housing fraud and the law robert darbyshire richard price 9 st john street

HOUSING FRAUD AND THE LAW

ROBERT DARBYSHIRERICHARD PRICE

9 ST JOHN STREET

What is Fraud?

Civil proceedings have for their object therecovery of money or other property, or theenforcement of a right or advantage on behalfof the claimant

Criminal proceedings have for their object thepunishment of a person who has committed acrime

What is Fraud?(Criminal)

A person is guilty of fraud if:(1) he dishonestly makes a false representation, and intends, by making the representation, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss: Fraud Act 2006 section 2


(2) he dishonestly fails to disclose to another person information which he is under a legal duty to disclose and intends, by failing to disclose the information, to make a gain for himself or another or to cause loss to another or to expose another to a risk of loss: Fraud Act 2006 section 3


(3) he occupies a position in which he isexpected to safeguard, or not to act against, thefinancial interests of another person,dishonestly abuses that position, and intends, bymeans of the abuse of that position, to make again for himself or another, or to cause loss toanother or to expose another to a risk of loss:Fraud Act 2006 section 4


Specific acts of obtaining sums of money,benefits, grants, subsidies, licences etc or otherproperty or benefit by knowingly or recklessly making false statements or representations aremade offences under various statutes

Eg: Social Security Administration Act 1992 Section 112

What is Fraud?(Civil)

E.g. A misrepresentation is fraudulent if it wasknown or believed by the representor to be

falsewhen made, but mere non-belief in the truth isalso indicative of fraud.


Whenever a person makes a false statementwhich he does not actually and honestly believeto be true, for purposes of civil liability thatstatement is as fraudulent as if he had statedthat which he did not know to be true, or knewor believed to be false.


Proof of absence of actual and honest belief isall that is necessary to satisfy the requirementsof the law, whether the representation has beenmade recklessly or deliberately


A representor will not be fraudulent if hebelieved the statement to be true in the sense inwhich he understood it, provided that was ameaning which might reasonably be attached toit


The standard of proof applicable is the civilstandard of balance of probability and not thecriminal standard of proof beyond reasonabledoubt

The degree of probability required to establishproof may vary according to the gravity of theallegation to be proved


The question whether there is any evidence tosupport an allegation that a representationmade was fraudulent is a question of law.

Subject to this, the question whether a falserepresentation was actually fraudulent is, inevery case, a question of fact.

Examples of Housing Fraud

• Not telling the truth when applying for a property e.g. Claiming to have children when you don’t

• Sub-letting your property without permission• Living in a property after someone has died

without the right to do so

Source: “Council House Fraud” from GOV.UK

Examples of Housing Fraud

• Other examples?• Succession rights• Non-occupancy• Unauthorised exchanges• Prevention of Social Housing Fraud Act 2013

Is it necessary to rely on fraud?

• What are you trying to achieve?• What are the consequences of alleging fraud?– For the Claimant– For the Defendant–Burden of proof generally

• What is the Court’s approach to fraud claims?–Do judges like them?

Involving the Police?

• Should you?–What are the Police trying to achieve?

• What are the consequences for any civil action?

Building a civil case

• Evidence–What do you need to prove–Who is going to provide the evidence–How ‘cogent’ does that evidence need to be


• Pleading in civil matters generally

–PD 16 para. 8.2(1): the Claimant must specifically set out in the Particulars of Claim any allegation of fraud where he wishes to rely on it in support of his claim


Bar Standards Handbook rule C9.2“You must not draft any statement of case,

witness statement, affidavit or any other document containing...

c) Any allegation of fraud unless you have clear instructions to allege fraud and you have reasonably credible material which establishes an arguable case of fraud”


• Interlocutory applications–Part 18 request– Strike out– Summary Judgment


• Trial– Legal and evidential burden of proof–Approach of judge to cases involving fraud

QUESTIONS?

housing fraud and the law robert darbyshire richard price 9 st john street

Documents