Fraud Flashcards
(3 cards)
A man goes into a coffee shop which is offering one free coffee per customer that day. He goes in the morning to get a free coffee and then decides to go back in the afternoon, wearing different clothing and a hat, to get a second free coffee. He hopes that he will not be recognised by the staff who served him in the morning. He simply asks for a free coffee, receives it and then leaves the shop.
Which of the following statements best represents the position in relation to the offence of fraud?
Option A: The man does not have the mens rea for fraud because the gain he intended to make from the free coffee was not a financial gain.
Option b: The man has not made a false representation, because he did not tell the staff that he had not already been in that day, nor had he been asked if he had already had a free coffee that day.
Option c: The man has made a false representation by telling the staff a lie which is untrue or misleading, and which he knows might be untrue or misleading.
Option d: The man became guilty of fraud at the point he left with the coffee because he then made a gain for himself and a loss to another.
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Option e: The man will not be guilty if the representation he made would not be considered dishonest according to the ordinary standards of reasonable and honest people.
Option E is the correct option because the test for dishonesty is whether it would be regarded as dishonest by the ordinary standards of reasonable and honest people. It would therefore depend upon these standards as to whether he is dishonest and therefore liable for fraud. The other elements of the offence are made out.
Option A is wrong because the gain intended to be made by fraud can be of money or other property.
Option B is wrong because a representation can be express or implied for the offence of fraud to take place.
Option C is wrong because the man did not make a verbal statement (and therefore neither untrue or misleading) to the staff in the coffee shop about who he was or whether he had been in earlier in the day. He did not “tell a lie”.
Option D is wrong because the offence would be committed at the point that the representation was made (asking for a coffee), as opposed to when he left the shop with the coffee.
A self-employed man applies for a mortgage from a building society. In the mortgage application form the man states that he earns £100,000 per year in order to obtain a large enough mortgage for the house he would like to buy. In reality, the man’s income is only £60,000 per year.
Will the man be guilty of an offence of fraud?
Option a: Yes, the man will be guilty of fraud by false representation as he has made a false representation in the mortgage application form in order to make a gain for himself and he knows the representation is false.
Option b: Yes, the man will be guilty of fraud by false representation as he has dishonestly made a false representation in the mortgage application form which he knows to be false.
Option c: No, the man will not be guilty of fraud by false representation as while he has made a gain, the representation made in the mortgage application form is not dishonest.
Option d: Yes, the man will be guilty of fraud by false representation as he has dishonestly made a false representation in order to make a gain for himself and he knows the representation is false.
Option e: No, the man will not be guilty of fraud by false representation as while the representation made in the mortgage application form is dishonest and the man knows it is false, he did not make the representation to make a gain for himself.
The correct answer is option D.
A person commits fraud if they dishonestly make a false representation and intend, by making the representation, either to make a gain for themself or another or to cause loss to another or to expose another to a risk of loss and they know the representation is untrue, or misleading or know that it might be (section 2(1) Fraud Act 2006). Here the man-made a false representation that he earned more than he did, he knew it was false, and he intended to make a gain by the representation for himself in the form of a greater mortgage.
A man drives onto a petrol station to buy fuel. He fills up his tank with petrol and walks towards the kiosk intending to pay. However, he then realises that he has left his wallet at home and so he decides to drive away. As he walks back across the forecourt towards his car, the man spots a bank card that has been dropped by its owner on the floor. He picks it up and decides to use it to pay for his petrol. He does this by swiping the contactless card across the payment machine.
Which answer best describes the man’s liability for an offence of fraud by false representation?
Option a: The man is not guilty of fraud when he fills his tank with petrol because he is not dishonest. However, he is guilty of fraud when he uses the bank card to pay for it as he is dishonest at this point.
Option b: The man is guilty of fraud when he fills his tank with petrol because he did not have the means to pay. He is also guilty of fraud when he uses the bank card as it does not belong to him.
Option c: The man is guilty of fraud when he fills his tank with petrol. He is not guilty of fraud when he uses the bank card as the transaction involves a machine.
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Option d: The man is not guilty of fraud for either event because he did not make an express false representation.
Option e: The man cannot be liable for fraud for either event because fraud by false representation requires evidence that a person is deceived.
Option A is the correct answer because, whilst the man’s conduct in filling his tank with petrol impliedly represents that he has the means and intention to pay for it (a false representation in fact), he is not dishonest when doing so. This is because he only realises he has forgotten his wallet when he walks towards the kiosk; thus, after the event. When using the bank card, the actus reus is established by his conduct as he makes a false representation that the card is his and that he has the authority to use it. The mens rea is also satisfied because the man knows this representation is false, he is dishonest as he is aware the card does not belong to him and he intends to make a gain of the petrol and a corresponding loss to the owner of the petrol station.
