Understanding the Law of Fraud by Failing to Disclose Information

Fraud by failing to disclose information is a serious offence under the Fraud Act 2006, and it occurs when an individual deliberately fails to disclose information to another party, resulting in a financial gain or causing a loss to the other party. This offence is highly technical because the law not only requires proof that information was deliberately withheld but also that the defendant acted dishonestly, intending to gain financially or cause a loss. Given the complexities surrounding the legal definitions and evidence in these cases, expert legal advice is essential for anyone facing such charges.

At Allen Hoole Solicitors, we have a wealth of experience in defending clients charged with fraud by failing to disclose information. As one of the largest criminal defence firms in the South West of England, our team of expert solicitor advocates is well-equipped to navigate the technical intricacies of these cases, providing our clients with the best possible defence.

The Legal Framework of Fraud by Failing to Disclose Information

Under Section 3 of the Fraud Act 2006, a person commits fraud by failing to disclose information if:

1. There is a legal duty to disclose information (e.g., in a financial or contractual setting).
2. The defendant fails to disclose that information.
3. The failure is intended to result in a financial gain for themselves or to cause a financial loss to another.

A legal duty to disclose information can arise in a variety of contexts, including contracts, fiduciary relationships, or statutory obligations. For example, someone applying for insurance may fail to disclose a previous claim, or an employee might hide a conflict of interest in a business transaction. The prosecution must prove that there was a legal obligation to disclose the information and that the omission was deliberate and dishonest.

Technical Defences to Fraud by Failing to Disclose Information

Given the technical nature of this offence, there are several defences available, but they require expert legal knowledge to be effectively argued. One of the most common and powerful defences revolves around proving dishonesty, which is a key element of the offence.

Lack of Dishonesty

One of the main defences in fraud by failing to disclose information is proving that the defendant did not act dishonestly. The legal test for dishonesty has been clarified by the courts, particularly following the case of Ivey v Genting Casinos (2017). The prosecution must prove that the defendant knew they had a duty to disclose the information and deliberately chose not to in a dishonest manner. If the defendant can show that they believed their actions were honest or that they had a legitimate reason for failing to disclose the information, this may serve as a valid defence.

Lack of Legal Duty

Another potential defence is that there was no legal duty to disclose the information in the first place. If the prosecution cannot prove that the defendant had a clear legal obligation to provide the information, the charge may fail.

Mistake or Misunderstanding

Sometimes, a defendant may argue that they failed to disclose the information due to a genuine mistake or misunderstanding. If they believed that they had provided all the necessary information or were unaware of the legal duty, this could undermine the prosecution’s case.

The Importance of Digital and Financial Forensic Experts

In many fraud cases, including fraud by failing to disclose information, the evidence often involves complex digital records or financial transactions. At Allen Hoole Solicitors, we work with leading experts in digital and financial forensics who can assist in examining the electronic communications, financial statements, and other critical data involved in the case. These experts help us identify any discrepancies or errors in the evidence, which can be used to challenge the prosecution's case.

Why Allen Hoole Solicitors?

At Allen Hoole Solicitors, we are one of the largest criminal defence firms in the South West of England, with a large team of highly experienced solicitor advocates. Our team has extensive experience in defending complex fraud cases, and we work closely with specialist barristers who are experts in this area of law.

Our ability to handle both legal technicalities and complex forensic evidence gives our clients a significant advantage. Whether through challenging the prosecution’s evidence or highlighting procedural errors, we work tirelessly to secure the best possible outcome.

If you or someone you know is facing charges of fraud by failing to disclose information, contact Allen Hoole Solicitors today. Our team is available 24/7 to provide expert legal advice and representation, ensuring that your case is handled with the utmost care and attention.