What fraud means in law
Under section 380 of the Criminal Code, fraud means using deceit, falsehood or other dishonest means to deprive someone of property, money or a valuable security, or to put them at risk of losing it. Mistakes, poor bookkeeping or a business deal that went badly are not fraud on their own. The Crown has to prove dishonesty.
- Fraud over $5,000: maximum 14 years.
- Fraud of $5,000 or less: a hybrid offence, with a maximum of two years when the Crown proceeds by indictment, or two years less a day and/or a $5,000 fine when it proceeds summarily.
- Where the total value is over $1 million and the Crown proceeds by indictment, the Criminal Code sets a minimum sentence of two years.
Common types of fraud charges
- Workplace fraud and breach of trust, such as false invoices, payroll changes or misuse of company cards.
- Bank and cheque fraud, including depositing cheques for someone else.
- "Money mule" cases, where someone agrees to receive money in their account and forward it. Students and newcomers are often targeted online.
- Identity fraud and the use of someone else's personal information.
- Mortgage and government benefit fraud.
How fraud cases are defended
- Was there actually dishonesty, or was this a misunderstanding, a civil dispute or an accounting error?
- Did you know what was happening? In money mule cases, many people were themselves deceived.
- Is the amount alleged accurate? Forensic accounting often reduces the numbers.
- Were bank records and other documents obtained lawfully, for example through proper production orders?
- Has the case been delayed too long? Large fraud cases are often slow, and delay can lead to a stay.
Sentencing, repayment and conditional sentences
Fraud sentences depend heavily on the amount, the length of time, whether there was a breach of trust and whether money has been repaid. Restitution orders are common. Since 2022, conditional sentences served in the community have been available in more cases, which can make a big difference for people who would otherwise face jail.
Many fraud cases also come with a civil lawsuit from the employer or bank. The two cases need to be coordinated, because what you say in one can affect the other.
Immigration consequences
Fraud over $5,000 carries a maximum of 14 years, so a conviction is serious criminality for permanent residents. Fraud under $5,000 is treated as indictable for immigration purposes, so it can affect students and workers too. We assess your status before any plea is discussed.
What the Crown must prove
Under section 380 of the Criminal Code, the Crown must prove a dishonest act, such as deceit, falsehood or other fraudulent means, and that the act deprived someone of property, money or a valuable security, or put them at risk of losing it. The Supreme Court of Canada has said the Crown must also prove that the accused knew what they were doing, or knew that it could cause that deprivation (R. v. Theroux, 1993). A mistake, a business dispute or a failed deal is not automatically fraud, and many cases turn on what the accused actually knew and intended.
How courts treat fraud at sentencing
Section 380.1 of the Criminal Code lists aggravating factors a court must consider when sentencing for fraud, including the magnitude, complexity, duration or degree of planning of the fraud, the number of victims, the significant impact on victims given their personal circumstances such as age, health and finances, and whether the offender took advantage of the high regard in which they were held in the community. These factors apply on top of the minimum sentence rules mentioned above, so the details of the case matter a great deal.
Courts also look at restitution, whether the accused has repaid or can repay the loss, and at the person's history and role. Early legal advice can affect how a case is approached, including how and when any repayment is discussed.
If you are being investigated or have been contacted by police
- Do not delete or alter any document, message or account record. That can create a separate offence.
- Do not discuss the facts with police, your employer or others before speaking to a lawyer.
- Gather your own records, but do not contact complainants or witnesses about the allegation.
- If you are not a citizen, tell us right away, because fraud over $5,000 carries a maximum of 14 years and can have serious immigration consequences.
Talk to a criminal defence lawyer in Mississauga today
The earlier we're involved, the more options you have. We answer calls after hours, so call now or request a call back.
Frequently asked questions
My employer says they won't call police if I pay the money back. Should I?
Get advice first. Any agreement should be handled carefully, and signing an admission can be used against you if police become involved anyway.
Someone used my bank account to move money. Am I guilty of fraud?
Not necessarily. The Crown must prove you knew, or were wilfully blind to, the dishonesty. Many people involved in money mule schemes were deceived themselves. Speak to us before you speak to police or your bank.
Will repaying the money get the charge withdrawn?
Not automatically, but repayment can matter a great deal, both in negotiations with the Crown and at sentencing.
Can I go to jail for fraud?
It depends on the amount, the circumstances and your background. Many smaller cases are resolved without jail, and conditional sentences are now available more often. Large frauds and breach-of-trust cases can lead to jail.
Do you take Legal Aid?
We consider Legal Aid Ontario certificates on a case-by-case basis.
Can we speak in Urdu, Hindi or Punjabi?
Yes. We meet clients in English, Urdu, Hindi and Punjabi.
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This page is general information about Ontario law, not legal advice, and reading it doesn't create a lawyer–client relationship. Laws change, so please speak with us about your situation. Read our full disclaimer.