New York, NY securities attorney Jenice L. Malecki talks about the evidence necessary to prove a misstatement or omission in a fraud case. She explains that to establish a misstatement or omission in a fraud case, it is essential to demonstrate that a statement was either false or intentionally left unsaid. She recalls handling a Ponzi scheme case years ago in which the schemer claimed that the notes being sold to investors were backed by secured investments. Each investor she represented—approximately 110 in total—believed there was a security interest in real estate included in their contracts. In reality, no such security interest existed. The schemer had placed all assets in his own name, leaving investors unprotected.

This example illustrates the type of evidence required to prove fraud: showing that a representation was made, demonstrating that it was false, and proving the resulting harm. While every case has unique elements, the core principle remains that the claims being made must be verifiably untrue.