Fraud in Canada is considered a serious criminal offence. At its core, it involves deception for personal or financial gain. This can include misrepresentations, false pretenses, or any dishonest conduct that results in the deprivation, or risk of deprivation, of another person’s property or rights.
Table Of Contents
- What Is Fraud Under Canadian Law?
- Key Elements The Crown Must Prove
- Types of Fraud Charges
- What Are the Penalties for Fraud in Canada?
- Defending Against a Fraud Charge
- Why Legal Counsel Is Essential
- Conclusion
What Is Fraud Under Canadian Law?
Fraud is codified in Section 380 of the Criminal Code of Canada, which states:
“Everyone who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence, defrauds the public or any person… of any property, money, valuable security or service, is guilty of an offence.”
This section applies regardless of whether the fraud was committed by an individual or within a corporate or institutional context.
Key Elements of Fraud The Crown Must Prove
The Crown Prosecution Service bears the onus of establishing:
- Identity of the culprit, date and time, jurisdiction, that the complainant owned something of value.
- That the culprit intentionally deprived the complainant of that ownership or put at risk that ownership by deceit, falsehood, or other fraudulent means; and
- Representations made;
- Money or property given to the culprit;
- The reason money or property was given to the culprit;
- The culprit’s actions resulted in the complainant being deprived of property, money, or valuable security, or placed them at risk of such deprivation.
Types of Fraud Charges
Fraud offences are categorized based on the monetary value involved:
- Fraud Over $5,000: Involves property or money exceeding $5,000. This is an indictable
offence, carrying a maximum penalty of 14 years imprisonment.
- Fraud Not Exceeding $5,000: Involves property or money of $5,000 or less. This is a hybrid offence, meaning the Crown can proceed either summarily or by indictment, with penalties varying accordingly.
What Are the Penalties for Fraud in Canada?
Fraud sentencing is governed by both statutory and case law. Courts consider a range of aggravating and mitigating factors, including:
- The monetary value of the fraud
- The duration and complexity of the scheme
- The number of victims and the impact on them
- Breach of trust (e.g., fiduciary relationships or employer/employee dynamics)
- The offender’s prior criminal record
Mandatory Minimums
If the value of the fraud exceeds $1 million, Section 380.1 of the Criminal Code imposes a mandatory minimum sentence of two years’ imprisonment.
Further sentencing considerations are outlined in the Sentencing Principles (s. 718.1) of the Criminal Code.
Defending Against Fraud Charges
“If you’re facing fraud charges, it’s crucial to seek experienced legal representation. A knowledgeable criminal defence lawyer can assess the specifics of your case, identify potential defences, and work towards achieving the best possible outcome.” – Anny Wang, BW Law
While fraud is a serious offence, several viable defences may be raised depending on the case’s circumstances:
A. Lack of Intent
An honest mistake, such as a clerical error or misunderstanding, may negate the mens rea required for a fraud conviction.
B. Consent or Authorization
In some corporate or institutional contexts, actions may have been pre-approved or authorized by others, invalidating the alleged fraudulent intent.
C. Insufficient Evidence
The Crown’s inability to prove one or more key elements, such as intent, deception, or causation, can result in acquittal.
D. Charter Violations
Unlawful search and seizure, denial of counsel, or delay in proceedings can result in the exclusion of evidence or even a dismissal of the case under the Canadian Charter of Rights and Freedoms.
Why Legal Counsel is Essential
Engaging a criminal defence lawyer at the earliest stage of a fraud investigation is crucial. Immediate legal support ensures:
- Preservation of exculpatory evidence (e.g., bank records, correspondence, audit trails)
- Protection of your Charter rights
- Strategic negotiation with Crown prosecutors
- Risk mitigation, including possible resolution before formal charges are laid
In many cases, experienced counsel can help avoid trial altogether through pre-charge resolution or plea bargaining.
Conclusion
Fraud charges can carry serious, life-altering consequences, both legally and reputationally. Understanding the legal framework and acting quickly to retain experienced representation is essential to achieving a fair and just outcome.
If you are under investigation or have been charged with fraud, we invite you to contact our criminal defence team for a free 30-minute confidential consultation. We are committed to protecting your rights and guiding you through every stage of the legal process.