Do tough times bring out the inner crooks in otherwise law-abiding citizens? Or is the occasional down-on-his-luck schemer a constant habitué of the halls of justice who earns a headline during a bear market by pleading newfound poverty?
This week, Donna Frosco, principal member, Keane & Beane P.C. in White Plains, N.Y., and Brendan O”™Rourke, managing partner and founder, O”™Rourke & Associates L.L.C. in New Canaan, give their views on fraud.
Q: In economically difficult times, have you seen an increase in fraudulent crimes?
Donna Frosco:
Although our firm has a diverse practice, we do not handle criminal defense matters. Having said that, we have not seen a dramatic increase in claims involving fraud in our civil/commercial cases. In fact, despite the current economic climate and with the recent focus on troubled lenders, failing financial institutions and predatory lending practices, I see a rise in business transactions rather than litigation in general. My practice includes nonpatent, intellectual property matters, including protection of proprietary information and trade secrets, and I have noted increased reports in the media concerning both civil allegations of and criminal prosecutions for theft of trade secrets. But again, in my clients have not experienced an increase in those types of claims.Â
Brendan O”™Rourke:
Our practice concentrates on commercial litigation and commercial transactions. Over the last few years, we have seen an increase in fraudulent activity, although I do not necessarily link the increase to the poor economy. We have seen a number of embezzlements from low-level employees up through a president of company who siphoned off hundreds of thousands of dollars in purported business expenses. We have also seen an increase in commercial fraud claims involving partners and in joint ventures.
