Cunninghams Solicitors

What Type of Sentence Can Someone Expect for a Fraud Offence?

Facing a fraud charge in the UK can be a daunting experience. If you are found guilty, you could face severe penalties, including imprisonment, fines, as well as other consequences such as damage to your reputation and livelihood. This is why it is essential to seek the advice of a fraud defence solicitor if you are accused of fraud.

Fraud can take many forms, and the sentence for fraud offences in the UK varies depending on the type and extent. The sentence for fraud depends on the case’s specific circumstances, including the amount of money involved, the level of planning and sophistication of the fraud, and any aggravating or mitigating factors.

Below is the average sentencing you could expect depending on the type of fraud.  

Confidence fraud

Some examples of confidence fraud include charity scams, conspiracy to defraud, and advance fee fraud. The Fraud Act is typically used to charge individuals involved in these types of offences, and the maximum sentence under this act is 10 years imprisonment.

However, it is important to note that a sentence of this length is typically reserved for the most severe cases, such as large-scale fraud. In cases where the fraud involved many victims and the amount defrauded exceeds £500,000, a sentence of 7 years or less may be imposed. A sentence of around 4 years is common for cases where the value of the fraud committed is between £20,000 and £100,000.

For one-off confidence frauds involving a single deception, the sentence’s severity depends on various factors. For instance, the judge will consider whether the victim is vulnerable. If they were vulnerable, the sentence might involve a community-based order and 6 months imprisonment. However, if the amount defrauded is significant, the prison term could be up to 18 months.

Benefit fraud

Cases falling under the category of benefit fraud can range from large-scale, involving multiple individuals, to small-scale, committed by individuals making false claims for themselves. The sentences handed down by judges in such cases can vary significantly.

The maximum theoretical sentence for benefit fraud is 10 years for cases charged under the Fraud Act and 7 years for cases charged under the Social Security Administration Act.

In cases involving professional and sophisticated benefit fraud groups, the convicted individuals may receive sentences ranging from 2 to 7 years. On the other hand, those found guilty of benefit fraud on an individual basis, with losses below £20,000, are typically sentenced to non-custodial punishments. However, cases involving fraud committed over an extended period are more likely to result in a custodial sentence. 

Banking, Insurance and credit fraud

This type of fraud comprises a range of activities, including attempting to secure a mortgage using false information, submitting fraudulent insurance claims, or engaging in payment card fraud.

These offences are typically prosecuted under the Fraud Act, which carries a maximum sentence of 10 years imprisonment. However, such severe sentences are reserved for the most serious cases.

When the fraud is carried out over an extended period, resulting in losses exceeding £500,000, a sentence of between 4 and 7 years may be imposed. For offences involving less than £100,000, the sentence is likely to be shorter.

The sentence may be reduced accordingly for less complex cases, such as those involving a single transaction. If the amount involved is relatively small, the punishment may even be limited to a community-based sentence.

Revenue 

Sentencing in this category encompasses a range of fraud types, including carousel frauds, Missing Trader, alcohol duty frauds, and evasion of VAT. When these offences are well-organised and result in significant losses to the taxpayer, judges consider them serious crimes. The most severe sentences are reserved for those involved in missing trader, alcohol duty, and carousel fraud.

A typical sentence is a community-based penalty for offences involving amounts under £100,000 that were not fraudulent from the outset. However, individuals involved in multiple frauds and/or frauds intended from the start, even for amounts as low as £20,000, may receive a sentence of 3 months.

In cases where the fraud is sophisticated, professionally planned, and involves amounts ranging from £20,000 to hundreds of thousands of pounds, sentences of 3 to 5 years are typically imposed.

In many cases, those accused of fraud will face a trial by jury, and it is up to the prosecution to prove their guilt beyond a reasonable doubt. This is where the expertise of a fraud defence solicitor can be invaluable. A good solicitor will be able to assess the strength of the prosecution’s case and identify any weaknesses or areas of challenge. They will also be able to advise you on the best course of action and provide you with expert advice and representation throughout the legal process, from the initial investigation through to any court appearances or trials.

The types of sentencing available to the courts include:

1. Imprisonment: This is the most severe form of sentencing for fraud and involves the convicted person being sent to prison for a period of time. The length of the sentence will depend on the nature and severity of the fraud committed, as well as any other factors considered by the court.

2. Fines: In addition to imprisonment, the court may impose a fine on the convicted person. The amount of the fine will depend on the severity of the fraud, the amount of money involved, and the financial means of the convicted person.

3. Confiscation orders: Confiscation orders are a form of financial penalty that requires the convicted person to surrender any assets or money obtained due to fraud. The amount of the confiscation order will depend on the amount of money or assets involved in the fraud.

4. Restitution orders: In some cases, the court may order the convicted person to pay restitution to the victims of the fraud. This can involve repaying any money or assets obtained through fraudulent activity.

5. Community orders: Instead of imposing a custodial sentence, the court may impose a community order on the convicted person. This can involve a range of different requirements, such as attending rehabilitation programmes, performing community service, or complying with a curfew.

6. Suspended sentences: In some cases, the court may impose a suspended sentence, which means that the convicted person is not sent to prison immediately but instead placed on probation. If the person does not comply with the terms of their probation, they may be sent to prison.

Finally, it is worth noting that a fraud defence solicitor can also provide support and guidance throughout the legal process. Facing a fraud charge can be a stressful and overwhelming experience, and having someone on your side who can offer practical advice and emotional support can be invaluable.

If you are facing a fraud charge, it is vital to seek the advice of a reputable fraud defence solicitor specialising in this law area. They can help you to prepare a strong defence, understand the potential consequences of a conviction, and provide support throughout the legal process. With suitable legal representation, you can better navigate the complex world of fraud law and increase your chances of achieving a positive outcome.