Fraud Charges
Clear advice on penalties, defences and what to expect through the Local and District Courts.
Fraud is created by section 192E of the Crimes Act 1900 (NSW) and covers dishonestly obtaining property belonging to another, dishonestly obtaining a financial advantage, or dishonestly causing a financial disadvantage, by deception. It is a broad offence that captures conduct ranging from misusing a workplace position to divert funds, submitting false invoices or Centrelink or insurance claims, misusing another person’s credit card or identity details, and more elaborate deception schemes involving multiple victims or transactions.
Two elements sit at the heart of every fraud charge: a deception — a false representation, whether by words, conduct or silence where there was a duty to disclose — and dishonesty, judged by the standard of what an ordinary, honest person would regard as dishonest, not merely what the accused subjectively thought was acceptable. The prosecution must connect the deception to the property, advantage or disadvantage actually obtained or caused, which is often established through bank records, correspondence and forensic accounting evidence rather than eyewitness testimony.
Fraud matters vary enormously in scale, from a single incident involving a modest sum to complex, prolonged conduct involving significant amounts and multiple complainants, and the value and sophistication of the deception heavily influence both where the matter is heard and the sentence likely to follow. Restitution, an early plea, and the personal circumstances that led to the offending are all matters that can meaningfully affect the outcome, making early and considered advice particularly valuable in fraud matters.
Penalties
What you could be facing
| Penalty | Maximum | Notes |
|---|---|---|
| Fraud (s192E Crimes Act 1900) | 10 years imprisonment | A Table 1 offence where the value of the property, advantage or disadvantage does not exceed the relevant statutory threshold, meaning it can be dealt with summarily in the Local Court, capped at 2 years imprisonment and/or a fine of 100 penalty units, unless either party elects for the matter to proceed on indictment. |
| Fraud — higher value or more serious matters | 10 years imprisonment | Where the amount involved exceeds the Local Court threshold, or the prosecution elects to proceed on indictment, the matter is dealt with in the District Court, where the full statutory maximum is available. |
| Aggravating factors | Sentence increased within the applicable maximum | The amount involved, breach of a position of trust (such as an employee, director, carer, or professional adviser), targeting of a vulnerable victim, the duration and sophistication of the conduct, and any prior fraud-related convictions are all significant factors at sentencing. |
Possible Defences
Ways this charge can be challenged
Absence of dishonesty
The prosecution must prove the accused’s conduct was dishonest by the standard of an ordinary, honest person, not merely that it involved an error, a poor decision, or a legitimate but ultimately unsuccessful business arrangement. Where the accused genuinely believed they were entitled to act as they did, or that the arrangement was legitimate, this can defeat the dishonesty element.
No deception, or no causal link
A fraud charge requires a false representation that actually caused the property, advantage or disadvantage in question. Where no false statement or misleading conduct was made, or where the complainant’s loss arose from an unrelated cause rather than any deception by the accused, this central element is not established.
Claim of right
An honest, even if mistaken, belief that the accused was legally entitled to the money or property involved — for example, in a genuine commercial or family dispute over funds — can amount to a defence, because it negates the dishonesty the prosecution must prove.
Duress
Where a person committed the alleged fraud only because they were compelled to by an immediate and genuine threat, the defence of duress may be available, though it is applied narrowly and requires evidence of a real and pressing threat with no reasonable means of escape.
What Happens Next
The Local Court process
- 01
Fraud matters are typically detected through a complaint, an internal audit, or a bank or agency investigation, after which police issue a court attendance notice or, less commonly, arrest the accused.
- 02
At the first mention in the Local Court, a plea of guilty or not guilty is entered, and a decision is made as to whether the matter will remain in the Local Court or proceed towards the District Court, depending on the value involved and any election made.
- 03
Where dealt with summarily, a not guilty plea leads to service of the brief, including financial records and any forensic accounting analysis, before the matter is listed for a defended hearing.
- 04
Where the matter proceeds on indictment, it moves through committal in the Local Court before arraignment and either a jury trial or sentencing hearing in the District Court.
- 05
At any hearing or trial, the prosecution must prove the deception, the dishonesty, and the resulting property, advantage or disadvantage beyond reasonable doubt, while the defence can challenge the financial evidence and raise any available defence.
- 06
On a finding of guilt or a guilty plea, the court considers the amount involved, any breach of trust, restitution made, and the accused’s record and personal circumstances before sentencing, with restitution and an early plea often carrying real weight.
Frequently Asked Questions
Common questions
Restitution does not guarantee a non-conviction outcome, but it is a factor courts take seriously, particularly alongside an early guilty plea and genuine remorse. Repaying money before sentencing can meaningfully improve the range of outcomes available, though it will not automatically resolve the charge.
The law asks whether an ordinary, honest person would consider the accused’s conduct dishonest in the circumstances, and whether the accused knew that an ordinary person would view it that way. This is an objective test, meaning a genuinely held but unreasonable belief that the conduct was acceptable will not necessarily be enough to avoid liability.
Lower-value matters are generally dealt with summarily in the Local Court, which caps the available sentence well below the 10-year maximum, while higher-value or more serious matters, or those where either party elects for trial, proceed to the District Court where the full maximum penalty is available.
An honest and genuinely held belief that you were legally entitled to the property or funds — even if that belief turns out to be mistaken — can amount to a defence known as claim of right, because it removes the dishonesty the prosecution must prove.
Yes. A fraud conviction is a dishonesty offence that can affect professional licensing, director qualifications under the Corporations Act, and employment in roles involving financial trust, which is one of the reasons a non-conviction outcome or a reduced charge is often worth pursuing where the circumstances allow it.
It is generally advisable to obtain legal advice before making any statement to police or providing an account to an employer or investigator, as anything said can later be used in a prosecution. Seeking advice first does not imply guilt and helps ensure your position is properly protected from the outset.
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