Fraud Charges in Toronto: Types, Penalties, Defences & What to Do Next

Being charged with fraud in Toronto is a serious matter that can threaten your career, your reputation, and your freedom. Fraud is one of the most complex areas of criminal law — cases often involve extensive financial records, multiple parties, and lengthy investigations. Whether you are facing allegations of credit card fraud, mortgage fraud, identity theft, or a large-scale financial scheme, you need an experienced criminal defence lawyer who understands how these cases are prosecuted and how to fight them effectively.

At De Boyrie Law, we defend individuals and professionals throughout Toronto and the Greater Toronto Area against all types of fraud charges. This guide explains what you are facing, the potential penalties, and the steps you should take to protect yourself.

What Is Fraud Under Canadian Law?

Under section 380 of the Criminal Code of Canada, fraud is defined as using deceit, falsehood, or other fraudulent means to deprive another person of property, money, valuable security, or any service. The Crown must prove two elements beyond a reasonable doubt:

1. A prohibited act — You committed an act of deceit, falsehood, or other fraudulent means (including non-disclosure of information you had a duty to disclose).
2. Deprivation — The act caused, or was intended to cause, another person to suffer a loss or to put their economic interests at risk.

Importantly, the Crown does not need to prove that you actually profited from the fraud — only that the victim suffered or risked a loss.

Types of Fraud Charges in Ontario

Fraud encompasses a wide range of conduct. Common types of fraud charges include:

Penalties for Fraud in Ontario

Fraud penalties depend on the value involved and the circumstances of the offence:

Fraud Under $5,000

Fraud Over $5,000

Collateral Consequences

Beyond the criminal sentence, a fraud conviction can:

• Destroy your professional reputation and career
• Result in loss of professional licensing (accounting, law, finance, real estate)
• Trigger immigration consequences including deportation
• Create a permanent criminal record visible on background checks
• Lead to civil lawsuits from victims seeking damages
• Result in prohibition orders (e.g., barred from managing a corporation)

What to Do If You Are Charged with Fraud

If you have been charged with fraud — or learn that you are under investigation — take these steps immediately:

1. Exercise Your Right to Silence

Do not speak to police, investigators, or regulatory authorities without first consulting a criminal defence lawyer. Anything you say can and will be used against you, even if you believe you can explain the situation or are innocent. Politely decline to answer questions and ask to speak with a lawyer.

2. Retain a Criminal Defence Lawyer Immediately

Time is critical in fraud cases. A lawyer can:

• Intervene early and communicate with investigators on your behalf
• Prevent self-incrimination during police interviews
• Determine whether your rights were violated during the investigation
• Begin reviewing disclosure and building your defence strategy
• Advise on whether to participate in voluntary interviews or document production

3. Preserve All Relevant Documents

Do not destroy, alter, or delete any documents, emails, financial records, or electronic files related to the allegations. Doing so could result in additional charges (obstruction of justice) and will damage your credibility.

4. Do Not Discuss Your Case

Avoid discussing the details of your case with anyone other than your lawyer — including family members, colleagues, or on social media. These conversations are not protected by solicitor-client privilege and could be used against you.

5. Understand the Process Ahead

Your lawyer will guide you through disclosure review, pre-trial negotiations, and (if necessary) trial preparation. Many fraud cases are resolved through negotiation before trial, but preparation is essential regardless.

Defences to Fraud Charges

Fraud cases are often more complex than they appear, and there are several strong defences available depending on the facts:

Lack of Intent

The Crown must prove that you intended to deceive. If you made an honest mistake, relied on professional advice, or genuinely believed your conduct was lawful, the required mental element may not be present. This is particularly relevant in cases involving complex financial transactions where the line between aggressive business practice and fraud is unclear.

Lack of Knowledge

If you were unaware of the fraudulent nature of a scheme — for example, if you were an unwitting participant in someone else’s fraud — you cannot be convicted. The Crown must prove you knew the conduct was dishonest.

No Deprivation

If no one actually suffered a loss or had their economic interests put at risk, the offence is not made out. Your lawyer may demonstrate that the alleged victim was never at risk of losing anything.

Mistaken Identity

In cases involving online fraud, identity theft, or complex multi-party schemes, the Crown may have difficulty proving that you were the person responsible for the fraudulent conduct.

Civil Dispute, Not Criminal Conduct

Many fraud charges arise from business disputes, failed partnerships, or contractual disagreements. If the conduct is better characterized as a civil matter (breach of contract, negligence, or a business disagreement), it should not be prosecuted criminally. Your lawyer can argue that the matter belongs in civil court.

Charter Rights Violations

If investigators obtained evidence through unlawful searches, wiretaps without proper authorization, or by violating your right to counsel, your lawyer may apply to have that evidence excluded under section 24(2) of the Charter. In fraud cases involving extensive electronic surveillance or document seizures, Charter issues arise frequently.

The Investigation and Court Process

Fraud cases often follow a different timeline than other criminal charges:

Investigation Phase

Many fraud investigations begin long before charges are laid. Police, the RCMP, or regulatory bodies (such as the Ontario Securities Commission) may investigate for months or years, gathering financial records, interviewing witnesses, and building their case. If you learn you are under investigation, retaining a lawyer at this stage can significantly improve your outcome.

Charges and First Appearance

Once charges are laid, you will receive a summons or be arrested. At or before your first court appearance, your lawyer will request full disclosure from the Crown.

Disclosure Review

Fraud disclosure is often voluminous — thousands of pages of financial records, emails, bank statements, and expert reports. Your lawyer will review this material carefully, often working with forensic accountants or financial experts to identify weaknesses in the Crown’s case.

Pre-Trial Resolution

Many fraud cases are resolved before trial through:

• Charge withdrawal — If the evidence is weak or your rights were violated
• Diversion — Available in some cases involving lower amounts and first-time offenders
• Restitution agreements — Repaying the victim in exchange for reduced charges or withdrawal
• Plea negotiations — Pleading to a lesser charge with an agreed-upon sentence

Trial

If your case proceeds to trial, your lawyer will challenge the Crown’s evidence, cross-examine witnesses (including forensic accountants and investigators), and present your defence. Fraud trials can be lengthy and complex, but a well-prepared defence can result in acquittal.

Why You Need a Fraud Lawyer in Toronto

Fraud charges require specialized legal knowledge that goes beyond general criminal defence. Here is why experienced representation matters:

• Complexity of evidence — Fraud cases involve financial records, forensic accounting, electronic evidence, and expert testimony. A lawyer experienced in fraud understands how to challenge this evidence effectively.
• Severity of consequences — Fraud over $5,000 carries up to 14 years in prison. The stakes demand aggressive, skilled representation.
• Protecting your career — Many fraud accused are professionals whose careers and licences are at risk. A lawyer can work to avoid a conviction and preserve your professional standing.
• Early intervention — In fraud cases, acting before charges are laid can sometimes prevent them entirely. A lawyer can communicate with investigators, provide context, and negotiate on your behalf.
• Local court knowledge — A Toronto fraud lawyer understands the approach of local Crown prosecutors, how judges in Toronto courthouses assess fraud sentencing, and how to navigate complex disclosure requests.

Frequently Asked Questions

What is the penalty for fraud over $5,000 in Ontario?

The maximum penalty is 14 years in prison. If the fraud exceeds $1 million, there is a mandatory minimum sentence of 2 years. The actual sentence depends on the amount involved, the number of victims, whether there was a breach of trust, and your criminal history.

Can fraud charges be dropped?

Yes. Charges can be withdrawn if the evidence is insufficient, if your Charter rights were violated, or through pre-trial negotiations (including restitution agreements). First-time offenders facing lower-value fraud charges may also be eligible for diversion programs.

What is the difference between fraud and theft?

Theft involves physically taking property without consent. Fraud involves using deception to cause someone to part with their property or put their economic interests at risk. Fraud requires proof of dishonesty or deceit — theft does not.

Will I go to jail for a first-time fraud charge?

It depends on the amount involved and the circumstances. For fraud under $5,000, jail is unlikely for a first offence — most first-time offenders receive a discharge, probation, or a fine. For fraud over $5,000 involving large sums or a breach of trust, jail is a real possibility even for first-time offenders.

Should I talk to the police if I’m under investigation for fraud?

No. You should not speak to police or investigators without first consulting a criminal defence lawyer. Even if you believe you are innocent and can explain the situation, your statements can be used against you in ways you may not anticipate.

What if the fraud was part of a business dispute?

Many fraud charges arise from civil disputes that have been improperly criminalized. Your lawyer can argue that the matter is civil in nature and should not be prosecuted criminally. This is a common and often successful defence strategy.

How De Boyrie Law Can Help

At De Boyrie Law, we understand that fraud charges often stem from complex financial relationships, business disputes, or misunderstandings that have escalated. We take a thorough, strategic approach to every case — combining detailed evidence review with a clear understanding of your personal and professional goals.

Our approach includes:

• Early intervention — We act quickly to protect your rights, whether you are under investigation or already charged.
• Thorough disclosure review — We examine every financial record, email, and document the Crown relies on, working with forensic experts when necessary.
• Strategic negotiation — We negotiate aggressively for charge withdrawals, diversion, restitution agreements, and reduced sentences.
• Trial-ready defence — If your case cannot be resolved through negotiation, we are prepared to challenge the Crown’s case at trial.
• Protecting your future — We understand that your career, professional licence, and reputation are at stake, and we fight to preserve them.

We have defended clients accused of fraud in corporate, financial, and personal settings — including professionals, small business owners, and everyday individuals facing allegations they never expected.