Fraud — Main Cases And Statutes

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.

Main Statute For Fraud

Fraud Act 2006 — General Purpose

Purpose

• Simplified Old Deception Offences
• Created General Fraud Offence
• Focused On Dishonest Conduct Rather Than Successful Deception

Key Importance

• Actual Gain/Loss Not Necessary
• Conduct-Based Offence
• Broad Protection Against Financial Dishonesty

Fraud Universal Chain

• Defendant Acts Dishonestly
• False Representation/Failure To Disclose/Abuse Of Position Occurs
• Intent To Gain/Cause Loss Present
• Fraud Established

Section 1 Fraud Act 2006 — Fraud

Rule

Fraud May Be Committed By:

• False Representation
• Failure To Disclose Information
• Abuse Of Position

Key Importance

• Creates General Fraud Offence
• Three Separate Methods Of Committing Fraud

Section 2 Fraud Act 2006 — Fraud By False Representation

Rule

• Defendant Makes False Representation
• Dishonestly
• Knowing Representation False/Misleading
• Intending Gain/Cause Loss

Key Importance

• Most Common Fraud Offence
• Representation May Be Express Or Implied
• Actual Deception Not Necessary

Main Cases For False Representation

Idrees Chain

• Defendant Impersonated Another Person
• False Representation Made
• Dishonest Intent Present
• Fraud Established

Barnard Chain

• Defendant Wore Student Clothing
• Conduct Implied Student Status
• False Representation Created
• Fraud Possible

Lambie Chain

• Defendant Used Invalid Credit Card
• Card Use Implied Ability To Pay
• False Representation Established
• Fraud Liability Possible

DPP v Ray Chain

• Defendant Entered Restaurant Intending Payment
• Later Decided Not To Pay
• Silence Continued False Impression
• Continuing Representation Established
• Fraud Possible

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.

Section 2 Fraud Act 2006 — Representation

Rule

Representation May Be:

• Express
OR
• Implied

Key Importance

• Conduct Alone May Create Representation
• Oral/Written Statements Included
• Electronic Communications Included

Main Cases

Representation Universal Chain

• Defendant Communicates Information
• Communication False/Misleading
• Victim Exposed To Dishonest Conduct
• Representation Established

Section 2 Fraud Act 2006 — False Representation

Rule

• Representation Must Be False Or Misleading

Key Importance

• Defendant Must Know Falsity
• Honest Mistake Prevents Liability

Main Cases

False Representation Chain

• Defendant Makes Representation
• Representation False/Misleading
• Defendant Knows Falsity
• Fraud Liability Possible

Section 3 Fraud Act 2006 — Fraud By Failing To Disclose Information

Rule

• Defendant Dishonestly Fails To Disclose Information
• Under Legal Duty To Disclose

Key Importance

• Mere Silence Insufficient Without Duty
• Duty May Arise By Contract, Statute Or Fiduciary Relationship

Main Principle

• Legal Duty Essential For Liability

Failure To Disclose Universal Chain

• Legal Duty Exists
• Defendant Withholds Information
• Conduct Dishonest
• Intent To Gain/Cause Loss Present
• Fraud Established

Section 4 Fraud Act 2006 — Fraud By Abuse Of Position

Rule

• Defendant Occupies Position Expected To Protect Financial Interests
• Dishonestly Abuses Position
• Intending Gain/Cause Loss

Key Importance

• Formal Employment Not Necessary
• Informal Trust Relationships Included

Main Cases For Abuse Of Position

Marshall Chain

• Defendant Occupied Trusted Position
• Position Misused Dishonestly
• Financial Harm/Gain Intended
• Fraud Established

Valujevs Chain

• Informal Supervisory Role Existed
• Trust Relationship Sufficient
• Abuse Of Position Established
• Fraud Liability Possible

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.

Section 4 Fraud Act 2006 — Position Of Trust

Rule

• Defendant Expected To Protect Another’s Financial Interests

Key Importance

• Includes Informal Relationships
• Financial Responsibility Central

Main Cases

Position Of Trust Chain

• Defendant Holds Trusted Position
• Financial Responsibility Exists
• Position Abused Dishonestly
• Fraud Possible

Dishonesty

Fraud Act 2006 — Dishonesty Requirement

Rule

• Conduct Judged Against Honest Standards

Key Importance

• Essential Element Of Fraud
• Objective Test Applied

Main Cases For Dishonesty

Barton And Booth Chain

• Court Considered Defendant Knowledge/Beliefs
• Jury Applied Honest Person Standards
• Dishonesty Determined Objectively

Section 5 Fraud Act 2006 — Gain And Loss

Rule

Gain Includes:

• Keeping Existing Property
OR
• Obtaining New Property

Loss Includes:

• Losing Existing Property
OR
• Risk Of Loss

Key Importance

• Gain/Loss Broadly Defined
• Temporary Benefit/Harm Sufficient
• Actual Loss Unnecessary

Gain/Loss Universal Chain

• Defendant Intends Financial Benefit/Harm
• Actual Transfer Unnecessary
• Mens Rea Established

Section 11 Fraud Act 2006 — Obtaining Services Dishonestly

Rule

• Defendant Obtains Services
• Dishonestly
• Knowing Payment Required
• Intending Avoidance Of Payment

Key Importance

• Covers Subscription/Service Fraud
• Focuses On Dishonest Avoidance Of Payment

Examples

• Streaming Subscription Fraud
• Entering Paid Events Without Payment
• Using False Payment Details

Obtaining Services Universal Chain

• Service Requires Payment
• Defendant Obtains Service Dishonestly
• Intent To Avoid Payment Proven
• Liability 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.

Identity Fraud

Section 2 Fraud Act 2006 — Identity Fraud

Rule

• Pretending To Be Another Person For Gain

Key Importance

• Common Form Of False Representation
• Often Involves Documents/Online Accounts

Main Cases

Identity Fraud Chain

• Defendant Uses False Identity
• Representation False
• Financial/Personal Gain Intended
• Fraud Established

Implied Representation

Section 2 Fraud Act 2006 — Implied Representation

Rule

• Representation May Arise Through Conduct Alone

Key Importance

• No Spoken Words Necessary
• Behaviour May Create False Impression

Main Cases

Implied Representation Chain

• Defendant Performs Conduct
• Conduct Communicates Information
• Information False/Misleading
• Fraud Possible

Continuing Representation

Section 2 Fraud Act 2006 — Continuing Representation

Rule

• Representation May Continue Until Corrected

Key Importance

• Silence May Become Fraudulent
• Failure To Correct False Impression Important

Main Cases

Continuing Representation Chain

• Initial Representation Made
• Circumstances Change
• Defendant Fails To Correct Impression
• Continuing Fraud Established

Most Important Fraud Statutes To Memorise

Most Important Fraud Cases To Memorise

Most Important Universal Chains

Fraud Universal Chain

• Defendant Acts Dishonestly
• Fraudulent Conduct Occurs
• Intent To Gain/Cause Loss Present
• Fraud Established

False Representation Universal Chain

• Representation Made
• Representation False/Misleading
• Defendant Knows Falsity
• Fraud Liability Established

Abuse Of Position Universal Chain

• Trusted Position Exists
• Defendant Abuses Position Dishonestly
• Financial Gain/Loss Intended
• Fraud Established

Dishonesty Universal Chain

• Defendant Knows Circumstances
• Honest Standards Applied
• Conduct Dishonest
• Mens Rea 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.