View source for Deceit, Falsehood, or Other Fraudulent Means

[[Fr:Deceit,_Falsehood,_or_Other_Fraudulent_Means]]
{{Currency2|January|2021}}
{{HeaderFraud}}
==General Principles==
The Crown has the burden to prove beyond a reasonable doubt that deprivation was caused by "deceit, falsehood, or other fraudulent means."<ref>
{{CanLIIRP|Zlatic|1fs42|1993 CanLII 35|79 CCC (3d) 466}}{{perSCC-H|McLachlin J}} (3:2){{atL|1fs42|13}}<br>
</ref>

The offence of tax evasion is a form of fraud and so the elements of tax evasion can amount to a form of criminal fraud.<ref>
{{CanLIIRPC|Germany (Federal Republic) v Schreiber|gdm0r|2004 CanLII 93326 (ON SC)|184 CCC (3d) 367}}{{perONSC-H|Watt J}} upheld at  206 CCC (3d) 339, [http://canlii.ca/t/1mq19 2006 CanLII 6189] (ONCA){{perONCA|Sharpe JA}} (3:0)<br>
</ref>

"Defraud" has been defined as meaning "dishonest deprivation."<ref>
{{CanLIIRP|Olan|1mkbp|1978 CanLII 9 (SCC)|[1978] 2 SCR 1175, 5 CR (3d) 1, 41 CCC (2d) 145}}{{perSCC|Dickson J}}
</ref>

{{reflist|2}}
===''Actus Reus''===
Fraud is not defined in the Criminal Code. At common law it requires the basic elements of "dishonesty" and "deprivation."<ref>
{{CanLIIRP|Olan|1mkbp|1978 CanLII 9 (SCC)|[1978] 2 SCR 1175, 5 CR (3d) 1, 41 CCC (2d) 145}}{{perSCC|Dickson J}} at 150 ("Courts, for good reason, have been loath to attempt anything in the nature of an exhaustive definition of 'defraud' but one may safely say, upon the authorities, that two elements are essential, 'dishonesty' and 'deprivation.' To succeed, the Crown must establish dishonest deprivation.")</ref>

To "defraud" means to "dishonest deprivation."<ref>
{{ibid1|Olan}}
</ref>
To that end, the Crown must prove that the dishonest means "did in fact defraud."<ref>
{{CanLIIRP|Briltz|g9hmh|1983 CanLII 2577 (SK QB)|24 Sask R 120}}{{perSKQB|Maurice J}}{{atL|g9hmh|7}}<br>
{{CanLIIRP|Winning|hv0m7|1973 CanLII 1408 (ON CA)|12 CCC (2d) 449}}{{perONCA|Gale CJ}}<br>
</ref> 
Deprivation is usually estlablished on "proof of a detriment, prejudice or risk of prejudice to the economic interests of the victim."<ref>
{{supra1|Briltz}}{{atL|g9hmh|8}}<br>
</ref>

The ''actus reus'' for the offence is made out where there is:<ref>
{{CanLIIRP|Zlatic|1fs42|1993 CanLII 35|79 CCC (3d) 466}}{{perSCC-H|McLachlin J}} (3:2)<br>
{{CanLIIRP|Théroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}<br>
</ref>
# a prohibited act of deceit, a falsehood or some other fraudulent means; and<ref>
e.g. for act of deprivation see {{CanLIIRP|Kwaidah|2bkzc|2010 NLCA 43 (CanLII)|[2010] NJ No 222 (CA)}}{{perNLCA|Wells JA}} (3:0){{atL|2bkzc|26}} and {{CanLIIRP|Lauer|fkdt0|2011 PECA 5 (CanLII)|[2011] P.E.I.J. No 9 (CA)}}{{perPEICA|Murphy JA}} (3:0){{atL|fkdt0|79}}</ref>
# a deprivation caused by the prohibited act. Either an actual loss or a pecuniary interest at risk.

Actus reus is determined "entirely on the objective facts."<ref>
{{CanLIIRP|Wolsey|1wkzf|2008 BCCA 159 (CanLII)|233 CCC (3d) 205}}{{perBCCA|Huddart JA}} (2:1){{atL|1wkzf|22}}<br>
</ref>

Where deceit or falsehood is made out, no further conduct is required to be proven.<ref>
{{supra1|Vladic}} ("Most frauds continue to involve either deceit or falsehood.  As is pointed out in Théroux, proof of deceit or falsehood is sufficient to establish the actus reus of fraud; no further proof of dishonest action is needed.")<br>
</ref>

Subsequent honouring of an intention after a fraudulent act does not negate its criminal effect.<ref>
{{CanLIIRP|Pchajek (S.A.)|267t2|2009 MBQB 265 (CanLII)|254 Man R (2d) 10}}{{perMBQB|Beard J}}{{atL|267t2|34}} citing Nightingale, "The Law of Fraud and Related Offences"<br>
</ref>

{{reflist|2}}

===''Mens Rea''===
The ''mens rea'' for fraud is: <ref>
{{CanLIIRP|Theroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}{{atsL|1fs40|24|, 27, 28}} and {{atsL-np|1fs40|39|}}<Br>
{{CanLIIRx|Leclair|j7t3r|2020 ONCA 230 (CanLII)}}{{TheCourtONCA}}{{atL|j7t3r|3}}
</ref>
#the subjective awareness of undertaking (or deliberate commission of) the prohibited act of deceit, a falsehood or some other fraudulent means and 
# the subjective awareness that the prohibited act created the risk of depriving another of property. 
 
The personal feelings of the “morality or honesty” of the act is not relevant.<ref>
{{ibid1|Theroux}}, eg. (“the question is whether the accused subjectively appreciated that certain consequences would follow from his or her acts, not whether the accused believed the acts or their consequences to be moral.”)</ref>

It is sufficient for the Crown to prove that the accused conduct was "deliberate or a product of an operating mind with the relevant facts, the circumstances in which they were undertaken, and the consequences that might result."<ref>
{{CanLIIRx|Cameron|h31sb|2017 ABQB 217 (CanLII)}}{{perABQB|Jeffrey J}}{{atL|h31sb|39}} ("The mens rea requires the Crown to prove that the Accused’s conduct was deliberate or a product of an operating mind with knowledge of the relevant facts, the circumstances in which they were undertaken, and the consequences that might result if he carried them out")<br>
{{CanLIIRP|Long|231lx|1990 CanLII 5405 (BC CA)|61 CCC (3d) 156}}{{perBCCA|Taggart JA}} (2:1)<br>
</ref>

; Recklessness and Wilful Blindness
The accused may be found guilty on the basis of recklessness or willful blindness.<ref>
{{CanLIIRP|Ellis|1v09r|2007 ABQB 722 (CanLII)|426 AR 1}}{{perABQB|Verville J}}{{atL|1v09r|171}} ("Guilt on a charge of fraud can also be proven on the basis of recklessness or wilful blindness.")<br></ref>
This standard applies both to the conduct and the consequence of the offence.<ref>
{{ibid1|Ellis}}{{atL|1v09r|175}}<br>
</ref>

The awareness of the risk of deprivation include recklessness.<ref>
{{CanLIIRP|Zlatic|1fs42|1993 CanLII 35|79 CCC (3d) 466}}{{perSCC-H|McLachlin J}} (3:2)<br>
<br>
{{CanLIIRP|Wolsey|1wkzf|2008 BCCA 159 (CanLII)|233 CCC (3d) 205}}{{perBCCA|Huddart JA}} (2:1){{atsL|1wkzf|28| to 31}}<br>
</ref>

Making use of funds which the accused was wilfully blind as to its source is considered dishonest.<ref>
{{supra1|Zlatic}}{{atp|478}}<br>
</ref>

; Inferences
Evidence of legitimate transactions with an absence of any "badges of fraud" can support an inference of "non-criminal" intent.<ref>
{{CanLIIRP|Milec|6j1x|1996 CanLII 315 (ON CA)|[1996] OJ No 3437 (CA)}}{{perONCA|Carthy JA}}<br>
{{CanLIIRP|Duffy|gplvk|2016 ONCJ 220 (CanLII)|131 WCB (2d) 128}}{{perONCJ|Vaillancourt J}} <br>
</ref>

Where there is a rational basis to infer that the accused was simply duped into their role with a fraudulent conspiracy, there may be no criminal responsibility attached.<ref>
e.g. {{CanLIIRx|Bisram|fm47s|2011 ONSC 3913 (CanLII)}}{{perONSC|Hill J}}
</ref>

; Mistaken Belief / Self-Help
A mistaken belief that the victim owes the accused money cannot justify collecting debt by deceit.<ref>
{{CanLIIRx|Must|flj0q|2011 ONCA 390 (CanLII)}}{{TheCourtONCA}}</ref> 

An accused's mistaken belief as to their legal right to take another person's property does not negate the ''mens rea'' for fraud.<ref>
{{CanLIIRP|Kingsbury|ftv28|2012 BCCA 462 (CanLII)|297 CCC (3d) 255}}{{perBCCA|Harris JA}} (3:0){{atL|ftv28|40}} ("I do not agree that an honest mistake about whether in law an accused is entitled to take property or put another’s economic interests at risk is relevant to the mens rea of fraud, any more than an honest belief that the prohibited conduct is not dishonest or is not wrong is relevant to mens rea.  In my opinion, it is sufficient that an accused intend or foresee the facts or circumstances that constitute deprivation.")<br>
{{CanLIIRx|Suzi|hsmtz|2018 ABPC 130 (CanLII)}}{{perABPC|Shaigec J}}{{atsL|hsmtz|27| to 31}}<br>
{{supra1|Must}}<br>
</ref>

That the accused simply "hoped the deprivation would not take place" is not a defence where the accused knew that he was undertaking a prohibited act that could cause deprivation.<ref>
{{CanLIIRP|Emms|2dq05|2010 ONCA 817 (CanLII)|264 CCC (3d) 402}}{{perONCA|Rosenberg JA}}{{atL|2dq05|32}} ("...the fact that an accused may have hoped the deprivation would not take place is no defence.")</ref>

The ''mens rea'' of fraud is most frequently proven by way of inference from circumstantial evidence.<ref>
{{supra1|Ellis}}{{atL|1v09r|174}}<br>
</ref>

Wilful blindness appears in two situations in a fraud case:<ref>
{{CanLIIRx|Bailey|g6x7w|2014 ABPC 103 (CanLII)}}{{perABPC|Fradsham J}}{{atL|g6x7w|420}} - citing Nightingale, Law of Fraud and Related Offences<br>
</ref>
# An accused is wilfully blind with respect to the conduct element of the ''actus reus'' of fraud when he or she is aware that certain facts exist which would make such conduct a deceit, falsehood, or other fraudulent means, but deliberately refrains from making inquiries so as to remain ignorant;
# An accused is wilfully blind with respect to the consequence of the ''actus reus'' of fraud when he or she is aware that certain facts exist giving rise to a belief that the prohibited consequences will flow from such conduct, but deliberately refrains from making inquiries so as to remain ignorant.
In social assistance or welfare fraud, the accused does not need to know that the regulations prohibited false applications. <ref>
{{CanLIIRx|Bavarsad|1tfm9|2007 BCCA 527 (CanLII)}}{{perBCCA|Tysoe JA}} (3:0)</ref>


{{reflist|2}}

==Deceit or Falsehood==
; Deceit
"Deceit" has been defined as "inducing a person to believe something is true where the deceiver knows that it is false."<ref>
{{CanLIIRP|Lawson|1dczp|1994 CanLII 890 (BC CA)|49 BCAC 301}}{{perBCCA-H|Finch JA}}<br>
{{CanLIIRP|Stephenson|1n28f|2006 BCCA 25 (CanLII)|205 CCC (3d) 214}}{{perBCCA|Rowles JA}} (3:0){{atL|1n28f|102}} - deceit is established when accused induces a person to believe something the deceiver knows is false
</ref>

"Deceit" has also been characterized as "an untrue statement made by a person who knows that it is untrue, or has reason to believe that it is untrue, but makes it despite that risk, to induce another person to act on it, as if it were true, to that other person’s detriment."<ref>
{{CanLIIRP|Garrick|fptj8|2012 ONSC 725 (CanLII)}}{{AtL|fptj8|127}}
</ref>

Deceit will always require a subjective awareness of the dishonesty.<ref>
{{CanLIIRP|Sebe|1prws|1987 CanLII 980 (SK CA)|35 CCC (3d) 97}}{{perSKCA|Bayda CJ}} (3:0) ("Whatever may be their meanings in the civil law, the notions of deceit, falsehood and fraud, when used in a criminal law context, connote an element of subjective or deliberate dishonesty. Thus, in the case of deceit and falsehood, the perpetrator who uses these means must know the falsity of his statement or be reckless as to its truth for there to be deceit or falsehood within the meaning of the section. Similarly, in the case of an act, the actor must know that the act is dishonest.")
</ref>

; Falsehood
"Falsehood" is a "deliberate lie."<ref>
{{supra1|Stephenson}} {{atL|1n28f|102}}
</ref>

"Dishonesty" is determined on an objective standard determined by what a reasonable person would consider dishonest. <ref>
{{CanLIIRP|Mercer|27pv8|1998 CanLII 18029 (NL CA)|494 APR 174}}{{perNLCA|Green JA}} at 13<br>
{{CanLIIRP|Theroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}{{atL|1fs40|39}}</ref> 
Dishonesty can also include non-disclosure where a reasonable person would consider it dishonest.<ref>
{{CanLIIRP|Zlatic|1fs42|1993 CanLII 35|79 CCC (3d) 466}}{{perSCC-H|McLachlin J}} (3:2)</ref>

A dishonest act can include the use of funds for a purpose other than the purpose for which they were received.<ref>
{{CanLIIRP|Horsman|1fw1n|2002 SKCA 2 (CanLII)|[2002] S.J. No 9}}{{perSKCA|Sherstobitoff JA}} (3:0) <br>
</ref>

; Failure to Detect Conduct
A victim's failure to detect or avoid the deception does not remove any degree of culpability.<ref>
{{CanLIIRP|Pchajek|267t2|2009 MBQB 265 (CanLII)|254 Man R (2d) 10}}{{perMBQB|Beard J}}{{atL|267t2|34}}<br>
</ref>

{{reflist|2}}
===Examples===
Deceptive and false acts include conduct such as:
* filing of false invoices for work not done;<Ref>
e.g. {{CanLIIRx|Rutenberg|g28d6|2013 BCSC 2215 (CanLII)}}{{perBCSC|Baird J}}
</ref>
* filing of false accounting documents<ref>
e.g. {{CanLIIRx|MacMullin|g8phw|2014 ABQB 476 (CanLII)}}
</ref>
* filing false forms to obtain social assistance<ref>
{{CanLIIRP|Wilson|5ckx|2003 BCSC 414 (CanLII)|BCJ No 620}}{{perBCSC|Romilly J}}
</ref>
* filing false documents to obtain insurance proceeds<reF>
{{CanLIIRx|Revington|58bz|2001 BCSC 683 (CanLII)}}{{perBCSC|Cullen J}}
</ref>
* misrepresenting the existence of investment opportunities<Ref>
{{CanLIIRx|Gibb|g0jbk|2013 ONSC 5680 (CanLII)}}{{perONSC|Murray J}}
</ref>
* misrepresenting the accused's personal circumstances in online dating in order to develop a personal relationship and obtain cash and credit.<Ref>
{{CanLIIRx|Mastronardi|1q4vw|2006 BCSC 1681 (CanLII)}}{{perBCSC|Josephson J}}
</ref>
* misrepresenting the need and costs of repairs.<REf>
{{CanLIIRx|Singer|fzfrt|2013 ONSC 4035 (CanLII)}}{{perONSC|Hainey J}}
</ref>
* a car dealership rep misrepresenting vehicles for sale as new when they were used demo models.<ref>
{{CanLIIRP|Ontario Chrysler (1977) Ltd.|233dr|1994 CanLII 8758 (ON CA)| MVR (3d) 239, 69 OAC 185 (CA)}}{{perONCA-H|Doherty JA}} </ref>

{{reflist|2}}

==Other Fraudulent Means==
"Other fraudulent means" is a "term that covers more ground than either deceit or falsehood. It includes any other means, which are not deceit or falsehood, properly regarded as dishonest according to the standards of reasonable people" but include all other means that are "stigmatized as dishonest."<ref>
{{CanLIIRP|Mercer|27pv8|1998 CanLII 18029 (NL CA)| Nfld. & PEIR 174 (NLCA)}}{{perNLCA|Green JA}} at 13<br>
{{CanLIIRP|Olan et al|1mkbp|1978 CanLII 9|[1978] 2 SCR 1175, 41 CCC (2d) 145}}{{perSCC|Dickson J}} (9:0){{atp|1180}}<br>
{{CanLIIRP|Emond|1nf9r|1997 CanLII 10605 (QC CA)|117 CCC (3d) 275}}{{perQCCA|Beadouin JA}}<br>
{{CanLIIRP|Feddema|1l3cl|2005 ABCA 236 (CanLII)|367 AR 230}}{{TheCourtABCA}} (3:0){{atL|1l3cl|53}} (“all means other than deceit or falsehood that may be properly stigmatized or dishonest.”)<br>
</ref>
The question of whether conduct fits into "other fraudulent means" is a question of fact.<ref>
Nightingale, The Law of Fraud and Related Offences at 3.1(a)(i)</ref>

The ''actus reus'' consist of "dishonest" conduct that causes deprivation.<ref>
{{CanLIIRP|Long|231lx|1990 CanLII 5405 (BC CA)|61 CCC (3d) 156}}{{perBCCA|Taggart JA}}
</ref>

{{reflist|2}}
===Dishonesty===
Dishonesty can be an act or an omission whereby silence about and essential aspect.<ref>
{{supra1|Emond}} ("Le mensonge peut consister en un acte positif, mais aussi parfois en une simple réticence, c'est-à-dire en une situation où, par son silence, un individu cache à l'autre un élément capital et essentiel.")
</ref>

The issue of ''actus reus'' is determined objectively as to whether a reasonable person would consider the conduct to be "dishonest."<ref>
Nightingale, at 3.1(a)(i)</ref>
The standard is not based on the trier-of-fact's own personal views of honesty but rather what the "community" would consider to be honest and dishonest.<ref>
{{CanLIIRP|Gatley|1d9b9|1992 CanLII 1088 (BC CA)|74 CCC (3d) 468}}{{TheCourtBCCA}} (3:0) ("In this connection it would be important to instruct the jury that they should determine honesty or dishonesty not necessarily in accordance with their own personal views, but rather in the way they believe the community would consider that difficult question.) <br>
</ref>
It includes "conduct which ordinary decent people would feel was discreditable as being clearly at variance with straightforward or honourable dealings, is dishonest conduct."<ref>
{{CanLIIRP|Long|231lx|1990 CanLII 5405 (BC CA)|61 CCC (3d) 156}}{{perBCCA|Taggart JA}}{{atL|231lx|23}}<br>
{{CanLIIRP|Lajoie|1n8lm|1999 CanLII 13597 (QC CA)|136 CCC (3d) 84}}{{TheCourtQCCA}}
</ref>

Dishonesty "may include, but is not limited to, deceit or falsehood."<ref>
{{supra1|Long}}{{atL|231lx|119}}<br>
</ref>

Dishonesty is distinguished from "carelessness", "improvidence", and "sharp practices."<ref>
{{CanLIIRP|Theroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}{{atp|26}}<br>
</ref>

Merely falling "below the highest standard of straightforward or honourable dealings ... alone" will not be sufficient to make out fraud.<ref>
{{CanLIIRP|Doren|g13pj|1982 CanLII 2197 (ON CA)|66 CCC (2d) 448}}{{perONCA|Dubin JA}} ("I agree with counsel for the appellant that it cannot be said that in every case where the trier of fact determines that conduct falls below the highest standard of straightforward or honourable dealings that that finding alone would be sufficient to make out a case of fraud or conspiracy to defraud. I think that imposes too high a standard against which to measure criminality")
</ref>

{{reflist|2}}

===Examples of Fraudulent Means===
Types of conduct include:<ref>
Nightingale, at 3.1(b)<br>
some listed in {{CanLIIRP|Théroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}{{atp|204}}<br>
see also {{CanLIIRP|Zlatic|1fs42|1993 CanLII 35|79 CCC (3d) 466}}{{perSCC-H|McLachlin J}} (3:2)<br>
{{CanLIIRP|Lauer|fkdt0|2011 PECA 5 (CanLII)|269 CCC (3d) 127}}{{perPEICA|Murphy JA}} (3:0)<br>
</ref>
# misuse of corporate assets, including for personal use<ref>
{{supra1|Zlatic}}, ("These situations include, to date, the use of corporate funds for personal purposes")<br>
</ref>
# breach of trusts / exploiting weakness of another;
# non-disclosure of material facts<ref>
{{CanLIIRP|Olan et al|1mkbp|1978 CanLII 9 (SCC)|[1978] 2 SCR 1175}}{{perSCC|Dickson J}} (9:0)<br>
{{supra1|Zlatic}} (“other fraudulent means has been used to support a conviction in situations involving the non-disclosure of important facts”)  
</ref>
# unauthorized diversion of funds or property<ref>
{{supra1|Zlatid}} ("These situations include, ... unauthorized diversion of funds...")<br>
</ref>
# breach of contractual obligations

These classes of "other fraudulent means" can encompass many scenarios.

; Misuse of Assets
Fraud includes the use of company assets for personal purposes.<ref>
Criminal Fraud by J. Douglas Ewart (Toronto: Carswell, 1986){{Atp|85}}<br>
See {{CanLIIRP|Marquardt|gd9vg|1972 CanLII 1266 (BC CA)|6 CCC (2d) 372}}{{perBCCA-H|MacLean JA}} - owner of closely held company used money on personal expenses, depriving creditors
</ref>

Directors who use assets for purposes which are not bona fides in the best interests of the company and not for a legitimate purpose then the directors may be liable for fraud.<ref>
{{supra1|Cox and Olan}}</ref>

A president and sole shareholder of a real estate company who redirected money from clients to him personally instead of the company was found guilty of fraud and theft.<ref>
{{CanLIIRP|Verville|1mvs5|1999 CanLII 13272 (QC CA)|140 (3d) 293}}{{perQCCA|Thibault JA}} (3:0)</ref> 

See also: {{CanLIIRP|Black|gdgpk|1983 CanLII 3493 (ON CA)| (1983) 5 CCC (3d) 313}}{{perONCA|Grange JA}}

; Material Non-Disclosure
Materials omissions are an important element to "other fraudulent means."<ref>
{{supra1|Théroux}} at p. 457 (CCC)
</ref>
Where an accused who omitted to tell his investors, who are purchasing a building, that he bought it personally and was re-selling for a profit.<ref>
{{CanLIIRP|Emond|1nf9r|1997 CanLII 10605 (QC CA)|117 CCC (3d) 275}}{{perQCCA|Beadouin JA}}</ref>

Where the Crown is relying on material non-disclosure, there must be a duty to disclose, typically arising from the relationship between the parties.<ref>
{{CanLIIR-N|Monkman| (1980), 4 Man. R. (2d) 352 (Co. Ct.)}}<br>
{{CanLIIRP|D’amour|1cskn|2002 CanLII 45015 (ON CA)|166 CCC (3d) 477}}{{perONCA-H|Doherty JA}} (3:0)<br> 
{{CanLIIRP|Vanderveen|4w9k|2002 BCSC 236 (CanLII)|BCTC 236}}{{perBCSC|Joyce J}}<br>
{{CanLIIRP|Easte|580t|2002 BCSC 615 (CanLII)|BCTC 615}}{{perBCSC|Holmes J}}<br>
{{CanLIIRP|Feddema|1l3cl|2005 ABCA 236 (CanLII)|367 AR 230}}{{TheCourtABCA}} (3:0)<br>
</ref>

{{reflist|2}}

==Deprivation or Risk of Deprivation (Prohibited Consequences)==
The requirement of a deprivation "is satisfied on proof of detriment, prejudice, or risk of prejudice to economic interests of the victim.  It is not essential that there be actual economic loss as the outcome of the fraud."<ref>
{{CanLIIRP|Olan et al|1mkbp|1978 CanLII 9|[1978] 2 SCR 1175, 41 CCC (2d) 145}}{{perSCC|Dickson J}} (9:0) at 149 at 150<br>
{{CanLIIRP|Zlatic|1fs42|1993 CanLII 135 (SCC)|[1993] 2 SCR 29}}{{perSCC-H|McLachlin J}} (3:2) <br>
</ref>

It is further required in order to prove "dishonest deprivation" that the victim would not have otherwise allowed the deprivation to happen if they had known the true state of affairs.<ref>
{{CanLIIRP|Knowles|gb5f8|1979 CanLII 2919 (ON CA)|51 CCC (2d) 237}}{{perONCA-H|Martin JA}}
</ref>

It is no defence for the accused to have simply "hoped" that deprivation would not have occurred or that they felt that there was "nothing wrong" with their conduct.<ref>
{{CanLIIRP|Theroux|1fs40|1993 CanLII 134 (SCC)|[1993] 2 SCR 5}}{{perSCC-H|McLachlin J}}{{atL|1fs40|24}}<br>
</ref>

Actual loss is not necessary, it is sufficient to show an actual risk of loss.<ref>
{{CanLIIRP|Drabinsky|fn2mg|2011 ONCA 582 (CanLII)|[2011] OJ No 4022 (CA)}}{{TheCourtONCA}} (3:0){{atL|fn2mg|82}}<br>
{{supra1|Zlatic}}<br>
{{CanLIIRP|Campbell|1ftqr|1986 CanLII 35 (SCC)|[1986] 2 SCR 376}}{{perSCC|Lamer J}} (5:0)<br>
</ref> 
"Deprivation" includes the risk of deprivation.<ref>
{{supra1|Olan}} ("It is not essential that there be actual economic loss as the outcome of the fraud."){{atL|1mkbp|13}}<br></ref>. 
It may also include risk of prejudice to economic interests.<ref>
{{supra1|Olan}}</ref>

The accused does not have to obtain any property to complete the offence. Thus, if the accused is deprived of property due to it going to someone else is enough.<ref>
{{CanLIIRP|Huggett|htxm8|1978 CanLII 2529 (ON CA)|42 CCC (2d) 198}}{{perONCA-H|Arnup JA}} (3:0)</ref>

There are three ways to prove deprivation:<ref>
{{CanLIIRP|Kingsbury|ftv28|2012 BCCA 462 (CanLII)|297 CCC (3d) 255}}{{perBCCA|Harris JA}} (3:0){{atL|ftv28|29}} - court summarized “deprivation”<br>
</ref>
#that as a consequence of the prohibited act there be a deprivation of “the economic interests of the victim”<ref>
{{supra1|Olan}} as quoted in {{supra1|Théroux}}{{atL|1fs40|15}}<br></ref> 
# that the prohibited consequence of the dishonest act is to deprive another of “what is or should be his”, which may consist of “merely placing another’s property at risk”<ref>
{{supra1|Théroux}}{{atL|1fs40|19}}</ref>; or 
# “[a possible] actual loss or the placing of the victim’s pecuniary interests at risk” caused by the dishonest act<ref>
{{supra1|Théroux}}{{atL|1fs40|20}}<br> 
see also in {{supra1|Zlatic}} at 43</ref>

Where the Crown relies on actual deprivation, a reasonable doubt whether the victim was deprived will result in an acquittal.<ref>
{{supra1|Théroux}}{{atL|1fs40|24}} (“[i]f there is a reasonable doubt as to whether the victim was deprived, the accused must be acquitted.”)
</ref>

A risk of deprivation only occurs from the time that assets are transferred.<ref>
{{CanLIIRPC|United States of America v Schrang|1dzvp|1997 CanLII 3588 (BC CA)|114 CCC (3d) 553}}{{perBCCA|Finch JA}} (3:0){{atL|1dzvp|42}}<br>
</ref>

; Causation
The Crown must also prove that the dishonest means used did in fact result in the deprivation.<ref> See {{CanLIIRP|Winning|hv0m7|1973 CanLII 1408 (ON CA)|12 CCC (2d) 449}}<br>
{{supra1|Kingsbury}}{{atL|ftv28|29}}<br>
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The accused is criminally responsible so long as they desired the outcome or foresaw it as a consequence of their criminal conduct.<Ref>
{{supra1|Kingsbury}}{{atL|ftv28|48}} citing Nightingale, The Law of Fraud and Related Offences (Scarborough: Carswell, 1996)<br>
</ref>

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