Fraud Lawyers Toronto

Under section 380(1)(a) of the Criminal Code, fraud over $5,000 is a straight indictable offence punishable by a maximum of 14 years imprisonment. Where the total value of the fraud exceeds $1,000,000, the court must impose a minimum sentence of two years in a federal penitentiary. Courts routinely impose penitentiary sentences for large-scale frauds, particularly where there are multiple victims, a breach of trust, or the fraud was carried out over a prolonged period. Read more about defending a fraud over $5,000 charge.

Under section 380(1)(b), fraud under $5,000 is a hybrid offence. If prosecuted by indictment, the maximum penalty is two years imprisonment. If prosecuted summarily, the maximum penalty is two years less a day and/or a $5,000 fine. While jail is not automatic for lower-value fraud, judges take into account the nature of the dishonesty, the vulnerability of the victim, and whether the offender holds a position of trust.

Under section 380.1 of the Criminal Code, the following factors will increase the severity of a fraud sentence:

• The magnitude, complexity, duration or degree of planning of the fraud was significant;
• The fraud affected, or could have affected, the stability of the Canadian economy, its financial system or markets, or investor confidence;
• The fraud involved a large number of victims;
• The fraud had a significant impact on the victims given their personal circumstances, including their age, health and financial situation, for example their financial security or retirement savings;
• The offender took advantage of the high regard in which they were held in the community;
• The offender did not comply with a licensing requirement or professional standard that normally applies to the activity;
• The offender concealed or destroyed records related to the fraud or to how its proceeds were paid out.

Separately, section 718.2 of the Criminal Code makes it an aggravating factor at the sentencing hearing that an offender abused a position of trust or authority in relation to the victim. A court cannot treat the offender’s employment, skills, status or reputation as a mitigating consideration if those things were used to commit the fraud.

The same factors apply to fraudulent manipulation of stock exchange transactions, insider trading, and making, circulating or publishing a false prospectus. For those three offences, the court must also treat a fraud value over $1 million as aggravating. In every case, the judge must state on the record which aggravating and mitigating circumstances were taken into account.

In addition to imprisonment, a fraud conviction may result in:

• Restitution orders: requiring the offender to repay victims for their losses;
• Prohibition orders: preventing the offender from having authority over the real property, money, or valuable security of another person;
• Forfeiture orders: allowing the Crown to seize proceeds of the fraud;
• Probation with conditions such as community service, counselling, or reporting requirements.

A court can order restitution even if the offender cannot currently afford to pay it.

A prohibition order can follow a conviction or a discharge for fraud. It can bar the person from seeking, obtaining or continuing any job, or any volunteer role, that involves authority over another person’s real property, money or valuable security. The court can set it for any length it considers appropriate, including time spent in custody. Breaching the order is a separate criminal offence, punishable by up to two years in jail if the Crown proceeds by indictment.