Fraud Charges in Ontario: What You Need to Know

Fraud is one of the most broadly defined offences in the Criminal Code of Canada. It can encompass everything from a single bounced cheque to a multi-million-dollar investment scheme. Because the definition is so wide, many people are surprised to learn they are being investigated — or charged — for conduct they believed was legitimate.

If you are facing fraud charges in Barrie, Simcoe County, or anywhere in Ontario, understanding how the law works is the first step toward protecting yourself. This guide explains the legal definition of fraud, the types of fraud most commonly prosecuted, the penalties you may face, the defences available, and the collateral consequences that extend far beyond the courtroom.

The Criminal Code Definition of Fraud (Section 380)

Section 380(1) of the Criminal Code defines fraud as the use of deceit, falsehood, or other fraudulent means to deprive any person of property, money, valuable security, or any service. The language is deliberately broad. Courts have interpreted “other fraudulent means” to include conduct that does not involve an outright lie but is nonetheless dishonest — such as failing to disclose a material fact, manipulating records, or exploiting a position of trust.

There is no requirement that the accused actually benefited from the fraud. The offence is complete once there has been a deprivation or a risk of deprivation to another person. This means you can be convicted even if the scheme ultimately failed, so long as the Crown proves you intended to carry it out.

Fraud Under $5,000 vs. Fraud Over $5,000

The Criminal Code draws a critical line at the $5,000 threshold, and which side of that line your charge falls on has a significant impact on the process and the potential consequences.

Fraud Under $5,000

Fraud under $5,000 is a hybrid offence, meaning the Crown can elect to proceed by summary conviction or by indictment. When prosecuted summarily, the maximum penalty is two years less a day in jail and/or a fine up to $5,000. When prosecuted by indictment, the maximum is two years in a federal institution.

For first-time offenders with smaller dollar amounts, outcomes such as discharges, suspended sentences, or diversion may be available. If you have no prior record, there are real options — but they depend on how your case is handled from the start. Our article on whether you need a lawyer explains why early legal advice matters.

Fraud Over $5,000

Fraud over $5,000 is always treated as a serious offence. The Crown can still proceed summarily or by indictment, but indictable prosecution is the norm for larger amounts. The maximum sentence on indictment is 14 years imprisonment.

Where the value of the fraud exceeds one million dollars, section 380.1(1)(a) imposes a mandatory minimum sentence of two years. Understanding how mandatory minimums work in Canadian criminal law is critical if you are facing charges at this level. In addition, the court must consider aggravating factors such as the complexity of the fraud, the number of victims, and the impact on those victims.

Common Types of Fraud Charges in Ontario

Fraud takes many forms. The following are among the most commonly prosecuted in Barrie and throughout Ontario.

Credit Card Fraud

Using another person’s credit card information without authorization, or using a cloned or stolen card, falls under fraud and related theft offences. The proliferation of online transactions has made credit card fraud one of the most frequently charged offences in this category.

Insurance Fraud

Submitting false or inflated claims to an insurance company — whether for auto, home, health, or life insurance — is prosecuted aggressively. Insurance companies employ dedicated investigation units and often refer files to police with substantial evidence packages already assembled.

Mortgage Fraud

Mortgage fraud involves misrepresenting income, employment, assets, or the value of a property to secure a mortgage. It can also involve schemes where a third party uses another person’s identity to obtain financing. These cases often involve large dollar amounts and multiple co-accused.

Identity Fraud

Section 403 of the Criminal Code specifically addresses identity fraud — using another person’s identity information to gain an advantage, commit an offence, or cause disadvantage to that person. With the rise of data breaches and digital impersonation, identity fraud charges have increased dramatically across Simcoe County and Ontario.

Benefit Fraud

Fraudulently obtaining government benefits — including employment insurance, Ontario Works, ODSP, CERB, or tax credits — is prosecuted under section 380 or under the specific legislation governing the program. These cases often arise from audits or anonymous tips and can result in both criminal charges and orders to repay the full amount.

What the Crown Must Prove

To secure a conviction for fraud, the Crown must prove each of the following elements beyond a reasonable doubt. Understanding these elements is essential because every viable defence targets at least one of them.

1. A Dishonest Act

The Crown must prove that the accused committed a prohibited act — deceit, falsehood, or “other fraudulent means.” This is the conduct element. It requires more than a bad business decision or a broken promise. The act must involve actual dishonesty or a deliberate departure from acceptable standards.

2. Deprivation

The Crown must prove that the dishonest act caused a deprivation, or at minimum a risk of deprivation, to the victim. Deprivation is not limited to financial loss. It includes the loss of any property, service, or economic interest. Even placing someone’s economic interests at risk — without actual loss — can satisfy this element.

3. Knowledge and Intent

The Crown must prove that the accused knew the act was dishonest and intended to cause deprivation, or was reckless as to whether deprivation would result. This is the mental element — the mens rea — and it is often the most contested issue at trial. Mistake, confusion, or negligence is not fraud. The Crown must show a subjective awareness that the conduct was dishonest.

Your Charter rights protect you throughout the investigation and prosecution process, including the right to be presumed innocent until each of these elements is proven.

Penalties for Fraud in Ontario

Sentencing for fraud depends on the dollar amount, the nature of the offence, the number of victims, and the offender’s criminal history.

Custodial Sentences

For fraud over $5,000, jail is a real possibility even for a first offence, particularly where the amount is substantial. For fraud over one million dollars, the two-year mandatory minimum applies. Courts treat breach-of-trust fraud — such as fraud by an employee, financial advisor, or fiduciary — with particular severity.

Restitution Orders

Under section 380.3, the court must consider making a restitution order requiring the offender to repay victims for their losses. In practice, restitution orders are imposed in the vast majority of fraud cases. These orders are enforceable as civil judgments, meaning victims can pursue collection through the courts if the offender does not pay.

Prohibition Orders

A fraud conviction can lead to prohibition orders under section 380.2, which restrict the offender’s authority over another person’s money or property. For individuals who work in finance, real estate, or any position involving fiduciary responsibilities, these orders can effectively end a career.

Probation and Conditional Sentences

For less serious fraud charges, particularly fraud under $5,000 involving first-time offenders, courts may impose probation, conditional discharges, or conditional sentences served in the community. These outcomes are not automatic — they require careful preparation and persuasive advocacy.

Defence Strategies for Fraud Charges

Every fraud case has vulnerabilities the defence can target. The following are among the most common and effective strategies.

Lack of Intent

Fraud requires proof of subjective dishonesty. If the accused honestly believed the representations were true, or did not appreciate that the conduct was dishonest, the mental element is not made out. This defence arises frequently in cases involving business transactions, where the line between aggressive negotiation and misrepresentation can be unclear.

Honest but Mistaken Belief

Closely related to lack of intent, this defence applies where the accused held a genuine belief — even an unreasonable one — that entitled them to act as they did. For example, a person who believed they had authorization to use a company credit card for personal expenses may lack the required mens rea even if that belief was wrong.

Authorization or Colour of Right

If the accused had actual or believed authorization to do what they did, the conduct is not fraudulent. This defence often arises in workplace fraud cases where the boundaries of an employee’s authority were poorly defined or where informal practices were tolerated.

Challenging the Evidence

Many fraud investigations rely on complex financial records, forensic accounting, and digital evidence. The defence can challenge the reliability of the Crown’s evidence, the qualifications of its witnesses, and the methods used to calculate the alleged loss. Our guide on collecting digital evidence explains how evidence integrity issues can affect your case.

Charter Challenges

If the investigation involved searches, seizures, or interrogations that violated your constitutional rights, the evidence obtained may be excluded under section 24(2) of the Charter. This can be decisive in fraud cases where the Crown’s case depends on documents or statements obtained during the investigation.

Collateral Consequences of a Fraud Conviction

A fraud conviction carries consequences that extend well beyond the sentence imposed by the court. These collateral consequences can be more damaging to your life than the criminal penalty itself.

Professional Licensing

Regulated professionals — including lawyers, accountants, real estate agents, nurses, teachers, and financial advisors — are required to report criminal charges and convictions to their governing bodies. A fraud conviction typically triggers a disciplinary proceeding that can result in suspension or revocation of your licence.

Immigration

For non-citizens, a fraud conviction can result in inadmissibility to Canada, denial of permanent residence applications, or deportation. Fraud over $5,000 is classified as serious criminality under the Immigration and Refugee Protection Act, which eliminates most avenues of appeal.

Employment

A criminal record for fraud will appear on background checks and can disqualify you from employment in finance, government, education, healthcare, and many other fields. Even where a formal disqualification does not apply, employers routinely decline to hire or retain individuals with dishonesty-related convictions.

Travel

A fraud conviction can affect your ability to travel internationally. The United States, in particular, routinely denies entry to individuals with criminal records, even for convictions that resulted in no jail time.

What to Do If You Are Charged With Fraud

If you have been charged with fraud — or if you learn you are under investigation — the decisions you make in the first days and weeks are critical. Anything you say to police, to the alleged victim, or even to friends and family can become evidence. Do not provide statements, do not attempt to “explain your side,” and do not contact the complainant.

Your first court appearance is an administrative step, not a trial. Use the time before that date to retain a lawyer who can review your disclosure, assess the strength of the Crown’s case, and develop a defence strategy tailored to your circumstances.

Contact Mor Fisher LLP

If you are facing fraud charges in Barrie, Simcoe County, or anywhere in Ontario, the criminal defence lawyers at Mor Fisher LLP can help. We handle fraud cases at every level — from fraud under $5,000 to complex multi-million-dollar prosecutions — and we understand what is at stake for your freedom, your career, and your future.

Call us today at 705-252-2828 or contact us online to schedule a confidential consultation.