Jeffrey became a victim of fraud when he entered a pyramid scheme which turned out to be a scam. In order to claim damages, Jeffrey has to prove which of the following?
A) misrepresentation
B) motive of the fraudster
C) economic injury
D) involvement in the pyramid scheme

Question

Quizplus · Accepted Answer

In order to claim damages in a fraud case, the victim has to prove economic injury, i.e. they suffered a financial loss as a result of the fraud. While misrepresentation can also be a factor in fraud cases, it is not always necessary to prove in order to claim damages. The motive of the fraudster and involvement of the victim in the fraudulent scheme may be relevant to the case, but economic injury is the most crucial element to prove.

Jeffrey Became a Victim of Fraud When He Entered a Pyramid