To demonstrate that fraud has taken place, an investigator or prosecutor must establish five conditions. These are that facts have been misrepresented, the misrepresented facts were material to the transaction and were intended to be relied upon, the victim justifiably relied upon the misrepresentation, and material harm resulted.
Apart from actual fraud, an individual can be convicted of constructive fraud. The requirements in cases of constructive fraud are similar to those for actual fraud, but intent is not necessary. Another difference between the two categories is that constructive fraud requires that a fiduciary relationship existed between the victim and the perpetrator.