Fraud

Question 1

What is the Fraud Act (FA) 2006 designed to address?

Answer 1

The FA 2006 addresses the law relating to fraud and replaces outdated deception offences.

Question 2

What are the three ways fraud can be committed according to the FA 2006?

Answer 2

• Fraud by false representation
• Fraud by failing to disclose information
• Fraud by abuse of position

Question 3

What is the maximum sentence for fraud if convicted in the Crown Court?

Answer 3

10 years imprisonment and an unlimited fine.

Question 4

What is required for the actus reus of fraud by false representation under s 2?

Answer 4

Making a false representation.

Question 5

What are the two mens rea elements for fraud by false representation?

Answer 5

• The defendant must be dishonest
• The defendant must intend to make a gain or cause loss.

Question 6

Define ‘false representation’ as per the FA 2006.

Answer 6

A representation that is untrue or misleading, and the person making it knows it is or might be untrue or misleading.

Question 7

What constitutes a ‘representation’ under s 2(3)?

Answer 7

Any representation as to fact or law, including the state of mind of the person making it or any other person.

Question 8

True or False: A representation can only be made in spoken words.

Answer 8

False.

Question 9

What is an example of a false representation made by conduct?

Answer 9

Using a stolen credit card to pay for goods.

Question 10

When is a representation considered false?

Answer 10

When it misleads or deceives a victim.

Question 11

In the case of DPP v Ray, what was the ruling regarding the defendant’s conduct?

Answer 11

The defendant’s conduct was a continuing representation of their intention to pay, which became false when they decided not to pay.

Question 12

What is the significance of the case R v Lambie regarding credit card use?

Answer 12

The defendant falsely represented that she had authority to use the card by exceeding her limit.

Question 13

Fill in the blank: The FA 2006 allows the prosecution to establish fraud without proving that the defendant actually __________ anything.

Answer 13

obtained

Question 14

What does the term ‘misleading’ mean as per the Home Office guidance?

Answer 14

Less than wholly true and capable of an interpretation to the detriment of the victim.

Question 15

What is the potential annual cost of fraud to the UK economy as estimated by a recent report?

Answer 15

£190 billion.

Question 16

What are the implications of the Explanatory Notes regarding representations?

Answer 16

Representations can be made in various forms, including written, spoken, or through conduct.

Question 17

True or False: The offence of fraud is classified as an either-way offence.

Answer 17

True.

Question 18

What are the three categories of fraud as defined in the FA 2006?

Answer 18

• Fraud by false representation
• Fraud by failing to disclose information
• Fraud by abuse of position

Question 19

In what scenario would a defendant not be guilty of theft but could be guilty of making off without payment?

Answer 19

If they ate the meal and then realized they did not have the means to pay.

Question 20

What is the primary focus of the Fraud Act 2006?

Answer 20

To create a general offence of fraud that addresses various deceptive behaviors.

Question 21

What is the key concern raised by Ormerod regarding the interpretation of liability in fraud cases?

Answer 21

It opens up an extremely wide scope of liability that could criminalise street traders’ repartee.

Question 22

For the offence of fraud under s 2 of the FA 2006, what must the prosecution establish?

Answer 22

A false representation was made; there is no need to prove that anyone was actually deceived.

Question 23

According to s 2(5) of the FA 2006, how is a representation regarded as made?

Answer 23

If it is submitted in any form to any system or device designed to receive, convey or respond to communications.

Question 24

Fill in the blank: A representation by email is made as soon as it is _______.

Answer 24

sent

Question 25

What constitutes mens rea for fraud under s 2 of the FA 2006?

Answer 25

* The defendant is dishonest * Intends to make a gain or cause a loss * Knows the representation is untrue or misleading

Question 26

What is the common law test that applies to the determination of dishonesty in fraud cases?

Answer 26

The Ivey test, which considers whether a defendant’s behavior would be regarded as dishonest by ordinary standards.

Question 27

What does 'gain' and 'loss' include according to s 5 of the FA 2006?

Answer 27

* Gain or loss in money or other property * Any such gain or loss whether temporary or permanent

Question 28

True or False: The offence of fraud occurs only if someone is misled by the false representation.

Answer 28

False

Question 29

What is the actus reus for fraud by failing to disclose information under s 3 of the FA 2006?

Answer 29

Dishonestly failing to disclose information which the defendant is under a legal duty to disclose.

Question 30

What constitutes a legal duty to disclose in fraud cases?

Answer 30

* Duties under oral or written contracts * Statutory provisions * Contracts of utmost good faith

Question 31

Example of legal duty to disclose: What did Bradley fail to disclose when applying for travel insurance?

Answer 31

His previous treatment for a heart condition.

Question 32

What is required for fraud by abuse of position under s 4 of the FA 2006?

Answer 32

* Occupying a position of financial trust * Dishonestly abusing that position * Intending to make a gain or cause a loss

Question 33

What is a key element of the actus reus of fraud by abuse of position?

Answer 33

The defendant occupies a position in which they are expected to safeguard the financial interests of another person.

Question 34

In the context of fraud, what does 'abuse' refer to?

Answer 34

Dishonestly using one's position to gain for oneself or cause loss to another.

Question 35

What must the defendant do to be liable for fraud by abuse of position?

Answer 35

The defendant must actually abuse their position.

Question 36

True or False: The offence of fraud by abuse of position is only applicable to fiduciary duties.

Answer 36

False

Question 37

What is the mens rea for fraud by abuse of position under s 4?

Answer 37

Dishonesty and intention to make a gain or cause a loss.

Question 38

What is the overlap between the fraud offences under the FA 2006?

Answer 38

A defendant can be criminally liable for different offences under ss 2 to 4.

Question 39

What is the intention behind the offence of fraud?

Answer 39

To make a gain for themselves or another, or to cause loss to another, or to expose another to risk of loss.

Question 40

What are the three ways in which the offence of fraud may be satisfied under the FA 2006?

Answer 40

* Fraud by false representation (s 2) * Fraud by failing to disclose information (s 3) * Fraud by abuse of position (s 4)

Question 41

What legal duty does Lee have in the example provided?

Answer 41

To disclose to the seller that a close relative is the prospective purchaser.

Question 42

What is required for a defendant to be guilty of fraud by failing to disclose information under s 3?

Answer 42

There must be a legal duty to disclose the information.

Question 43

What is the key element in proving dishonesty in fraud cases?

Answer 43

The Ivey test applies if the defendant is not clearly dishonest.

Question 44

What constitutes the actus reus for making off without payment under s 3 of the TA 1978?

Answer 44

* Goods must be supplied or a service done * The defendant must make off from the spot where payment is required * Without paying as required or expected

Question 45

What must the prosecution prove to satisfy the mens rea for making off without payment?

Answer 45

* Dishonesty * Knowledge that payment on the spot was required or expected * Intent to avoid payment

Question 46

True or False: A person can be guilty of making off without payment if they leave a restaurant intending to return and pay later.

Answer 46

False

Question 47

What does the term 'making off' imply in the context of the offence?

Answer 47

It includes running away or leaving casually without paying.

Question 48

What is the maximum sentence for making off without payment under s 3 of the TA 1978?

Answer 48

Two years' imprisonment.

Question 49

In the example of Ben and Hazel, why can't Ben be liable under s 3(1) of the TA 1978?

Answer 49

Because the service provided by Hazel, a prostitute, cannot be legally enforced.

Question 50

What is the significance of the case R v Vincent regarding making off without payment?

Answer 50

It established that if a defendant had an agreement to pay later, they may not be liable for making off without payment.

Question 51

Fill in the blank: The FA 2006 creates a general offence of fraud under _______.

Answer 51

[s 1]

Question 52

What must be proven for a defendant to be criminally liable for fraud by abuse of position under s 4?

Answer 52

There must be a position of financial trust that is abused.

Question 53

What defines 'gain' and 'loss' under the FA 2006?

Answer 53

They are defined under s 5.

Question 54

What happens if a defendant pays with a worthless cheque?

Answer 54

It is not considered payment as required or expected, and the defendant could still be liable.

Question 55

What two offences complement theft and fraud, according to the summary?

Answer 55

Making off without payment (s 3 of the TA 1978) and fraud by false representation (s 2 of the FA 2006).