Theft and Fraud Cases

Understanding Theft and Fraud Laws in Calgary

Theft and fraud are serious criminal offenses in Calgary, carrying significant legal consequences that can impact one’s personal and professional life:

Theft and Fraud Defined

• Theft: According to the Criminal Code of Canada, theft occurs when an individual unlawfully takes or converts someone else’s property with the intent to permanently deprive the owner of it. For instance, shoplifting, embezzling company funds, or stealing personal belongings can all be considered theft if the intent is proven.
• Fraud: Fraud involves deceit, false representation, or other dishonest means to gain an unlawful advantage or financial benefit. Example, identity theft, credit card fraud, insurance fraud, or misleading investors in a business venture.

Factors Influencing the Severity of Charges

Several factors can influence the severity of theft and fraud charges in Calgary:

• Value of Property: As mentioned, the value of the property involved is a crucial determinant. Crimes involving higher-value property are more likely to result in severe charges.
• Criminal Intent: The prosecution must prove that the accused intended to commit the crime. In cases where intent is clear and premeditated, charges and penalties may be more severe.
• Prior Convictions: If the accused has a history of similar offenses, the court may impose harsher penalties.
• Impact on Victims: Crimes that have caused significant financial harm or distress to the victims may also result in more severe penalties.

Immediate Legal Consequences of a Theft or Fraud Conviction

Fines

One of the most common penalties for theft and fraud convictions in Calgary is the imposition of fines. The amount varies significantly depending on the severity of the offense:

• Theft Under $5,000: For less severe theft offenses, such as shoplifting, fines can range from a few hundred to several thousand dollars, depending on the value of the stolen property and whether the offender has any prior convictions.
• Theft Over $5,000: More serious theft offenses can result in substantial fines, often exceeding $5,000, especially if the theft involved significant property or assets.
• Minor Fraud (Under $5,000): Convictions for minor fraud, such as writing bad checks or using false information to obtain goods or services, typically result in fines ranging from $1,000 to $10,000, depending on the specific circumstances of the case.
• Major Fraud (Over $5,000): Major fraud offenses can lead to fines in the tens of thousands of dollars or more. In cases of extensive financial harm to victims, fines may be accompanied by other severe penalties.

Imprisonment

In addition to fines, imprisonment is a possible consequence for both theft and fraud convictions, with sentencing varying based on the crime’s severity and the offender’s criminal history:

• Theft Under $5,000: For first-time offenders, imprisonment may be avoided in favor of fines or community service. However, repeat offenders can face jail sentences of up to 6 months.
• Theft Over $5,000: Convictions for more severe theft crimes can result in imprisonment for up to 10 years. Examples include embezzling large sums from an employer or stealing high-value items from a business.
• Minor Fraud (Under $5,000): Minor fraud offenses can lead to imprisonment of up to 2 years for repeat offenders or cases involving multiple victims.
• Major Fraud (Over $5,000): Major fraud convictions, such as large-scale Ponzi schemes or identity theft affecting numerous victims, can result in imprisonment for up to 14 years. The exact sentence depends on the amount defrauded and the impact on the victims.

Criminal Record

A conviction for theft or fraud results in a permanent criminal record, which can have long-lasting consequences:

• Employment: A criminal record can make it challenging to secure employment, especially in fields requiring a high level of trust, such as finance, government positions, or jobs involving the handling of money or sensitive information.
• Travel Restrictions: Many countries, including the United States, have strict entry requirements for individuals with criminal records. A conviction for theft or fraud may result in travel restrictions or denial of entry.
• Housing and Education: A criminal record can also impact one’s ability to secure housing or qualify for educational programs that require a background check.

Restitution

In many theft and fraud cases, the court will order the offender to pay restitution to the victim. This means repaying the financial losses suffered as a result of the crime. Restitution is separate from fines and is meant to compensate the victim directly:

• Theft Cases: If someone is convicted of stealing money or property, they may be required to repay the value of what was stolen in addition to serving their sentence.
• Fraud Cases: For fraud convictions, the offender may be ordered to repay the amount defrauded, plus any additional costs incurred by the victim due to the deceit.

Example Scenarios

1. Scenario 1: Shoplifting
   A first-time offender is caught shoplifting items worth $300 from a Calgary retail store. They may face a fine of $500 to $2,000 and could be required to perform community service. If they have a prior record, a short jail sentence of up to 30 days may be imposed.
2. Scenario 2: Embezzlement
   An employee is convicted of embezzling $50,000 from their employer over two years. They are sentenced to two years in prison, fined $10,000, and ordered to repay the stolen amount in full as restitution.
3. Scenario 3: Identity Theft
   An individual is found guilty of using stolen credit card information to make purchases totaling $20,000. The court sentences them to three years in prison, imposes a $20,000 fine, and orders restitution to the victims for the full amount defrauded.
   
   

Impact on Professional and Personal Life

Employment Consequences

A theft or fraud conviction can severely hinder a person’s career, leading to job loss and making future employment challenging. The repercussions can be particularly harsh for those in professions that require a high degree of trust and integrity.

Job Loss

• Many employers have zero-tolerance policies for criminal activity, especially for offenses like theft and fraud that indicate a breach of trust. A conviction can result in immediate termination, even for long-term employees.
• In regulated industries such as finance, healthcare, and education, a criminal record can lead to mandatory reporting to professional bodies, resulting in suspension or revocation of licenses or certifications.

Difficulty Finding Future Employment

• Employers often conduct background checks as part of the hiring process. A theft or fraud conviction on one’s record can disqualify an applicant, even for positions unrelated to the crime.
• Job seekers may find it difficult to secure positions in any role involving financial responsibility, customer trust, or access to sensitive information, as these crimes indicate a potential risk to employers.

Professional Licensing Issues

• Many professional licensing bodies require members to report criminal convictions. Depending on the nature of the offense, the individual may face disciplinary actions, including suspension or permanent revocation of their professional license.
• For example, accountants, lawyers, and real estate agents in Calgary could lose their licenses, effectively ending their careers in those fields.

Travel Restrictions

A criminal record for theft or fraud can severely limit an individual’s ability to travel internationally, as many countries have stringent entry requirements for those with criminal histories.

Limitations on International Travel

• United States: The U.S. is known for its strict entry policies for individuals with criminal records. A conviction for theft or fraud could result in denial of entry, even for short visits or transit through the country.
• European Union: Although the Schengen Area does not automatically deny entry for criminal convictions, individuals may face additional scrutiny or be required to obtain a visa, depending on the severity of their record.
• Other Countries: Nations like Australia and Japan have strict entry criteria, and individuals with theft or fraud convictions may need to apply for special permission to enter, which is not always granted.

Impact on Immigration and Residency Status

• Individuals with theft or fraud convictions may also find it challenging to obtain visas, work permits, or residency in foreign countries. Those already holding such statuses may risk revocation or refusal of renewal, potentially disrupting their lives and careers.

Reputation Damage

The social stigma associated with a theft or fraud conviction can lead to significant reputational damage, impacting both personal and community relationships.

Social Stigma

• A criminal conviction can lead to ostracization within one’s social circle, as friends, family, and community members may view the individual as untrustworthy.
• The stigma can be particularly damaging in smaller communities where news of a conviction may spread quickly, affecting the individual’s ability to maintain social relationships and participate in community activities.

Potential Loss of Reputation

• Business owners, professionals, and public figures may suffer irreparable harm to their reputation, as a criminal conviction can undermine public trust and confidence.
• This loss of reputation can extend to professional networks, making it difficult to rebuild business relationships or attract clients, especially in industries reliant on personal integrity and reputation.

Media Coverage

• In high-profile cases, local or national media coverage can exacerbate the situation, making it difficult for the individual to move past the incident, as their name and details of the crime remain accessible online.

Example Scenario: The Impact of a Fraud Conviction on a Financial Advisor

• Employment: They are permanently banned from working in the financial industry due to the loss of their professional license and inability to pass background checks for related positions.
• Travel: The individual faces travel restrictions, particularly to the U.S. and Europe, where they have previously conducted business. This prevents them from seeking international opportunities.
• Reputation: Their conviction is widely reported in the media, leading to a loss of reputation within their professional and social circles. Former clients and colleagues avoid associating with them, making it difficult to rebuild their career in any capacity.

Long-Term Consequences of a Theft or Fraud Conviction

Financial Consequences

One of the most significant long-term impacts of a theft or fraud conviction is the difficulty in securing financial products, such as loans and mortgages. The presence of a criminal record can make financial institutions view an individual as a high-risk borrower, leading to several challenges.

Difficulty Securing Loans and Mortgages

• Damaged Credit History: While a criminal conviction itself may not directly impact a credit score, the financial fallout from fines, restitution, and legal fees can lead to missed payments and increased debt, damaging one’s credit history.
• Loan Denials: Financial institutions often conduct background checks before approving loans or mortgages. A criminal record for theft or fraud can result in outright denials, as these crimes indicate potential financial irresponsibility or dishonesty.
• Higher Interest Rates: Even if a loan or mortgage is approved, individuals with criminal records may be offered higher interest rates due to perceived risk, making borrowing more expensive and difficult to manage.

Challenges with Other Financial Products

• Credit Cards: Convicted individuals may find it challenging to qualify for credit cards, particularly those with favorable terms or rewards programs. Secured credit cards may be the only option available, requiring a cash deposit as collateral.
• Business Loans: Entrepreneurs with criminal records may struggle to secure business loans, limiting their ability to start or expand a business. This can stifle career growth and financial independence.

Housing Issues

Finding stable housing can be another significant challenge for individuals with a theft or fraud conviction. Both renting and buying property become more difficult when landlords and lenders view an applicant’s criminal history unfavorably.

Challenges in Renting Property

• Background Checks: Many landlords conduct thorough background checks on potential tenants. A theft or fraud conviction can raise red flags, leading to rental applications being denied, even if the applicant can demonstrate financial stability and a positive rental history.
• Increased Security Deposits: In cases where landlords are willing to rent to someone with a criminal record, they may require a higher security deposit or additional rent upfront as a precautionary measure, making it financially burdensome for the individual to secure housing.

Difficulties in Buying Property

• Mortgage Approval: As mentioned, securing a mortgage can be challenging due to financial institutions’ reluctance to lend to individuals with criminal records. This difficulty can limit homeownership opportunities and force individuals to remain in less stable rental situations.
• Higher Interest Rates: Similar to loans, even if a mortgage is approved, it may come with higher interest rates, increasing the cost of homeownership over time.

Insurance Rates

A criminal record for theft or fraud can also impact one’s ability to obtain affordable insurance coverage. Insurers often assess risk based on an individual’s history, and a criminal record can suggest a higher likelihood of claims, leading to several complications.

Higher Insurance Premiums

• Auto Insurance: A criminal conviction, particularly for fraud, can lead to increased auto insurance premiums. Insurers may view the individual as a higher risk, resulting in significantly higher rates or even denial of coverage.
• Home Insurance: Similarly, home insurance premiums can increase for individuals with theft or fraud convictions, as insurers may be concerned about the potential for dishonest claims or other risky behavior.

Denial of Insurance Coverage

• Life Insurance: Individuals with serious criminal records may find it challenging to obtain life insurance, as insurers may view them as high-risk clients. This lack of coverage can create financial difficulties for the individual’s family in the event of an untimely death.
• Business Insurance: Business owners with criminal records may struggle to secure necessary insurance coverage for their enterprises, such as liability or property insurance. This can make it difficult to operate a business legally and protect against potential losses.

Example Scenario: The Long-Term Impact on Housing and Financial Stability

Consider the case of an individual in Calgary convicted of fraud for falsifying documents to secure a personal loan. After serving their sentence and paying fines, they attempt to rebuild their life:

• Financial Consequences: Their damaged credit history results in multiple loan denials, preventing them from securing a mortgage to buy a home. High-interest rates on available credit cards make managing finances even more challenging.
• Housing Issues: Rejected by several landlords due to their criminal record, they are forced to pay higher rent in a less desirable area. Their inability to secure a mortgage keeps them from achieving the stability and investment benefits of homeownership.
• Insurance Rates: Their auto insurance premiums skyrocket, making it difficult to afford transportation. The denial of life insurance coverage leaves their family financially vulnerable in case of unforeseen circumstances.

Additional Penalties for Fraud Convictions

Asset Forfeiture

One of the most severe penalties for fraud convictions is the potential for asset forfeiture. This legal action allows the government to seize assets acquired through or used in fraudulent activities, aiming to prevent criminals from benefiting from their crimes.

Seizure of Fraudulently Acquired Assets

• Ill-Gotten Gains: Assets such as cash, real estate, vehicles, or luxury items purchased with proceeds from fraudulent activities can be seized. For example, if someone has acquired a property using funds obtained through a Ponzi scheme, that property may be subject to forfeiture.
• Freezing of Accounts: Bank accounts containing money linked to fraudulent activities can be frozen and eventually seized, leaving the individual with limited financial resources to support themselves or fund a legal defense.

Impact on Financial Stability

• Loss of Property: The forfeiture of valuable assets like homes, cars, and other property can lead to a sudden loss of wealth and stability, leaving the convicted individual and their family in a precarious financial situation.
• Business Assets: If the fraud was conducted through a business, company assets could also be subject to forfeiture, leading to the potential closure of the business and loss of income for the owner and employees.

Civil Lawsuits

In addition to criminal penalties, individuals convicted of fraud may face civil lawsuits brought by their victims. These lawsuits aim to recover financial losses suffered due to the fraudulent actions and can result in significant financial liabilities.

Possibility of Civil Suits

• Restitution Orders: In some cases, the court may order restitution as part of the criminal sentencing. However, this does not prevent victims from pursuing additional compensation through civil litigation.
• Compensation for Damages: Victims can file civil suits to seek compensation for financial losses, emotional distress, and even punitive damages, depending on the severity of the fraud.

Financial Liabilities

• Legal Costs: Defending against civil lawsuits can be costly, requiring significant legal fees that add to the financial burden already imposed by the criminal case.
• Garnishment of Wages: If the victim wins a civil lawsuit, the court may order garnishment of the convicted individual’s wages or seize additional assets to satisfy the judgment, further complicating their financial recovery.

License Revocation

For professionals, a fraud conviction can have devastating career consequences, including the loss of professional licenses. This penalty can effectively end a person’s career in their chosen field, making it difficult to regain professional standing and employment.

Impact on Professional Licenses

• Accountants: Fraud convictions, especially those involving financial mismanagement or embezzlement, can lead to the revocation of accounting licenses. The individual may be barred from practicing as a Chartered Professional Accountant (CPA) in Calgary and across Canada.
• Lawyers: A conviction for fraud can result in disbarment, preventing the individual from practicing law.  

Process of License Revocation

• Mandatory Reporting: Many professional regulatory bodies require members to report criminal convictions. Failing to do so can result in immediate suspension or revocation of the license.
• Disciplinary Hearings: Convicted individuals may be required to attend disciplinary hearings, where the governing body reviews the case and determines whether to revoke or suspend the license.

Example Scenario: The Aftermath of a Real Estate Fraud Conviction

Consider a real estate agent in Calgary who is convicted of fraud for falsifying documents to secure loans for clients. Beyond facing imprisonment and fines, they encounter several additional penalties:

• Asset Forfeiture: The government seizes their bank accounts and two rental properties acquired using fraudulent profits, leaving them with limited financial resources.
• Civil Lawsuits: Multiple clients file civil lawsuits seeking compensation for financial losses and damages. The agent is ordered to pay a substantial amount, leading to wage garnishment and the sale of personal assets.
• License Revocation: The real estate regulatory body revokes their license, effectively ending their career in real estate. They are left struggling to find employment in any field, given the combination of a criminal record and the loss of professional credentials.
  
  

How a Calgary Theft and Fraud Lawyer Can Help

Legal Defense Strategies

A Calgary theft and fraud lawyer will develop a robust defense strategy tailored to the specific circumstances of your case. Common defenses that may be employed include:

Lack of Intent

• Defense Explanation: Theft and fraud charges often require the prosecution to prove intent. This means they must show that you intended to permanently deprive the owner of their property (in the case of theft) or that you knowingly engaged in deceitful practices for financial gain (in the case of fraud).
• Application: If your lawyer can demonstrate that there was no intent to commit the crime—perhaps due to a misunderstanding or mistake—they may be able to get the charges reduced or dismissed. For example, if you took property believing it was yours or made an error in financial documentation without intending to deceive, this defense could be effective.

Mistaken Identity

• Defense Explanation: In cases where the crime was committed by someone else, and you have been wrongly accused, a defense based on mistaken identity can be crucial.
• Application: A lawyer can present evidence such as alibis, video footage, or witness testimony that places you elsewhere during the time of the alleged crime. This defense can be particularly effective if the only evidence against you is circumstantial or based on unreliable witness identification.

Lack of Evidence

• Defense Explanation: The prosecution must prove your guilt beyond a reasonable doubt. If the evidence against you is weak or insufficient, your lawyer can argue that the case should be dismissed.
• Application: Your lawyer may challenge the admissibility of evidence, question the credibility of witnesses, or highlight inconsistencies in the prosecution’s case to create doubt about your involvement in the alleged crime.

Entrapment

• Defense Explanation: If you were coerced or persuaded by law enforcement to commit a crime you would not otherwise have engaged in, entrapment can be used as a defense.
• Application: A lawyer will need to demonstrate that law enforcement’s actions went beyond providing an opportunity to commit a crime and instead pressured or manipulated you into committing the offense.

Plea Bargains

In situations where the evidence against you is strong, a Calgary theft and fraud lawyer can negotiate a plea bargain to minimize the severity of the charges and the resulting penalties.

Negotiating Reduced Charges

• Example: If you are facing grand theft charges, which carry more severe penalties, your lawyer may be able to negotiate a reduction to petty theft if certain conditions are met, such as returning the stolen property or cooperating with the authorities.
• Benefit: Reducing the severity of the charges can lead to lighter sentences, lower fines, and potentially avoiding jail time.

Minimizing Penalties

• Example: In fraud cases, your lawyer may negotiate a plea deal that includes reduced sentencing, probation, or community service instead of jail time, especially if it’s your first offense or if you agree to repay the defrauded amount.
• Benefit: A successful plea bargain can help you avoid the long-term consequences of a more serious conviction and allow you to begin rebuilding your life sooner.

Expungement and Record Suspension

After serving your sentence or fulfilling the terms of your conviction, a Calgary theft and fraud lawyer can assist in clearing or sealing your criminal record, providing a pathway to a fresh start.

Expungement and Record Suspension Overview

• Expungement: In Canada, “expungement” is typically reserved for the removal of records related to convictions for activities that are no longer considered criminal, such as historical injustices. However, for most individuals, record suspension (formerly known as a pardon) is the primary method for clearing a criminal record.
• Record Suspension: A record suspension does not erase the conviction but sets it aside, meaning that it will not show up in most background checks. This can make it easier to find employment, secure housing, and travel.

How a Lawyer Can Help

• Eligibility Assessment: Your lawyer will evaluate your case to determine if you meet the eligibility criteria for a record suspension, such as completing your sentence and maintaining a crime-free period.
• Application Preparation: The process of applying for a record suspension can be complex, requiring thorough documentation and a strong application. Your lawyer will assist in gathering the necessary documents, filling out the application accurately, and submitting it to the Parole Board of Canada.
• Advocacy and Follow-Up: If the application is challenged or requires further information, your lawyer will advocate on your behalf and ensure that all additional requirements are met to improve your chances of a successful outcome.