Financial Crime World

Definition of Financial Fraud in Canada: A Comprehensive Guide

Financial fraud is a serious crime that involves deceitful or dishonest means to obtain financial gain. In Canada, the Criminal Code defines financial fraud as any act intended to deprive someone of property, money, or valuable security through deceit, falsehood, or other fraudulent means.

According to Section 380(1) of the Criminal Code, an act is considered fraudulent if it involves:

  • Deceit, falsehood, or other dishonest means
  • The intention to deprive someone of property, money, or valuable security

The section also differentiates between indictable and summary convictions based on the value of the subject matter.

Elements of Fraud

The Canadian courts have established that the offence of fraud consists of two distinct elements:

  • A prohibited act of deceit, falsehood, or other fraudulent means
  • The deprivation or loss caused by that act

This means that anyone who engages in fraudulent activities can be charged with fraud, regardless of their intentions or motivations.

Penalties for Financial Fraud

Section 380(1) provides guidance on how courts should approach cases involving fraudulent activity. The section sets out specific penalties for individuals convicted of fraud, including:

  • Imprisonment
  • Fines

Recent Cases of Financial Fraud in Canada

There have been several notable cases of financial fraud in Canada in recent years. For example:

  • An individual wrote fraudulent cheques to herself and a partner, totaling $110,169. She was sentenced to 18 months in custody and 18 months probation.
  • Another individual pled guilty to fraudulent activity involving the Canadian Temporary Foreign Worker Program, which totalled over $2.4 million and affected over 900 victims. She was sentenced to six years in custody.

Conclusion

Financial fraud is a serious offence in Canada that can have significant consequences for individuals and society as a whole. By understanding the legal definition of financial fraud and the penalties associated with it, we can better prevent and prosecute these types of crimes. If you or someone you know has been charged with financial fraud, it is essential to seek the advice of a criminal defence lawyer as soon as possible.

Important Notes

  • A skilled lawyer can help you navigate the legal process and develop a strategy for your case.
  • Financial fraud is a serious crime that can result in significant consequences, including imprisonment and fines.