Financial Fraud in Canada: Laws and Consequences

Financial fraud is defined as any act of deceit, falsehood or other fraudulent means that results in the loss of property, money or valuable security, or the theft of a service. In Canada, this type of behavior is considered an indictable offence and can have serious consequences.

Penalties for Financial Fraud

According to Section 380 of the Criminal Code of Canada, the penalties for financial fraud depend on the value of the subject matter of the offence:

• If the value exceeds $5,000, the accused can face a maximum sentence of up to 14 years in prison.
• If the value is $5,000 or less, the accused can face a maximum sentence of two years imprisonment.
• If a person is convicted of multiple financial fraud offences that total more than $1 million, they must serve at least two years in prison as part of their sentence.

Fraudulent Activities Affecting Public Market Prices

Section 380 also specifically addresses fraudulent activities that affect the public market price of stocks, shares, merchandise or other goods offered for sale. These types of crimes are considered serious and can result in a maximum sentence of up to 14 years imprisonment.

Purpose of Financial Fraud Laws

These laws are in place to protect Canadians from financial fraud and to hold those who commit such crimes accountable for their actions. By understanding the consequences of financial fraud, individuals can make informed decisions about their financial transactions and avoid falling victim to fraudulent schemes.

• Protecting Canadians from financial loss
• Holding criminals accountable for their actions
• Maintaining trust in financial institutions and markets