Fraud Act 2006 PDF

# Fraud Act 2006 ## Chapter 35 ### Contents #### Fraud - Fraud - Fraud by false representation - Fraud by failing to disclose information - Fraud by abuse of position - "Gain" and "loss" - Possession etc. of articles for use in frauds - Making or supplying articles for use in frauds - "Article" -...

# Fraud Act 2006 ## Chapter 35 ### Contents #### Fraud - Fraud - Fraud by false representation - Fraud by failing to disclose information - Fraud by abuse of position - "Gain" and "loss" - Possession etc. of articles for use in frauds - Making or supplying articles for use in frauds - "Article" - Participating in fraudulent business carried on by sole trader etc. - Participating in fraudulent business carried on by company etc: penalty #### Obtaining services dishonestly - Obtaining services dishonestly #### Supplementary - Liability of company officers for offences by company - Evidence - Minor and consequential amendments etc. - Commencement and extent - Short title ### Schedule 1 - Minor and consequential amendments #### Abolition of various deception offences 1. Omit the following provisions: - In the Theft Act 1968 (c. 60): - Section 15 (obtaining property by deception) - Section 15A (obtaining a money transfer by deception) - Section 16 (obtaining pecuniary advantage by deception) - Section 20(2) (procuring the execution of a valuable security by deception) - In the Theft Act 1978 (c. 31): - Section 1 (obtaining services by deception) - Section 2 (evasion of liability by deception) - In the Theft Act (Northern Ireland) 1969 (c. 16 (N.I.)): - Section 15 (obtaining property by deception) - Section 15A (obtaining a money transfer by deception) - Section 16 (obtaining pecuniary advantage by deception) - Section 19(2) (procuring the execution of a valuable security by deception) - In the Theft (Northern Ireland) Order 1978 (S.I. 1978/1407 (N.I. 23)): - Article 3 (obtaining services by deception) - Article 4 (evasion of liability by deception) #### Visiting Forces Act 1952 (c. 67) 2. In the Schedule (offences referred to in Section 3 of the 1952 Act) after sub-paragraph (1) insert: - "(m) the Fraud Act 2006." #### Theft Act 1968 (c. 60) 3. Omit Section 15B (Section 15A: supplementary). 4. In Section 18(1) (liability of company officers for offences by company under Sections 15, 16 or 17) omit "15, 16 or" 5. In Section 20(3) (suppression etc. of documents - interpretation) omit ""deception" has the same meaning as in Section 15 of this Act, and" 6. (1) In Section 24(4) (meaning of "stolen goods") for "in the circumstances described in Section 15(1) of this Act" substitute ", subject to subsection (5) below, by fraud (within the meaning of the Fraud Act 2006)" (2) After Section 24(4) insert: - "(5) Subsection (1) above applies in relation to goods obtained by fraud as if: - (a) the reference to the commencement of this Act were a reference to the commencement of the Fraud Act 2006, and - (b) the reference to an offence under this Act were a reference to an offence under Section 1 of that Act." 7. (1) In Section 24A (dishonestly retaining a wrongful credit) omit Subsections (3) and (4) and after Subsection (2) insert: - "(2A) A credit to an account is wrongful to the extent that it derives from: - (a) theft - (b) blackmail - (c) fraud (contrary to Section 1 of the Fraud Act 2006) - (d) stolen goods." (2) In Subsection (7), for "Subsection (4)" substitute "Subsection (2A)" 8. (1) For the purposes of: - (a) Sections 6 and 7, and - (b) the provisions listed in Subsection (2), so far as they relate to articles for use in the course of or in connection with fraud, "article" includes any program or data held in electronic form. (2) The provisions are: - (a) Section 1(7)(b) of the Police and Criminal Evidence Act 1984 (c. 60) - (b) Section 2(8)(b) of the Armed Forces Act 2001 (c. 19) - (с) Article 3(7)(b) of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341) (N.I. 12) (meaning of “prohibited articles” for the purposes of stop and search powers) 9. (1) A person is guilty of an offence if they are knowingly a party to the carrying on of a business to which this Section applies. (2) This Section applies to a business which is carried on: - (a) by a person who is outside the reach of Section 458 of the Companies Act 1985 (c. 6) or Article 451 of the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032) (N.I. 6)) (offence of fraudulent trading), and - (b) with intent to defraud creditors of any person or for any other fraudulent purpose. (3) The following are within the reach of Section 458 of the 1985 Act: - (a) a company (within the meaning of that Act) - (b) a person to whom that Section applies (with or without adaptations or modifications) as if the person were a company - (c) a person exempted from the application of that Section (4) The following are within the reach of Article 451 of the 1986 Order: - (a) a company (within the meaning of that Order) - (b) a person to whom that Article applies (with or without adaptations or modifications) as if the person were a company - (c) a person exempted from the application of that Article (5) "Fraudulent purpose" has the same meaning as in Section 458 of the 1985 Act or Article 451 of the 1986 Order. (6) A person guilty of an offence under this Section is liable: - (a) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum (or to both) - (b) on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both). (7) Subsection (6)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months. 10. (1) In Schedule 24 to the Companies Act 1985 (punishment of offences), in Column 4 of the entry relating to Section 458 of that Act, for "7 years" substitute "10 years." (2) In Schedule 23 to the Companies (Northern Ireland) Order 1986 (punishment of offences), in Column 4 of the entry relating to Article 451 of that Order, for "7 years" substitute "10 years." # Obtaining services dishonestly 11. (1) A person is guilty of an offence under this Section if they obtain services for themselves or another: - (a) by a dishonest act, and - (b) in breach of Subsection (2). (2) A person obtains services in breach of this Subsection if: - (a) they are made available on the basis that payment has been made, is being made or will be made for or in respect of them, - (b) they obtain them without any payment having been made for or in respect of them or without payment having been made in full, and - (c) when they obtain them, they know: - (i) that they are being made available on the basis described in paragraph (a), or -(ii) that they might be, but intend that payment will not be made or will not be made in full. (3) A person guilty of an offence under this Section is liable: - (a) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum (or to both) - (b) on conviction on indictment, to imprisonment for a term not exceeding 5 years or to a fine (or to both). (4) Subsection (3)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months. ### Supplementary 12. (1) Subsection (2) applies if an offence under this Act is committed by a body corporate. (2) If the offence is proved to have been committed with the consent or connivance of: - (a) a director, manager, secretary or other similar officer of the body corporate, or - (b) a person who was purporting to act in any such capacity, they (as well as the body corporate) are guilty of the offence and liable to be proceeded against and punished accordingly. (3) If the affairs of a body corporate are managed by its members, Subsection (2) applies in relation to the acts and defaults of a member in connection with their functions of management as if they were a director of the body corporate. 13. (1) A person is not to be excused from: - (a) answering any question put to them in proceedings relating to property, or - (b) complying with any order made in proceedings relating to property, on the ground that doing so may incriminate them or their spouse or civil partner of an offence under this Act or a related offence. (2) But, in proceedings for an offence under this Act or a related offence, a statement or admission made by the person in: - (a) answering such a question, or - (b) complying with such an order, is not admissible in evidence against them or (unless they married or became civil partners after the making of the statement or admission) their spouse or civil partner. (3) "Proceedings relating to property" means any proceedings for: - (a) the recovery or administration of any property - (b) the execution of a trust, or - (c) an account of any property or dealings with property, and "property" means money or other property whether real or personal (including things in action and other intangible property). (4) "Related offence" means: - (a) conspiracy to defraud; - (b) any other offence involving any form of fraudulent conduct or purpose. 14. (1) Schedule 1 contains minor and consequential amendments. (2) Schedule 2 contains transitional provisions and savings. (3) Schedule 3 contains repeals and revocations. 15. (1) This Act (except this Section and Section 16) comes into force on such day as the Secretary of State may appoint by an order made by statutory instrument and different days may be appointed for different purposes. (2) Subject to Subsection (3), Sections 1 to 9 and 11 to 13 extend to England and Wales and Northern Ireland only. (3) Section 8, so far as it relates to the Armed Forces Act 2001 (c. 19), extends to any place to which that Act extends. (4) Any amendment in Section 10 or Schedule 1, and any related provision in Section 14 or Schedule 2 or 3, extends to any place to which the provision which is the subject of the amendment extends. 16. This Act may be cited as the Fraud Act 2006. ## Schedule 2 - Transitional provisions and savings. ## Schedule 3 - Repeals and revocations