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Fraud is a dense subject, teeming with many variations of the same charge. One such charge is fraud by false representation; as with all fraud offences, it is equally complicated due to the heavy legislation attached to it.
However, if you’re unsure about the legalities surrounding fraud, look no further. In this article, our criminal law solicitors break down the technicalities of fraud by false representation, giving you a clear understanding of the offence.
What is fraud by false representation?
Fraud by false representation is the act of dishonestly making a false representation to make a gain or cause a loss for another individual. As detailed by Section 2 of the Fraud Act 2006, fraud by false representation must be the following:
- It is a dishonest and false representation.
- It is untrue or misleading.
- The person making it believes that it is, or to some extent could be, untrue or misleading.
Fraud by false representation focuses on the falsification of any assets or money you claim to have. It is, in essence, the claiming of something that you do not own, in an attempt to earn a financial gain.
Both individuals and businesses can commit fraud by false representation.
What are gains and losses?
Gain or loss, when referring to fraud by false representation, is defined as the ‘gaining’ or ‘losing’ of money or other property. The property that one loses or gains must be a physical thing.
A gain is the acquiring of something you do not have or the retaining of something you already have. For example, receiving money for a product you intended to sell yet still keeping it.
Conversely, a loss is the unfair parting of something that is yours. It is also missing out on something you are due to receive. For example, if somebody keeps money from you that is rightfully yours.
In both cases, an individual loses or misses out on something in the process.
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Fraud by false representation examples.
Fraud by false representation applies to a wide range of cases involving stolen or made-up assets that result in gains or losses. Some examples include:
- Charging a customer for work that you didn’t do but claim you did.
- Attempting to pay with a stolen credit card.
- Selling assets that you do not own.
- Persuading someone to buy something that does not exist.
To commit fraud by false representation, you must, in some way or another, express or imply a dishonest intention. There are a number of ways to do this, including:
- A verbal indication (e.g. orally telling someone they owe you for work you did not do.)
- In writing (e.g. sending an email trying to sell a property that does not exist.)
- A physical indication (e.g. using a credit card that is not yours.)
This is a non-exhaustible list, as there is an infinite number of ways in which someone can express or imply the means to commit fraud by false representation.
Importantly, even if no actual gains or losses took place, you will still face charges of fraud by false representation. The court cares more about the intention behind the act rather than the outcome.
What is meant by the term ‘dishonesty?’
The term ‘dishonesty’ has been a bone of contention in fraud cases throughout the years. It can be hard to ascertain a definition that fits every scenario. In the case of fraud by false representation, the two metrics that govern dishonesty are:
- What was the defendant’s knowledge of the facts before committing the offence?
- Based on the first point, would standard and reasonable people view the defendant’s actions to be dishonest?
What the defendant holds as ‘dishonest’ holds no merit in the verdict of the court. It is a purely objective decision, based on the facts determined by the prosecution.
How do the police acquire evidence of fraud?
Upon being informed of a potential fraud case, the police will begin monitoring the financial outgoings of a suspect. This usually begins before an interview takes place, in order for the police to gain any potentially incriminating evidence that they can utilise.
If charged with fraud by false representation, the police can get a search warrant for your home and workplace to seek evidence for the claim.
Moreover, many cases see a restraint order put in place. This will freeze your assets to allow the police to carry out a thorough investigation.
What is a restraint order?
A restraint order is the freezing of assets or accounts in a case where the police suspect someone of benefiting financially through a crime. This order can be sought once investigations have officially started.
Fraud by false representation sentencing guidelines.
The maximum sentence for being convicted of fraud by false representation is 10 years imprisonment and a fine. The Crown Court will deal with matters of this severity. In minor cases, fraud convictions can lead to a smaller fine or community orders.
There are a number of aggravating and mitigating factors that can affect the penalty given for a conviction. These include:
Aggravating Factors:
- Prior convictions
- On bail
- Preventing witnesses from reporting
- Concealing evidence
- Placed blame on others
Mitigating Factors:
- No prior convictions
- Remorse shown
- Co-operative with police and/or court
- Voluntarily reported the offence
- Activity originally legitimate
What other consequences come from a fraud conviction?
Being convicted of fraud by false representation will result in you having to pay orders to both the court and the victim. The names of these are confiscation and compensation orders respectively.
If you are unable to pay both sums, the court will prioritise the compensation order first.
If you fail to pay the order in full within this time, you could face a prison sentence. This sentence depends entirely on the amount required to pay back, with higher amounts resulting in longer prison time. Importantly, serving this sentence will not wipe the money required for the order.
You can apply to reduce both the time given to pay the orders back and the amount required to pay back. The court will assess your financial situation and reliability to effectively pay back the amount in the time asked and, if deemed fair, will reduce either the time or the amount required.
How can Britton and Time Solicitors help?
Fraud is a highly complicated area of criminal law that can result in severe penalties if not dealt with accordingly. That’s why our initial consultations with our criminal defence solicitors offer you:
- Unlimited time to go through the details of your case and ask any questions you may have
- An overview of your legal standpoint and your available options
- A precise time and fee estimate for your case
To arrange your initial consultation with one of our solicitors, simply call us on 020 3007 5500.
Can we hold Keir Starmer accountable for his fraud? While politicians’ constant lies are inexcusable, Starmer has taken them to a new level. His promises for years in the press and on TV regarding paying pensioners the heating allowance are all documented. Yet as soon as he is in charge, he says it can’t afford it. But he can afford £1.5 billion for the war in Ukraine per year for as long as it takes. He can also afford £11.6 billion for overseas aid for the climate crisis. These changes have been blamed on a 20 billion black hole by the Tories, and if that’s the case, wouldn’t that also be a fraud case? I look forward to hearing your thoughts. Regards Ivor Powell.
Not fraud,statements made without all the facts but not in power to do anything but when in power did have other choices and could have kept payments to pensioners . Proves just saying to get public support.
Chancellor now saying sorry didn’t know all the facts so how can the public believe anything opposition says because only the ruling party have all the facts and can without information from the opposition.
But NOT FRAUD