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Fraudulent Concealment

Definition - What does Fraudulent Concealment mean?

Fraudulent concealment is the intentional withholding of information in order to mislead a person. The person who withholds the information must also have a legal obligation to disclose the information. For example, an automobile seller who knows about a serious engine flaw on the car being sold, but does not inform the customer before the purchase, would constitute fraudulent concealment.

Justipedia explains Fraudulent Concealment

People who commit fraudulent concealment usually do so because their interests are furthered by doing so. Certain information can lead to decreases in sales, losses of good reputations, etc. So there are many reasons why a person may attempt to conceal information. However, when someone does so when there is a legal obligation to reveal the information, fraudulent concealment occurs. Fraudulent concealment shows that deception or fraud does not only take place by adding false information, or lying, etc. It also can happen by hiding of information.

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