The standard definition of a conspiracy to defraud was provided by
Lord Dilhorne in
Scott v Metropolitan Police Commissioner, when he said that: Conspiracy to defraud therefore contains two key elements; that the conspiracy involved
dishonesty, and that if the conspiracy was undertaken, the victim's property rights would be harmed. This does not require the defendants' actions to directly result in the fraud; in
R v Hollinshead, the
House of Lords held that producing devices designed to alter electricity meter readings constituted conspiracy to defraud, even though the actual fraud would be carried out by members of the public rather than the conspirators. It's not necessary for the actions to directly lead to any kind of financial loss for the victim in two situations; when the conspirators plan to deceive a person holding public office into acting counter to their duties, and when the conspirators know that their actions put the victim's property at risk, even if the risk never materializes. The following cases also provide precedence: •
R v Orbell (1703) 6 Mod Rep 42, (1703) 12 Mod Rep 499 •
R v Button (1848) 11 QB 929, (1848) 18 LJMC 19, (1848) 12 LT (OS) 309, (1848) 13 JP 20, (1848) 12 Jur 1017, (1848) 3 Cox 229 •
R v Yates (1853) 6 Cox 441 •
R v De Kromme (1892) 66
LT 301, (1892) 56 JP 683, (1892) 8
TLR 325, (1892) 17 Cox 492 •
R v Quinn (1898) 19 Cox 78 •
R v Boyle and Mears, 94
Cr App R 158,
CA Although most
frauds are crimes, in conspiracy to defraud cases it is irrelevant whether the agreement would amount to a crime if carried out. If the victim has suffered any financial loss or other prejudice, there is no need to establish that the defendant deceived him or her and conspiracy charges are unnecessary. But, following
Scott v Metropolitan Police Commissioner (1974) 3
All ER 1032, it is necessary to prove that the victim was
dishonestly deceived by one or more of the parties into running an economic risk that he or she would not otherwise have run, if the victim has not suffered any loss. For the
mens rea, it is necessary to prove that "the purpose of the conspirators (was) to cause the victim economic loss" (per
Lord Diplock in Scott). For the test of dishonesty, see
R v Ghosh (1982) 2 All ER 689.
Relationship to statutory conspiracy Section 32(1)(a) of the
Theft Act 1968 did not, by abolishing the
common law offence of
cheating, abolish the common law offence of conspiracy to defraud. Section 5(1) of the
Criminal Law Act 1977 does not affect the common law offence of conspiracy so far as it relates to conspiracy to defraud. Section 12(1) of the
Criminal Justice Act 1987 provides that: {{Blockquote|If— Paragraphs (a) and (b) are derived from section 1(1) of the
Criminal Law Act 1977 and refer to the offence that that section creates. Before 20 July 1987, section 1 of the Criminal Law Act 1977 did not apply in any case where the agreement in question amounted to a conspiracy to defraud at common law. For Incitement to conspire, see section 5(7) of the
Criminal Law Act 1977.
Indictment For Indictment, see the following cases for precedent: •
R v Landy and others [1981] 1
WLR 355, 72 Cr App R 237, [1981] 1 All ER 1172, [1981]
Crim LR 326, CA •
R v Cohen and others,
The Independent, 29 July 1992, CA
History The following
specimen count was formerly contained in paragraph 13 of the Second Schedule to the
Indictments Act 1915 before it was repealed.
Mode of trial and sentence A person guilty of conspiracy to defraud is liable on conviction to imprisonment for any term not exceeding ten years, or to a fine, or to both.
Jurisdiction Conspiracy to defraud is a Group B offence for the purposes of Part I of the
Criminal Justice Act 1993. See the following cases for precedent: • ''Attorney General's Reference (No 1 of 1982)'' [1983] QB 751, [1983] 3 WLR 72, [1983] 2 All ER 721, [1983] Crim LR 534 •
DPP v Doot and others [1973] AC 807, [1973] 2 WLR 532, [1973] 1 All ER 940, 57 Cr App R 600, [1973] Crim LR 292, HL •
Board of Trade v Owen [1957] AC 602, [1957] 2 WLR 351, [1957] 1 All ER 411, 41 Cr App R 11, affirming
R v Owen [1957] 1 QB 174 ==Northern Ireland==