Corruption and fraud - the basics

How to prove fraudulent knowledge and intent

It is necessary to prove that the subject acted with fraudulent knowledge or intent.  "Knowledge" is defined as:

• Actual knowledge of falsity
• Deliberate ignorance of truth or falsity
• Reckless disregard of truth or falsity

"Intent" means that the defendant acted willfully and knowingly, not by accident or mistake, intending to do the forbidden act.

Proof that the defendant had a specific intent to defraud (in addition to the intent to commit the forbidden act), or knowledge that the act constituted an offense, of the offense, is not required.

Knowledge or intent can be proven directly by, for example, the testimony of a co-conspirator, or circumstantially by, for example, showing that the subject:

• Altered, concealed or destroyed, or attempted to, relevant documents or evidence 
• Obstructed the investigation, or attempted to, for example, by asking another witness to give false testimony
• Committed prior similar acts that revealed his intent
• Made false statements to investigators ("False Exculpatories")

The most effective method of proof is to combine direct testimony from an insider with circumstantial evidence that corroborates the insider's testimony.

Contract and procurement fraud schemes and red flags

How to detect corruption and fraud

Basic steps in the investigation of corruption and fraud

Representative U.S. fraud and corruption statues and their elements of proof

How to prove fraudulent knowledge and intent

How to refer a case for criminal prosecution

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