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Céline Dostaler
Charged with Fraud in Ontario? What You Need to Know About the Law, Defences, and Penalties
Being charged with fraud in Ontario is serious. Whether the amount in question is $500 or $50,000, a conviction can lead to jail time, a permanent criminal record, and lasting damage to your career and reputation. Fraud offences are treated harshly by the courts, especially if they involve abuse of trust or financial institutions.
In this post, I’ll explain what fraud means under Canadian law, outline common types of charges, discuss possible legal defences, and explain what to expect if you’re convicted. If you’re under investigation or already facing charges, early legal advice can make a major difference.
What Is Fraud Under the Criminal Code of Canada?
Fraud is defined under Section 380 of the Criminal Code as:
“Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence… defrauds the public or any person… of any property, money, valuable security or service.”
In simpler terms, fraud involves knowingly using dishonesty to gain something of value—or to cause someone else a loss.
You can be charged with fraud even if:
- No money actually changed hands,
- The other person didn’t suffer a loss (as long as risk or intent is proven),
- You believed you would “pay it back later” or meant no harm.
Fraud Under $5,000 vs. Fraud Over $5,000
The Criminal Code separates fraud into two main categories:
Fraud Under $5,000 (s. 380(1)(b))
- Considered a less serious offence, but still carries potential jail time.
- Can be prosecuted summarily or by indictment, depending on the facts.
- Maximum sentence: 2 years less a day (summary) or 2 years (indictment).
Fraud Over $5,000 (s. 380(1)(a))
- Treated more seriously—often as a white-collar crime.
- Must be prosecuted by indictment.
- Maximum sentence: 14 years in prison.
- Aggravating factors (like position of trust or impact on multiple victims) can increase sentencing.
Common Types of Fraud Charges
Fraud can take many forms. Some of the most common include:
- Credit card or debit fraud
(Using or possessing fake or stolen card data) - Cheque fraud
(Depositing or issuing bad cheques with intent to deceive) - Employment fraud
(Falsifying timesheets, expenses, or misusing company property) - Insurance fraud
(Filing false claims or inflating damages) - Benefit fraud
(Misrepresenting information to receive EI, ODSP, or CERB benefits) - Real estate or mortgage fraud
(Misleading a lender or falsifying ownership) - Corporate fraud or breach of trust
(Diverting funds, manipulating invoices, or abusing an executive position)
In many cases, these investigations begin months before a charge is laid—and police may seize financial records, phone data, or email accounts.
How Are Fraud Cases Investigated in Ontario?
Police and government investigators take a methodical approach. Common tools include:
- Search warrants for your home, business, or devices
- Production orders for bank and phone records
- Surveillance and wiretaps in more complex schemes
- Witness interviews, including co-workers or financial institutions
If you’re being investigated, it’s critical to speak to a lawyer immediately. Anything you say—no matter how innocent it seems—can be used against you later in court.
Defences to Fraud Charges
Even if the evidence seems strong, fraud charges are defendable. Common legal defences include:
Lack of Intent
Fraud requires a deliberate intention to deceive. If you made an honest mistake, misunderstood a contract, or relied on incorrect information, you may not have committed fraud.
Mistake of Fact
You may have believed you had the right to the property, service, or payment—especially in situations involving shared accounts or unclear boundaries.
Charter Violations
If police obtained evidence through unlawful searches or seizures, your lawyer may file a Charter motion to have that evidence excluded.
Insufficient Evidence
The Crown must prove beyond a reasonable doubt that fraud occurred and that you were responsible. Complex financial cases often involve gaps or inconsistencies in the paper trail.
What Happens If You’re Convicted of Fraud?
Sentencing depends on:
- The amount involved,
- Whether you abused a position of trust (e.g., employee, financial advisor),
- The number of victims,
- Whether the offence was sophisticated or planned,
- Your prior criminal record, if any.
Possible Sentences Include:
- A discharge (in rare cases),
- Suspended sentence with probation,
- Restitution orders (repaying the victim),
- Conditional sentence (house arrest),
- Custodial sentence (jail or prison)
The court may also order forfeiture of property, especially if assets were purchased with fraudulent funds.
How a Fraud Conviction Can Affect Your Future
Even a conviction for a low-level fraud can have lasting consequences, including:
- Loss of employment, especially in finance, government, or security positions
- Ineligibility for bonding, professional licences, or business permits
- Damage to credit or civil litigation
- Immigration consequences: Fraud is a serious offence under immigration law and can lead to inadmissibility, removal, or visa denial
- Reputation and stigma, especially in smaller communities
That’s why negotiating a favourable resolution—or avoiding a conviction entirely—is so important.
Why You Need a Defence Lawyer Immediately
Fraud cases are document-heavy and complex. A criminal defence lawyer will:
- Scrutinize the Crown’s evidence, including banking, contracts, and communications
- Engage forensic accountants or experts, if needed
- Negotiate restitution, which may reduce or eliminate the need for jail
- File Charter applications to exclude improperly obtained evidence
- Defend you at trial or help negotiate a resolution that protects your record
Never assume that pleading guilty will make your problem go away. You may have defences you’re not aware of—and you may be able to resolve the case with a discharge, reduced charge, or no record at all.
Conclusion: Charged with Fraud? You Have Options.
Fraud charges are serious, but they are not unbeatable. With early legal advice and careful strategy, you may be able to avoid jail, protect your record, and move on with your life.
If you’ve been charged with fraud in Ottawa, Pembroke, Perth, Brockville, or L’Orignal, I can help. As a criminal defence lawyer, I handle every case personally—from first consultation to final resolution.
