Fraud

Criminal Law - Chapter 7

What are the three types of fraud? (under Fraud Act 2006)

i) false representation

ii) failing to disclose information

iii) by abuse of position

What is fraud by false representation? (s.2 FA)

i) dishonestly make a FR - a) untrue or misleading and b) person knows it is untrue/misleading

ii) intend to make a gain or cause loss to another

*FR may be express or implied or by conduct about fact (or law)

When is a representation false?

i) when a victim is deceived or misled by something said or written

ii) if using a stolen debt card = false rep by conduct - falsely representing you have the right to use it.

*WILL NOT BE A FALSE REP IS D SAYS SOMETHING THEY BELIEVE TO BE FALSE BUT IS IN FACT TRUE

MR element = the accused must either know the representation is false, or know that it might be

Does someone have to be deceived to be guilty of FR?

NO - no need to prove that anyone was actually deceived - therefore can commit FR to a machine

FR need only be ‘submitted’ not necessarily communicated - keeps it in line with modern tech

Examples:

i) FR by email is made as soon as it is sent - whether the intended victim reads the contents or even receives it at all.

ii) FR made when enter PIN into cash machine

iii) entering stolen bank details onto an internet site to purchase items is a representation.

What is the MR of FR?

The D must:

i) know the representation is untrue or misleading, or know that it might be so

ii) act dishonestly

iii) make gain or cause loss - can include keeping what one has

What is fraud by failing to disclose information? (s.3 FA)

a) dishonestly fail to disclose to another person information which they are under a legal duty to disclose - e.g. statute, contract, fiduciary relationship AND

b) intend, by failing to disclose the information, to make a gain for themselves or another, or to cause loss to another or to expose another to a risk of loss

What is fraud by abuse of position? (s.4 FA)

i) D occupies a position in which they are expected to safeguard, or not to act against, the financial interests of another person

ii) dishonestly abuse that position - either by a positive act or omission

iii) intend, by means of the abuse of that position to make a gain for themselves or another, or to cause loss to another or to expose another to a risk of loss.

What does s.4 require for fraud by abuse of position?

s.4 requires the existence of a position of financial trust between the defendant and the victim.

E.g. - trustee and beneficiary, director and company, agent and principal, employee and employer.