Whether or not changing an invoice in North Carolina is illegal will depend on the facts surrounding the change. In North Carolina, invoice law outlines punishments that parties can face for changing invoices illegally or making fake, duplicate, or inflated invoices that are intentionally sent to a purchaser to defraud them. Invoices can be used as the basis for lawsuits if they were forged or have fraudulent or false information.
An invoice that was forged is one that was created, changed, or contains false information that is intended to obtain money deceitfully, which is not related to the subject of the invoice. For example, when a party creates an invoice that looks like it came from a legitimate business and sends it to a customer to obtain money, they can be charged with invoice fraud crimes.
It can also be fraud to be involved in false invoicing. This happens when a party or business gives an invoice to a customer and asks them to pay for goods or services that they know the customer did not actually purpose.
False invoicing is different from forged invoices because forged invoices are typically created by third parties. Forged invoices can also be created by workers and independent contractors when they add time they did not actually work on their timesheets.
When an independent contractor or a worker submits a timesheet to their employer for hours they did not work, the employer can sue for invoice fraud. If any party has any questions or concerns about invoice fraud, it is essential to schedule a North Carolina lawyer consultation.
What Is an Invoice?
An invoice is a business document that includes services or goods that were provided and the amount the customer owes. A business or a vendor will create an invoice for customers who need to pay for the goods or services that they received.
There are many different types of businesses that use invoices to bill customers. Invoices should be treated by the recipient as a bill.
It is important to note that invoices are not the same as receipts. A receipt is provided to a customer after a transaction as proof that the customer paid for the goods or services they received.
Invoices can also have other information, including the business’ contact information, purchase information, return policies and other provisions. Invoices can be used by businesses for numerous reasons, such as:
- Protecting a business against future legal disputes
- Keeping track of transactions, the date and time, and payments
- Keeping track of what customers still owe
- Maintaining customer purchase information, such as popular products and product trends
- Making a forecast of what the business will earn in a month or year
- Determining what the business will need to produce to keep up with demand
Sellers can use different types of invoices depending on their needs. Commercial invoices are often used to describe the goods provided and the amount that the customer owes.
A timesheet invoice may be used to charge a client for services that were provided. These types of invoices can also be used for recurring transactions.
Are There Any Consequences for Invoice Fraud in North Carolina?
Yes, there are legal consequences for engaging in invoice fraud in North Carolina. A party may face criminal charges and civil lawsuits if they create fraudulent invoices.
If a seller, vendor, or business is convicted of a crime, a representative may face incarceration and the company may be ordered to pay criminal fines. Typically, the more money that was stolen using the fraudulent invoice or invoices, the more severe the consequences will be.
Invoice fraud charges are commonly brought under North Carolina False Pretense laws. Many of these crimes can be charged as felonies, depending on the amount that was taken.
If a party is sued for invoice fraud in a civil court, they may be ordered to pay monetary damages, or money, to reimburse the other party for the funds they lose due to the fraudulent invoice. In addition to monetary damages, if the conduct of the defendant was particularly egregious, they may also be required to pay punitive damages to discourage future similar conduct.
A business can also be fined and punished by the Internal Revenue Service (IRS) if they used invoice fraud to try and avoid tax penalties. A business may also face a lawsuit from their insurance company if they used a fraudulent invoice to cash out on their insurance policy.
If a party has a concern about how to sue a company for invoice fraud in North Carolina, it is essential to consult with a North Carolina lawyer.
Are There Any Legal Defenses To Invoice Fraud in North Carolina?
Yes, there may be several legal defenses that a business can use in North Carolina if they are facing an invoice fraud lawsuit or invoice fraud charges, which may include:
- Lack of intent
- Coercion
- Consent
- Mistake
- Lack of proof
- Insufficient evidence
- Entrapment
If a business has made a mistake on an invoice they provided, they can legally change it. This can be done when there is a typographical error, missing information, or other similar issues.
Businesses should always carefully review their invoices for errors before they are sent. If an invoice has already been sent out that contains an error, it is important to fix any issues as soon as possible.
A North Carolina business can notify the customer as well as any other necessary parties of the error. After this, the business can correct their error by providing a new invoice or a refund.
Companies should always keep copies of invoices, as these can be used if any type of future legal dispute arises. These documents can show that the business did not create a fraudulent invoice but simply made a mistake which they corrected as soon as they could.
Do I Need a North Carolina Attorney for Help With Invoice Fraud Issues?
If you have invoice fraud questions, concerns, or disputes, it is essential to reach out to a North Carolina business lawyer as soon as you can. Invoice fraud is a serious legal issue that may result in severe consequences.
Your company or its representative could potentially face criminal charges and a lawsuit in criminal court. No matter what type of legal action you or your business are facing, it is essential to reach out to a North Carolina lawyer.
Your North Carolina business lawyer will appear in court on your behalf and present any defenses that are available to you. In addition, if the other party is willing to negotiate, your attorney can help facilitate a settlement that satisfies all parties involved.
It is quick, easy, and free to use the lawyer matching services provided by LegalMatch to locate an attorney in your area of North Carolina. Simply submit your fraudulent invoice concern on the website and you will receive responses from member attorneys in your area in about a business day.
North Carolina LegalMatch member attorney responses will have information about each lawyer’s background, education, fees, and previous client reviews. This will let you communicate with more than one attorney to find one who fits your needs and budget.
