Fraud offences involve a use of deception or dishonesty to obtain an unjust advantage, often at the expense of another person. The general offence of “fraud” covers most situations, but there are also specialised types of fraud offences.
Fraud includes conduct that could also be seen as theft or stealing. However, stealing offences usually target the taking and carrying away of physical property, while fraud charges often involve the use of computers and technology to unlawfully obtain intangible property.
What is fraud?
In NSW, section 192E of the Crimes Act 1900 criminalises the general offence of fraud. This section captures a broad range of conduct. Fraud can be charged where a person:
- By any deception or dishonestly,
- Obtains property belonging to another, or
- Obtains any financial advantage or causes any financial disadvantage.
Examples of fraud include:
- Internet fraud (also known as cyber fraud) – e.g. sending someone a fraudulent email pretending to be a reputable company and asking the person to provide their credit card details.
- Bank fraud – e.g. using someone else’s bank details to log into their bank account and steal money, or impersonating a bank to steal people’s details.
- Credit card fraud – e.g. using another person’s credit card to purchase items without their consent.
- Workplace fraud – e.g. an employee of a company creating false receipts/invoices to get reimbursed from the company.
- Insurance fraud – e.g. filing a false insurance claim or exaggerating damages, injuries or losses, to receive benefits from an insurer.
Commonwealth fraud offences
The Criminal Code Act 1995 criminalises fraud at the Commonwealth level. Fraud is also criminalised in other Commonwealth legislation such as the Taxation Administration Act 1953 and the Corporations Act 2001, to capture specific or complex types of fraud that are relevant to the specific legislation.
Examples of Commonwealth fraud offences include:
- Tax fraud – e.g. failing to declare income, or providing falsified accounting records to the Australian Taxation Office (ATO).
- Investment fraud – e.g. creating a fake investment opportunity to steal money from individuals.
- Corporate fraud – e.g. altering a company’s financial records to make it seem more profitable or valuable.
Categories of frauds
In addition to the general fraud offence described above, the main categories of fraud are identity fraud, forgery, and corporate fraud.
Identity fraud
Identity fraud involves using a person’s identity information including financial data such as credit card numbers, account details and biometric records, to commit fraud. Part 4AB of the Crimes Act criminalises conduct whereby a person who, with the intention of committing or facilitating an indictable offence:
- Possesses identification documents.
- Deals with identification documents.
- Possesses the equipment to make identification documents.
Forgery
Forgery offences under part 5 of the Crimes Act criminalise the production, use or possession of a false document for the purpose of obtaining a financial advantage or influencing the exercise of a public duty. A relevant document might include a bank statement or passport.
Corporate fraud
Corporate fraud is a common type of white collar crime which involves offences conducted by a company, or an individual acting on behalf of a company. Corporate fraud is primarily regulated by the Corporations Act 2001 (Cth) and the Criminal Code Act 1995 (Cth), and therefore is usually investigated and prosecuted at a Federal level.
The Corporations Act and Criminal Code Act criminalise a number of offences that are considered corporate fraud. These offences include:
- Market misconduct, which incudes intentionally making false or misleading statements in relation to financial products such as stocks, bonds and loans (including securities).
- Falsifying information on a tax return to hide income, or to receive benefits from the ATO.
- Falsifying financial statements to hide the giving or receiving of illegitimate payments, which can include payment of bribes.
Under the Criminal Code Act, the individual who acted on behalf of the corporation is likely to be found criminally liable for committing these type of offences. However, for certain offences, the corporation itself can also be liable and penalised.
Penalties
Fraud offences are treated seriously by the courts, and representation by an experienced fraud lawyer is recommended.
In NSW, the maximum penalty for fraud under section 192E is 10 years’ imprisonment, and people found guilty of this crime often receive a prison sentence.
If the matter is heard in the Local Court, the maximum penalty is two years’ imprisonment and penalties often include a fine, Community Corrections Order or Intensive Correction Order. Learn more about the types of penalties available.
At the Commonwealth level, the maximum penalty for fraud under the Criminal Code Act is 10 years’ imprisonment. Other Commonwealth legislation capturing fraud may have different penalties, such as the Corporations Act which has a maximum penalty of 15 years’ imprisonment.
The maximum penalties for specific variations of the main fraud offences are set out below.
General fraud
| Offence | Maximum sentence |
|---|---|
| Intention to defraud by destroying or concealing accounting records | 5 years' imprisonment |
| Intention to defraud by false or misleading statement | 5 years' imprisonment |
| Intention to deceive members or creditors by false or misleading statement of officer of organisation | 7 years' imprisonment |
Identity fraud
| Offence | Maximum sentence |
|---|---|
| Deal with identification information with intent to commit or facilitate indictable offence | 10 years' imprisonment |
| Possess identification information with intent to commit or facilitate indictable offence | 7 years' imprisonment |
| Possess equipment to make identification document or thing with intent to commit or facilitate indictable offence | 3 years' imprisonment |
Forgery
| Offence | Maximum sentence |
|---|---|
| Make false document | 10 years' imprisonment |
| Use false document | 10 years' imprisonment |
| Possess false document | 10 years' imprisonment |
| Make or possess equipment for making false document forgery | 10 years' imprisonment |
Corporate fraud
| Offence | Maximum sentence |
|---|---|
| False or Misleading Statements in Respect of Financial Product (Corporations Act 2001) | 15 years’ imprisonment |
| Falsifying information on a tax return to hide its income or receive benefits from the ATO (Taxation Administration Act 1953) | 10 years’ imprisonment |
| Falsifying financial statements (Corporations Act 2001) | 2 years’ imprisonment |
Fraud lawyers in Sydney
Facing fraud charges can be extremely daunting. A criminal conviction can impact your future, including employment prospects and travel opportunities. Finding a fraud lawyer in Sydney to represent and advise you is therefore an important decision, and not one to be taken lightly.
Nyman Gibson Miralis is highly experienced in defending all types of fraud charges, including general fraud, identity fraud, forgery, and corporate fraud, and we have a proven track record of getting outstanding results. While our fraud lawyers are based in Sydney, we represent clients in all courts throughout NSW and the ACT.
If you are facing fraud charges in NSW, it is important to get expert legal advice as soon as possible to ensure that you get the best outcome. Our fraud lawyers in Sydney provide a free initial consultation where we will listen to your side of the story and discuss the matter in detail, including available defence strategies and the relevant court procedures.
You can call us 24/7 on 1300 668 484 to speak with an experienced fraud lawyer or book a free consultation online.
