Fraud

Question 1

What does gain and loss apply to?

Answer 1

This applies only to gain and loss of MONEY and PROPERTY including intellectual property and things in action.

Gain can mean getting something you did not have as well as keeping something you should lose

Loss means losing something you had as well as preventing someone who should have something from getting it

Question 2

What is the offence of fraud by false representation?

Answer 2

Any person who…

• dishonestly
• makes a false representation
• intending to make a gain for himself or another
• intending to make a loss for another or expose them to the risk of loss
• representation can be to something physical or to the state of mind of someone
• the representation can be made to a person or machine or system designed to receive that representation
• representations can be express or implied
• the fraud need not generate a result and it will be complete the moment the representation is made, even if no one receives or hears it. If done by sending a letter the offence is complete as soon as the letter is sent

Question 3

What is the offence of fraud by failure to disclose?

Answer 3

Any person who…

• dishonestly
• fails to disclose information
• they are under a legal duty to disclose
• intending to make a gain for themselves or another
• intending to cause a loss to another or expose them to a risk of loss
• duties apply to written as well as oral contracts
• examples of this will include…
• failure by a solicitor to disclose information they knew of in order to defraud a client
• failure to disclose medical defects on a life insurance application
• failure to disclose benefits on an application when legally required to do so

Question 4

What is the offence of fraud by abuse of position?

Answer 4

Any person who…

• any person who occupies a position
• where they are expected not to act against or safeguard someone else’s financial interests
• dishonestly
• abuses that position
• to make a gain for themselves or another
• make a loss for another or expose them to a risk of loss
• an omission is covered in this as well as an act
• examples of this include…
• a solicitor valuing a house incorrectly to make a gain by having someone purchase it for them
• an employee abusing access to software in order to clone and sell it
• a care worker accessing a clients bank accounts
• an employee failing to take advantage of an opportunity to allow a rival company to take it for a pay off or to lose his company money

Question 5

What is the offence of possession of articles for use in fraud

Answer 5

Any person who…

• has in their possession
• ANY ARTICLE
• for use in the course of or connection with a fraud
• this can be any article of any description, including digital programs for cloning or generating data or messages
• the offence can be complete ANYWHERE, even in their own home
• possession means the article can be anywhere as long as it is under their control for use
• the offence can only be committed with current or future frauds, not historical ones (so finding an article from a fraud does not count)
• the offence is complete if you have the article for use by someone else for fraud

Question 6

What is the offence of making it supplying articles for use in fraud?

Answer 6

Any person who…

• makes
• adapts
• supplies
• offers to supply

…any article, knowing…

• it is made for it adapted for use in fraud
• intending it be used for, or assist with, fraud
• for an offer, the articles being offered need not exist or for anything to come from the offer
• think if the person who makes satellite viewing cards, offers to supply them and then makes more off the expressions of interest, for sale

Question 7

What is the offence of obtaining g any service by dishonesty?

Answer 7

Any person who…

• obtains a service…
• dishonestly
• the service is available by payment
• the person knows that the service is available by payment or might be
• no payment is made or only part payment
• they intend not to make payment or pay in full
• THERE MUST BE AN OUTCOME for this offence. No payment avoided = no offence
• no representation is required so something like slipping into a concert without paying to see the gig would count
• illegal services count so not intending to pay a prostitute or drug dealer will be an offence
• you cannot commit the offence if you are not expected to pay for the service, no matter how dishonest. So sneaking a ride in a van will not be an offence because the van company will never provide that service for charge

Question 8

What is the offence of false accounting?

Answer 8

Any person who…

• destroys
• defaces- falsifie