Business Fraud Lawyer in Orange County

Last updated: November 2026

A business fraud lawyer in Orange County brings civil claims for companies and investors who were deceived into a deal or an investment, and defends those accused of fraud. Kolmogorov Law, P.C. is an Irvine litigation firm that handles civil fraud cases in Orange County Superior Court in Santa Ana and in the federal court there. Under California law, willful deceit that induces a change of position is actionable, and a fraud claim must be filed within three years of discovering the facts.

Call (909) 235-6116 or contact us online to discuss a business fraud matter in Orange County.

Civil fraud services for Orange County businesses

Fraud in the sale of a business. Inflated revenue, hidden liabilities, undisclosed litigation, and customer concentration that was never mentioned. These cases follow the purchase agreement, and the buyer usually has both a contract claim and a fraud claim.

Investment fraud between private parties. Money raised for a company on representations about its finances, its contracts, or its ownership that turn out to be false. We handle the civil claims by the investor or the defense of the founder, not securities regulatory matters.

Vendor, customer, and employee schemes. Fake invoices, diverted payments, kickbacks, and misstatements that induced a company to ship goods or extend credit. Where property was taken by theft, California allows a civil claim for treble damages and fees; we pursue the civil remedy, not the criminal case. Our Penal Code 496 page explains that claim.

Defense. Fraud is pleaded freely in California business cases, often by a buyer with remorse or a borrower looking for an edge. We defend sellers, lenders, and companies against fraud claims that are really contract disputes dressed up for punitive damages.

Our business fraud hub covers the elements and the pleading rules.

What the law requires

California defines deceit in four ways. A false statement by someone who does not believe it. A false statement by someone with no reasonable ground to believe it. The suppression of a fact by someone bound to disclose it. A promise made with no intention of performing it. (Civ. Code, § 1710.) A person who willfully deceives another with intent to induce a change of position is liable for the resulting damage. (Civ. Code, § 1709.)

The plaintiff must also prove justified reliance and resulting damage. Those two elements are where most fraud cases are decided. A buyer who had the books and did not read them has a reliance problem. Our fraud claims page goes through each element.

Three Orange County fraud disputes

A Newport Beach investor puts money into a Santa Ana manufacturing company after reviewing financial statements that show steady profits. The statements omitted a dispute with the company's largest customer, which the founder knew was about to end the relationship. That is concealment by someone with a duty to disclose.

A buyer acquires an Irvine e-commerce business after the seller provides sales reports from the company's platform account. After closing, the buyer learns that the seller had been purchasing his own products through straw accounts to inflate the numbers. The purchase agreement has a disclaimer of reliance, which the seller will raise, and the buyer's answer is that a disclaimer does not protect intentional deception.

A Tustin company sells its equipment line to a competitor. A year later the competitor sues for fraud, claiming the condition of the equipment and the strength of the customer base were misrepresented. The company's records show the buyer inspected everything and negotiated the price down because of what it found. The inspection file is the whole case.

Deadlines, punitive damages, and asset recovery

A fraud claim must be filed within three years, but the cause of action does not accrue until the plaintiff discovers the facts constituting the fraud. (Code Civ. Proc., § 338, subd. (d).)

Punitive damages are available on a fraud claim, but only on clear and convincing evidence that the defendant acted with oppression, fraud, or malice. (Civ. Code, § 3294, subd. (a).) The statute defines fraud for this purpose as an intentional misrepresentation, deceit, or concealment of a material fact with intent to cause injury. (Civ. Code, § 3294, subd. (c)(3).)

Fraud defendants move assets. We use pre-judgment writs of attachment where the underlying claim qualifies, fraudulent transfer claims to reach assets moved to family members or new entities, and alter ego claims to reach owners behind empty companies. See our pages on writs of attachment and fraudulent transfers.

Where Orange County fraud cases are heard

Civil fraud cases are filed in Orange County Superior Court at the Central Justice Center, 700 Civic Center Drive West, Santa Ana. Cases with many defendants or a large volume of financial records may be designated complex and assigned to the Civil Complex Center.

Cases with parties from different states and a large enough amount in controversy may be filed in or removed to the Central District of California, Southern Division, at the Ronald Reagan Federal Building and United States Courthouse in Santa Ana.

The Orange County businesses and people we represent

Buyers and sellers of small and mid-size businesses. Private investors and the founders who raised money from them. Companies that discovered an employee or vendor scheme. Partners who were bought out on numbers that turned out to be false.

Chambers and Partners ranks the firm in its USA Spotlight 2026 guide for general commercial litigation in Orange County. The firm is a BBB Accredited Business, rated A.

How the firm works on a fraud case

One attorney handles the matter. I read the deal documents and the financial records myself, and I bring in a forensic accountant when the numbers need to be reconstructed. The first task in most fraud cases is to establish what the plaintiff was told, in writing, and what was true at the time. The second is to find out where the money went.

What to bring to the first meeting

The deal documents: purchase agreement, subscription agreement, loan documents, or invoices. Every written representation you received or made: financial statements, projections, emails, pitch decks, and text messages. Records showing the loss. If you are the defendant, the complaint or demand letter and the file showing what the other side knew before it signed.

Frequently asked questions

What is the difference between fraud and breach of contract?

Breach of contract is a failure to perform a promise. Fraud is deception that induced the deal or the payment. The same facts can support both, but fraud requires proof of a false statement or concealment, knowledge, intent, and justified reliance.

How do I prove business fraud in California?

With documents. The statement or omission, the proof that it was false when made, the evidence that the speaker knew it, and the proof that you relied on it and lost money as a result. Emails, financial statements, and the other side's internal records obtained in discovery usually carry the case.

Can I get punitive damages for business fraud?

Yes, if you prove by clear and convincing evidence that the defendant acted with fraud, oppression, or malice. (Civ. Code, § 3294, subd. (a).) Punitive damages are not available on a contract claim, which is why fraud is pleaded alongside it.

How long do I have to sue for fraud in California?

Three years from the date you discovered, or reasonably should have discovered, the facts constituting the fraud. (Code Civ. Proc., § 338, subd. (d).) Do not wait; the evidence disappears while you deliberate.

A buyer is accusing me of fraud after buying my business. What should I do?

Preserve every document from the sale, including the due diligence file and the buyer's own inspection records. Many of these claims are buyer's remorse with a fraud label, and the inspection and disclosure record usually answers them.

Talk to an Orange County business fraud attorney

Call (909) 235-6116 or contact us online. Kolmogorov Law, P.C. is located at 327 Magnet, Irvine, CA 92618, and represents businesses and investors throughout Orange County.

This page provides general information about California law and is not legal advice. Outcomes depend on the representations made, the facts, and the court.