04-5.7 Fraud, Forgery and Uttering_806e777547eed501ce75c7579b9d1dc8.pdf

OFFICIAL Unit 4 Lesson 5.7...

OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Lesson Aim: The learner will be able to differentiate between different types of acquisitive crime Learning Outcomes: Introduction On successful completion of the lesson, students will be able to:- The “Modus Operandi” for the crime of fraud can vary considerably and a fraud can range 1. Describe common law and statutory from minor in nature, to a complicated and examples of fraud protracted commercial and public sector fraud. 2. Identify a range of doorstep crimes As a general rule, minor fraud investigations are undertaken by yourself or the Criminal Investigation Department, with the Financial Investigation Unit from Specialist Crime Division pursuing more complex investigations. The key features that set specialist fraud apart from routine fraud investigations are those relating to the size of the enquiry in terms of value, documentation and complexity. 1 th Amended 25 April 2024 v.4 OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering The Main Components for the Crime of Fraud Fraud was formerly known as “falsehood, fraud and wilful imposition”. Today these make up the main components of the modern understanding of the crime of fraud. 1. Falsehood - false representation by word of mouth or writing or false conduct. 2. Fraud - intention to deceive and defraud, and 3. Wilful imposition - what is required is that there is a practical result, i.e. inducing a person to do what they would otherwise not have done. Essence of Fraud It is not necessary that the accused should have made any actual physical gain or that the person defrauded should have incurred a loss in order to establish the crime. In short, fraud is the bringing about of some form of practical result by means of false pretences. When is the Crime of Fraud Complete? In general terms the accused must have had some measure of success before the crime is complete. In order to prove a charge of attempted fraud the scheme must have passed a stage of preparation and entered a stage of perpetration tending to prejudice the interests of another. Common Methods Some common methods of committing fraud can be found below:- 1. ATM Skimming - This form of fraud has become more common in recent years with organised crime groups using it as a method of making large sums of money in a relatively short time. A device will be placed within a genuine ATM machine. This device can read the PIN number of cards being inserted in to the machine. By using the information obtained through this method, criminals can access the victim’s account and withdraw money in a very short space of time. 2 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering If an incident of this type comes to police attention, the device should be photographed in situ and retained with all steps being taken to preserve any potential forensic evidence. 2. Boiler Room - Investors are sold over priced shares by companies that are worth little or nothing. These types of frauds are often supported by impressive looking web- pages which would appear to support the claim that the company is a genuine body. 3. Long Firm Fraud - This generally involves a company being set up, obtaining goods on credit and failing to make payment for the goods. The goods are usually sold for cash and the business closes their premises. 4. Phishing - This involves the process of attempting to acquire personal information such as usernames and passwords over the internet. Communications purporting to be from popular sites and banks contact the victim and require personal banking information. Many of these sites look identical to legitimate sites. As can be seen in the examples above there are many ways to commit fraud. Traditionally some officers have been apprehensive about the investigation of such matters. The investigation stage of a fraud enquiry should be handled in the same way as any other crime or offence. Remember that all statements should be detailed and informative, all productions in relation to the matter should be retained and that you should liaise with other departments or specialists when relevant. Many large companies will have a Police Liaison Officer who may be able to assist you in your investigations. Although some frauds can be complex in nature, you will benefit from approaching the investigation in a systematic and detailed manner. Over the next few pages are some activities to assist with your understanding of the essential elements. The feedback will be provided later in the lesson note. Example Charge EC On 13th March 2020 at Tesco Store, Broad Street, Brookbank, you OLIVER MASON did without consent use the credit card belonging to Marcus Stephens to make purchases and in your actions did commit fraud.” 3 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 1 A1 Credit Card It is a crime to order goods without paying or intending to pay for them and this can involve using stolen credit cards or credit card details. This is becoming more common with internet shopping when customers give false names to obtain goods using stolen credit cards. By the time the crime is discovered the perpetrators have generally moved on and tracing them is more difficult. Example:- Miss Wilkins decides that she needs a new pair of shoes but has no money. She is at work one day when she sees a colleague’s handbag lying unattended on a desk. She searches the bag and steals a credit card and piece of paper with the pin written on it. She later goes to a shoe shop where she selects two pairs of shoes and hands over the stolen credit card. Wilkins enters the pin and leaves the shop with the shoes. Falsehood Fraud Wilful Imposition Evidence EvidenceSection Section 4 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 2 A2 Board and Lodgings It is a crime to order and obtain board and lodgings without paying or intending to pay for them, on the pretext of being a bona fide purchaser or customer of good credit who is able and willing to pay for what is received. Example:- Brown goes to Edinburgh for the day where he spends all his money. He decides to stay overnight in a hotel, and books in at reception. Knowing he has no money he gets up early and leaves via a back door. He then catches a train home. Falsehood Fraud Wilful Imposition Evidence Section 5 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 3 A3 Personation Fraud may be committed by impersonating another or by falsely assuming a certain position or status, for the purpose of obtaining gain, benefit or advantage. It would be fraud for a person to assume the identity of a company representative and thereby obtain possession of goods in the pretence that they will be delivered to the company he or she pretends to represent, rather than keeping them for themselves. Similarly, if A presents B’s credit card or cheque and fraudulently purports to be B, then A, is guilty of fraud if they obtain some definite result. Continued on next page… 6 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 3 continued A3 Example:- Smith’s friend works for a local company called Alpha, which buys electrical goods from a nearby shop. In conversation Smith learns that company representatives go to the shop and purchase and receive goods by signing an invoice which is later forwarded to Alpha for payment. Smith goes into the shop and tells the shopkeeper he is employed by Alpha and asks for a laptop computer. He tells the shopkeeper to send the bill to Alpha as usual. After signing the invoice, Smith leaves the premises with the computer. Falsehood Fraud Wilful Imposition Evidence Section 7 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 4 A4 Till Frauds If a person tendered a £5 note for goods thereafter claiming (i.e. pretending) that it was a £10 note, causing the till operator to hand over extra change. Such offenders may well have an accomplice present to “confirm” that the note was a £10 note. This method is sometimes referred to as “ringing the changes” where the intention is to confuse the person into handing over more money than received. Example:- Miss Menzies and her friend go into a large department store where they visit the ladies clothing section. She selects a pair of gloves valued at £6.99 and takes them to the till. Menzies hands the shop assistant a £10 note and is given £3.01 change. On receiving the money, she tells the assistant that she gave her a £20 note and that she is due £13.01 change. Her friend confirms that she is correct and the assistant hands over £13.01. The two women then leave the shop. Falsehood Fraud Wilful Imposition Evidence EvidenceSection Section 8 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 5 A5 Bogus Workers Remember “It is a fraud for the seller, with intent to cheat or defraud the purchaser, to deliver as the article purchased or selected, an article inferior in quality to and less in value than such an article.” Example:- Following high winds, Paterson pretends to 3 elderly residents that he is a competent tradesman, identifies that several slates have fallen from their roof and are needing replaced. He explains that work to the value of £2150 is required to the three terraced homes. The minor repairs that have been carried out by Paterson are later described by a true tradesman as grossly negligent to an ‘unworkman’ like standard and grossly overpriced. Falsehood Fraud Wilful Imposition Evidence Section 9 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Feedback 1 F1 Credit card Falsehood Pretending to be the legitimate owner of the credit card by use of false representations, i.e. the pin number and the general false conduct. Fraud There is prior knowledge by Wilkins that the credit card has been stolen. Wilful Imposition Wilkins has successfully obtained goods she hasn’t had to pay for whilst depriving the true owner of the card of the value of the goods. With some guarantee schemes offered by banks and credit card companies, you may have to establish who the "loser" actually is, i.e. the shop, the cardholder, the bank or any combination of all three. Evidence which may be gathered Owner of credit card’s monthly statement showing fraudulent transaction. Documentary evidence from shoe shop showing stolen credit card was used to purchase shoes. CCTV footage of Wilkins using the card at the store at the pertinent time. 10 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Feedback 2 F2 Board and Lodgings Falsehood Brown books into the hotel for the night as an apparent bona fide guest. Fraud Brown knows he has no money to pay for the accommodation, but carries on with the booking regardless. Wilful Imposition Brown obtains the key from reception and uses it to gain access to the room. Evidence which may be gathered Take possession of the hotel register. Feedback 3 F3 Personation Falsehood Smith approaches the shopkeeper stating that he is employed by Alpha and asks for a laptop computer. Fraud Smith knows that he is not an employee of Alpha and is not entitled to pick up the computer. Wilful imposition The shopkeeper has handed over the computer to Smith. The shop will not receive payment for it and meantime Smith has obtained the computer under false pretences. Evidence which may be gathered Obtain copy of paperwork showing signature made by Smith. Any CCTV evidence. 11 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Feedback 4 F4 Till Frauds Falsehood Miss Menzies has used false conduct as she has handed the shop assistant a £10 note pretending that it was a £20 note. Fraud Menzies knew that it was a £10 note she was handing over but deliberately told lies in order to obtain money to which she was not entitled. Wilful imposition Menzies has succeeded in fraudulently gaining money to the detriment of the store. Evidence which may be gathered Detailed statement from shop assistant. Cash up of till to confirm variance. 12 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Feedback 5 F5 Bogus Worker Falsehood The bogus worker pretends he is a competent and qualified tradesperson and quoted a grossly inflated price. Fraud The bogus worker had the prior knowledge that his work would be of inferior quality and he was incapable of carrying out the job satisfactorily. Wilful imposition The bogus worker received excessive payment for the job first. The job has not been satisfactorily completed, was overpriced, and the householder has subsequently been left out of pocket. Evidence which may be gathered The householder’s statement may be corroborated by the following: Documentary evidence, e.g., a written contract Some other person who witnessed the verbal agreement between bogus worker and householder Photographic evidence of the roof A competent tradesperson speaking to the quality of the work Statutory Frauds Fraudulent conduct is punishable by many statutes, of which the following are examples:- 1. Section 92 of the Police and Fire Reform (Scotland) Act 2012 provides that it is an offence for a person (not being a Constable) to impersonate a Constable with intent to deceive, or to do anything calculated to suggest that the person is a Constable. It is an offence for a person to be in possession or to wear an article of police uniform without permission of the authority - impersonating a police officer. 13 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering 2. Section 96 of the Railway Clauses Consolidation (Scotland) Act 1845 creates an offence for persons to travel on trains without paying the appropriate fare etc. 3. Section 49 of the Criminal Justice and Licensing (Scotland) Act 2010 creates an offence for a person to have in their possession (or under their control) any article for use in, or in connection with, the commission of fraud. Under this statute, it is also an offence for a person to make, adapt, or supply an article designed for use in fraud. The term 'article' includes computer programmes and electronic information. Definition of Forgery and Uttering The definition of Forgery and Uttering is:- “A crime at common law, and consists in the making and publishing of a writing feloniously intended to represent and pass for the genuine writing of another person.” Note:- Uttering means the tendering or presenting of a document The Essentials Elements for Forgery and Uttering To convict an accused of uttering a forged document, the prosecution must prove all of the following:- 1. The document tendered was a “forged document”. 2. The forged document was tendered to some other person in the pretence that it was genuine and authenticated. 3. The document was uttered with the intention of disadvantaging the interests of another. 14 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Criminal Liability Where a forged document is uttered the person tendering the document is the principal offender no matter who forged the document. The actual forger of the document is not guilty of this crime unless the prosecution can prove that he had prior guilty knowledge that his forgery was to be criminally uttered. In such a case the forger would be an accessory to the crime. Forgery At common law, it is not criminal to forge a document. Forgery itself is not a crime “as anyone may amuse themselves by counterfeiting signatures”. A forged document is one which pretends to be genuine in the sense that it pretends to be authenticated (usually by signature), by a particular person or body. Modes of Forgery The following are examples of recognised methods of producing a forged document:- Fabricating a whole document including the signature. Applying a false signature to a genuine document. Transferring a genuine signature from elsewhere onto a fabricated document. Altering a genuine signed document to alter the character or meaning without the consent of the author. Placing a writing above a genuine signature without the consent of the signatory. Example Charge EC On 13th March 2020 at Tesco Pharmacy, Broad Street, Brookbank, you OLIVER MASON did utter as genuine a handwritten prescription in the name of Bartek Nowak, to be signed as such signatory, and such signature being forged and presented and did receive in exchange a quantity of Zaleplon Tablets.” 15 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Statutory Offences At common law, it is the uttering rather than the actual forgery which is criminal. However certain statutes create offences relating to forgery where there is no need to prove any uttering of the relevant documents. The following are examples of statutory offences involving forgery:- Section 18 of the Forgery and Counterfeiting Act 1981 creates an offence for any person to reproduce any UK currency note without the consent of the Bank of issue (includes photographs and photocopies). Section 1 of the Official Secrets Act 1920 creates an offence for any person to forge, or possess any forged document or pass, with intent to gain entry to any “prohibited place”. Section 173 of the Road Traffic Act 1988 creates an offence for any person to fraudulently forge or alter any driving licence or insurance certificate etc., with intent to deceive. 16 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Activity 6 A6 Discuss the following scenarios and detail which method of forgery and uttering from the above lesson note applies. Scenario 1 A credit card application is submitted to the bank by Linda Thomson. She uses her sister’s name, Lesley Thomson, and signs the application form. She signs her sister’s name in the application. The bank issues a credit card. Scenario 2 A contractor is given a signed cheque for £100. The contractor modifies the amount to increase the value of the cheque to £1100. He then cashes the cheque. Scenario 3 Following the death of a woman, her grandson alters her will to ensure he receives 75% of her estate instead of 50%. He passes this will to the solicitor who organises the settlement. 17 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Doorstep Crime Doorstep crime, or "Bogus Crime" as it is otherwise known, is principally committed against people in their own homes by organised individuals or groups. These criminals systematically target their victims and adapt their criminal method to exploit a person's vulnerabilities. The impact of this type of crime has devastating effects on victims and communities. Perpetration of the crime may involve distraction, deceit, threats and violence. Some criminals will alter their methods to gain the confidence of the victim, and share this information with other doorstep criminals. Many doorstep criminals are well networked and will travel significant distances to commit crime, and view their criminality as a lifetime occupation. This is supported by the level of repeat victimisation throughout the country. Bogus crimes can be divided into four distinct types:- Bogus Worker: Individuals who carry out work, often unnecessarily, which is of a substandard quality, charging an excessive fee. This includes individuals who obtain a deposit for material for work they do not thereafter undertake. These individuals are often referred to as Rogue Traders. Bogus Official: Individuals who purport to be from a utility company, such as Water, Gas or Electricity companies etc, or use any other false story, designed to gain access to the property and distract the victim in order to steal from within. Often referred to as distraction thefts. Bogus Representative: Individuals who falsely claim to represent an organisation, such as insurance companies, local companies, charities or banks etc, and induce the victim to give money or supply their bank details. This is more-often conducted over the phone and is commonly described as phishing. Bogus Impersonator: Individuals who assume to be employed as a recognised professional, such as a social worker, nurse, doctor or police officer etc, in order to gain access to the property for other gain. Again, often referred to as distraction thefts. 18 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Initial Action at the Locus Upon arrival at the locus the primary concern is for the welfare of the victim, many of whom have already been targeted as vulnerable by the perpetrator(s). The effects of such crimes can cause anxiety and a rapid deterioration in health, however providing reassurance and involving family or friends to comfort the victim may lessen the effects of the trauma. Whilst it is important to obtain details of the crime such as the suspect’s description, the initial focus must be to aid the victim. The following actions should then be considered:- Consider having a relative or neighbour attend for reassurance if the victim is elderly, infirm or vulnerable. Speak with the complainer to ascertain if they would like some support and who they would like present. Do not leave the victim alone at any time until this has been established. If the victims’ condition deteriorates medical assistance should be sought immediately. Understand the need to minimise any scene disruption and where appropriate consider removing the victim from the locus for interview so as to maximise forensic opportunities. Scenes of crime examinations must be carried out at every doorstep crime incident, in accordance with the process identified in the acquisitive crime flowchart. Inform the CID. Obtain full details of any vehicle and direction of travel. Ensure this information is relayed to the control room and placed on PNC/ANPR. Obtain full descriptions of the perpetrators. Do not under estimate an elderly or vulnerable person’s ability to recollect events and description of assailants. Information should be obtained regarding the exact words spoken and any accent or speech impediment detected. Details should also be noted in respect of any identifiable features, such as items of uniform worn or alleged proof of identification shown, which tend to suggest their officialdom, or any items carried by them. 19 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering Note full Modus Operandi, in particular any unusual method used to distract the victim and/or the type of bogus official. This is extremely important should the ‘Howden Principle’ and ‘Moorov Doctrine’ be subsequently considered. Seize any documents such as flyers left by the perpetrators. In circumstances where the perpetrator has divulged telephone numbers to the victim consideration should be given to utilising CyComms, which may assist in linking the perpetrator to the crime or linked offences. Communication C It should be noted that there may not be any overt physical or mental conditions obvious, however the circumstances surrounding the incident itself have placed the complainer in an extremely vulnerable position which can have a significant effect on the complainers’ health. Do not note a detailed statement until the victim’s trauma subsides. Feedback 6 F6 Scenario 1 Linda has committed forgery and uttering by applying a false signature to a genuine document. Scenario 2 The contractor has placed a writing above a genuine signature without the consent of the signatory. Scenario 3 The grandson has altered a genuine signed document to alter the character or meaning without the consent of his grandmother. 20 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering For further information, use the resources shown below:- Legal Database:- Criminal Law - Crimes of Dishonesty SOP:- Bogus Callers Review: You can describe common law and statutory examples of fraud You can identify a range of doorstep crimes Learning Log: How will what you have learned in this module impact your day-to- day role? Are there any skills or knowledge you would like to develop further following this module? End of Module 21 Scots Criminal Law: Introduction and Investigation OFFICIAL  OFFICIAL Unit 4 Lesson 5.7 Acquisitive Crimes - Fraud, Forgery and Uttering 22 Scots Criminal Law: Introduction and Investigation OFFICIAL