Fraud

Question 1

Fraud - defintion

Answer 1

No definiton.

3 methods of establishing it:
(a) by making a false representation (s 2);
(b) by failing to disclose information (s 3); and
(c) by abuse of position (s4)

Question 2

Fraud - by false representation - AR

Answer 2

Making a false representation.

False if:
(a) it is untrue or misleading; and
(b) the person making it knows that it is, or might be, untrue or misleading.

Representation can be express or implied and may relate to:
- a fact;
- the law; or
- the state of mind of the person making the representation and any other person.

Only have to prove made, not that anyone was actually deceived

Question 3

Fraud - by false representation - MR

Answer 3

As above know representation is untrue/misleading.

• Dishonesty
  Ivey test

and

• Intention to make a gain or cause loss

Question 4

Fraud - by failing to disclose information

Answer 4

(a) dishonestly fail to disclose to another person information which they are under a legal
duty to disclose; 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.

Question 5

Fraud - by abuse of position

Answer 5

(a) occupy a position in which they are expected to safeguard, or not to act against, the
financial interests of another person (AR)

(b) dishonestly abuse that position (AR)

and

(c) 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. (MR)