The Virginia Business Litigation Blog
D.C. has brought an action in D.C. Superior Court against several computer-leasing companies, charging them with deceiving numerous church congregations into paying hundreds of thousands of dollars for unneeded or broken computer equipment.
In the lawsuit, filed last Wednesday, the city claims that United Leasing Associates of America, Television Broadcasting Online, and others hatched a plan to offer “free” computer equipment to hundreds of area church congregations, but then trick them into signing papers binding them to long-term lease payments of $50,000 or more. The equipment, marketed by the defendants as “information kiosks” designed to help congregations communicate with members of the community and post job listings, consisted of ordinary desktop computers disguised in mahogany casing. Those congregations who refused to pay the exorbitant monthly fees suffered harm to their credit rating.
Businesses need to conduct their operations in good faith and deal fairly with their customers. An action for fraud and deceit arises when a defendant makes (1) a false representation (2) in reference to material fact, (3) made with knowledge of its falsity, (4) with the intent to deceive, which (5) causes the subject of the fraud to take action in reliance upon the representation. See Atraqchi v. GUMC Unified Billing Servs., 788 A.2d 559, 563 (D.C. 2002). Stated more simply, you commit fraud if you lie to someone for the purpose of tricking them into doing something, and the person falls for it. Virginia has similar laws prohibiting fraudulent business transactions.