criminal-law fraud commerce illinois
Is it fraud to intentionally mislead a buyer about the value of an item for sale?
<ol>
<li><p>Jimmy intentionally lies to Marco by telling Marco that Jimmy has a Kennedy half-dollar that's worth $800 because Kennedy is facing left not right.</p></li>
<li><p>The actual value of the half-dollar is only $0.50.</p></li>
<li><p>Marco buys the half-dollar from Jimmy for $100.</p></li>
</ol>

<p>Is this transaction legal or is it fraud? If it's fraud, is it also a crime?</p>

<p>Jurisdiction: Illinois</p>

<h2>This is both fraudulent misrepresentation and the crime of fraud</h2>

<p><strong>Fraudulent misrepresentation</strong></p>

<p>If Marco can prove that:</p>

<ul>
<li>He relied on Jimmy's statement when entering the contract</li>
<li>Jimmy made a statement of fact - stating that it's a rare coin when it isn't is a statement of fact.</li>
<li>It was a positive statement - Jimmy actually said it, he didn't just stay silent when Marco said "Wow! A rare left-handed coin - it must be worth $800!".</li>
</ul>

<p>Then there has been fraudulent misrepresentation and Marco can either:</p>

<ul>
<li>rescind the contract - Jimmy gets the coin and Marco gets his $100 back.</li>
<li>claim damages - the value of Marco's expectation if Jimmy hadn't been lying - $799.50 (because he already has a coin worth $0.50).</li>
</ul>

<p><strong>Fraud</strong></p>

<p>Its also fraud - a knowingly wrong statement made for financial gain. If the state wants to prosecute Jimmy can go to jail.</p>
