Canadian
Laws Dealing With Fraud
Note: the following laws have been condensed and paraphrased for
ease of understanding and relevance to the frauds covered. They
are for reference use only to show the duplicity of responsibility
and the myriad nature of determining an adequate offense. It
is hoped that the offenders will be charged with all applicable
offenses in order to boost the sentence.
Competition Act - An Act to provide
for the general regulation of trade and commerce.
CHAPTER C-34
Amendments to the Competition Act are designed to help crack down
on the recent proliferation of deceptive telemarketing practices
that prey upon consumers and cast a shadow over Canada's legitimate
telemarketing industry by speeding up and improving the process
for resolving misleading advertising and deceptive marketing practices. It
gives the Competition Bureau new powers to use in the investigation
of scam artists who use the telephone to exploit the trust of unsuspecting
consumers.
The new provisions:
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make
deceptive telemarketing a criminal offence punishable by
a maximum of five years in prison and a fine within the discretion
of the court, |
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require
telemarketers to disclose who they work for, the value of
the products they are promoting, and other specified information
that will help potential victims distinguish legitimate telemarketers
from the criminals and |
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permit
the Bureau to apply for judicial authorization to intercept
private communications without consent (wiretap) to investigate
the most serious cases involving deceptive telemarketing. |
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creates
a civil process which enables the Bureau to use court orders
to stop misleading advertising and deceptive marketing practices
quickly; |
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retains
deliberate or reckless misrepresentation as a criminal offence
and increases the potential penalty; |
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enables
the Bureau to apply for court orders prohibiting persons
from engaging in criminal offences under the Competition
Act, and requiring them to take positive steps to prevent
future offences. |
The Attorney General of Canada
may institute and conduct any prosecution or criminal proceedings
under this Act and the Criminal Code. A judge may issue a search
warrant to search the premises for records, including computer
files and copy or seize it.
A court may issue an interim injunction forbidding any person
named from doing any act or thing that it appears to the court
may constitute or be directed toward the commission of an offence.
A court may punish any person who contravenes an order made under
this section by a fine in the discretion of the court or by imprisonment
for a term not exceeding two years.
False or misleading representations
52. (1) No person shall, for the purpose of promoting, directly
or indirectly, the supply or use of a product or ... any business
interest, by any means whatever, knowingly or recklessly make a
representation to the public that is false or misleading in a material
respect.
(5) ... liable to a fine in the discretion of the court or to
imprisonment for a term not exceeding five years or to both; or
(b) on summary conviction, to a fine not exceeding $200,000
or to imprisonment for a term not exceeding one year, or to both.
Deceptive telemarketing
Amendments to the federal Competition Act (Bill C-20)
create new offences relating to "deceptive telemarketing".
A further amendment was included in Bill C-51 to define the new
offences as "enterprise crime", bringing them within
the scope of the Criminal Code scheme for seizure and forfeiture
of proceeds.
(3) No person who engages in telemarketing shall
(a) make a representation that is false or misleading in a material
respect;
(b) conduct or purport to conduct a contest, lottery or game of
chance, skill or mixed chance and skill, where
(i) the delivery of a prize or other benefit to a participant
in the contest, lottery or game is, or is represented to be, conditional
on the prior payment of any amount by the participant, or
(ii) adequate and fair disclosure is not made of the number and
approximate value of the prizes, of the area or areas to which
they relate and of any fact within the person's knowledge, that
affects materially the chances of winning;
(c) offer a product at no cost, or at a price less than the fair
market value of the product, in consideration of the supply or
use of another product, unless fair, reasonable and timely disclosure
is made of the fair market value of the first product and of any
restrictions, terms or conditions applicable to its supply to the
purchaser; or
(d) offer a product for sale at a price grossly in excess of its
fair market value, where delivery of the product is, or is represented
to be, conditional on prior payment by the purchaser.
The offence created by Bill C-20 is hybrid; it is punishable by
five years imprisonment and/or an unlimited fine for the indictable
offence or by a maximum of 1 year imprisonment and/or a $200,000
fine for the summary offence (ss.52.1 (9) Competition Act )
. The Criminal Code offence of fraud is punishable by ten
years imprisonment where the value of the suspect/matter of the
fraud is at least $5,000. It is punishable by two years imprisonment
in other cases.
Offences by employees or agents
(7) ... for the prosecution of a corporation ... it is sufficient
proof of the offence to establish that it was committed by an employee
or agent ... whether or not the employee or agent is identified,
unless the corporation ... exercised due diligence to prevent ...
the offence.
Liability of officers and directors
(8) Where a corporation commits an offence ... any officer or
director ... in a position to direct or influence the ... conduct
... is a party to and guilty of the offence ... whether or not
the corporation has been prosecuted or convicted, unless the officer
or director establishes ... due diligence to prevent the ... offence.
(9) ... liable (a) on conviction on indictment, to a fine in the
discretion of the court or to imprisonment for a term not exceeding
five years, or to both; or (b) on summary conviction, to a fine
not exceeding $200,000 or to imprisonment for a term not exceeding
one year, or to both.
Sentencing
(10) In sentencing ... the court shall consider ... the following
aggravating factors:
(a) the use of lists of persons previously deceived by means of
telemarketing; (b) characteristics of the persons to whom the telemarketing
was directed, including classes of persons who are especially vulnerable
to abusive tactics; (c) the amount of the proceeds realized ...
(d) previous convictions ... in respect of conduct prohibited by
this section; and (e) the manner in which information is conveyed,
including the use of abusive tactics.
Multi-level marketing plans
55. (1) ... "multi-level marketing plan" means a plan
for the supply of a product whereby a participant in the plan receives
compensation for the supply of the product to another participant
in the plan who, in turn, receives compensation for the supply
of the same or another product to other participants in the plan.
(2) No person ... shall make any representations relating to compensation
... unless ... fair, reasonable and timely disclosure of ...
(a) compensation actually received by typical participants in
the plan; or
(b) compensation likely to be received by typical participants
in the plan, having regard to any relevant considerations, including
(i) the nature of the product, including its price and availability,
(ii) the nature of the relevant market for the product, (iii) the
nature of the plan and similar plans, and (iv) whether the person
who operates the plan is a corporation, partnership, sole proprietorship
or other form of business organization.
(3) ... liable (a) on conviction on indictment, to a fine in the
discretion of the court or to imprisonment for a term not exceeding
five years or to both; or (b) on summary conviction, to a fine
not exceeding $200,000 or to imprisonment for a term not exceeding
one year, or to both.
Pyramid Selling Schemes
55.1 (1) ... "scheme of pyramid selling" means a multi-level
marketing plan whereby
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(a)
a participant in the plan gives consideration for the right
to receive compensation by reason of the recruitment into
the plan of another participant in the plan who gives consideration
for the same right; |
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(b)
a participant in the plan gives consideration, as a condition
of participating in the plan, for a specified amount of the
product, other than a specified amount of the product that
is bought at the seller's cost price for the purpose only
of facilitating sales; |
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(c)
a person knowingly supplies the product to a participant
in the plan in an amount that is commercially unreasonable;
or |
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(d)
a participant in the plan who is supplied with the product
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(i)
does not have a buy-back guarantee that is exercisable
on reasonable commercial terms or a right to return
the product in saleable condition on reasonable commercial
terms, or |
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(ii)
is not informed of the existence of the guarantee
or right and the manner in which it can be exercised. |
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(2) No person shall establish,
operate, advertise or promote a scheme of pyramid selling.
(3) ... liable ... to a fine in the discretion of the court or
to imprisonment for a term not exceeding five years or to both;
or (b) on summary conviction, to a fine not exceeding $200,000
or to imprisonment for a term not exceeding one year, or to both.
Obstruction
64. (1) No person shall in any manner impede or prevent or attempt
to impede or prevent any inquiry or examination under this Act.
(2) ... liable ... to a fine not exceeding five thousand dollars
or to imprisonment for a term not exceeding two years or to both.
Failure to supply information
(2) Every person who, without good and sufficient cause, the proof
of which lies on that person, contravenes section 114 or 123 is
guilty of an offence and liable on summary conviction or on conviction
on indictment to a fine not exceeding $50,000.
Destruction or alteration of records
or things
(3) Every person who destroys or alters ... any record or other
thing that is required to be produced ... in respect of a warrant
... liable (a) on summary conviction to a fine not exceeding twenty-five
thousand dollars or to imprisonment for a term not exceeding two
years or to both; or (b) on conviction on indictment to a fine
not exceeding fifty thousand dollars or to imprisonment for a term
not exceeding five years or to both.
Liability of directors
(4) Where a corporation commits an offence under this section,
any officer, director or agent of the corporation who directed,
authorized, assented to, acquiesced in or participated in the commission
of the offence is a party to and guilty of the offence and is liable
to the punishment provided for the offence whether or not the corporation
has been prosecuted or convicted.
Limitation period
(6) Proceedings in respect of an offence that is declared by this
Act to be punishable on summary conviction may be instituted at
any time within but not later than two years after the time when
the subject-matter of the proceedings arose.
PART VII.1 DECEPTIVE MARKETING
PRACTICES
Misrepresentations to public
74.01 (1) A person ... who, for the purpose of promoting, ...
the supply or use of a product or ... any business interest, by
any means whatever, (a) makes a representation to the public that
is false or misleading in a material respect.
Representation as to reasonable
test and publication of testimonials
74.02 A person ... who, for the purpose of promoting ... any product...
or any business interest, makes a representation ... that a test
has been made as to the performance, efficacy or length of life
of a product by any person, or publishes a testimonial with respect
to a product.
Bait and switch selling
(2) A person ... who advertises at a bargain price a product that
the person does not supply in reasonable quantities having regard
to the nature of the market in which the person carries on business,
the nature and size of the person's business and the nature of
the advertisement.
Promotional contests
74.06 A person ... promoting, ... a product ... or any business
interest, conducts any contest, lottery, game of chance or skill,
or mixed chance and skill, ... where (a) adequate and fair disclosure
is not made of the number and approximate value of the prizes,
of the area or areas to which they relate and of any fact within
the knowledge of the person that affects materially the chances
of winning; (b) distribution of the prizes is unduly delayed; or
(c) selection of participants or distribution of prizes is not
made on the basis of skill or on a random basis in any area to
which prizes have been allocated.
74.1 (1) Where, ... a court determines that a person is engaging
in or has engaged in reviewable conduct under this Part, the court
may order the person (a) not to engage in the conduct or substantially
similar reviewable conduct; ... (c) to pay an administrative monetary
penalty, in such manner as the court may specify, in an amount
not exceeding (i) in the case of an individual, $50,000 and,
for each subsequent order, $100,000, or (ii) in the case of
a corporation, $100,000 and, for each subsequent order, $200,000.
(5) Any evidence of the aggravating or mitigating factors shall
be taken into account in determining the amount of an administrative
monetary penalty under paragraph (1)(c):
Criminal Code Offences
Canadian theft and fraud laws are built on the simple notion that
exploitive dishonesty should be forbidden. Starting from the premise
that honesty and dishonesty are such basic notions that everybody
understands them, criminal law should clearly prohibit acts commonly
considered dishonest to underline this understanding.
A person commits fraud who dishonestly by a) deceit; b) unfair
nondisclosure; c) unfair exploitation induces any person or the
public to part with any property or to suffer a financial loss.
This covers dishonest appropriation by deceit as in cases where
the owner is deceived into willingly parting with his property
with the intention of permanently depriving the other of it.
While deceit means any false representation it does not include
an expression of opinion not made as a statement of fact. A seller
has some latitude in "puffing" his goods, but he is not
authorized to misrepresent them or to assign to them benefits they
do not possess. Statements made for the purpose of deceiving prospective
purchasers cannot properly be characterized as mere puffing.
Unfair nondisclosure is where a duty to disclose arises from
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a)
a special relationship entitling the victim to rely on the
accused or |
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b)
conduct by the accused creating a false impression in the
victim's mind or |
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c)
circumstances where nondisclosure would create a false impression
in the mind of any reasonable person. |
Unfair exploitation means exploitation
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a)
of another's mental deficiency |
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b)
of another's mistake intentionally or recklessly induced
by the accused or |
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c)
another's mistake induced by the unlawful conduct of a third
party acting with the accused. |
Theft
322. (1) Every one commits theft who fraudulently ... takes, or
... converts to his use or to the use of another person, anything,
...with intent
(a) to deprive ... the owner of it ... (b) to pledge it or deposit
it as security; (c) to part with it under a condition ... that
the person ... may be unable to perform; or (d) to deal with it
in such a manner that it cannot be restored ...
(3) A taking ... may be fraudulent ... without secrecy or attempt
at concealment.
Theft by person holding power of
attorney
331. Every one commits theft who, ( misappropriates money while
acting as power of attorney).
Misappropriation of money held
under direction
332. (1) Every one commits theft who, ( misappropriates money
held for direction ).
Punishment for theft
334. (a) ...liable to imprisonment for a term not exceeding ten
years, where the property stolen is a testamentary instrument or
the value of what is stolen exceeds five thousand dollars; or (b)
is guilty (i) of an indictable offence and is liable to imprisonment
for a term not exceeding two years, or (ii) of an offence punishable
on summary conviction, where the value of what is stolen does not
exceed five thousand dollars.
Criminal breach of trust
336. Every one who, being a trustee of anything ... for a public
or charitable purpose, converts, with intent to defraud ... to
a use that is not authorized by the trust is guilty of an indictable
offence and liable to imprisonment for a term not exceeding fourteen
years.
Fraudulent concealment
341. Every one who, for a fraudulent purpose, takes, obtains,
removes or conceals anything is guilty of an indictable offence
and liable to imprisonment for a term not exceeding two years.
Theft, forgery, etc., of credit
card
342. (1) Every person who (a) steals ... (b) forges ... (c) possesses,
uses or traffics in a credit card ... knowing that it was obtained,
made or altered ... (d) uses a credit card knowing that it has
been revoked or cancelled, is guilty of (e) an indictable offence
and is liable to imprisonment for a term not exceeding ten years,
or (f) an offence punishable on summary conviction.
Unauthorized use of credit card
data
(3) Every person who, fraudulently ... possesses, uses, traffics
in or permits another person to use credit card data, whether or
not authentic, ... is guilty of (a) an indictable offence and is
liable to imprisonment for a term not exceeding ten years; or (b)
an offence punishable on summary conviction.
Making, having or dealing in instruments
for forging or falsifying credit cards
342.01 (1) Every person who, without lawful justification ...
(a) makes or repairs, (b) buys or sells, (c) exports from or imports
into Canada, or (d) possesses any device ... for use in forging
or falsifying credit cards is ... liable to imprisonment for a
term not exceeding ten years, or is guilty of an offence punishable
on summary conviction.
Bringing into Canada property obtained
by crime
357. Every one who brings into or has in Canada anything that
he has obtained outside Canada by an act that, if it had been committed
in Canada, would have been the offence of theft or an offence under
section 342 or 354 is ...liable to a term of imprisonment not exceeding
ten years.
False Pretences
361. (1) A false pretence is a representation of a matter of fact
either present or past, made by words or otherwise, that is known
by the person who makes it to be false and that is made with a
fraudulent intent to induce the person to whom it is made to act
on it.
362. (1) Every one commits an offence who (a) by a false pretence
... obtains anything in respect of which the offence of theft may
be committed or causes it to be delivered to another person; (b)
obtains credit by a false pretence or by fraud; (c) knowingly makes
... a false statement in writing ... with respect to the financial
condition or means or ability to pay ... (i) the delivery of personal
property, (ii) the payment of money, (iii) the making of a loan,
... or credit ... (vi) the making, accepting, discounting or endorsing
of a bill of exchange, cheque, draft or promissory note; or (d)
knowing that a false statement in writing has been made ...
(2) Every one who commits an offence under paragraph (1)(a)
(a) ... liable to a term of imprisonment not exceeding ten years,
where the property obtained is a testamentary instrument or the
value of what is obtained exceeds five thousand dollars; or (b)
is guilty (i) of an indictable offence and is liable to imprisonment
for a term not exceeding two years, or (ii) of an offence punishable
on summary conviction, where the value of what is obtained does
not exceed five thousand dollars.
(3) ... under paragraph (1)(b), (c) or (d) is guilty of an indictable
offence and liable to imprisonment for a term not exceeding ten
years.
Presumption from cheque issued
without funds
(4) Where ... it is shown that anything was obtained ...by means
of an (NSF) cheque ... it shall be presumed to have been obtained
by a false pretence, unless the court is satisfied by evidence
that when the accused issued the cheque he believed on reasonable
grounds that it would be honoured ...
Obtaining execution of valuable
security by fraud
363. Every one who, with intent to defraud or injure another person,
by a false pretence causes or induces any person (a) to execute,
make, accept, endorse or destroy the whole or any part of a valuable
security, or (b) to write, impress or affix a name or seal on any
paper or parchment in order that it may afterwards be made or converted
into or used or dealt with as a valuable security, ... liable to
imprisonment for a term not exceeding five years.
Forgery and Offences Resembling
Forgery
366. (1) Every one commits forgery who makes a false document,
knowing it to be false, with intent (a) that it should in any way
be used or acted on as genuine, to the prejudice of any one whether
within Canada or not; or (b) that a person should be induced, by
the belief that it is genuine, to do or to refrain from doing anything,
whether within Canada or not.
Making false document
(2) Making a false document includes (a) altering a genuine document
in any material part; (b) making a material addition to a genuine
document or adding to it a false date, attestation, seal or other
thing that is material; or (c) making a material alteration in
a genuine document by erasure, obliteration, removal or in any
other way. (3) Forgery is complete as soon as a document is made...
(4) Forgery is complete notwithstanding that the false document
is incomplete ...
367. Every one who commits forgery (a) ... liable to imprisonment
for a term not exceeding ten years; or (b) is guilty of an offence
punishable on summary conviction.
Uttering forged document
368. (1) Every one who, knowing that a document is forged, (a)
uses, deals with or acts on it, or (b) causes or attempts to cause
any person to use, deal with or act on it, as if the document were
genuine, (c) ... liable to imprisonment for a term not exceeding
ten years; or (d) is guilty of an offence punishable on summary
conviction.
(2) For the purposes of proceedings under this section, the place
where a document was forged is not material.
Exchequer bill paper, public seals,
etc.
369. Every one who, without lawful authority ... (a) makes, uses
or knowingly has in his possession (i) any ... paper that is used
to make bank-notes, or (b) ... has in his possession any plate,
die, machinery, instrument or other writing or material ... intended
to be used to commit forgery ... is liable to imprisonment for
a term not exceeding fourteen years.
Telegram, etc., in false name
371. Every one who, with intent to defraud, causes or procures
a telegram, cablegram or radio message to be sent or delivered
as being sent by the authority of another person, knowing that
it is not sent by his authority ... is liable to imprisonment for
a term not exceeding five years.
False messages
372. (1) Every one who, with intent to injure or alarm any person,
conveys or causes or procures to be conveyed by letter, telegram,
telephone, ... information that he knows is false is ... liable
to imprisonment for a term not exceeding two years.
Harassing telephone calls
372 (3) Every one who, without lawful excuse and with intent to
harass any person, makes or causes to be made repeated telephone
calls to that person is guilty of an offence punishable on summary
conviction.
Drawing document without authority,
etc.
374. Every one who (a) with intent to defraud ... makes, executes,
draws, signs, accepts or endorses a document in the name or on
the account of another person ... or (b) makes use of or utters
a document ... made, executed, signed, accepted or endorsed with
intent to defraud ... liable to imprisonment for a term not exceeding
fourteen years.
Obtaining, etc., by instrument
based on forged document
375. Every one who demands, receives or obtains anything, or causes
or procures anything to be delivered or paid to any person under,
on or by virtue of any instrument issued under the authority of
law, knowing that it is based on a forged document, ...liable to
imprisonment for a term not exceeding fourteen years.
PART X
FRAUDULENT TRANSACTIONS RELATING
TO CONTRACTS AND TRADE
Fraud
380. (1) Every one who, by deceit, falsehood or other fraudulent
means ... defrauds the public or any person, whether ascertained
or not, of any property, money or valuable security or any service,
(a) ... liable to a term of imprisonment not exceeding ten years,
where ( a will is involved ) or the value ...exceeds five thousand
dollars; or (b) is ...liable to imprisonment for a term not exceeding
two years, or (ii) of an offence punishable on summary conviction,
where the value ...does not exceed five thousand dollars.
Affecting public market
380 (2) Every one who, by deceit, falsehood or other fraudulent
means ... with intent to defraud, affects the public market price
of stocks, shares, merchandise or anything that is offered for
sale ... liable to imprisonment for a term not exceeding ten years.
Using mails to defraud
381. Every one who makes use of the mails for the purpose of transmitting
or delivering letters or circulars concerning schemes devised or
intended to deceive or defraud the public, or for the purpose of
obtaining money under false pretences, is ... liable to imprisonment
for a term not exceeding two years.
Fraudulent manipulation of stock
exchange transactions
382. Every one who, through the facility of a stock exchange ...
with intent to create a false or misleading appearance of active
public trading ...with respect to the market price of a security,
(a) effects a transaction in the security that involves no change
in the beneficial ownership thereof, (b) enters ( matching buy
and sell orders ) is ... liable to imprisonment for a term not
exceeding five years.
Gaming in stocks or merchandise
383. (1) Every one is guilty of an indictable offence and liable
to imprisonment for a term not exceeding five years who, with intent
to make gain or profit by the rise or fall in price of the stock
of an incorporated or unincorporated company or undertaking, whether
in or outside Canada, or of any goods, wares or merchandise,
(a) makes or signs ... any contract or agreement, oral or written,
purporting to be for the purchase or sale of shares of stock or
goods, wares or merchandise, without the bona fide intention of
acquiring or (b) delivering the shares, goods, wares or merchandise
or of selling them, as the case may be, but this section does not
apply where a broker, on behalf of a purchaser, receives delivery...
Fraudulent receipts under Bank
Act
390. ...liable to imprisonment for a term not exceeding two years
who (a) willfully makes a false statement in any receipt, certificate
or acknowledgment for anything that may be used for a purpose mentioned
in the Bank Act; or (b) willfully, (i) after giving to another
person, (ii) after a person employed by him has, to his knowledge,
given to another person, or (iii) after obtaining and endorsing
or assigning to another person, any receipt, certificate or acknowledgment
for anything that may be used for a purpose mentioned in the Bank
Act, without the consent in writing of the holder or endorsee or
the production and delivery of the receipt, certificate or acknowledgment,
alienates or parts with, or does not deliver to the holder or owner
the property mentioned in the receipt, certificate or acknowledgment.
Disposal of property to defraud
creditors
392. Every one who, (a) with intent to defraud his creditors,
(i) makes or causes to be made any gift, conveyance, assignment,
sale, transfer or delivery of his property, or (ii) removes, conceals
or disposes of any of his property, or (b) with intent that any
one should defraud his creditors, receives any ( such ) property
... imprisonment for a term not exceeding two years.
Falsification of Books and Documents
397. (1) Every one who, with intent to defraud, (a) destroys,
mutilates, alters, falsifies or makes a false entry in, or (b)
omits a material particular from, or alters a material particular
in, a book, paper, writing, valuable security or document ... liable
to imprisonment for a term not exceeding five years.
(2) Every one who, with intent to defraud his creditors, is privy
to the commission of an offence under subsection (1) is ... liable
to imprisonment for a term not exceeding five years.
False prospectus, etc.
400. (1) Every one who makes, circulates or publishes a prospectus,
a statement or an account, whether written or oral, that he knows
is false in a material particular, with intent (a) to induce persons,
whether ascertained or not, to become shareholders or partners
in a company, (b) to deceive or defraud the members, shareholders
or creditors, whether ascertained or not, of a company, or (c)
to induce any person to (i) entrust or advance anything to a company,
or (ii) enter into any security for the benefit of a company, is
... liable to imprisonment for a term not exceeding ten years.
(2) In this section, "company" means a syndicate, body
corporate or company, whether existing or proposed to be created.
Personation with intent
403. Every one who fraudulently personates any person, living
or dead, (a) with intent to gain advantage for himself or another
person, (b) with intent to obtain any property or an interest in
any property, or (c) with intent to cause disadvantage to the person
whom he personates or another person, is ... liable to imprisonment
for a term not exceeding ten years or an offence punishable on
summary conviction.
Passing off
408. Every one ... who, with intent to deceive or defraud the
public or any person, whether ascertained or not, (a) passes off
other wares or services as and for those ordered or required; or
(b) makes use, in association with wares or services, of any description
that is false in a material respect regarding (i) the kind, quality,
quantity or composition, (ii) the geographical origin, or (iii)
the mode of the manufacture, production or performance of those
wares or services. ... liable to imprisonment for a term not exceeding
two years; or (b) an offence punishable on summary conviction.
Possession, etc., of counterfeit
money
450. Every one who ... (a) buys, receives or offers to buy or
receive, (b) has in his custody or possession, or (c) introduces
into Canada, counterfeit money is ... liable to imprisonment for
a term not exceeding fourteen years.
Uttering, etc., counterfeit money
452. Every one who, without lawful justification or excuse, the
proof of which lies on him, (a) utters ... or uses counterfeit
money ... or (b) exports, sends or takes counterfeit money out
of Canada, is ... liable to imprisonment for a term not exceeding
fourteen years.
Laundering proceeds of crime
462.31 (1) Every one commits an offence who uses, transfers the
possession of, sends or delivers to any person or place, transports,
transmits, alters, disposes of or otherwise deals with, in any
manner and by any means, any property or any proceeds of any property
with intent to conceal or convert that property or those proceeds,
knowing or believing that all or a part of that property or of
those proceeds was obtained or derived directly or indirectly as
a result of (a) the commission in Canada of an enterprise crime
offence or a designated substance offence; or (b) an act or omission
anywhere that, if it had occurred in Canada, would have constituted
an enterprise crime offence or a designated substance offence.
(2) ... liable to imprisonment for a term not exceeding ten years;
or (b) is guilty of an offence punishable on summary conviction.
Forfeiture of Proceeds of Crime
A recent amendment to the Criminal Code targets the proceeds of
deceptive telemarketing for seizure and forfeiture on the same
basis as the proceeds of other types of fraud and drug trafficking.
462.37 (1) ... where an offender is convicted, or discharged ...
of an enterprise crime offence and ... any property is proceeds
of crime ... the property be forfeited to Her Majesty to be disposed
of as the Attorney General directs ...
(2) Where the evidence does not establish ... that the enterprise
crime offence ... was committed in relation to property ... but
satisfied ... that that property is proceeds of crime, the court
may make an order of forfeiture ...
Fine instead of forfeiture
(3) Where ... property ... (a) cannot, on the exercise of due
diligence, be located, (b) has been transferred to a third party,
(c) is located outside Canada, (d) has been substantially diminished
in value or rendered worthless, or (e) has been commingled with
other property that cannot be divided without difficulty, the court
may, instead of forfeit... (1), order the offender to pay a fine
in an amount equal to the value of that property, part or interest.
Imprisonment in default of payment
of fine
(4) ... the court shall (a) impose, in default of payment of that
fine, a term of imprisonment (i) not exceeding six months, where
the amount of the fine does not exceed ten thousand dollars, ranging
upwards to (vii) not less than five years and not exceeding ten
years, where the amount of the fine exceeds one million dollars;
and (b) direct that the term of imprisonment ... be served consecutively
to any other term of imprisonment imposed ...
Order of restoration of property
(3) Where a court is satisfied that any person ... is the lawful
owner or is lawfully entitled to possession ... the court may order
that the property or part thereof be returned to that person.
Application by person claiming
interest for relief from forfeiture
462.42 (1) Where any property is forfeited to Her Majesty ...
any person who claims an interest in the property, other than the
offender ... may, within thirty days after that forfeiture, apply
by notice in writing to a judge for an order under subsection (4).
(2) The judge to whom an application is made under subsection
(1) shall fix a day not less than thirty days after the date of
filing of the application for the hearing thereof.
(3) An applicant shall serve a notice of the application made
under subsection (1) and of the hearing thereof on the Attorney
General at least fifteen days before the day fixed for the hearing.
(4) Where, on the hearing of an application ... the judge may
make an order declaring that the interest of the applicant is not
affected by the forfeiture and declaring the nature and extent
of the interest.
(6) The Attorney General shall ... (a) direct that the property
or the part thereof to which the interest of the applicant relates
be returned to the applicant; or (b) direct that an amount equal
to the value of the interest of the applicant, as declared in the
order, be paid to the applicant.
Killing by influence on the mind
228. No person commits culpable homicide where he causes the death
of a human being (a) by any influence on the mind alone, or (b)
by any disorder or disease resulting from influence on the mind
alone, but this section does not apply where a person causes the
death of a child or sick person by willfully frightening him.
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