Conspiracy to Defraud
Share
Conspiracy to defraud is a legal term that refers to a criminal offence where two or more individuals conspire or agree to engage in fraudulent activities with the intent to deceive or harm others, typically for financial gain. This offence is both a common law offence and statutory offence, involving a conspiracy, which means that multiple people work together to commit the fraudulent act.
Statutory conspiracy to defraud: Section 12 of the Criminal Justice Act 1987 provides that if a person agrees with any other person or persons that a course of conduct shall be pursued; and that course of conduct will necessarily amount to or involve the commission of any offence or offences by one or more of the parties to the agreement if the agreement is carried out in accordance with their intentions, the fact that it will do so shall not preclude a charge of conspiracy to defraud being brought against any of them in respect of the agreement.
Common law conspiracy to defraud: Conspiracy was defined in Scott v Metropolitan Police Commissioner (1975) as an agreement by two or more by dishonesty to deprive a person of something which is his or to which he is or would be entitled and an agreement by two or more by dishonesty to injure some proprietary right of his. 'To defraud' was defined in the same case as to deprive a person dishonestly of something which is his or of something to which he is or would or might but for the perpetration of the fraud be entitled. It, therefore, contains two key elements: dishonesty, and harm to the victim's property rights if the conspiracy is undertaken.
Agreement: The heart of a conspiracy charge is an agreement between two or more individuals to commit a fraudulent act. This agreement can be formal or informal, spoken or unspoken. The agreement itself is a crucial element, as it distinguishes conspiracy from individual acts of fraud. For example, a group of individuals agrees to create a fake investment scheme to defraud people. They discuss their plan and how they will deceive potential investors.
Intent: In common law conspiracy to defraud, the conspirators must have the intent to defraud or deceive others. This means they must knowingly plan to engage in dishonest or fraudulent conduct with the goal of gaining an unfair advantage or financial benefit. However, in statutory conspiracy to defraud, it is not necessary for a conspirator to have the intent to defraud as long as the other conspirator(s) has such intent. Therefore, it is possible for a conspirator to be charged with conspiracy to defraud even if he does not know the true plan of the other conspirator(s).
Fraudulent Act: The conspiracy must involve actions or schemes that are fraudulent or dishonest in nature. This can encompass a wide range of activities, including identity theft, credit card fraud, Ponzi schemes, tax evasion, and more. For example, the conspirators in the investment scheme knowingly plan to mislead investors into thinking they will receive high returns when, in reality, their money will be stolen. The conspirators create false financial documents, set up fake companies, and create a professional-looking website to make their investment scheme appear legitimate.
Overt Act: There may be a requirement for an overt act, which is a specific action taken by one or more of the conspirators to further the conspiracy. This act need not be the fraudulent act itself but can be any step taken in pursuit of the fraudulent goal. For example, one of the conspirators contacts potential investors through email or phone calls, encouraging them to invest money in the fraudulent scheme. This action is considered an overt act in furtherance of the conspiracy.
Conspiracy to defraud is a serious criminal offence, and individuals convicted of this crime may face significant penalties, including fines, imprisonment, or both. The severity of the punishment can vary depending on the severity of the crime, the nature and scope of the conspiracy, and other factors. Under Section 12(3) of the Criminal Justice Act 1987, a person guilty of conspiracy to defraud is liable on conviction on indictment to imprisonment for a term not exceeding 10 years or a fine or both.
Statutory conspiracy to defraud: Section 12 of the Criminal Justice Act 1987 provides that if a person agrees with any other person or persons that a course of conduct shall be pursued; and that course of conduct will necessarily amount to or involve the commission of any offence or offences by one or more of the parties to the agreement if the agreement is carried out in accordance with their intentions, the fact that it will do so shall not preclude a charge of conspiracy to defraud being brought against any of them in respect of the agreement.
Common law conspiracy to defraud: Conspiracy was defined in Scott v Metropolitan Police Commissioner (1975) as an agreement by two or more by dishonesty to deprive a person of something which is his or to which he is or would be entitled and an agreement by two or more by dishonesty to injure some proprietary right of his. 'To defraud' was defined in the same case as to deprive a person dishonestly of something which is his or of something to which he is or would or might but for the perpetration of the fraud be entitled. It, therefore, contains two key elements: dishonesty, and harm to the victim's property rights if the conspiracy is undertaken.
Agreement: The heart of a conspiracy charge is an agreement between two or more individuals to commit a fraudulent act. This agreement can be formal or informal, spoken or unspoken. The agreement itself is a crucial element, as it distinguishes conspiracy from individual acts of fraud. For example, a group of individuals agrees to create a fake investment scheme to defraud people. They discuss their plan and how they will deceive potential investors.
Intent: In common law conspiracy to defraud, the conspirators must have the intent to defraud or deceive others. This means they must knowingly plan to engage in dishonest or fraudulent conduct with the goal of gaining an unfair advantage or financial benefit. However, in statutory conspiracy to defraud, it is not necessary for a conspirator to have the intent to defraud as long as the other conspirator(s) has such intent. Therefore, it is possible for a conspirator to be charged with conspiracy to defraud even if he does not know the true plan of the other conspirator(s).
Fraudulent Act: The conspiracy must involve actions or schemes that are fraudulent or dishonest in nature. This can encompass a wide range of activities, including identity theft, credit card fraud, Ponzi schemes, tax evasion, and more. For example, the conspirators in the investment scheme knowingly plan to mislead investors into thinking they will receive high returns when, in reality, their money will be stolen. The conspirators create false financial documents, set up fake companies, and create a professional-looking website to make their investment scheme appear legitimate.
Overt Act: There may be a requirement for an overt act, which is a specific action taken by one or more of the conspirators to further the conspiracy. This act need not be the fraudulent act itself but can be any step taken in pursuit of the fraudulent goal. For example, one of the conspirators contacts potential investors through email or phone calls, encouraging them to invest money in the fraudulent scheme. This action is considered an overt act in furtherance of the conspiracy.
Conspiracy to defraud is a serious criminal offence, and individuals convicted of this crime may face significant penalties, including fines, imprisonment, or both. The severity of the punishment can vary depending on the severity of the crime, the nature and scope of the conspiracy, and other factors. Under Section 12(3) of the Criminal Justice Act 1987, a person guilty of conspiracy to defraud is liable on conviction on indictment to imprisonment for a term not exceeding 10 years or a fine or both.
