C is corrent because constructive fraud requires the following elements: (1) misrepresentation of a material fact, (2) reckless disregard for the truth, (3) reasonable reliance by the injured party, and (4) injury. Therefore, if reckless disregard is present, it would support a finding of constructive fraud on the part of a CPA.
A is incorrect because the presence of the intent to deceive is needed to satisfy the scienter requirement for fraud. However, even in the absence of the intent to deceive, the CPA can be liable for constructive fraud.
B is incorrect because ordinary negligence is not sufficient to support a finding of constructive fraud.
D is incorrect because constructive fraud does not require privity of contract.
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