Fraud under Fraud Act 2006
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Fraud is a criminal offence that involves deceptive or dishonest behaviour intended to deceive another person or entity for personal gain or to cause them harm. The Fraud Act 2006 consolidated and updated previous legislation related to fraud offences. It also sets out three main types of fraud as follows:
Section 2: Fraud by False Representation
A person is guilty of fraud if he dishonestly makes a false representation, and intends, by making the representation, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. Representation means any representation as to fact or law, including a representation as to the state of mind of the person making the representation, or any other person. It may be express or implied. It is false if it is untrue or misleading, and the person making it knows that it is, or might be, untrue or misleading.
Section 3: Fraud by Failing to Disclose Information
A person is guilty of fraud if he dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and intends, by failing to disclose the information to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss.
Section 4: Fraud by Abuse of Position
A person is guilty of fraud if he occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person, dishonestly abuses that position, and intends, by means of the abuse of that position to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. A person may be regarded as having abused his position even though his conduct consisted of an omission rather than an act.
The key points and interpretation of fraud under the Fraud Act 2006 are as follows:
Dishonesty: Under Section 2, fraud by false representation occurs when a person dishonestly makes a false representation, knowing that the representation is untrue or misleading, with the intent to gain a financial advantage, cause a loss to another person, or expose someone to a risk of loss. A representation can be made in various forms, such as in writing, verbally, or through conduct.
Failure to disclose: Under Section 3, fraud by failing to disclose information occurs when a person fails to disclose information that they are under a legal duty to disclose, intending to make a financial gain for himself or cause a loss to another person. The failure to disclose must be dishonest and must be done with the intention to deceive.
Position of trust: Under Section 3, fraud by abuse of position occurs when a person occupies a position of trust, responsibility, or authority, and he dishonestly abuses that position to gain a financial advantage for himself or cause a loss to another person. The abuse of position can be by way of an action or an omission.
The maximum penalty is 12 months' imprisonment on summary conviction and 10 years' imprisonment on conviction on indictment. Additionally, the legislation includes provisions related to ancillary offences such as possession, making, and supplying articles for use in fraud. It also contains provisions for corporate liability in cases of fraud.
Section 2: Fraud by False Representation
A person is guilty of fraud if he dishonestly makes a false representation, and intends, by making the representation, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. Representation means any representation as to fact or law, including a representation as to the state of mind of the person making the representation, or any other person. It may be express or implied. It is false if it is untrue or misleading, and the person making it knows that it is, or might be, untrue or misleading.
Section 3: Fraud by Failing to Disclose Information
A person is guilty of fraud if he dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and intends, by failing to disclose the information to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss.
Section 4: Fraud by Abuse of Position
A person is guilty of fraud if he occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person, dishonestly abuses that position, and intends, by means of the abuse of that position to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. A person may be regarded as having abused his position even though his conduct consisted of an omission rather than an act.
The key points and interpretation of fraud under the Fraud Act 2006 are as follows:
Dishonesty: Under Section 2, fraud by false representation occurs when a person dishonestly makes a false representation, knowing that the representation is untrue or misleading, with the intent to gain a financial advantage, cause a loss to another person, or expose someone to a risk of loss. A representation can be made in various forms, such as in writing, verbally, or through conduct.
Failure to disclose: Under Section 3, fraud by failing to disclose information occurs when a person fails to disclose information that they are under a legal duty to disclose, intending to make a financial gain for himself or cause a loss to another person. The failure to disclose must be dishonest and must be done with the intention to deceive.
Position of trust: Under Section 3, fraud by abuse of position occurs when a person occupies a position of trust, responsibility, or authority, and he dishonestly abuses that position to gain a financial advantage for himself or cause a loss to another person. The abuse of position can be by way of an action or an omission.
The maximum penalty is 12 months' imprisonment on summary conviction and 10 years' imprisonment on conviction on indictment. Additionally, the legislation includes provisions related to ancillary offences such as possession, making, and supplying articles for use in fraud. It also contains provisions for corporate liability in cases of fraud.
