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Corporate and fraudulent behaviour

Fraud

Historically, both common law and statute attempted to deal with the offences of
defrauding and deception but it was not until The Fraud Act 2006 that the specific
offence of fraud was recognised.

To bring a successful action for fraud the prosecution needs to prove

 Dishonesty

 Intention to make a gain or to cause a loss to another.

The maximum penalty for fraud under the Act is 10 years’ imprisonment and an
unlimited fine.

The single offence of fraud can be committed in three ways:

 Fraud by false representation

 Fraud by failing to disclose information

 Fraud by abuse of position

Fraud by false representation

This offence is committed where the individual makes false statements of fact or law
with the intention to make a gain or cause a loss to someone else.

Fraud by failing to disclose information

This covers where the individual has a legal duty to disclose information but doesn’t
do so with the intention of making a gain or causing a loss to another.

Fraud by abuse of position

An individual can be prosecuted here if they were in the position where they were
expected to safeguard the interests of another person and they abuse that position
with the intention of making a gain or exposing the other person to a loss.

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