What is the punishment for cheque fraud in UK?
1 Answer • Law & Ethics
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There are many types of "fraud". Benefit fraud, tax fraud, mortgage fraud, obtaining money by deception etc. Generally, large scale frauds and tax frauds are dealt with more seriously.
Obtaining money transfer by deception generally attracts around an 18 month sentence. The Fraud Act 2006 re-stated the law on fraud, and what constitutes fraud.
A person is guilty of fraud if he uses a false representation, or fails to disclose information, or abuses his position, to dishonestly gain.
If tried in the magistrates court, fraud carries a maximum prison term of 12 months. If heard in the Crown Court, the maximum sentence is 10 years. Owning an item to be used in a fraudulent act (such as a forged cheque book) can result in 5 years imprisonment (Fraud Act 2006 S6 (2)(b))
A court will consider various things in the sentencing. Defendants are usually given credit for an early guilty plea. They are also given credit for anything in mitigation, such as previous character etc. A heavier sentence will result from defrauding HMRC (the tax man) or government agencies, especially over a long period of time, using the money frivolously, or defrauding somebody in a vulberable position (eg banker defrauding customer, carer defrauding elderly) etc. A large scale fraud will yield a higher penalty.