Fraud — Main Cases And Chains

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

Definition Of Fraud

Under Fraud Act 2006:

Fraud Occurs Where A Person:

• Acts Dishonestly
AND
• Intends To Make Gain For Self/Another
OR
• Intends To Cause Loss/Risk Of Loss To Another

Three Main Types Of Fraud

Core Structure Of Fraud

Universal Fraud Chain

• Defendant Acts Dishonestly
• False Representation/Failure/Abuse Occurs
• Defendant Intends Gain Or Loss
• Fraud Liability Established

Fraud By False Representation — s2

Definition Of False Representation

Under s2 Fraud Act 2006:

• Defendant Makes False Representation
• Representation May Be Express Or Implied
• Representation Must Be False/Misleading
• Defendant Must Know Representation Is False

False Representation Chain

• Defendant Makes Representation
• Representation False/Misleading
• Representation Made Dishonestly
• Defendant Intends Gain/Loss
• Fraud Established

Main Case — DPP v Ray

Principle

• Continuing Representation May Become False Through Failure To Correct Impression

Main Case — Idrees

Principle

• Impersonation During Driving Test Constituted False Representation

Main Case — Barnard

Principle

• Wearing Student Clothing Implied False Representation

Main Case — Lambie

Principle

• Using Credit Card Beyond Limit Implied Representation Of Authority To Pay

Representation Chains

Representation Principle

Chain

• Representation May Be Oral
• Representation May Be Written
• Representation May Be Implied Through Conduct
• Silence Sometimes Creates Continuing Representation

Main Case — Barnard

Principle

• Conduct Alone May Amount To Representation

Main Case — DPP v Ray

Principle

• Failure To Correct False Impression Created Continuing Representation

Representation High-Level Chain

• Defendant Creates Impression
• Impression Communicated To Victim
• Representation False/Misleading
• Representation Established

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

Falsity Chains

False Representation Requirement

Chain

• Representation Must Be False
OR
• Misleading
• Defendant Must Know Falsity
• Honest Mistake Prevents Liability

Main Case — Idrees

Principle

• Defendant Knowingly Created False Identity

Main Case — Lambie

Principle

• Continued Use Of Invalid Card Was False Representation

Falsity High-Level Chain

• Representation Incorrect/Misleading
• Defendant Aware Of Falsity
• Honest Belief Absent
• Falsity Established

Fraud By Failing To Disclose Information — s3

Definition Of s3 Fraud

Under s3 Fraud Act 2006:

• Defendant Fails To Disclose Information
• Legal Duty To Disclose Exists
• Failure Dishonest
• Intent To Gain/Cause Loss Present

Failure To Disclose Chain

• Legal Duty To Disclose Exists
• Defendant Omits Information
• Omission Dishonest
• Intent To Gain/Loss Present
• Fraud Liability Established

Duty To Disclose Chains

Duty Principle

Chain

• Duty May Arise Through Statute
• Contract May Create Duty
• Fiduciary Relationship May Create Duty
• Failure To Reveal Important Information Creates Liability

Main Principle

• Mere Silence Insufficient Without Legal Duty

Duty High-Level Chain

• Legal Obligation Exists
• Defendant Withholds Information
• Omission Dishonest
• Duty Requirement Established

Fraud By Abuse Of Position — s4

Definition Of s4 Fraud

Under s4 Fraud Act 2006:

• Defendant Occupies Position
• Position Requires Safeguarding Financial Interests
• Defendant Dishonestly Abuses Position
• Intent To Gain/Cause Loss Present

Abuse Of Position Chain

• Defendant Occupies Trusted Position
• Defendant Misuses Position
• Abuse Dishonest
• Defendant Intends Gain/Loss
• Fraud Established

Main Case — Marshall

Principle

• Abuse Of Financial Responsibility Created Liability

Main Case — Valujevs

Principle

• Position Need Not Be Formal Employment Relationship

Position Chains

Position Of Trust Principle

Chain

• Defendant Trusted With Financial Interests
• Position May Be Formal Or Informal
• Responsibility Creates Duty
• Abuse Creates Fraud Liability

Main Case — Valujevs

Principle

• Informal Supervisory Relationship Sufficient

Position High-Level Chain

• Trust Relationship Exists
• Defendant Responsible For Financial Interests
• Abuse Occurs
• Position Requirement Established

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

Abuse Chains

Abuse Requirement

Chain

• Defendant Misuses Trusted Position
• Abuse May Be Positive Act
OR
• Omission
• Dishonest Conduct Required
• Abuse Creates Liability

Main Case — Marshall

Principle

• Misuse Of Financial Position Constituted Fraud

Main Case — Valujevs

Principle

• Exploitation Of Workers Constituted Abuse

Abuse High-Level Chain

• Defendant Occupies Trusted Position
• Position Misused
• Conduct Dishonest
• Abuse Established

Dishonesty Chains

Dishonesty Requirement

Chain

• Defendant Knows Relevant Facts
• Jury Applies Ordinary Honest Standards
• Conduct Judged Objectively
• Dishonesty Creates Mens Rea

Main Case — Barton And Booth

Principle

• Modern Objective Dishonesty Test

Previous Dishonesty Test

Main Case — Ghosh

Principle

• Earlier Two-Stage Subjective Test

Transition Chain

• Ghosh Created Complexity
• Courts Preferred Simpler Approach
• Barton And Booth Confirmed Objective Standard

Dishonesty High-Level Chain

• Defendant Aware Of Circumstances
• Honest Standards Applied
• Conduct Considered Dishonest
• Mens Rea Established

Gain And Loss Chains

Definition Of Gain/Loss

Under Fraud Act 2006:

• Gain Includes Keeping Existing Property
• Gain Includes Obtaining New Property/Money
• Loss Includes Losing Existing Property
• Risk Of Loss Sufficient

Gain/Loss Chain

• Defendant Intends Benefit
OR
• Defendant Intends Loss/Risk Of Loss
• Actual Gain/Loss Unnecessary
• Intent Alone Sufficient

Main Case — Attorney General’s Reference Principles Applied

Principle

• Gain/Loss Interpreted Broadly

Gain/Loss High-Level Chain

• Defendant Intends Financial Benefit/Loss
• Actual Transfer Unnecessary
• Risk Of Loss Sufficient
• Gain/Loss Requirement Established

Mens Rea Chains

Fraud Mens Rea

Fraud Requires:

• Dishonesty
AND
• Knowledge Of Falsity/Abuse
AND
• Intent To Gain/Cause Loss

Fraud Mens Rea Chain

• Defendant Knows Conduct False/Dishonest
• Defendant Intends Benefit/Loss
• Mens Rea Established

Obtaining Services Dishonestly — s11

Definition Of s11 Fraud

Under s11 Fraud Act 2006:

• Defendant Obtains Services
• Services Require Payment
• Defendant Obtains Services Dishonestly
• Intends Not To Pay

s11 Chain

• Services Provided
• Payment Required
• Defendant Obtains Services Dishonestly
• Intention Not To Pay Present
• Liability Established

Main Case Principles

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

Fraud Universal Exam Chain

• Defendant Makes Representation/Fails To Disclose/Abuses Position
• Conduct Dishonest
• Defendant Intends Gain Or Loss
• Fraud Liability Established

High-Level Fraud Chains

False Representation Universal Chain

• Representation Made
• Representation False/Misleading
• Defendant Aware Of Falsity
• Dishonesty Present
• Intent To Gain/Loss
• Fraud Established

Failure To Disclose Universal Chain

• Duty To Disclose Exists
• Defendant Omits Information
• Omission Dishonest
• Gain/Loss Intended
• Fraud Established

Abuse Of Position Universal Chain

• Trusted Position Exists
• Position Abused
• Conduct Dishonest
• Gain/Loss Intended
• Fraud Established

Dishonesty Universal Chain

• Defendant Knows Relevant Facts
• Honest Standards Applied
• Conduct Dishonest
• Mens Rea Established

Most Important Fraud Cases To Memorise

Most Important Exam Chains

Universal Fraud Chain

• Dishonest Conduct Occurs
• Representation/Failure/Abuse Present
• Gain/Loss Intended
• Fraud Liability Established

False Representation Chain

• Defendant Creates Representation
• Representation False/Misleading
• Defendant Knows Falsity
• Fraud Established

Abuse Of Position Chain

• Trusted Position Exists
• Defendant Misuses Position
• Dishonesty Present
• Gain/Loss Intended
• Fraud Established

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.