Fraud is illegal in all 50 states. So is breaking a contract.


Dave wrote:
When most people say "illegal" they mean criminal. Although fraud can be
criminal in some circumstances, the kind you're talking about here is a
tort, not a crime.

Doesn't it depend on the amount of money involved?


... The victim of a tort is entitled to damages--money. If
the tort is intentional (as fraud is) he may be entitled to punitive
damages--i.e. more than his actual loss. That's what makes glad the hearts
of trial lawyer.

Similarly, breach of contract is not a crime. The party not guilty of the
breach is entitled to money. Generally, though, he's entitled to money from
the other party to the contract--generally not the broker.

If the broker is acting in fiduciary interest of the seller,
then he has definitely broken a contract IMHO... but then
I'm not a lawyer.

As I understand it, another remedy that doesn't necessarily
involve the courts is for the seller to take the boat back
and the buyer to get all his money back. I have seen this
happen, sometimes the brokers try to keep the deposit and
sometimes they hand it all back.

DSK