Los Angeles Business Fraud Litigation Lawyer
According to the California Employment Development Department (EDD), California is the fourth-largest economy in the world, and has 4.2 million small businesses, which account for 99.9% of the total businesses in California.
Business fraud isn’t just a distant concept reported in the news, but a real risk that California business owners face every day. Because of the size of its economy, California attracts both entrepreneurs and fraudsters looking for opportunities and victims.
Case Results
$3.4M Recovered
Business Litigation
Assisted in recovery ofthe balance of the purchase price for the sale of a business
$2.7M Verdict
Business Litigation
Assisted in obtaining jury verdict for breach of contract and conversion of business ownership, jury verdict only $25k less than requested
$342k Judgement
Business Litigation
For fraudulent inducement of loans, breach of contract, and defamation in false online posts and reviews
$317k Judgement
Business Litigation
For two brothers and their international business after proving fraud, breach of contract, and defamation by a serial fraudster, despite delays, false accusations, and a last-minute bankruptcy filing
Judgement
Business Litigation
For an elderly landlord and trust, defeating all claims by evicted tenants who tried to misuse COVID as an excuse for nonpayment
$385k Judgement
Business Litigation
For a textile manufacturer in a contract dispute, despite a cross-complaint from the wholesaler
$657k Judgement
Business Litigation
Against a real estate agent who misappropriated client funds, using forensic accounting to prove full fraud and conversion.
$398k Judgement
Business Litigation
By enforcing a promissory note, recovering 100% of damages plus interest
$125k Judgement
Business Litigation
Helped obtain a default judgment against an attorney for unpaid loan balance and battery, after securing terminating sanctions for discovery violations
Disclaimer: Illustrative examples of case types and outcomes. Attorneys cannot guarantee outcomes. Results are case-specific and depend on the true facts of the case. More information here.
What Business Owners Need to Know About Fraud
Business owners who are the victims of fraud need to know how to protect their rights. This unfortunately means pursuing litigation in many cases. Special consideration must be given when going after a fraudster, though, unlike a typical case. Sometimes, it may not make financial or business sense to pursue litigation, depending on the circumstances. If a fraud victim pursues legal action, a comprehensive strategy is necessary from the very beginning to ensure that the business owner’s interests are advanced, rather than worsening the owner’s overall situation.
Types of Fraud in California
There are three general types of fraud in California.
An intentional misrepresentation means representing a fact as true when known to be false, or in reckless disregard for its truth, with the intent to have the other party rely on the representation.
Concealment concerns the intentional failure to disclose material facts or preventing of those facts from being discovered with the intent to deceive the other party by concealing the facts.
False promise or fraudulent inducement means making a promise with no intent to perform that another party reasonably relies on to be harmed.
Remedies for Fraud in California
The remedies can vary depending on the type and extent of fraud, but typically it may include any monetary losses as a result of the fraud, as well as exemplary or punitive damages.
Exemplary damages are permitted under California Civil Code section 3294 in actions not arising out of a contract for malicious, oppressive, or fraudulent conduct. Even though the business fraud may have arisen out of a contract, intentional torts such as fraud may be alleged in order to seek punitive damages, depending on the circumstances.
Other non-economic damages, such as reputational harm, may also be available.
Types of Business Fraud Cases We Handle
Examples of the types of cases or common scenarios we handle for business owners and partners include:
Sale or purchase of a business: the seller of an established business lied or concealed information about the true status of the business’ financial condition or immediately defaulted on installment payments after gaining control or access to the business. Or in other cases, the seller is unfairly accused of these fraudulent acts as a reason for default or failure to pay.
Business loans or other contracts: business owners are tricked into providing loans based on false financial information or other lies or incorrect information, or otherwise tricked into entering some type of contract based on material misrepresentations of fact that turned out to be untrue. In other cases, the business owners become the victims of a Ponzi-type scheme.
Partnership disputes: co-owners of a business owe fiduciary duties to one another, along with contractual obligations. But oftentimes, they are the victims of fraud by their trusted partner. This may include scenarios of embezzlement, stolen business opportunities, or the hiding of business assets for personal gain.
Real estate: co-owners or partners of real estate deals frequently and unfortunately enter into “handshake” agreements about flipping a property or owning one together. In common scenarios, a partner takes partnership funds to purchase a property but fails to identity the others as co-owners of the property, or a “flip” falls apart for one reason or another.
Why You Need a California Business Fraud Lawyer
Proving fraud is more difficult than other civil claims, because it has a higher burden of proof. You must prove that the conduct was intentional or reckless, and to obtain punitive damages, you must prove by clear and convincing evidence that such conduct was intended to cause harm, or in conscious disregard of another’s rights. Special consideration must also be taken to ensure that the pursuit of any legal action against a fraudster makes sense.
Los Angeles Business Litigation Lawyer Reviews
⭑⭑⭑⭑⭑
“We have retained Hee and Litigation, P.C. Law Firm for all of our business legal needs for over four years, and we cannot recommend them highly enough.
Hee is not only knowledgeable and experienced but also incredibly thorough and detail-oriented. He meticulously reviewed all aspects of our business legal challenges, identifying potential issues and opportunities that we had not considered.
His strategic approach and ability to think several steps ahead gave us a tremendous sense of confidence and security throughout the entire process, especially the trial.
During the trial, he was fully prepared every single day, explaining his thought process to us about why he was asking or not asking certain questions to all the witnesses, raising timely objections with majority of them being sustained by the Judge…At the end of the day he wanted to make sure that we put all of our ammo on the table and we were able to successfully do that.
Hee also communicates very clearly and has been patient in explaining legal jargon and complex concepts in a way that was easy to understand, ensuring that we were well-informed and comfortable with every decision we made.
If you are looking for a lawyer who will provide exceptional legal counsel and support, we highly recommend Hee and Litigation, P.C. Law Firm.”
S. A. (Business, Fraud)
⭑⭑⭑⭑⭑
“Working with Hee Kim and Litigation, PC has been an exceptional experience. He consistently keeps me informed on every aspect of my case, providing clear details on costs, pros, and benefits of each option. His dedication to my interests is evident at every step, and he ensures I am fully involved in the process.
Attending court hearings with him is reassuring as he remembers every detail and effectively refutes the other side’s claims. His preparation for depositions is impeccable, always calling out any inconsistencies. His strategic advice on when to take specific actions or make motions has been spot on.
His litigation approach is unmatched, and he is highly aggressive in fighting for his clients. He prioritizes his clients, making each one feel like his only case. I highly recommend Hee and his firm to anyone seeking strong legal representation! “
S. A. (Business, Fraud)
“Hee and his team have been our general counsel for years and have handled insurance, real estate, business and collections matters. They are very easy to work with and have a wide range of expertise that is very helpful. Highly recommend!”
E. A. (Business)
Business Fraud Lawyer FAQs
What are examples of business fraud?
Our team has seen a wide range of illegal conduct, including falsified or concealed financial records, forged documents, the taking of a business opportunity or deal, or the stealing of business funds for personal use. In other cases, the purchaser of a business never had any intention of making any installment payments and will accuse the seller of fraud to try to get out of the obligation to make those payments. On the other hand, sometimes, the seller really does misrepresent the financial condition of a business, including the existence or value of business assets, past financial history, and status of outstanding receivables or liabilities.
Does all fraud allow me to receive punitive damages?
Not necessarily. Sometimes, someone might make a negligent, rather than intentional, misrepresentation, meaning the person honestly believed a fact to be true. This is different than intentionally representing a fact as true when the person knows the fact is not true. In other cases, a statement may not be a representation about a “fact”, but rather just an expression of an opinion. The victim must have also relied on the fraudulent information or conduct to the victim’s detriment.
What is malicious conduct for the purposes of punitive damages?
Conduct intended by the person to cause injury to another, or despicable conduct carried on with a willful and conscious disregard of the rights or safety of others.
What is oppressive conduct for the purposes of punitive damages?
Despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person’s rights.
What is fraudulent conduct for the purposes of punitive damages?
An intentional misrepresentation, deceit, or concealment of a material fact known to the person with the intention to deprive another of property or legal rights or otherwise cause injury.
How much in punitive damages will I get?
It depends. There is no legal or mathematical formula. California law defines “punitive damages” as a monetary award “for the sake of example and by way of punishing” the wrongdoer. California law also recognizes that the amount of money to “punish” or “set an example” will differ depending on the financial condition of the wrongdoer. It would take a higher amount, for example, to teach the same lesson to someone who is extremely wealthy. The judge or jury therefore decides on the appropriate amount, taking into account the severity of the conduct and wealth of the wrongdoer.