Fraud
The Fraud Act 2006 is indeed a very serious Act with which to be charged, and now more frequently than not, it is used against individuals, companies and professionals.
A person is guilty of fraud if he is in breach of the following:
- Fraud by misrepresentation
- Fraud by failing to disclose information
- Fraud by abuse of position
The Act in effect creates new offences of obtaining services dishonestly, of possessing and the making and supplying of articles for use in frauds.
On summary conviction, a person who is found guilty of fraud is liable to:
- Imprisonment for a term not exceeding 12 months or
- to a fine not exceeding the statutory maximum (£5,000.00) or, indeed to both.
On conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine or to both.
By way of example is a case R. v.Wheeler (1990) 92 Cr App Rep 279, whereby it was held that no offence was committed by a dealer who agreed to sell a medal and to keep it for the purchaser until later in the day and who then accepted the purchasers cheque, although meanwhile he had learnt that the medal was stolen.
On appeal the conviction for a charge of deception under section 15 Theft Act 1968 was quashed. In this case, the goods had passed to the customer on the contract being made. Now, under the Fraud Act 2006, the dealer would be convicted under section 2 of the Act, being a fraud by false representation.
Section 2 states clearly that a person is in breach 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.
A representation is false if it is untrue or misleading, and the person making it knows that it is, or might be, untrue or misleading. For clarity, 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. Such a representation may be express or implied.
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