Final answer:
The false statement about legal actions by organizations regarding fraud is that they stop future frauds. Legal actions are indeed expensive, time-consuming, and sometimes embarrassing, but they can't guarantee to prevent all future fraudulent acts.
Step-by-step explanation:
The false statement concerning legal actions by organizations regarding fraud is: D. Legal action stops future frauds. While legal actions can deter fraud, they cannot guarantee the prevention of future fraudulent activities. Such actions are indeed expensive and time-consuming, and they can sometimes be embarrassing for an organization. The thought that legal action can unequivocally prevent further fraud is a misconception, as there always remains the possibility of individuals committing fraud despite previous legal consequences within an organization. As an example, within the realm of corporate crime, acts like embezzlement would be a clear instance where an entity might pursue legal recourse. Embezzlement involves the fraudulent taking of personal property by someone to whom it was entrusted, typically in a work or corporate setting. While taking legal action against such a crime may act as a deterrent, it does not fully ensure that similar crimes won't occur in the future within the same organization or elsewhere.