fraud claim in Houston, the following must be true: one party must have intentionally and falsely represented itself in order to deceive another party for its own monetary or personal gain. A wide range of illegal and unethical activities can be considered business fraud. You may qualify for compensation to recover your losses if your Houston business has fallen victim to the following activities:
- Breach of fiduciary duty
- Bait-and-switch scams
- Other deceptive practices
Take action against those who have broken your trust and stolen from you. The Houston attorneys at Williams Hart have the experience and resources to fight for you every step of the way.
Contact the Houston Business Fraud Lawyers
Business fraud may be impossible to fully prevent, but you do have options for legal recourse if it happens to your company. The business fraud attorneys of Williams Hart in Houston may be able to help you recover your losses. Call our Houston offices today at (713) 352-7071 to schedule a free consultation.
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