What is the difference between civil fraud and misappropriation of funds?

The main difference between civil fraud and misappropriation of funds is the purpose behind the act. Civil fraud is the intentional misrepresentation of facts by one party to another party to gain a benefit or to harm the other party. Civil fraud will often involve the intentional withholding or misstating of information. This can include false advertising or a breach of contract, for example. Misappropriation of funds, on the other hand, is the intentional use of funds, which weren’t authorized by the funds’ owner, for an unauthorized purpose. It could include taking money from an employer’s account and using it for personal expenses. The funds weren’t misrepresented in this case, but rather taken without authorization. Both civil fraud and misappropriation of funds are illegal in the state of California. Civil fraud is addressed in California Civil Code section 1572 and 1573, and misappropriation of funds is addressed in Penal Code section 506. Both activities are considered crimes and can result in serious legal penalties or punishments. For example, criminal penalties for misappropriation of funds can include large fines, jail time, or both.

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What is the difference between civil fraud and misappropriation of funds?

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