ACFE

1
ACFE
FRAUD ACT 2006 Sixteen sections in sixteen
minutes. Tim Harvey, CFE Director of UK
Operations.
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Two points to note.

• Dishonesty does the work
• Daz washes whiter than white.
• R-v-Ghosh (1982)
• No longer a result crime having obtained
• Conduct crime, focused on conduct of offender.

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Seven key offences.

• S.2 False representation
• S.3 Failing to disclose information
• S.4 Abuse of position
• S.6 Possession of articles
• S.7 Making or Supplying articles
• S.9 Fraudulent sole trader
• S.11 Obtaining services dishonestly.

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Section 1. FRAUD

• Is guilty of fraud if he breaches
• Section 2,3, or 4
• Ten Years

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Section 2 False Representation

• Dishonestly makes a false representation
  intending
• to make a gain (for himself or another) or to
  cause a loss or risk of loss .
• False untrue or misleading s/he knows it is,
  or might be
• Representation fact or law, express or implied.
  Submitted to any system.

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Section 3 Failing to disclose.

• Dishonestly fails to disclose information he is
  under a legal duty to disclose.
• Intending to make a gain or cause or expose
  another to risk of loss.

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Section 4 Abuse of position

• Occupies a position in which he is expected to
  safeguard, or not to act against, the financial
  interests of another
• Dishonestly abuses that position.
• Gain Loss, risk of loss.
• Omission

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Section 5 Gain Loss

• Gain / loss money or property
• Temporary or permanent.

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Section 6 Possession of Articles
A person is guilty of an offence if he has in his
possession or under his control Any article For
use in the course of or in connection with Any
fraud. 5 years.
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Section 7 Making or Supplying

• Makes, adapts, supplies or offers to supply
• Any article
• Knowing that is designed or adapted for use in
  fraud
• Or
• Intending it to be used to commit or assist
  fraud.
• 10 years.

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Section 8 Article

• Article includes any program or data held in
  electronic form.

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Section 9 Fraudulent business.

• He is knowingly a party to the carrying on of a
  business outside of the reach of section 458
  Companies Act 1985.
• Fraudulent trading by an individual.
• 10 years.

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Section 10

• Amends punishment for fraudulent trading from 7
  to 10 years.

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Section 11 Obtaining services

• He obtains a service by a dishonest act if
• They are made available on the basis that
  payment, has, is being or will be made for them,
• He obtains them without any payment or without
  full payment AND
• When he obtains them he knows-
• They are or might be being made available as
  above BUT
• Intends that payment or full payment will not be
  made.
  5 years

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Section 12 Liability of Company officers

• Individuals as well as body corporate can be
  prosecuted.

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Section 13 Evidence

• Proceedings in relation to property.

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Section 14,15,16

• Minor and consequential amendments
• Commencement
• Title

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Summary

• Dishonesty does the work
• Daz washes whiter than white. R-v-Ghosh (1982)
• No longer a result crime having obtained
• Conduct crime, focused on conduct of offender.

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Summary

• S.2 False representation
• S.3 Failing to disclose information
• S.4 Abuse of position
• S.6 Possession of articles
• S.7 Making or Supplying aerticles
• S.9 Fraudulent sole trader
• S.11 Obtaining services dishonestly.

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Thank you for listening.

• Tim Harvey
• 07809 767247
• tharvey_at_acfe.com