What Is Fraud?

If you have been accused of fraud, it is important to understand what the offence involves and what the prosecution must prove. 

Fraud offences are treated seriously by Victorian courts and can range from relatively small financial deceptions through to complex schemes involving substantial amounts of money. Although many people associate fraud with elaborate scams, the legal definition is much broader and covers a wide variety of dishonest conduct.

What Is Fraud?

In simple terms, a person commits fraud if they act dishonestly to obtain property, obtain a financial advantage or cause a financial disadvantage to another person.

Unlike theft, fraud does not always involve physically taking money or property. Many fraud allegations involve false representations, misleading information or dishonest conduct designed to obtain a financial benefit.

What Is a Financial Advantage?

A financial advantage is not limited to receiving money.

It can include avoiding a debt, obtaining goods or services without paying for them, receiving benefits you were not entitled to, or avoiding fees, taxes or other financial obligations.

For example, allegations of providing false information to obtain a loan, making dishonest insurance claims, claiming government benefits unlawfully or using another person’s financial information may all give rise to fraud charges.

Does the Prosecution Have to Prove Dishonesty?

Yes.

Dishonesty is one of the essential elements of every fraud offence.

The prosecution must prove beyond reasonable doubt that the conduct was dishonest according to the standards of ordinary people and that the accused knew their conduct would be regarded as dishonest.

If dishonesty cannot be established, the prosecution cannot prove the offence.

What Does the Prosecution Have to Prove?

Like every criminal offence, fraud must be proved beyond reasonable doubt.

The prosecution must establish each element of the offence using admissible evidence. Depending on the allegations, this may include financial records, bank statements, invoices, contracts, emails, text messages, computer records, witness statements and admissions made during a police interview.

Many fraud prosecutions involve large volumes of documents and electronic evidence that require careful analysis before a person decides whether to plead guilty or contest the charge.

Are There Defences to Fraud?

Yes.

Whether a defence is available depends on the circumstances of the case.

Some fraud allegations arise because of misunderstandings, accounting errors or genuine mistakes rather than dishonest conduct. In other cases, there may be disputes about whether a false representation was made, whether any financial advantage was actually obtained or whether the prosecution can prove dishonest intent.

Because fraud offences often involve detailed financial evidence, every case should be carefully assessed before any decisions are made.

What Are the Penalties for Fraud?

Fraud is regarded as a serious offence and carries significant maximum penalties.

When deciding the appropriate sentence, the court will consider factors including the amount of money involved, the sophistication of the offending, whether it occurred over a lengthy period, whether there was a breach of trust, the impact on any victims, your criminal history and your prospects of rehabilitation.

Depending on the circumstances, sentencing options may include a fine, a Community Corrections Order or, in more serious cases, a term of imprisonment.

Should You Plead Guilty?

Whether you should plead guilty depends on the strength of the prosecution case and the circumstances surrounding the allegations.

Before making that decision, it is important to understand the evidence against you, whether the prosecution can prove each element of the offence and whether any legal defences may be available.

Obtaining legal advice early ensures you are in the best position to make informed decisions about your case.

Speak to Wilkinson Lawyers

If you have been charged with fraud in Victoria, Wilkinson Lawyers can provide experienced legal advice and representation. We regularly represent clients facing fraud and other dishonesty offences throughout Victoria. We can carefully assess the prosecution evidence, explain your legal options and prepare your matter to achieve the best possible outcome, whether by negotiation, plea or contested hearing.

Contact Jess Wilkinson on 0468 364 121 or jess@wilkinsonlawyers.com.au to discuss your matter and obtain advice about the best way forward.