Dealer Fraud Law and Legal Definition
Dealer fraud refers to a fraud that is committed by a third party agent while participating in a financial transaction. It is also known as broker fraud or agent fraud. For instance, fraud committed by an auto dealer by submitting false credit applications for the purpose of selling a vehicle is characterized as dealer fraud. Similarly mortgage brokers who encourage consumers to produce false information in their application to get the mortgage application approved is said to have commited a broker fraud.