What legal action can be taken as a result of committing fraud?

Committing fraud can result in criminal liability because fraud is classified as a criminal offense in many jurisdictions, including Kentucky. When an individual commits fraud, they engage in deceptive practices for personal gain, which violates laws designed to protect individuals and businesses. As a result, the state can prosecute the offender in a criminal court, leading to penalties that may include fines, imprisonment, or both, depending on the severity of the offense.

Legal action may also lead to civil penalties or restitution, where the victim is compensated for losses incurred. However, these avenues typically fall under civil liability and do not negate the possibility of facing criminal charges. This distinction emphasizes the serious nature of fraud, as it can attract both criminal prosecution and civil claims simultaneously. Thus, the correct answer highlights the potential for criminal consequences associated with fraudulent actions.