Fraud Under and Over $5,000: Penalties and the Importance of Contacting a Tax Fraud Defence Lawyer in Toronto

What is fraud in Canada? In Canada, everyone who, by deceit, falsehood or other fraudulent means, defrauds any person or the public at large of any property, money, valuable security or any service is guilty of fraud.

If you’ve been charged with fraud, the repercussions could be severe.  Indeed, there are many other serious consequences that flow from being found guilty of fraud besides just the possible jail sentence.  These other consequences include being able to find employment and being able to enter the United States. We strongly urge you to contact an experienced criminal defence lawyer immediately.

Erickson Law is a trusted criminal defence lawyer in Toronto and has been successfully defending people charged with fraud and other financial crimes for more than 20 years. With the approaching tax season, you may find yourself in need of an experienced tax evasion defence & tax fraud defence lawyer in Toronto

Erickson has accumulated a wealth of knowledge at all levels of court and can develop the best defence after reviewing your charges, arrest and personal circumstances. 


Types of Fraud Charges

Fraud Under $5,000

Fraud Under $,5000 is the charge that will be laid where the value of the subject-matter of the fraud is $5,000 or less.  The maximum penalty depends on whether the Crown proceeds by indictment or summary conviction. If the Crown proceeds by indictment, the maximum penalty is two years in a federal penitentiary followed by three years of probation.  If the Crown proceeds by summary convictions, the maximum penalty is two years less a day in a provincial jail and a $5,000 fine.


Fraud Over $5,000

Fraud Over is the charge that will be laid if the subject-matter of the fraud is a testamentary instrument (such as a will) or the value of the subject-matter is more than $5,000.  For these charges, the Crown will proceed by indictment and the maximum penalty is 14 years in jail.

Regardless of whether you have been charged with fraud under or fraud over, the Criminal Code stipulates certain conditions as being aggravating when it comes to sentencing.  These are:

– The scope, complexity, length and depth of planning

– The extent to which, if any, the event impacted Canadian financial markets or the economy

– The number of victims affected, taking into consideration their age, health status and finances

– Whether the accused leveraged their high reputation within the community

– Whether the accused was found to be non-compliant with professional standards and regulations

– The accused destroying vital records that indicate fraud

– If the value of the fraud exceeded one million dollars



Other Types of Frauds


  • Tax Evasion

The deliberate non-compliance of Canada’s tax laws by an individual or business. This may involve falsifying documents and claims, not reporting income or inflating expenses.  A conviction for tax evasion can result in jail time, court-imposed fines and a a criminal record. 


  • Bank Fraud

The use of illegal means to acquire assets, money or other property held by a bank or financial institution by fraudulently posing as a bank. 


  • Mortgage Fraud

Misstating, misrepresenting or omitting information that an underwriter may rely on to fund or insure a loan secured by real estate. 


  • Employment Fraud

Posing as a genuine employer and asking for money in exchange for employment opportunities or giving people false hope of higher wages, better hours, better job duties, and the likes. 


  • Breach of Trust

Any act that violates the duties of a trustee or the terms of a trust. This does not have to be done intentionally or with malice, and may occur as a result of negligence. 


  • Lottery Fraud

This is an advance-fee fraud that starts when a person gets an unexpected call, email or letter, at times including a large cheque, stating that they have won a sum of money. When the person claims their money, they may be asked to pay a processing or transfer charge for the same. 


  • Ponzi Schemes

A fraudulent enterprise that pays quick returns to first investors from the money invested by subsequent investors instead of the profits made through investment. 


  • Securities Fraud

Also referred to as stock fraud, this is an offence in the commodities or stock market that entices investors to purchase or sell based on fraudulent information, which results in losses. 


  • Cheque Fraud

Making out unlawful cheques in order to illegally borrow funds that aren’t actually within the account holder’s ownership. 


  • Mail Fraud

Mailing or electronically transferring anything that is associated with the act of fraud for the purpose of obtaining money under fraudulent pretenses.



Strengthen Your Defence With a Trusted Criminal Lawyer

This is a trying time for you and your family. Even first-time offenders could possibly face jail time if the charge is escalated. 

Erickson is an experienced criminal defence lawyer in Toronto who is fluent in all manner of defence for fraud-related charges. He is committed to client care and answers questions promptly and accurately. 

Timely legal intervention is important for your case! 

Contact Erickson now to present a winning defence in court.