FRAUD

Fraudulent conduct is prohibited by section 192E of the Crimes Act 1900 NSW. The offence of Fraud is characterised as follows:

A person who, by any deception, dishonestly—

(a) obtains property belonging to another, or

(b) obtains any financial advantage or causes any financial disadvantage, is guilty of the offence of Fraud.

Fraud is considered to be a very serious offence and carries a maximum period of imprisonment of 10 years. However, the maximum term of imprisonment is reserved for the most serious findings of Fraud which are dealt with on indictment in either the Supreme or District Court of New South Wales. Fraud offences are otherwise finalised in the Local Court where prison sentences can also be imposed.

The law provisions that deception or dishonest conduct can be carried out by means of words, actions and/or omission. This also includes the manipulation of computers, software and/or electronic communications.

In order for Fraud to be established in Court, the prosecution must prove the following:

1. Deception;

2. That the deception caused an obtaining of property, financial advantage or disadvantage;

3. The conduct of the offender was volitionally or recklessly deceptive; and

4. That at all relevant times of the offending, the offender was acting dishonest.

​Practical Examples of Fraud

Example 1

Mr Jones came into possession of a stolen credit card. Mr Jones knew the credit cards were stolen and he did not have permission to use them. Mr Jones then used the stolen credit cards to make 48 transactions amounting to $3000. Mr Jones deliberately made transactions under $100 to bypass the card pin number requirements.

The above facts would amount to an offence of Fraud.

Example 2

​Mr Jones sent an invoice to his client for works completed in the amount of $2000. Mr Jones received a direct credit into his bank account from his client in the amount of $20,000 which had as a reference number of the $2000 invoice. Mr Jones knew that his client must have mistakenly added an extra zero when paying the invoice. Mr Jones then went and used the excess $18,000 as a deposit on his new boat and did not attempt to return the excess money or contact his client regarding the over payment.

The above facts would amount to an offence of Fraud.

Example 3

Mr Jones was walking in the street and saw a parked car with the number plate “Jones”. Mr Jones thought that the number plate would better suit his car. Mr Jones removed the number plate from the parked car and affixed it to his car. Mr Jones also thought that it would be a double win situation because any camera detected traffic infringements would not be attributed to him.

The above facts would amount to an offence of Fraud.

Example 4

​Mr Jones sent an invoice to his client for works completed in the amount of $2000. Mr Jones received a direct credit into his bank account from his client in the amount of $20,000 which had as a reference number of the $2000 invoice. Mr Jones encounters numerous transactions every day and his account has a lot of money in it. Two months have gone pass and Mr Jones is charged with Fraud. Mr Jones had not noticed the transaction and his book keeper was overseas during that time period.

The above facts would allow Mr Jones to defend the charge of Fraud and he is likely to be found not guilty.

An allegation of Fraud should be treated with seriousness and legal advice should be sought at the earliest possible opportunity. This is because defending Fraud charges can involve making forensic and technical legal decisions very early in proceedings that could ultimately lead to being found not guilty or charges being dropped. If you have been charged with Fraud, contact us to obtain reliable legal advice and representation.