Under Nevada invoice law, invoice fraud can occur if a fake, duplicate, or inflated invoice is sent knowingly by a company to a client or purchaser with the intent to defraud that party. Invoices can be used as the basis for invoice lawsuits if they contain fraudulent or false information for services not rendered or goods not provided, or if the invoices were forged.
Forged invoices are invoices that are created, altered, or contain false writings for the purposes of obtaining money deceitfully that is not associated with the subject of the invoice. For example, when a party creates an invoice that seems to belong to a legitimate business that is sent to a customer for money, it can be held liable for invoice fraud crimes.
False invoicing may also be considered invoice fraud. This occurs when a business sends an invoice to a customer to pay for goods or services that the business is aware that the customer did not purchase.
False invoicing is different from forged invoices because the invoice is often forged by a third party and not the company itself. This can also happen if an independent contractor or employee submits a timesheet invoice to their employer to charge them for services that were never rendered.
One example of how this can occur is if a company hires outside contractors to maintain their business website. If these contractors are responsible for tracking their own timesheets for the work they complete and they bill for work they never completed, the company may be able to sue the contractor for invoice fraud.
If someone suspects that an invoice has been changed or forged in Nevada, it is important to schedule a lawyer consultation.
What Is an Invoice?
An invoice is a business statement that provides a list of services or goods and the amount of payment that is due for the things listed. For example, if a party is a business or vendor, they would send an invoice to a client who owes them money for any goods or services they received.
Companies use invoices to bill their clients. This means that, when a client receives an invoice, they can consider it to be a bill.
An invoice is different from a receipt. A receipt is a document that is provided to a customer after a transaction and provides proof that the client paid for services rendered or items.
Invoices may also contain more than prices and items that were sold. They may also include the contact information of the seller as well as when the purchase was made, return policies, and any other contract-like provisions that may apply.
There are several reasons why businesses or vendors may use invoices, including:
- Preserving a record of the sales transaction, its date, and time
- Keeping track of payments or amounts a purchaser still owes
- Protecting the company against future legal disputes
- Predicting how much of a product that a business will need to order to keep up with demand
- Forecasting how much a company will make in a given month or year
- Gathering information about consumers, such as product trends or the most popular products of a seller
There are numerous different types of invoices that can be used based on the needs of a business. Commercial invoices are most commonly used, as they identify goods provided and amounts owed for sales transactions.
Another type of invoice that can be used is a timesheet invoice that charges purchasers for amounts of services rendered. These can also be used to bill for recurring transactions, for example, subscription fees.
Are There Any Consequences for Invoice Fraud in Nevada?
In Nevada, invoice fraud can result in serious consequences. The penalties that a company may face for invoice fraud will depend on several factors, including whether the case is a criminal or civil matter.
For example, if a company is sued for invoice fraud in civil court, it will likely be required to pay some type of a monetary damages award to reimburse the winning party for the losses they suffered due to the fraudulent invoice. A company may also be required to pay additional damages, such as punitive damages, if their conduct was particularly egregious.
If, instead, a business is convicted in a criminal court, it may be required to pay fines, and some representatives or employees may have to serve jail time. In most cases, the general rule is that, the higher the amount of money that is stolen because of a fraudulent invoice scheme, the more severe the consequences are likely to be.
As well as the civil or criminal penalties a business can face, if it committed invoice fraud in order to avoid tax penalties, it may be fined and punished by the Internal Revenue Service (IRS). A business can face additional lawsuits from insurance carriers if they committed invoice fraud in order to cash in on an insurance policy.
If a party is wondering how to sue a company for invoice fraud in Nevada, it is essential to consult with a Nevada lawyer.
Are There Any Legal Defenses To Invoice Fraud in Nevada?
Yes, there are legal defenses that a Nevada business can present when facing an invoice fraud lawsuit or invoice fraud charges, such as:
- Insufficient evidence
- Coercion
- Mistake
- Consent
- Lack of intent
- Lack of proof
- Entrapment
If the business simply made a mistake, they may be permitted to amend the invoice. This is possible when an error was made or pieces of information are missing from an invoice.
If there are invoices that have not yet been sent, they should be carefully reviewed before sending. If an invoice has already been sent, it should be amended as soon as possible.
In order to properly amend a Nevada invoice, the business should notify their creditor and the client as soon as they can. Once they do so, the business can take the necessary steps to fix the mistake, which may include sending a new invoice or providing a refund.
It is important for the business to keep a copy of both the incorrect invoice as well as the updated one. This can be used to show that the business did not send an improper invoice on purpose and took steps to correct the mistake.
Do I Need a Nevada Attorney for Help With Invoice Fraud Issues?
Yes, it is important to have assistance from a Nevada business lawyer for any Nevada invoice fraud issues. Invoice fraud is a very serious matter, as it can result in serious consequences.
You and your business could face legal action in criminal court as well as civil court for invoice fraud. If you are sued or facing criminal charges, you should reach out to a Nevada lawyer immediately.
Your lawyer can help you present the best defense possible to the invoice fraud claims. They will represent you in the courtroom and can help you reach a settlement agreement with the other party.
Use LegalMatch’s free lawyer matching services today to find the type of lawyer you need in your area of Nevada in as little as 15 minutes. Simply submit your invoice fraud concerns and you will receive responses from member Nevada business lawyers as fast as one business day.
