Fraud Offences Flashcards
Section 1 of the Fraud Act 2006 states that the offence of fraud can be committed in or of more of three distinctive ways:
- By false representation, for example returning stolen goods to a shop to try to obtain a refund (s 2).
- By failing to disclose information, for example omitting important information when applying for a job or health insurance (s 3)
- Through abuse of position, for example whilst deriving a local authority minibus, demanding fares for local residents when the service is actually free.
…for all these offences, same intent; make a gain for themselves, cause a loss to another.
Section 1 of the Fraud Act 2006 states what regarding the intention?
The intention must be…
to make a gain for him/herself or another or…
to cause a loss to another or…
to expose another to a risk of loss…
Section 1 of the Fraud Act 2006 offences penalties
All triable either way and the penalty is a fine or imprisonment (12 months summarily or up to 10 years on indictment).
Fraud by false representation
Section 2 of the Fraud Act 2006 states that…
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.
Fraud by false representation
Section 2 of the Fraud Act 2006
(2)A representation is false if—
(a) it is untrue or misleading, and
(b) the person making it knows that it is, or might be, untrue or misleading.
This can also be made to a machine (e.g forged coins at a coin operated snack machine).
Fraud by failing to disclose information
Section 3 of the Fraud Act 2006 states that…
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, and
(b) intends, by failing to disclose the information—
(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.
Fraud by failing to disclose information
Section 3 of the Fraud Act 2006
The failure to disclose can be made by an oral or written omission. The legal duty to disclose (and some examples of failing to do so) derives from:
Statute e.g company must publish yearly accounts under company law but fails to do so.
Assumed good faith e.g failing to put down serious illness to get reduce health insurance premiums.
Express of implied terms of a contract, from the custom of a particular trade or market e.g estate agent failing to disclose all bids client received.
The existence of a fiduciary relationship (where a person is entrusted with another persons financial arrangements), e.g solicitor doesn’t tell client there is another beneficiary to a contract.
Fraud by failing to disclose information
Section 3 of the Fraud Act 2006
How to provide evidence for this offence?
Often easiest to show there was a failure to pass on information to victim.
He/she will then have a legitimate claim for seeking damages for non-disclosure and will also be able to clarify his/her position regarding future consent.
Fraud by abuse of position
Section 4 of the Fraud Act 2006 states that…
(1) A person is in breach of this section if he—
(a) occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person,
(b) dishonestly abuses that position, and
(c) intends, by means of the abuse of that position—
(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.
A person can commit an offence by ‘going equipped’ to carry out a fraud, rather than actually having committed the fraud itself. Explain?
In this context, going equipped means being in possession or control of articles for use in fraud (s 6 of the Fraud Act 2006) or making or suppling such articles (s 7).
Going equipped means being in possession or control of articles for use in fraud (s 6 of the Fraud Act 2006).
What articles can this include?
Clothing to imitate company representatives, mechanisms to slow down electricity meters, false identity cards, credit cards, cheque books, shopping bags, till receipts, passports and driving licenses.
It also includes a computer program or data held in electronic form.
Section 6 of the Fraud Act 2006 covers possession or having the article under his/her control.
For possession, the person must have what?
Immediate physical control over the article and know that it is there, including at a distance e.g having the key to a cupboard with the article in.
Any other people who are aware of the possession is also guilty of possession.
This offence can be committed anywhere, even in suspects home.
Making or supplying articles for use in frauds
Section 7 of the Fraud Act 2006 states that…
(1) A person is guilty of an offence if he makes, adapts, supplies or offers to supply any article—
(a) knowing that it is designed or adapted for use in the course of or in connection with fraud, or
(b) intending it to be used to commit, or assist in the commission of, fraud.
Under s 1 of the PACE Act 1984, a police officer has the power to search for articles made or adapted for use in fraud.
Possession, making, or supplying of articles for committing fraud offences penalties
Triable either way and the penalty is a fine or imprisonment (12 months summarily, 5 years on indictment for a s 6 offence, 10 years on indictment for a s 7 offence).
Obtaining services dishonestly
Section 11 of the Fraud Act 2006 states that…
(1) A person is guilty of an offence under this section if he obtains services for himself or another—
(a) by a dishonest act (e.g false credit card), and
(b) in breach of subsection (2).
(2) A person obtains services in breach of this subsection if—
(a) they are made available on the basis that payment has been, is being or will be made for or in respect of them,
(b) he obtains them without any payment having been made for or in respect of them or without payment having been made in full, and
(c) when he obtains them, he knows—
(i) that they are being made available on the basis described in paragraph (a), or
(ii) that they might be,
but intends that payment will not be made, or will not be made in full.
