The Fraud Act 2006

•This section refers to dishonestly making a false representation AND intends by making the representation to make gain for one self or another, or to cause loss to another or to expose another the risk of loss. The r•representation is false if it is untrue or misleading AND the person making it knows it to be so. It includes •representation as to fact or law and it can be expressed OR implied and submitted in any form to any system or device designed to receive convey or respond to communications. It covers obtaining, attempting to obtain property (or other pecuniary advantage) by deceit.

Fraud by Failing to Disclose (S.3)

•This section refers to a failure to disclose information to another which is required by legal duty, AND where there is an intention to make gain for one self or another or to cause loss to another, or to expose another the risk of loss. It •could be used in conflicts of interest in certain types of contracts. It doesn’t apply to Moral Duty to Disclose and recognizes the principle of caveat emptor

Fraud by Abuse of Position (S.4)

•This refers to a person occupying a position where he is expected to safeguard, or not to act against the financial interests of another and where •they dishonestly abuse that position AND intend to make gain for themselves or another or to cause loss to another or to expose another the risk of loss. •May consist of an omission rather than an act •e.g. an employee is given access to his employers premises, equipment and customers and is expected to use them for his employer’s benefit NOT his own. Other Examples;

A public house manager selling privately bought beer through the premises that he is trusted to manage on behalf of his employers.
–A bank compliance officer failing monitor risk (by being engaged in other activities such as playing solitaire on his computer) exposing organisation to financial loss

Other Fraud Legislation

•The following ACts still apply in the following circumstances;

Theft Acts 1968 and 1978

–Misappropriation of assets
–False accounting
–Financial statements

•Forgery and Counterfeiting Act 1981

–False instruments – cheques, share certificates, bankers drafts, etc

•Copyright, Design, and Patents Act 1988

–Intellectual Property

•Computer Misuse Act 1990

–Unauthorised access or modification

•Criminal Justice Act 1993

–Insider dealing (S 52)

•Trademarks Act 1994

–Intellectual Property

•Financial Services and Markets Act 2000

–False Financial Statements

•Proceeds of Crime Act 2002

–Acquisition, use, possession of criminal property (subject to disclosure)

•Value Added Tax Act 1994

–False accounting

DISCLAIMER - the above does not constitute legal advice. Always seek professional legal advice from a solicitor.