Equitable fraud is the claim most applicable where a fraudster has concealed materials facts in investment or business transactions. In the case of equitable fraud, the limitation period does not start when the fraudster committed the wrongful act. Rather, a fraud victim only needs to prove:

1. that the defendant fraudster knowingly concealed material facts, and
2. the date the victim actually discovered the loss.

This is a very important distinction for victims of fraud because roving an equitable fraud claim does not include the reasonably become aware test to determine when the loss should have been discovered, but uses the date that the victim in question actually discovers the loss. The first step in establishing equitable fraud is to prove that a special relationship, such as a fiduciary relationship, existed between the parties. A special relationship also can be established on a lower threshold, however, such as situations where it is unconscionable for a seller to fail to disclose material facts to a purchaser.

								
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