Questions II

Question 1

What are the two core elements when it comes to an offence under s220 Theft by a person in special relationship?

Answer 1

(a) That he or she have received property on terms or in circumstances which, to the defendant’s knowledge, affect what the accused may do with the property or its proceeds or require the defendant to act in accordance with the requirements of another person, and
(b) That the defendant intentionally departed from the relevant obligation

Question 2

What is the difference between forgery and altering and reproduction of a document?

Answer 2

1. The difference between the offence of forgery and altering or reproducing a document rest in the varying definitions of ‘document’ and ‘intent’.
2. With forgery, an intent to deceive only is required, not an intent to obtain by deception.
3. In the offence of altering, concealing, destroying or reproducing a document, you must prove that the offender intended to obtain by deception.
4. Any document can be altered or reproduced in the charge of altering, concealing, destroying or reproducing a document. However, in a charge of forgery the document must be a false.

Question 3

The prosecutor must establish either that the defendant knows or believes his representation is false in a material particular, or is reckless as to whether it is false in a material particular. Explain your understanding in relation to the term ‘false in a material particular’

Answer 3

The prosecutor must establish either that the defendant knows or believes his representation is false in a material particular, or is reckless as to whether it is false. Absolute certainty is not required and wilful blindness as to falsity of the statement will suffice. A minor detail may amount to a ‘material particular’ if it is of consequence to the facts of the case.

The question of materiality will be assessed objectively. Material particular is not defined in the CA and can be given its usual meaning of an important, essential or relevant detail or item.

Knowledge can be established by an admission, implications from the circumstances surrounding the event, propensity evidence.

Question 4

Investigations into company fraud complaints will usually involve enquiries with the Ministry of Commerce. State four possibly sources available there

Answer 4

1. Registrar of companies
2. Companies office
3. Official assignee
4. Insolvency services

Question 5

Propensity evidence may be relevant in some deception cases. When may evidence of propensity be called in cases of deception?

Answer 5

Propensity evidence, whether on previous or later occasions to the offence charged, is admissible in cases of deception where there is a sufficiently strong connection between the offences.

Question 6

Police investigating the fraudulent use of credit cards or cheques must conduct enquiries with the bank where where the account is domiciled. List the information an investigator must obtain from bank account manager

Answer 6

In all cases contact the banks manager to the bank where the account is domiciled and find out:
1. The account holder’s full name, occupation, private and business addresses and telephone numbers.
2. The date the account was opened.
3. The account history and how it has been operated.
4. The date the cheque book or credit card was reported missing.
5. How and by whom a loss was reported.
6. The serial numbers if any missing cheques.
Details of any cheques dishonored and returned.
7. Whether the account holder is suspected of issuing valueless cheques.
8. Find out if there are other banks to which cheques have been returned and, if possible, details of the people and firms defrauded.

Question 7

When interviewing a victim who alleges they have been defrauded, what two important questions should be asked by the investigator

Answer 7

1. That the false representation as believed, and

2. That is was the consequence of that belief that the victim parted with his or her money.

Question 8

The key to a successful company fraud investigation is to seek advice early. Outline the suggested sources of specialist information you should canvass and the type of potential assistance those sources can provide the investigation

Answer 8

1. Police accountants and legal officers:
   Police forensic accountants are available to give you advice. Legal Section can be of particular help in preparing production orders, search warrants and charges.

2. Ministry of Business, Innovation and Employment	Possible sources of information are:
	•	Registrar of Companies.
	•	Companies Office.
	•	Official assignee.
	•	Insolvency Services.

3. Commerce Commission: can assist in matters relating to:
   • the Fair Trading Act 1986
   • the Unsolicited Goods and Services Act 1975
   • pyramid selling.
4. Financial Markets Authority: The Financial Markets Authority can assist in matters relating to the Securities Act 1978 and the issuing of prospectuses.
5. NZ Customs: Customs can assist in matters involving international travel and CAPPS alerts.
6. Liquidators and receivers: These administer companies that are in liquidation or receivership. They are usually accountants.