What is the difference between civil fraud and fraud by silence?

Civil fraud and fraud by silence are both defined as fraudulent behavior under Colorado fraud law. Civil fraud is a type of intentional misrepresentation or deception of another person in order to obtain a financial or other advantage. It includes providing false information to a business, individual, or court. Generally, if the person making the misrepresentation knows the information is false or does not take steps to verify it, civil fraud is present. Examples of civil fraud include lying to receive a loan or making false claims in order to receive an insurance benefit. In contrast, fraud by silence refers to a situation when one party knowingly withholds vital information or fails to act in order to obtain a gain or advantage. This type of fraud includes cases where a person does not disclose information, such as a conflict of interest in a business transaction, or when they treat others unfairly or unequally due to a relationship of trust or confidence. For example, a person might commit fraud by silence when they fail to disclose a family connection to a business or when they conceal important knowledge. Civil fraud and fraud by silence are both crimes in Colorado. Both involve deceit and deception and are punishable by fines and/or imprisonment, though the penalties for civil fraud tend to be harsher.

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What is the difference between civil fraud and fraud by silence?

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