Fraud infects every aspect of the business world, often leading to lawsuits which are designed to redress the wrong. While fraudulent claims in commercial litigation are certainly not new, nearly every news article on the subject reports a notable uptick across multiple fronts. As this trend continues, both plaintiffs and defendants will call upon law firms to represent them in such matters.
If you or your business have been accused of fraudulent activity, or you are the victim of the same, it’s time to get serious about protecting yourself and your interests. That’s where the dedicated Manhattan commercial litigation attorneys of Levy Goldenberg LLP step in.
The Basics of Business Fraud in New York
Everyone from corporations to individuals engages in business fraud, often devising clever schemes to hide their actions. It may take years for victims to uncover the activity and file lawsuits aimed at recovering the money or property that was wrongfully acquired. A few of the most common forms of fraud that trigger commercial litigation include:
- Embezzlement: This occurs when a trusted person takes advantage of their authority and position to steal money and property.
- Securities fraud: There are many ways to rip off investors and distort a company’s finances, including Ponzi schemes.
- Fraudulent sales of goods and services: Companies that misrepresent the nature of their products or services commit this type of fraud.
- Insurance fraud: False claims of vehicle and property damage or medical problems hurt other policyholders, not just the insurers.
- Falsifying records: Businesses can use various accounting tricks to falsify their reports and records, and use this fraud to gain new investors or access to loans.
- Employment fraud: Both employers and employees find ways to cheat one another or rip off the companies they operate or for which they work.
Although many of these actions are criminal, they can lead to civil lawsuits which are designed to recover lost or stolen money or property, repair a company’s or individual’s reputation, and undo other harms. In Manhattan, the common law elements of fraud are:
- The defendant made a materially false statement or omitted a material fact (material means significant enough to convince someone else to make a decision or determination)
- The statement or omission was known to be false and was made specifically to induce the plaintiff to rely upon it (also called scienter)
- The plaintiff did in fact rely on the false statement or omission
- The plaintiff suffered injury, typically financial loss, as a result
Fraud is on the Rise in Manhattan
Although it’s difficult to know exactly how much fraud there is, commercial lawsuits that include claims of fraud are certainly increasing in Manhattan and elsewhere in New York. These concern the following, among other issues:
- Insurance fraud: As of 2025, staged accidents and other personal injuries which are designed to submit false claims to insurers are increasing. There are organized efforts among disreputable doctors and personal injury lawyers to accomplish this fraud.
- Deepfake financial fraud: Deepfakes are already problematic in other contexts, but they have now crept into the financial world. Executives expect that cyber criminals will use deepfake attacks to defraud businesses and cause substantial financial losses.
- AI-driven fraud: Along with deepfakes, artificial intelligence is increasingly being used to defraud banks and other lending institutions in Manhattan. Experian estimates that such fraud could result in $40 billion worth of fraudulent losses by 2027.
- Cryptocurrency fraud: A specific subset of financial and corporate fraud involves the ever-evolving world of cryptocurrency. Regulators and legislators alike are struggling to keep up, which makes the environment conducive to even more fraud and litigation.
How Can You Fight Fraud? Talk To Us
Whether you are the victim of fraud or you have been accused of it, commercial litigation could be in your future either way. You need the dedicated legal representation that only an experienced litigator can bring to the table. Connect with Levy Goldenberg LLP today to get started with your case.