Also known as: faith & trust · good faith · fiduciary trust
Written by attorneys · grounded in primary & secondary sources — see below
A scheme by which one person tricks another out of money through a confidence game.
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Farid Farahani convinced Flora Ford to sign a mortgage note after promising easy payments on a home purchase. When Ford missed an installment because the promised refinancing never materialized, Farahani declared the full debt due under the acceleration clause in the note. The mortgagee then initiated foreclosure proceedings to recover the entire balance at the sale.
Fumiko Fujimoto served a subpoena on Fidelity Trust naming it as a deponent in a suit over a fraudulent investment scheme. The company designated its managing agent to testify about matters described with reasonable particularity in the notice. The parties conferred in good faith before the deposition to narrow the scope of examination.
Shareholders of Freeman Engineering discovered that officers had used a faith and trust scheme to divert corporate funds. A special committee of qualified directors conducted a reasonable inquiry and determined in good faith that pursuing a derivative proceeding was not in the corporation's best interests. The court dismissed the suit on the corporation's motion.
Forrest Falconer asked his attorney to help structure a faith and trust scheme that would defraud investors. The lawyer declined to assist because the conduct was known to be fraudulent. The lawyer instead discussed only the legal consequences of the proposed course of action.
A journalist received information about a faith and trust scheme from a confidential source during a grand jury investigation. The reporter appeared and testified because the First Amendment does not shield journalists from good faith grand jury demands. No constitutional privilege allowed the reporter to withhold the source.
Fatou Fall used a faith and trust scheme to obtain a home loan by misrepresenting income. When the lender began foreclosure proceedings, it complied with the statutory duty to act in good faith throughout the process. The borrower could not block the sale by alleging lack of good faith without evidence of improper conduct.
It refers to a confidence game or scheme designed to trick another person out of money. The phrase is listed in legal dictionaries as an alternate name for flim flam.
Faith and trust specifically denotes a confidence game that relies on gaining the victim's trust to extract money. It is treated as synonymous with flim flam rather than a broader category of fraudulent conduct.
…was not to be found guilty of the offense "unless it is proved that the act which caused the death of the child was not done in good faith for the purpose only of preserving the life of the mother." A seemingly notable development in the English law was the case of Rex v. Bourne , [1939] 1 K. B. 687. This case apparently…