What is Fraud?

Fraud is defined as wrongful or criminal act intended to result in an individual obtaining financial or personal gain or causing loss or exposing another individual to the risk of a loss.

Under the Bailiwick of Guernsey legislation, a person is guilty if they commit fraud by false representation, failing to disclose information or by abusing a position of trust, definitions of these are disclosed below.

Fraud by representation is when a person dishonestly misleads with the intent to make a gain for himself or another, and to cause loss or expose the risk of loss to another. The representation is false if it is untrue or misleading and if the individual knows that it is untrue or misleading, whether the statement or fact is express or implied.  This includes anything submitted in any form of system or device designed to received, convey or respond to communications (including those without human intervention. 

Fraud by failing to disclose occurs when an individual dishonestly fails to disclose to another person information which he has a legal duty to disclose and intends, by failing to disclose the information to make a gain for himself or another, or to cause loss or expose the risk of loss to another.

Fraud by abuse of position occurs when the individual is in a position which he is expected to safeguard, or not act against the financial interest of another. The individual dishonestly abuses the position with the intent to make a gain for himself or another or to cause loss or to expose risk of loss for another.  IT is considered to be a abuse of position even if conduct is an omission rather than an act.

If an individual is found guilty of fraud they may be liable to imprisonment for a term not exceeding 12 years and incur a fine.

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