fraud Flashcards
fraud
conduct based - not result based
(1) A person is guilty of fraud if he is in breach of any of the sections listed in subsection (2) (which provide for different ways of committing the offence).
(2) The sections are—
(a) section two (fraud by false representation)
(b) section three (fraud by failing to disclose information)
(c) section four (fraud by abuse of position).
s2(1) of fraud
fraud by false representation
s2(1) A person is in breach of this section if he —
(a) dishonestly makes a false representation, and
(b) intends, by making the representation—
(i) to make a gain for himself or another, or
(ii) to cause loss to another or to expose another to a risk of loss.
actus reus -
Representation as to fact, law or state of mind
No need for completed communication
Representation by words, gestures or conduct
Directly or through an agent
Express or implied - s2(4)
s. 2(2): a representation is false if –
(a) it is untrue or misleading, and
(b) the person making it knows it is, or might be untrue or misleading.’
mens rea
There must be knowledge:
The person making the representation must know either that it is or it might be untrue or misleading
Includes wilful blindness –
MUST BE INTENTION
MUST BE DISHONESTY
Test for dishonesty -
(1) What was the defendant`s actual knowledge or belief as to the facts (a subjective test)?
(2) In light of the conclusion in relation to question (1), was the defendant’s conduct honest or dishonest applying the (objective) standards of ordinary decent people?
s.3 of fraud act
Fraud by Failing to Disclose Information
Section 3: A person is in breach of this section if he (a) dishonestly fails to disclose to another person information which he is under a legal duty to disclose -much narrower
Actus reus -
Failure to disclose any OR insufficient information- can be committed by silence
Legal, not moral, duty to disclose- not defined duty
Includes a civil law duty
mens rea-
Intention to make a gain/ cause a loss/ risk of loss
Dishonesty
NB: Knowledge not required- you dont have to know you have a legal duty
