Self-test questions: Fraud

. Which Act of Parliament regulates the area of law known as Fraud?

. Fraud can be committed in a number of separate ways.

Which answer is the correct ending to the phrase: 'The ways, as stated in the Fraud Act 2006, fraud can be committed are…'?

. Mohammed is a self-employed a decorator. He does some work for Mrs. Stevens, an elderly lady. The initial price is £200. At the end of the work, Mohammed tells Mrs. Stevens that the price is now £300. She asks him to explain and Mohammed tells her the materials were more expensive than he initially quoted. This is untrue and he knows it.

Which answer best describes Mohammed's possible liability for a fraud offence?

. Mohammed is charged under Section 2(1) Fraud Act 2006. However, he will claim that he did not make a representation. He will say it was a 'mere puff' along contract law lines in that he was not acting in a criminal manner, but more akin to trying to obtain a better price for his decorating.

Which of the following statements most accurately reflects the law of fraud as it applies to Mohammed?

. Mark is worried that he will fail his criminal law exam. He is very good friends with James. He asks James to sit the criminal law exam for him, and if James does so, Mark will give him £500. James sits the exam and pretends to be Mark. The lecturer gets suspicious at the excellent result which the exam answer paper suggests Mark achieved, but when she checks the writing on the exam paper with an old piece of work submitted by Mark, the lecturer realises it is not Mark's handwriting on the exam paper. The lecturer tells Mark she is going to report him 'for this fraud'. However, Mark says he had not committed a fraud because he has not made a false representation.

Which of the following statements most accurately reflects the correct legal position that applies to this scenario?

. Mark accepts that he has made a false representation through James sitting the criminal law exam pretending to be Mark, but he denies he has the mens rea for the Section 2(1) Fraud Act 2006 offence.

Which of the following statements accurately states the mens rea for a false representation?

. Sinjitha is selling her pedigree dog which she bought from a pedigree breeder when it was very young, and so she has always thought the dog was a pedigree breed. She sells it to Jasmin for £1000. Before Jasmin pays, she asks Sinjitha if it is definitely pedigree and Sinjitha says yes, it is. Jasmin takes the dog to a show. However, she is very embarrassed when the judge tells her that the dog is not a pedigree. Jasmin asks Sinjitha for a refund and damages, and Sinjitha refuses. Jasmin brings in the police who arrest Sinjitha and charge her with fraud.

Which of the followings statements most accurately describes whether Sinjitha has the mens rea for the offence of fraud by false representation?

. At her trial for fraud by false representation, Sinjitha defends the charge by saying that, in any event, she was not dishonest when she told Jasmin the dog was a pedigree breed.

Which of the following statements provides the most accurate explanation about whether Sinjitha is correct in this matter?

. Section 2(1) Fraud Act 2006 requires three elements to make up the mens rea for the offence: knowledge, dishonesty, and a third element-intention to make a gain or cause a loss.

Which of the following statements describes the most likely interpretation of 'make a gain or cause a loss'?

. David visited his local bank in order to set up a new bank account. He filled out a form and, on that form, he lied about his income. He said he earnt £20,000 per year when in fact he only earnt £15,000. The bank approved his application and he was given a bank account with a card payment facility. David arranged for his salary to be paid into the account, and this is when the bank became aware that he had lied about his monthly incomings.

Which of the following statements is most accurate in relation to the following statement: David does not commit an offence because he does not intend to gain or cause a loss as a result of his representation.

. Tyrone is the company accountant for Baker Limited. He has been falsifying the company accounts because he pays another company much more than would normally be the case for services provided to Baker Limited. The other company is owned by his mother. At the annual general meeting, the board of directors discuss company profits and dividends and discuss why the company accounts seem depleted; Tyrone chooses to remain silent.

Which of the following statements most accurately describes the fraud offence which Tyrone may have committed?

. Tyrone will claim that he is not in breach of Section 4 Fraud Act 2006 because, even though he acts as company accountant for Baker Limited, he is only an employee and not a board member, and therefore he does not occupy a position of a fiduciary nature.

Which of the following statements most accurately describes whether Tyrone will be successful in this claim?

. Tyrone argues that he has not completed the actus reus of Section 4 Fraud Act 2006. He says that he is not expected to safeguard the financial position of Baker Limited, but, as company account, to merely prepare the company accounts.

Has Tyrone completed the second actus reus element: expectation to safeguard?

. After disciplinary hearings, Rashid had his dentistry licence revoked by the professional body because he had not been keeping up with his CPD training and also there had been many complaints about him. To avoid detection and to continue practising as a dentist, he moved to a different city and applied for a job with Pullem Dentists. Rashid was employed. However, word leaked out that he had been suspended. Pullem Dentists dismissed him and reported him to the police, who charged Rashid.

Which of the following fraud offences will Rashid most likely be charged with?

. Moira paid council tax to her local council for the house in which she lived. She then informed her local council that she had moved out of her house and she had rented it to tenants. In fact, she remained in the property and stopped paying her council tax (pretending she no longer lived at that address). No law states that she is under a duty to notify a council of her continuing residence in the house.

Which of the following statements most accurately describes whether she will be guilty of a Section 3 Fraud Act 2006 offence?

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