Also known as: swindles · swindled · swindling · defraud · fraud
Written by attorneys — see sources below.
A fraudulent scheme by which one person obtains money or property from another through deception about the qualities or nature of what is being transferred. The deception must induce the victim to part with title rather than mere possession.
Spencer Silver convinced Stella Shapiro that her inherited painting was a worthless copy and paid her a nominal sum. After the sale Spencer resold it at full market value. Because the deception induced Stella to transfer title, Spencer committed theft by swindle rather than larceny by trick.
Solomon Silver sold Sasha Stone a house after falsely claiming the roof was new. At closing Sasha accepted the deed without the representation appearing in it. Because the seller's statements amounted to a swindle, the merger doctrine did not bar Sasha's later contract claim for the defect.
Steven Silva sued Sierra Solutions alleging the company sold him worthless software by claiming it would automate his entire accounting system. The complaint listed the exact false statements, dates, and the individuals who made them. The court required this level of detail because the claim rested on fraud.
Selena Singh asked her lawyer to help structure a new investment fund that would secretly divert investor money to her personal use. After the lawyer explained the limits on assisting fraud, Selena insisted on proceeding. The lawyer properly withdrew because the client sought to use the services to further a swindle.
Stonehaven Properties was formed with minimal capital and no corporate records. Its sole owner used the entity to sell nonexistent lots to buyers. Because the corporation was merely an instrumentality employed to perpetrate the swindle, creditors could reach the owner's personal assets.
Sterling Dynamics convinced an elderly testator to sign a new will by falsely claiming his children had abandoned him. After the testator's death the children contested the will. They carried the burden of proving that the swindle induced the execution of the instrument.
Theft by swindle requires that title to the property pass to the defendant. Larceny by trick occurs when only possession passes and the defendant later converts the property. The distinction turns on whether the victim intended to transfer ownership.
Yes. A corporation may be held criminally liable for theft by swindle when the criminal acts reflect corporate policy and are performed by agents acting within the scope of their employment.
The complaint must state with particularity the circumstances constituting the fraud, including the who, what, when, where, and how of the false representations. Intent may be alleged generally.
…the law was to " discriminate against hippies.'" 413 U. S., at 534. The asserted governmental interest in preventing food stamp fraud was not deemed sufficient to satisfy rational basis review. Id. , at 535-538. In Eisenstadt v. Baird , 405 U. S. 438, 447-455 (1972), we refused to sanction a law that discriminated…