Fraud Lawyer Toronto | Fraud Charge Defence | Sewrattan Criminal Lawyers

Composed by Chris Sewrattan, Certified Specialist in Criminal Law. Updated July 2026.

This is legal information, not legal advice. It does not create a lawyer-client relationship. For advice about your situation, contact us for a consultation.

Fraud is an offence under section 380 of the Criminal Code: obtaining money, property, or a service through deceit, falsehood, or other dishonest means. The charge comes in two sizes, fraud over $5,000 and fraud under $5,000, and the "over" version is treated as a serious offence in Ontario, with a maximum of 14 years in prison. Fraud cases are document cases: they turn on records, intent, and the often blurry line between a failed business dealing and a crime, which is where the defences usually live.

What is fraud under Canadian law?

To convict, the Crown must prove two things beyond a reasonable doubt:

A dishonest act: deceit, a falsehood, or "other fraudulent means," a category courts assess by asking whether the conduct would be seen as dishonest by ordinary, reasonable people.
Deprivation: the dishonest act caused another person to lose money or property, or put their economic interests at risk. Actual loss is not required; risk of loss is enough.

The mental element requires that the accused knowingly undertook the dishonest act and appreciated that it could deprive someone. A sincere belief that a venture would succeed does not excuse dishonest means, but an honest transaction that simply went wrong is not fraud. The value alleged sets the charge: over $5,000 is a straight indictable offence; under $5,000 is hybrid. Fraud is distinct from theft, which involves taking without consent rather than obtaining through dishonesty.

Penalties for fraud in Ontario

Fraud over $5,000: a maximum of 14 years in prison. Where the total value exceeds $1 million, the Criminal Code prescribes a mandatory minimum of 2 years.
Fraud under $5,000: a hybrid offence with a maximum of 2 years by indictment, or 2 years less a day on summary conviction.

Sentencing in Ontario weighs statutory aggravating factors, including the value involved, the number of victims, breach of trust, and the impact on victims. Large frauds and breach of trust frauds regularly attract jail. Courts also make restitution orders, and can impose orders prohibiting the offender from work involving authority over other people's money or property. At the other end, first-time allegations involving modest amounts, including many shoplifting-adjacent and employment cases, can resolve in Ontario without a criminal record, depending on the circumstances. A fraud conviction is a crime of dishonesty, which is precisely why the employment, professional licensing, travel, and immigration consequences often exceed the sentence itself.

Possible defences to a fraud charge

Depending on the evidence, defences may include:

No dishonest intent: the accused honestly believed the representations were true, believed they had a right to the funds, or lacked knowledge of the scheme. Fraud requires a guilty mind, not just a bad outcome.
Civil dispute, not crime: unpaid debts, failed ventures, and disputed contracts are the business of the civil courts unless dishonesty is proved.
Role and identity: in multi-party schemes, whether this accused knew of and participated in the dishonesty, as opposed to being a customer, employee, or conduit.
Quantification: whether the Crown can prove the value alleged, which affects both the charge and the sentence.
Charter issues: production orders, searches of devices, banking records, and statements taken in breach of the accused's rights.
Disclosure and delay: large-document prosecutions frequently raise disclosure litigation and unreasonable delay issues under section 11(b) and the Jordan framework.

Frequently asked questions

Will I go to jail for fraud?

It depends primarily on the amount, the breach of trust, and the accused's record. Large frauds and employer frauds regularly attract jail in Ontario, with a mandatory minimum of 2 years where the value exceeds $1 million. Smaller first-time matters often resolve far short of that. Outcomes depend on the evidence in each case.

If I pay the money back, will the charges be dropped?

Not automatically. Restitution helps at every stage and is sometimes part of a resolution, but repayment does not erase the offence, and the decision to withdraw a charge belongs to the Crown. Promising or arranging repayment is a step best taken with legal advice.

What is the difference between fraud over and under $5,000?

The dividing line is the value of what was obtained or put at risk. Over $5,000 is a straight indictable offence with a 14-year maximum; under $5,000 is a hybrid offence with much lower maximums and more resolution options.

What is the difference between fraud and theft?

Theft is taking property without consent. Fraud is obtaining property, money, or services through dishonesty, where the victim hands it over because of the deceit. Some conduct can support either charge, and the Crown chooses how to proceed.

Will a fraud charge affect my job or immigration status?

A fraud conviction is a crime of dishonesty, and it can have serious consequences for employment, professional licensing, and travel, and for the status of permanent residents and other non-citizens. These collateral consequences should shape how the case is resolved from the outset.

Do I need a lawyer for a fraud charge?

Fraud files are built on documents, and the viable defences usually emerge from a close review of the records and the accused's actual role and knowledge. A lawyer can also manage the restitution question, which is easy to get wrong without advice.

Charged with fraud? Contact us