Fraud

Question 1

Definition

Answer 1

Section 1 (in breach of s.2) of the Fraud Act 2006

D dishonestly makes a false representation and intends, by making the representation, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss.

Question 2

‘Representation’

Answer 2

Section 2(3) - a representation is of fact or law, including the state of mind of the person making it or any other person.

Question 3

Jeff and Bassett (1966) 51 Cr App R 28

Answer 3

• D said that in their opinion a roof requires repairs. This was a statement of fact because D knew that the works were unnecessary

Question 4

Wenman [2013] (8th February 2013)

Answer 4

• D made false representation to elderly people that in his opinion, their properties needed repair = statement of fact

Question 5

Barnard (1837) 7 C & P 784

Answer 5

By s.2(4) …..express:

• In order to gain credit in a shop, D expressly told the shop- keeper that he was an oxford university student, when he was not (oxford students were given credit)

d also impliedly represented that he was an oxford university student by his conduct of wearing an oxford student cap and gown

Question 6

Haboub, [2007] EWCA Crim 3320

Answer 6

By s.2(4) …..express:

• D made an application for UK driving license with a fake French driving license

Question 7

McDermott, [2008] EWCA Crim 1713

Answer 7

By s.2(4) …..express:

• D stole clothing from a department store
• d subsequently returned it to recover a refund of £79
• d said he had paid for it

Question 8

Formhals [2013]EWCA Crim 2624

Answer 8

By s.2(4) …..express:

• D memorabilia dealer adversities books and magazines signed by famous figures, including Winston Churchill
• D knew the signatures were forgeries

Question 9

Robinson [1884]10 VLR 131

Answer 9

implied…

• D wore a badge that suggested he could accept bets at a racecourse

Question 10

DPP v Ray [1974] AC 370

Answer 10

implied…

• D entered a restaurants and ordered a meal
• This act impliedly represented that he intended to pay for the meal before leaving
• It also impliedly represented that he had the money to pay
• D made the positive implied representation when he ordered his meal that he intended to pay for it, this was true
• When d changed his mind, the representation became false
• But d came no further

Question 11

Doukas [1978] 1 All ER 1061

Answer 11

implied…

a wine waiter employed at a hotel impliedly represented by pouring wine that the wine that he served was employers, not his own.

Question 12

Morris; Anderton v Burnside [1984] AC 320

Answer 12

a customer in a supermarket who tenders goods to the cashiers impliedly represents that the price is that which he believes to be authorised by the store

Question 13

Darwin and Darwin

Answer 13

• Paddled out to sea in his canoe in 2002 to fake his own death
• When he was proclaimed death his wife Anne netted almost £600,000 insurance money
• Darwin was sentenced to 7 years and his wife was sentenced to 6 years

Question 14

Metropolitan Police Commissioner v Charles [1977] AC

Answer 14

when D writes a cheque D impliedly represents the transaction will be honored (met) by the bank and that D is the authorised to make the transaction.

Question 15

Rai [2000] 1 Cr App R

Answer 15

• D applied to council for bathroom adaptations for his disabled mother
• At this point the positive express representation was true as his mother was disabled
• D mother died
• D omitted to tell the council
• Now the rep was false
• D initial positive rep continued until later point when it became false
• D was convicted of obtaining services by deception

Question 16

Hands (1887) 52 JP 24

Answer 16

• D used brass disc instead of coin in cigarettes vending machine
• A machine could not be deceived
• D not guilty

Question 17

Augunas [2013] EWCA Crim 2046

Answer 17

objective recklessness is not a sufficient were d ought to have known the representation was untrue or misleading

Question 18

Collis - Smith [1971] Cr LR 716

Answer 18

(ii) The deception occurred after the gain had been obtained.

• D filled up with petrol at garage
• d Then lied by telling the cashier his employer would pay
• d did not obtain the property (petrol) by deception as D had already gained the petrol
• this would be s.3 TA 1978 – making off without payment offence

Question 19

DPP v Ray [1968]

Answer 19

(ii) The deception occurred after the gain had been obtained.

• D ordered a meal and impliedly represented he’d pay for it
• D ate the meal
• Then decided not to pay
• D could not be charged with obtaining property by deception because the deception occurred after he had consumed the meal
• D can now be charged with fraud by false representation or with making off without payment contrary to s.3 TA 1978

Question 20

Laverty [1970] 3 All ER 432

Answer 20

(iii) The obtaining was not because of the deception, but because of another reason

• D offered his car for sale
• His conduct impliedly represented that D was present owner
• It was also represented that the number plates were correct ( false as had been swapped)
• V brought the car from d
• V did so because of the true rep that d was the owner
• Not because of the false rep that the number plates were correct
• This would be an offence under s.2(1)

Question 21

dishonesty test

Answer 21

The common law test of dishonesty applies in deciding whether D dishonesty made the false representation:

Ivey v Getting Casinos Uk Ltd (T/A Crockfords Club) [2017] UKSC 67;

1) Ascertain, subjectively, the actual state of D’s knowledge or belief as to the facts.
2) Was D’s conduct (for fraud the false representation) dishonest applying the objective standards of ordinary decent people.