View source for Fraud (Offence)

[[fr:Fraude_(infraction)]]
{{Currency2|January|2021}}
{{LevelZero}}{{HeaderFraud}}

{{OffenceBox 
|OffenceTitle=Fraud 
|OffencePage=Fraud 
|Section=380 
|Act={{OBCCC}} 
|CrownElection={{OBHybridElection}} (under), {{OBIndictableElection}} (over, test.) 
|Jurisdiction={{OBJurisdictionAll}} (over, test.), {{OBJurisdictionAbsolute}} (under) 
|Bail= {{OBBailVar}} 
|SummaryDisp= {{OBDispAll}} 
|SummaryMin= {{OBMinNone}} 
|SummaryMax= {{OBSConviction}} 
|IndictableDisp= {{OBDisp14orMinVar}} {{OBDispSame}} 
|IndictableMin= {{OBTime|2 years}} ($1 mill.+) 
|IndictableMax= {{OBTime|2 years}} (under)<br>{{OBTime|14 years}} (over or test.) }}

==Overview==
{{OverviewX|fraud}}

; Pleadings

{{PleadingsHeader-N}}
{{PleadingsIndictableList-N|s. 380(1)(a) {{DescrSec|380(1)(a)}} | {{No}} | {{Yes}} | {{Yes-14Years}} }}
{{PleadingsHybridList-N|s. 380(1)(b) {{DescrSec|380(1)(b)}} | {{Yes}} | {{No}} (absolute) | {{No}} (absolute) }}
{{PleadingsEnd}}

{{PleadingsAbsolute|s. 380(1)(b) {{DescrSec|380(1)(b)}}}}

{{PleadingsHybridElection|s. 380(1)(a) {{DescrSec|380(1)(a)}}}}

; Release
{{ReleaseHeader}}
|s. 380(1)(a)<br> {{DescrSec|380(1)(a)}} || {{ReleaseProfile-Indictable}} 
|-
|s. 380(1)(b)<br>  {{DescrSec|380(1)(b)}} || {{ReleaseProfile-Absolute}} 
|-
{{ReleaseEnd}}

{{ReleaseOptions-Indictable|s. 380(1)(a) {{DescrSec|380(1)(a)}} }}

{{ReleaseOptions-Hybrid|s. 380(1)(b) {{DescrSec|380(1)(b)}} }}

:''<u>Reverse Onus Bail</u>''
{{ReverseOnusCirc}}

:''Fingerprints and Photos''
{{IDCriminalAct|s. 380(1)(a) or (b) }}

; Publication Bans
{{GeneralPubBan}}

; Offence Designations
{{DesignationHeader}}
|-
|s. 380(1)(a) {{DescrSec|380(1)(a)}}|| {{OKMark}} <!--wire--> || {{XMark}} <!--DO-->||{{OKMark}} <!--SPIO--> || {{XMark}} <!--consent--> || <!-- IRPA -->
|-
|s. 380(1)(b) {{DescrSec|380(1)(b)}}|| {{OKMark}} <!--wire--> || {{XMark}} <!--DO-->||{{OKMark}} <!--SPIO--> || {{XMark}} <!--consent--> || <!-- IRPA -->
{{DesignationEnd}}

{{WiretapDesignation|s. 380}}

{{SeeBelowForAncillary}}

==Offence Wording==
{{quotation2|
; Fraud
380 (1) Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service,
:(a) is guilty of an indictable offence and liable to a term of imprisonment not exceeding fourteen years, where the subject-matter of the offence is a testamentary instrument or the value of the subject-matter of the offence exceeds five thousand dollars; or
:(b) is guilty
::(i) of an indictable offence and is liable to imprisonment for a term not exceeding two years, or
::(ii) of an offence punishable on summary conviction,<br>

where the value of the subject-matter of the offence does not exceed five thousand dollars.
<br>
; Minimum punishment
(1.1) When a person is prosecuted on indictment and convicted of one or more offences referred to in subsection (1) {{AnnSec3|380(1)A}}, the court that imposes the sentence shall impose a minimum punishment of imprisonment for a term of two years if the total value of the subject-matter of the offences exceeds one million dollars.
<br>
; Affecting public market
(2) Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, with intent to defraud, affects the public market price of stocks, shares, merchandise or anything that is offered for sale to the public is guilty of an indictable offence and liable to imprisonment for a term not exceeding fourteen years.

R.S., {{LegHistory80s|1985, c. C-46}}, s. 380;
{{LegHistory80s|R.S., 1985, c. C-46}}, s. 380; 
R.S., {{LegHistory80s|1985, c. 27 (1st Supp.)}}, s. 54; 
{{LegHistory90s|1994, c. 44}}, s. 25; 
{{LegHistory90s|1997, c. 18}}, s. 26; 
{{LegHistory00s|2004, c. 3}}, s. 2; 
{{LegHistory10s|2011, c. 6}}, s. 2.
{{Annotation}}
|{{CCCSec2|380}}
|{{NoteUp|380|1|1.1|2}}
}}

===Draft Form of Charges===
{{seealso|Draft Form of Charges}}
{{DraftHeader}}
|-
|380(1)(a)
|[[Fraud (Offence)|Fraud over $5,000]]
|"...by deceit, falsehood or other fraudulent means, did unlawfully defraud [victim], of [specify property or value of cash], a total value exceeding $5,000, {{contrary|380(1)(a)}}"
|-
|380(1)(a)
|[[Fraud (Offence)|Fraud of testamentary instrument]]
|"...by deceit, falsehood or other fraudulent means, did unlawfully defraud [victim], of [specify the document or instrument], a testamentary instrument, {{contrary|380(1)(a)}}."
|-
|380(1)(b)
|[[Fraud (Offence)|Fraud Not Exceeding $5,000]]
|"...by deceit, falsehood or other fraudulent means, did unlawfully defraud [victim], of [specify property or value of cash], a total value not exceeding $5,000, {{contrary|380(1)(b)}}."
{{DraftEnd}}

==Proof of the Offence==

{{ElementHeader}}
{{ElementLeft}}
{{Proving|fraud|380}}<ref>
{{CanLIIRx|Garrick|fptj8|2012 ONSC 725 (CanLII)}}{{perONSC|Ricchetti J}}{{atL|fptj8|126}} for fraud over<br>
</ref>
{{InitialElements}}
# {{box}} that the complainant owned something of value (property, money, valuable security, or a service)
# {{box}} that the culprit deprived the complainant of something of value ''or'' was put at risk of losing something of value
## {{box}} Any representations made
## {{box}} money or property of value paid to the accused
## {{box}} reason money was paid to the culprit
# {{box}} the ownership, value and continuity of the property, money, or service, including whether it is over $5,000 (for 380(a)) or under $5,000 (for 380(b))  (consider accordance with s. 491.2 and s. 657.1).
# {{box}} either:
## {{box}} the culprit had subjective knowledge of the prohibited act that caused deprivation;
## {{box}} the culprit had subjective knowledge that the conduct would likely result in deprivation<ref> 
see also {{CanLIIRx|McCarthy|210l5|2008 CanLII 49582 (ON SC)}}{{perONSC|Thorburn J}}{{atsL|210l5|12| to 20}}<br>
</ref>
# {{box}} that the deprivation must have been caused by any of the following acts: 
## {{box}} deceit, 
## {{box}} falsehood, or 
## {{box}} some other fraudulent means; (see [[Causation]])

{{ElementEnd}}

{{DecisionTrees}}

{{Reflist|2}}

==Interpretation of the Offence==
Fraud is considered a form of commercial crime, which has been defined as "an illegal act ... committed by an individual or corporation in the course of a legitimate occupation or pursuit in the industrial or commercial sector for the purpose of obtaining money or property, avoiding the payment of money or the loss of property, or obtaining business or personal advantage."<ref>
Nightingale, "The Law of Fraud and Related Offences" at 1.2(a)<br>
McMahon "Practical Handbook for Professional Investigators"[https://index.crashjb.site.nfoservers.com/Boogaloo2020/Practical%20Handbook%20For%20Private%20Investigators.pdf]
</ref>

; Actus Reus
The actus reus for fraud requires the dual elements of a "dishonest act" and a "deprivation."<ref>
{{CanLIIRP|Théroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}
</ref>
A "dishonest act" is made up of an act of "deceit, fralsehood, or other fraudulent means.<ref>
{{ibid1|Theroux}}
</ref>

{{reflist|2}}
===Deceit, Falsehood, or Other Fraudulent Means===
* [[Deceit, Falsehood, or Other Fraudulent Means]]

===Jurisdiction===
Generally, the jurisdiction of the offence includes the place where a false representation was made, the false document was prepared or signed, or where deprivation took place.

In order to attract the jurisdiction of the court, there needs to be a significant portion of the activities making up the offence occur within the court's jurisdiction.<ref>
{{CanLIIRPC|Re Libman and R|1ftxf|1985 CanLII 51 (SCC)|[1985] 2 SCR 178}}{{perSCC|La Forest J}}</ref>

Where the subject-matter is under $5,000 in value, the offence is an [[Election|absolute jurisdiction offence]] and ''must'' be tried in provincial court.<ref>
see s. 553(a)
</ref>
{{Reflist|2}}

===Proof of Property===
:''[[Proof of Ownership]]''

==="Public or Any Person"===
A "person" refers to an individual or legal person. It must be a specific victim or victims.<ref>
{{CanLIIRx|Bernard|fxsdl|2013 ONCA 371 (CanLII)}}{{TheCourtONCA}}{{atL|fxsdl|2}}<br>
</ref>

A conspiracy to defraud the operators of retail stores with counterfeit money is a conspiracy to defraud the public.<ref>
{{ibid1|Bernard}}{{atL|fxsdl|4}}</ref>

{{reflist|2}}
===Admission of Documents===
{{seealso|Business Records|Financial Institution Records}}

The ''Canada Evidence Act'' provides short-cuts to admit certain documents.

Under s. 30(1), "where oral evidence in respect of a matter would be admissible in a legal proceeding, a record made in the usual and ordinary course of business that contains information in respect of that matter is admissible in evidence under this section in the legal proceeding on production of the record."

Under s. 30(7), the applicant must give "at least seven days notice" of intention to produce records under this section "unless the court orders otherwise" and must produce it for inspection within 5 days of getting notice from the other side.

; Charter Issues
Documents that were obtained from the accused by compulsion by a person in authority, such as the Department of Community Services agent, is not a violation of the right against self-incrimination since the documents were not confessional and exist outside of state compulsion.<ref>
{{CanLIIRP|D'Amour|1cskn|2002 CanLII 45015] (ONCA)|[2002] OJ No 3103, 166 CCC (3d) 477}}{{perONCA-H|Doherty JA}} - case worker compelled accused to provide T-4 slips</ref>

{{reflist|2}}

===Other Issues===
It is not necessary that the accused have any knowledge of the identity of the victim(s) of the fraudulent act.<ref>
{{CanLIIRP|Warren|29fv0|2010 NLCA 29 (CanLII)|918 APR 7}}{{perNLCA|White JA}} - accused didn't know that the fraud would peculate to a second victim, still convicted for second victim</ref>

; Parties
In a setting where there were multiple parties involved with the act that amounted to fraud, criminal liability will be applicable where the parties contribution is beyond a ''de minimus'' range.<ref>
{{CanLIIRP|Park|2c48f|2010 ABCA 248 (CanLII)|259 CCC (3d) 50}}{{perABCA|Berger JA}}{{atL|2c48f|29}}</ref>

Merely following directions of a superior or employer is not generally a defence.<ref>
{{CanLIIRP|Lemire|227m4|1964 CanLII 52 (SCC)|[1965] SCR 174}}{{perSCC-H|Martland J}}</ref>

; Attempts
Under s. 660, where a completed fraud has not been made out the court must consider, as a matter of law, an alternative conviction for attempted fraud regardless of whether it is sought by the crown.
<ref>
{{CanLIIRP|Reis|57rv|2003 MBCA 98 (CanLII)|177 Man R (2d) 152}}{{perMBCA|Hamilton JA}}</ref>

Attempted fraud may apply where the victim discovers the deceitful conduct before being deprived of property or money.<ref>
{{ibid1|Reis}}</ref>

; Form of Charge
{{quotation2|
; Sufficiency of count relating to fraud
586. No count that alleges false pretences, fraud or any attempt or conspiracy by fraudulent means is insufficient by reason only that it does not set out in detail the nature of the false pretence, fraud or fraudulent means.
<br>
R.S., c. C-34, s. 515.
|{{CCCSec2|586}}
|{{NoteUp|586}}
}}

; Proof of Property by Photographs
See [[Real_Evidence#Photographs_in_Lieu_of_Exhibits|photographic evidence]] - s. 491.2(1)

; Abuse of Process
{{seealso|Abuse of Process}}
The criminal justice system cannot be used to collect a debt.<ref>
{{CanLIIRP|McCague|1nj8q|2006 ONCJ 208 (CanLII)|209 CCC (3d) 557}}{{perONCA|Trotter JA}}<br>
{{CanLIIRP|Wolf|1wsq3|2008 ONCA 352 (CanLII)|OJ No 1713}}{{TheCourtONCA}} <br>
</ref>
The claimant of such abuse is to be held to a "high" threshold of proof.<ref>
{{ibid1|Wolf}}
</ref>

; Defences 
There is no defence to fraud by relying on a "fiduciary duty" or other corporate obligations.<ref>
{{CanLIIRx|Potter; R v Colpitts|j528d|2020 NSCA 9 (CanLII)}}{{AtL|j528d|705}} ("There is no such thing as a “fiduciary duty” defence to fraud. Corporate obligations cannot be used as a cloak to shield criminality. “… [D]eliberately practised fraudulent acts which, in the knowledge of the accused, actually put the property of others at risk” is criminal.")
</ref>

The unforeseeable collapse of a company due to the fraud is irrelevant to fraud charges.<Ref>
{{ibid1|Potter}}{{AtL|j528d|714}}
</ref>

{{reflist|2}}

==Participation of Third Parties==
{{seealso|Role of the Victim and Third Parties|Testimonial Aids for Young, Disabled or Vulnerable Witnesses}}

; Testimonial Aids
{{3rdPTestimonyAids}}

; On Finding of Guilt 
{{VictimHeader}} <!-- Sections / Notice of Agree / Notice of Restitution / Notice of VIS --> 
|s. 380 {{DescrSec|380(1)}} || || || 
|- 
{{VictimEnd}}

{{606Notice5Y|s. 380}}

{{RestitutionNotice}}

{{VISNotice}}

==Sentencing Principles and Ranges==
* [[Sentencing Fraud]]

==History==
* [[History of Fraud Offences]]

==See Also==
* [[Identity Theft (Offence)]]
* [[Theft (Offence)]]
* [[Miscellaneous Fraudulent Offences]]
* [[Fraud (Trial Verdicts)]]

; References
* [[Pre-Trial and Trial Motions Checklist]]

* [http://sentencingcouncil.judiciary.gov.uk/docs/web_sentencing_for_fraud_statutory_offences.pdf UK Sentencing Guidelines for Fraud]

{{OffencesNavBar/Property}}