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Lindsay Lohan Sued for Fraud by Boutique

By Kamika Dunlap on July 01, 2010 2:02 PM

Lindsay Lohan may be sinking deeper into legal problems as the actress is accused of scamming more than $16,000 of clothes from a Los Angeles boutique.

Apparently, Lindsay Lohan promised the boutique owners that her business manager would foot the bill, CBS news reports. The boutique is now suing Lohan for fraud, claiming she never paid in full for clothing, jewelry and other accessories.

In a separate matter previously discussed on this blog, the actress recently violated terms of her release thanks to the results of a court-ordered alcohol monitoring bracelet. Lohan was ordered to wear the alcohol monitoring bracelet after she missed a mandatory hearing.

She has been on probation since 2007, after pleading guilty to misdemeanor counts of being under the influence of cocaine; no contest to two counts of driving with a blood-alcohol level above 0.08 percent and one count of reckless driving.

In this latest case, the boutique owners filed a lawsuit in L.A. Superior Court.

In general, a false representation of a matter of fact--whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed--that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.

Fraud is commonly understood as dishonesty calculated for advantage. A person who is dishonest may be called a fraud.

Typically, fraud must be proved by showing that the defendant's actions involved five separate elements:

  1. a false statement of a material fact,
  2. knowledge on the part of the defendant that the statement is untrue,
  3. intent on the part of the defendant to deceive the alleged victim,
  4. justifiable reliance by the alleged victim on the statement, and
  5. injury to the alleged victim as a result.

According to Church Boutique owners David Malvaney and Rodney Burns, Lohan has only paid $180 out of $17,060.83.

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