Fraud Charges
A fraud conviction follows you for life. It affects your career, your reputation, and your relationships in ways that extend far beyond the criminal sentence itself. Our Calgary criminal defence lawyers have successfully defended thousands of fraud cases and know exactly where these prosecutions are most vulnerable.
This page was written by the criminal defence lawyers at Hoare Claxton based on their experience appearing in Calgary courts. It is reviewed periodically for accuracy.
Fraud is categorized as a crime of dishonesty. That designation matters because the consequences of a conviction extend far beyond whatever sentence a judge imposes. A fraud conviction affects your professional licensing, your employment prospects, your relationships, and your reputation in ways that a theft conviction or an assault conviction typically do not. Employers, professional regulators, and financial institutions treat a dishonesty conviction differently.
Our office has successfully defended thousands of fraud cases across Alberta. These matters range from small sum allegations involving a few hundred dollars through to large-scale commercial fraud prosecutions involving sophisticated financial transactions and complex disclosure packages. The defence approach is different at each level but the commitment to protecting your record and your reputation is the same.
Call (587) 355-8889 for a free consultation. Available 24 hours a day.
What Fraud Actually Means Under the Criminal Code
Section 380 of the Criminal Code defines fraud as dishonestly depriving another person of something of value through deceit, falsehood, or other fraudulent means. The Crown must prove two things: that the accused acted dishonestly, and that someone suffered or was at risk of suffering a deprivation as a result. The dishonesty element is what makes fraud different from most other property offences. It requires the Crown to prove not just that something was taken, but that it was taken through deliberate deception.
Fraud Over $5,000 (Section 380(1)(a))
Where the value of the subject matter of the fraud exceeds $5,000, the charge is an indictable offence with a maximum sentence of fourteen years imprisonment. This is the provision applied in commercial fraud, real estate fraud, mortgage fraud, securities fraud, and other large-scale financial dishonesty matters.
Fraud Under $5,000 (Section 380(1)(b))
Where the value is under $5,000, the Crown may proceed by indictment with a maximum of two years or by summary conviction. Despite being the less serious provision, a conviction under this section still results in a criminal record and carries the same dishonesty designation that affects employment and professional standing.
The Range of Conduct That Leads to Fraud Charges
Fraud charges in Calgary arise from a wide variety of circumstances. The common thread is an allegation of deliberate dishonesty resulting in a financial loss or risk of loss.
Real Estate and Mortgage Fraud
Misrepresenting property values, providing false information on mortgage applications, or orchestrating inflated purchase price schemes. These matters involve substantial sums, complex documentary disclosure, and frequently multiple accused.
Expense and Document Fraud
Falsifying expense claims, tax returns, employment records, or other documents to obtain money or benefits. This arises commonly in employment contexts and frequently leads to breach of trust allegations alongside the fraud charge.
Credit Card and Identity Fraud
Unauthorized use of another person's credit or debit card, or using stolen identity information to obtain credit or financial products. These matters often involve significant digital evidence and surveillance footage.
Investment and Securities Fraud
Misrepresenting investments, operating Ponzi schemes, or inducing investment through false statements. These are complex prosecutions that frequently involve the Alberta Securities Commission alongside or prior to criminal charges.
Insurance Fraud
Submitting false or inflated insurance claims. These matters involve the insurance company's own investigators before police become involved and the investigation is often well advanced before charges are laid.
Employer and Workplace Fraud
Theft of funds by employees through manipulation of accounts, falsification of records, or misappropriation of company funds. These matters frequently give rise to breach of trust allegations as an aggravating factor.
Breach of Trust as an Aggravating Factor
When fraud is committed by someone who occupied a position of trust or responsibility in relation to the victim, the Criminal Code treats that relationship as an aggravating factor at sentencing. This is called breach of trust and it elevates the sentencing consequences significantly above what would otherwise apply to the same dollar value of fraud.
Breach of trust scenarios are common in employer and employee relationships, accountant and client relationships, and in any professional context where one party has been given authority over another's financial affairs. Crown prosecutors pursue breach of trust as an aggravating factor consistently and courts take it seriously.
Charges the Crown Lays Alongside Fraud
Fraud rarely arrives alone. Crown prosecutors regularly add companion charges that arise from the same conduct. Understanding what you might be facing beyond the fraud charge itself is important from day one.
Common companion charges include forgery and uttering forged documents where false documents were created or used, breach of trust where a position of responsibility was involved, theft where property rather than money was the subject of the scheme, and credit card theft or unauthorized use where card fraud is alleged.
Each of these companion charges requires its own analysis and its own defence. The Crown's success on each of them is not guaranteed simply because the fraud charge is strong.
What Returning the Money Does and Does Not Do
One of the most common questions we hear from clients under fraud investigation is whether repaying the amount taken will result in the charges being dropped. The honest answer is that it depends, and it is never automatic.
Once a matter is in the hands of the Crown, neither the police nor the alleged victim have the authority to dismiss it. The decision to withdraw charges belongs exclusively to the Crown prosecutor. In some circumstances, full repayment is a significant mitigating factor that affects the Crown's position on resolution and the court's approach to sentencing. In others, particularly in breach of trust cases or large-scale commercial fraud matters, repayment alone is not enough to avoid a custodial sentence.
Whether and how to approach restitution in the context of an active fraud prosecution is a strategic decision that requires legal advice. Do not make that decision without speaking to a lawyer first.
Diversion and Avoiding a Criminal Record
Not every fraud charge ends in a criminal conviction. In appropriate circumstances, particularly for first offences involving smaller amounts and no breach of trust, diversion to the Alternative Measures Program is a genuine option. This allows the matter to be resolved through community service and restitution, with charges withdrawn and no criminal record recorded.
Even in cases where the Crown is seeking a jail term, effective legal representation has resulted in community-based sentences with no incarceration. The sentencing guidelines for fraud offences are broad and the range of outcomes is wide. Where a sentence lands within that range depends heavily on the quality of the defence and sentencing submissions.
A defence built in four steps.
We Listen
You tell us exactly what the allegation is, what the Crown says happened, what documents or records are involved, and what your relationship was to the alleged victim. Everything is protected by solicitor-client privilege from the first call.
We Identify Risks
We assess the strength of the Crown's documentary and witness evidence, whether the dishonesty element can be established beyond a reasonable doubt, whether companion charges are likely, and what aggravating factors the Crown will rely on at sentencing if the matter is not beaten at trial.
We Explain Your Options
We tell you whether this case should be fought at trial, whether diversion is available, whether restitution is a strategic tool or a risk in your specific situation, and what the realistic outcomes look like. No softening. No vague reassurances.
We Take Action
We obtain full disclosure, review every document and financial record in the Crown's file, challenge the dishonesty and deprivation elements of the charge where the evidence allows it, and pursue the outcome that causes the least permanent damage to your record and your reputation.
Frequently Asked Questions
What is the difference between fraud over $5,000 and fraud under $5,000?+
The distinction is the value of the subject matter of the alleged fraud. Fraud over $5,000 is an indictable offence with a maximum sentence of fourteen years. Fraud under $5,000 can be proceeded with by indictment, with a maximum of two years, or by summary conviction. Both result in a criminal record upon conviction and both carry the dishonesty designation that affects professional and personal reputation. The threshold is the total value alleged across the scheme, not any single transaction.
What is breach of trust and how does it affect my fraud charge?+
Breach of trust arises when fraud is committed by someone who occupied a position of responsibility or trust in relation to the victim, such as an employee, an accountant, or a professional with authority over another person's financial affairs. The Criminal Code treats this relationship as an aggravating factor at sentencing, which elevates the consequences above what would otherwise apply to the same dollar amount of fraud. Prosecutors pursue breach of trust consistently in employment and professional fraud matters.
If I pay back the money, will the charges be dropped?+
Not automatically. Once charges are laid, only the Crown prosecutor can decide to withdraw them. Repayment is a significant mitigating factor in many fraud cases and can affect the Crown's position on resolution and the court's approach to sentencing. In first offence matters involving smaller amounts it can contribute to a diversion outcome. In larger or breach of trust matters it does not guarantee the avoidance of a custodial sentence. Whether and when to make restitution in the context of an active fraud prosecution is a strategic decision that should be made with legal advice, not unilaterally.
Can I avoid a criminal record for a fraud charge?+
In appropriate circumstances, yes. First offence matters involving smaller amounts and no breach of trust are sometimes eligible for the Alternative Measures Program, which allows the matter to be resolved through community service and restitution with charges withdrawn and no criminal record. Conditional discharges are also available in some fraud cases, which avoids a criminal record even where a guilty finding is made. Whether these options are available depends on the specific facts of your case, your background, and the Crown's position.
What other charges might be laid alongside fraud?+
Crown prosecutors regularly add companion charges to fraud matters. Common ones include forgery and uttering forged documents where false documents were created or used as part of the scheme, breach of trust where a position of responsibility was involved, theft where property rather than money was taken, and credit card theft or unauthorized use where card fraud is alleged. Each companion charge requires its own analysis. The fact that the fraud charge is strong does not mean every companion charge will be proven.
What should I do if I am under investigation for fraud but have not been charged yet?+
Retain a lawyer immediately. Do not speak to police, the alleged victim, third party investigators, or insurance company representatives without first obtaining legal advice. Fraud investigations are often well advanced before charges are laid and the statements you make during the investigation are frequently the most damaging evidence the Crown has at trial. Retaining counsel before charges are laid gives you the strongest possible position going into the process.
Related Practice Areas
Fraud charges frequently appear alongside theft, forgery, and breach of trust allegations. In large-scale commercial matters they sometimes run alongside securities regulation proceedings.
Theft and Property Offences Calgary
Theft charges frequently accompany fraud allegations where property rather than money was the subject of the scheme.
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READ THE DEFENCE GUIDECharged With Fraud in Calgary?
A fraud conviction is permanent and its consequences reach into every corner of your professional life. The time to build a defence is before the Crown has had months to work through the financial records unchallenged.
Call (587) 355-8889. Free consultation. Available 24 hours a day.