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False Accusations of Frauds or Scams is Criminal

Copyright 2009 STILAS - All International Rights Reserved.

In the financial industry, all potential clients of services for collateral, loans, funding
and project financing are concerned about avoiding fraudulent scams. Online
searches as amateur “due diligence” on any established firm that has been in
business for years will uncover all kinds of “complaints” and “warnings” accusing the
firm of all possible scary alleged wrongdoing. Such claims are almost always false
and highly illegal, and are in fact themselves an attempt to criminally defraud or
extort money from the targeted firm being defamed.

It is a general doctrine of law in all jurisdictions that making false public statements
against a person or firm is illegal. Commonly known as “slander” (when verbal) or
“libel” (when written), false statements to damage someone’s reputation is called
“defamation”. Defamation is defined by various laws in clear and uniform terms:
“Provably false statements of verifiable fact, that serve to undermine or damage
someone’s reputation.” It is no defence to phrase a false statement as an “opinion”,
one’s “own experience”, or as some alleged “consumer complaint”. As long as the
comments contain some false statements of fact that could be verified as false and
could or should be known to be false, then it is defamation, and it is illegal.

All defamation is illegal, and law suits against false defamers are highly successful
and collect substantial damages from the wrongdoers. Written defamation (which
applies to the Internet) is punished harshly, and damages usually do not need to be
proven, as they are assumed by law due to the written exposure to the public.
Defamation falsely accusing of fraud or professional misconduct is even more
severely punished by “treble damages” and “punitive damages”, which can be
enormous amounts of money far beyond any expected real damages to the victim.

All defamation to enforce demands is criminal as extortion or blackmail, which


are serious federal crimes in all countries. Extortion (in the USA), also called
Blackmail (in the UK), is defined in various laws in uniform terms: “Threats or
actions to damage a person’s reputation, to enforce a demand for anything the
person is not obligated to give.” Defamers who use false unlawful defamation on the
Internet, to enforce demands of things not owed to them, are committing a serious
crime. If a person is entitled to something, they are required by law to use normal
lawful “due process of law”, where an independent, objective and impartial court can
apply any signed contract that governs the transaction, if there ever was any. Using
criminal attacks by defamation to circumvent due process of law is highly illegal, and
indicates that the person defaming probably did something illegal or criminal to
sabotage the transaction by his own fault, if there ever was any transaction.

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Defamers know that their false statements are illegal, and that false defamation to
enforce unlawful demands is criminal. This is why they make great efforts to remain
anonymous, to avoid both civil and criminal liability. Experience shows that once an
anonymous online defamer can be identified and their identity exposed by a reply in
that forum, they stop, disappear, or begin modifying their statements to back-track on
their lies.

Online postings, often anonymous, with emotional and inflammatory buzz-words


such as “fraud”, “scam”, “took money”, “lost money”, “failed to deliver”, etc. are
almost always misleading psychological manipulation and distraction from the fact
that the alleged “complaint” or “warning” is knowingly false, and intentionally for a
criminal purpose against a victimized legitimate firm. Do not give any credibility to
public defamation, which is predominantly by criminals for ulterior motives that have
nothing to do with pretending to help you. Such people are acting illegally to
circumvent due process of law and criminally violate people’s rights, through
deceiving you out of working with legitimate licensed or successful firms. They do
not deserve any credibility for false statements used to commit crimes.

Real and professional “due diligence”, as properly conducted by ethical law firms and
effective economic security firms, consists of collection of informational, legal and
registration documents of the firm under consideration such as its licenses, and
objective review and verification of those documents. This is the only real way to
establish whether a firm has the capabilities that it claims, and whether its
capabilities and knowledge base demonstrate its experience or preparedness to
achieve desired results.