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CRIMINAL DEFENCE GUIDE
Fraud Charges in Ontario
A practical guide to fraud over and under $5,000, intent, deceit, digital records, business and employee allegations, large-scale fraud and what happens after a charge.
Fraud cases are often built from documents, messages, financial records and competing explanations of why a transaction happened. The central issue is rarely just whether money moved. The prosecution must prove dishonest conduct and the required state of mind beyond a reasonable doubt.
Prepared by Tatyana Trusz, Trusz Law • Updated July 2026 • 15 min read
QUICK ANSWER
What does the Crown have to prove in a fraud case?
Section 380 of the Criminal Code applies where a person, by deceit, falsehood or other fraudulent means, defrauds another person or the public of property, money, valuable security or a service. A fraud case therefore requires more than showing a loss or a failed business transaction. The prosecution must prove the dishonest conduct and the accused’s required knowledge or intent.
The defence often focuses on what the accused knew, what authority existed, what was disclosed, who relied on what representation, whether there was deprivation or risk of deprivation, and whether the records support an innocent or lawful explanation.
IN THIS GUIDE
RELATED CRIMINAL DEFENCE
CHARGED WITH FRAUD?
Preserve the records before the investigation becomes the only timeline.
Emails, approvals, contracts, accounting records, access logs and complete message threads can matter.
THE SHORT ANSWER
Fraud is about dishonest conduct and deprivation—not simply a financial loss
A failed investment, unpaid invoice, accounting error or business dispute is not automatically criminal fraud.
Section 380 requires proof that the accused used deceit, falsehood or other fraudulent means and thereby caused—or exposed another person to—the relevant deprivation. The prosecution must also prove the required dishonest state of mind.
In practice, fraud cases often turn on questions such as:
- What representation or dishonest act is actually alleged?
- Was the information false when it was communicated?
- What did the accused know at the time?
- Did the accused have authority to make the transaction?
- Was money used for a permitted purpose?
- Who relied on the alleged representation?
- What loss or risk of loss is said to have occurred?
- Do the complete records support the prosecution’s interpretation?
KEY TAKEAWAYS
At a glance
- Fraud under section 380 requires dishonest conduct, not merely a bad result.
- The $5,000 threshold changes the maximum penalty and how the offence may be prosecuted.
- Fraud over $5,000 can carry a maximum sentence of 14 years.
- Large, complex or highly planned fraud and significant victim impact are statutory aggravating factors at sentencing.
- Digital and financial evidence often matters more than any one witness.
- Authorization, intent, reliance, deprivation and the completeness of the record can all be central defence issues.
OFFENCE LEVEL
Fraud over $5,000 vs. fraud under $5,000
| Charge | Current Criminal Code treatment |
|---|---|
| Fraud over $5,000 | Indictable offence with a maximum of 14 years’ imprisonment. |
| Fraud under $5,000 | Hybrid offence. If prosecuted by indictment, the maximum is two years; the Crown may also proceed summarily. |
| Total fraud exceeding $1 million | Where prosecuted by indictment and convicted of one or more section 380 fraud offences with a total subject-matter value over $1 million, section 380(1.1) provides for a two-year minimum term. |
The dollar amount is important, but it does not tell the whole story. The number of transactions, duration, planning, relationship of trust, number and circumstances of victims, repayment and other factors can affect how the case is prosecuted and sentenced.
COMMON ALLEGATIONS
What kinds of conduct can lead to a fraud charge?
Fraud allegations can arise in many settings, including:
- Employee or workplace fraud involving expenses, payroll, purchasing, refunds or access to company accounts;
- Business-owner or corporate fraud involving investor funds, customers, lenders, bookkeeping or undisclosed transactions;
- Credit-card and payment fraud involving unauthorized transactions or disputed account access;
- Insurance fraud involving allegedly false claims, staged losses or misrepresented information;
- Benefit or government-program allegations involving applications, eligibility or use of funds;
- Investment fraud involving representations about returns, use of funds, risk or ownership;
- Online and marketplace fraud involving sales, transfers, accounts or digital identities;
- Mortgage, loan or financing allegations involving documents, income, assets or transaction purpose; and
- Professional or fiduciary allegations involving funds entrusted to a person in a position of responsibility.
The legal label should not replace analysis of the actual transaction. A case involving hundreds of transactions may turn on system permissions and accounting records, while a single alleged misrepresentation may turn on one conversation and what was disclosed before it.
THE EVIDENCE
What evidence matters in a fraud case?
1. Complete financial records
Bank statements, ledgers, invoices, receipts, payment-processor records and accounting exports can show where money moved and how transactions were recorded.
2. Emails and full message threads
A single message can look very different when read with the instructions, approvals and replies around it. Full threads, attachments and metadata may matter.
3. Contracts, policies and authority documents
The defence may examine what the accused was authorized to do, what limits existed and whether the alleged conduct was consistent with an established practice.
4. Access logs and digital records
System logs, account access, IP information, device records and audit trails may help identify who performed an action and when.
5. Witnesses with operational knowledge
Colleagues, accountants, customers or business partners may explain actual practices, approval processes and whether the accused’s conduct was unusual.
6. The timeline
Fraud investigations can compress months or years into a short synopsis. A transaction-by-transaction timeline can reveal changes in knowledge, authority and business conditions.
7. What happened to the money or property
Tracing can matter, but the destination of funds is not always conclusive by itself. The legal question remains what the accused represented, knew and intended.
“In a fraud case, the defence often begins by rebuilding the transaction from the original records—not from the investigator’s summary of them.”
— Trusz Law
DEFENCE ISSUES
What issues can matter to the defence?
No dishonest intent.
A transaction may have been poorly managed, mistaken or unsuccessful without being knowingly fraudulent.
Authority or permission.
The accused may have had actual or understood authority to make the payment, transfer, entry or representation.
Incomplete context.
The prosecution theory may rely on selected transactions while excluding communications or practices that explain them.
Identity and access.
Can the Crown prove who used the account, device, login or payment method?
Reliance and deprivation.
What alleged act caused the loss or risk of loss, and how does the evidence connect the accused to it?
Accounting or record errors.
Reconciliations, coding errors, duplicated entries and timing differences can create an appearance of missing money.
Business dispute vs. criminal conduct.
A broken promise or failed contract is not automatically fraud. The Crown must prove the criminal elements.
Charter and investigative issues.
Search warrants, production orders, device searches, statements and detention may require review depending on the investigation.
LARGE-SCALE FRAUD
Why the size and structure of the allegation matter
Section 380.1 directs sentencing courts to consider specified aggravating factors in fraud cases. These include:
- significant magnitude, complexity, duration or planning;
- potential impact on the economy, financial system, markets or investor confidence;
- a large number of victims;
- significant impact on victims given their personal circumstances;
- abuse of high community regard;
- failure to comply with relevant professional or licensing standards; and
- concealing or destroying records connected to the fraud or proceeds.
For a defence, this makes early organization especially important. Large files can contain millions of records, but the legal case may still turn on a narrower set of transactions, communications and decisions.
The Criminal Code also provides a two-year minimum term where a person is prosecuted by indictment and convicted of one or more section 380 offences with a total subject-matter value exceeding $1 million.
AFTER THE CHARGE
What happens after someone is charged with fraud?
01 Release or bail
The accused may be released by police or held for a bail hearing. Conditions can address contact with named people, access to accounts or places, possession of devices or other case-specific concerns.
02 First court appearance
The case enters the Ontario criminal-court process. Court attendance and all release conditions must be followed.
03 Disclosure
Fraud disclosure can be extensive. It may include banking records, spreadsheets, device evidence, statements, warrants, production orders and expert or forensic material.
04 Organize the evidence
The defence may need a chronology, transaction map, document index and focused review of the records tied to the prosecution theory.
05 Legal and factual analysis
Counsel assesses the alleged dishonest act, state of mind, deprivation, identification, authorization and any Charter issues.
06 Resolution discussions or trial preparation
Depending on the evidence, counsel may discuss withdrawal or resolution positions with the Crown or prepare the case for motions and trial.
POSSIBLE CASE OUTCOMES
How can a fraud charge end?
Depending on the evidence, offence level, record and prosecution position, a fraud case may end through:
- withdrawal of the charge;
- a non-trial resolution where legally and practically available;
- a guilty plea to the original or a different offence;
- an acquittal after trial; or
- a conviction and sentencing.
Fraud sentencing can involve restitution, probation, fines and imprisonment depending on the case. The amount of the alleged fraud matters, but so can planning, duration, number and vulnerability of victims, breach of trust, repayment, record and personal circumstances.
A fraud conviction can also have consequences for employment, professional licensing, immigration, travel and business relationships depending on the person’s circumstances.
COMMON MISTAKES
Problems that can make a fraud case harder
Deleting records or “cleaning up” accounts.
Preserve first. Deletion can destroy helpful context and may create additional concerns.
Explaining the case to investigators without understanding the record.
A statement made from memory can conflict with documents that have not yet been reviewed.
Giving police a partial set of records.
Selected documents can unintentionally reinforce an incomplete theory.
Contacting witnesses or complainants about what they should say.
This can create serious new issues. Use counsel and appropriate investigative channels.
Assuming repayment automatically ends the case.
Repayment may be relevant, but it does not automatically eliminate criminal liability.
Assuming a civil lawsuit means there can be no criminal charge.
Civil and criminal proceedings can arise from overlapping facts.
Ignoring release conditions involving business or account access.
A breach can create a new charge and complicate the underlying case.
Waiting to preserve digital evidence.
Cloud records, access logs and third-party data may not remain available indefinitely.
HOW TRUSZ LAW CAN HELP
Rebuild the transaction before accepting the investigation’s version of it.
Trusz Law helps people charged with fraud understand the allegation, release conditions, disclosure and criminal-court process in Ontario.
Depending on the case, that may include reviewing financial and digital records, building transaction timelines, identifying authority and intent issues, assessing searches and statements, preserving defence evidence, negotiating with the Crown and preparing for trial.
The goal is focused analysis: identify the alleged dishonest act, trace it to the actual records and test whether the Crown can prove the required criminal intent beyond a reasonable doubt.
FREQUENTLY ASKED QUESTIONS
Fraud charge questions people often ask
What is fraud under the Criminal Code?
Section 380 applies where a person, by deceit, falsehood or other fraudulent means, defrauds another person or the public of property, money, valuable security or a service. The Crown must prove the dishonest conduct and the required state of mind beyond a reasonable doubt.
What is the difference between fraud over $5,000 and fraud under $5,000?
Fraud over $5,000 is indictable and carries a maximum of 14 years. Fraud under $5,000 is hybrid; if prosecuted by indictment, the maximum is two years, and the Crown may also proceed summarily.
Can a failed business deal become a fraud charge?
Potentially, but a failed deal is not automatically criminal fraud. The Crown must prove deceit, falsehood or other fraudulent means and the required dishonest intent. Contract disputes, business losses and broken promises can raise different issues.
Can an employee be charged with fraud for using company money?
Yes, depending on the evidence. The case may turn on authority, company policy, approvals, personal benefit, how the transaction was recorded and what the employee knew or intended.
Does the Crown have to prove that the accused personally received the money?
Not necessarily. Section 380 focuses on the dishonest deprivation of the victim. Personal enrichment can be relevant evidence, but the legal analysis is not limited to whether the accused kept the money.
Can fraud charges be based on digital evidence?
Yes. Fraud investigations often rely on emails, text messages, bank records, account logs, devices, spreadsheets and cloud data. The defence should assess authenticity, completeness, authorship and context.
What is fraud over $1 million?
Where a person is prosecuted by indictment and convicted of one or more section 380 fraud offences with a total subject-matter value exceeding $1 million, section 380(1.1) provides for a two-year minimum term.
Can repayment make a fraud charge go away?
Not automatically. Repayment may be relevant to resolution or sentencing, but it does not erase the alleged offence. The prosecution still controls the charge and the criminal elements still have to be assessed.
Can a complainant drop a fraud charge?
A complainant may communicate their position, but the prosecutor controls whether a criminal charge continues. A request for withdrawal does not automatically end the case.
What are the penalties for fraud in Canada?
The maximum depends on the value and manner of prosecution. Fraud over $5,000 carries a maximum of 14 years. Fraud under $5,000 carries a maximum of two years if prosecuted by indictment and may also proceed summarily. Actual sentences depend on the facts and statutory sentencing principles.
What evidence can help defend a fraud charge?
Potentially useful evidence can include complete bank and accounting records, contracts, approvals, emails, full message threads, access logs, policies, witness evidence and transaction timelines. Context is often critical.
When should I speak with a criminal defence lawyer about a fraud charge?
As early as possible. Financial and digital evidence can be extensive, release conditions may affect work or account access, and records should be preserved before they disappear or are overwritten.
OFFICIAL RESOURCES
Further reading
ABOUT THIS RESOURCE
Prepared by Tatyana Trusz, Trusz Law. This resource is for general information only and is not legal advice. Fraud cases depend on the specific charge, alleged transactions, evidence, release conditions and current law. Last reviewed July 2026.
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