Canadians Facing Severe Penalties for Financial Crimes: A Closer Look at the Law

Canadian law takes a firm stance against financial crimes committed through deceit, falsehood, or other fraudulent means. The following outlines some of the penalties outlined in the Criminal Code of Canada for those found guilty of financial offenses.

Penalties for Defrauding Individuals or the Public

According to Section 380 of the Criminal Code, the penalties for defrauding individuals or the public of property, money, valuable securities, or services depend on the value of the subject matter involved.

Penalties for Offenses Valued at Over $5,000

• An indictable offense: Up to 14 years in prison
• Testamentary instruments: Liability for an indictable offense, facing imprisonment for up to 14 years

Penalties for Offenses Valued at Under $5,000

• An indictable offense: Up to 2 years in prison
• Summary conviction: Punishment for the offense

Mandatory Sentencing for Offenses Exceeding $1 Million

In cases where the total value of offenses exceeds $1 million, there is a mandatory minimum sentence of imprisonment for a term of 2 years.

Affecting Public Market Prices

Section 380 also addresses offenses related to affecting the public market price of stocks, shares, merchandise, or anything offered for public sale, with intent to defraud.

• An indictable offense: Up to 14 years in prison

These penalties serve as deterrents against financial crimes, emphasizing the gravity of these offenses under Canadian law. The Criminal Code has been amended multiple times:

• 1985
• 1994
• 1997
• 2004
• 2011

These amendments continue to strengthen the code’s provisions against dishonest financial dealings.