Fraud Act 2006 Overview

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Questions and Answers

Which of the following is a method of committing fraud as defined in the Fraud Act 2006?

Fraud by honest mistake

Fraud by false representation (correct)

Fraud by misunderstanding

Fraud by omission of facts

What does the term 'gain' refer to in the context of fraud as per the Fraud Act 2006?

An increase in monetary value

A loss incurred from criminal activity

A profit made from a legal transaction

Any advantage gained through fraudulent means (correct)

Which offence has been abolished by the Fraud Act 2006?

Obtaining property by deception (correct)

Fraud by false accounting

Fraud by forgery

Stealing under false pretenses

Under the Fraud Act 2006, officers of a company can be held liable for which of the following?

Offences committed under the Fraud Act itself Signup and view all the answers

Obtaining services dishonestly is categorized under which section in the Fraud Act 2006?

Obtaining services dishonestly Signup and view all the answers

Which of the following is NOT included in the terms of 'articles for use in frauds' under the Fraud Act 2006?

Personal testimonies Signup and view all the answers

What key concept does the Fraud Act 2006 introduce regarding the liability of company officers?

Liability for offences committed under the act Signup and view all the answers

What does 'loss' refer to in the context of the Fraud Act 2006?

Any disadvantage suffered by a victim of fraud Signup and view all the answers

Which individuals or entities fall under the reach of Section 458 of the 1985 Act?

Both a company and a person to whom the Section applies Signup and view all the answers

What is the maximum penalty on summary conviction for an offence under Section 458 of the 1985 Act?

12 months imprisonment or a fine Signup and view all the answers

What does 'fraudulent purpose' refer to in the context of Section 458 and Article 451?

The same meaning defined in Section 458 or Article 451 Signup and view all the answers

What is a condition for obtaining services under the dishonest act provision?

The intent to not make payment must be known Signup and view all the answers

What change did Schedule 24 to the Companies Act 1985 implement regarding the punishment for offences under Section 458?

Penalty duration increased from 7 to 10 years Signup and view all the answers

In which situation is a person guilty of an offence under the obtaining services dishonestly provision?

When services are obtained without any payment and intent to not pay Signup and view all the answers

In which case does Section 458's definition apply to a person?

Individuals exempted from the Section's application Signup and view all the answers

What does Article 451 of the 1986 Order specifically encompass?

Only companies within the jurisdiction of the Order Signup and view all the answers

What is the maximum term of imprisonment on summary conviction for an offence under this Section?

12 months Signup and view all the answers

If an offence is committed by a body corporate, who can also be liable for the offence?

A director or similar officer of the body corporate Signup and view all the answers

What rights does a person have when answering questions in proceedings relating to property?

Their statements cannot be used against them. Signup and view all the answers

What is considered a 'related offence' under the Act?

Conspiracy to defraud Signup and view all the answers

If a body corporate's affairs are managed by its members, how does subsection (2) apply?

Members are treated as directors for liability. Signup and view all the answers

Which of the following is NOT covered under 'property' in proceedings?

Creditor's rights Signup and view all the answers

What is the maximum fine on conviction on indictment for an offence under this Section?

Statutory maximum only Signup and view all the answers

What must be proven for an offence to be attributed to a director of a body corporate?

Their consent or connivance in the offence. Signup and view all the answers

What is the definition of 'wrongful credit' according to Section 24A?

A credit derived from theft, blackmail, fraud, or stolen goods Signup and view all the answers

According to the amendments, what replaces 'in the circumstances described in Section 15(1)' in Section 24(4)?

Subject to subsection (5) below, by fraud within the meaning of the Fraud Act 2006 Signup and view all the answers

Which of the following is included in the definition of 'articles' for Sections 6 and 7?

Programs or data held in electronic form Signup and view all the answers

Under what circumstance can a person be guilty of an offence regarding a business as stated in Section 9?

If they are knowingly part of a fraudulent business operation Signup and view all the answers

What does Subsection (2A) specify regarding the source of wrongful credits?

Fraud, theft, blackmail, or stolen goods can all source wrongful credits Signup and view all the answers

What does subsection (1) of Section 8 specify about the term 'article'?

It includes any electronic item or data for fraud-related activities Signup and view all the answers

Which of the following best captures the intent behind Section 9?

To penalize participation in businesses that intend to defraud Signup and view all the answers

In the context of Section 24(4), how is fraud defined?

Fraud defined in legal terms under the Fraud Act 2006 Signup and view all the answers

Study Notes

Fraud Act 2006

The Fraud Act 2006 consolidated and modernized the law on fraud.
The main changes were the abolishment of deception offences and the introduction of four new fraud offences.

Fraud Offences

Fraud by false representation: obtaining a gain or causing a loss by a false representation.
Fraud by failing to disclose information: obtaining a gain or causing a loss by failing to disclose information.
Fraud by abuse of position: obtaining a gain or causing a loss by abusing one’s position.
Possession etc. of articles for use in frauds: possessing articles for use in committing a fraud.
Making or supplying articles for use in frauds: making or supplying articles for use in committing a fraud.

Obtaining Services Dishonestly

Obtaining services dishonestly: obtaining services without payment.
Obtaining services dishonestly is a separate offence from fraud.

Liability of Company Officers

Company officers can be held liable for fraud offences committed by their company.
This applies if the offence was committed with the consent or connivance of the officer.

Evidence

A person cannot refuse to answer questions about property on the grounds that it may incriminate them.
However, any statements made while answering questions about property are not admissible as evidence against them.

Abolition of Deception Offences

The Fraud Act 2006 abolished the following deception offences:
- Obtaining property by deception
- Obtaining a money transfer by deception
- Obtaining pecuniary advantage by deception
- Procuring the execution of a valuable security by deception
- Obtaining services by deception
- Evasion of liability by deception

Commencement

The Fraud Act 2006 came into force on January 31, 2007.

Extent

The Fraud Act 2006 applies to England and Wales, Scotland, and Northern Ireland.

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Description

Explore the key aspects of the Fraud Act 2006, which modernized fraud law by introducing four new offences. Learn about various types of fraud, including false representation, failure to disclose information, and abuse of position. This quiz also covers the liabilities of company officers under the Act.