7.5.2.1.1 - Obtaining Property By Deception: Bench Notes1 Overview 1. It is an offence to obtain property by deception (Crimes Act 1958 s81). 2. The offence has the following four elements: 3. i) The accused obtained property belonging to another; ii) The accused did so with the intention of permanently depriving the other of the property; iii) The accused used deceit to obtain the property; and iv) The accused obtained the property dishonestly (Crimes Act 1958 s81. See, e.g., R v Salvo [1980] VR 401; R v Jost (2002) 135 A Crim R 202 (Vic CA)). The law in this area draws heavily upon the civil law of property. These Bench Notes do not attempt to offer a detailed discussion of that law. Relationship With Other Property Offences 4. 5. 1 The offences in ss74, 75, 75A, 76, 77 and 81 of the Crimes Act 1958 must all be committed: “Dishonestly”; Against or in respect of “property belong to another”; and With the “intention of permanently depriving” a person of that property (R v Salvo [1980] VR 401).2 The distinguishing features of s81 are that the accused must have: “Obtained” the property; “By deception” (R v Salvo [1980] VR 401). This document was last updated on 21 October 2013. In relation to ss76 and 77, these requirements only apply when it is alleged that the accused intended to steal something. 2 1 Obtaining Property Belonging to Another 6. For the first element to be met, the jury must be satisfied that: The accused obtained something; The thing obtained was property; and The property belonged to another person. Obtaining 7. The accused “obtains” property by deception if s/he obtains ownership, possession or control of it (Crimes Act 1958 s81(2)). 8. This differs from theft, where the accused must have “appropriated” the property by adversely assuming any of the owner’s rights (see Theft: Bench Notes). 9. The accused does not need to have obtained the property for him or herself. This element will be satisfied if s/he obtained the property for another person, or enabled another person to obtain or retain the property (Crimes Act 1958 s81(2)). 10. Where the accused deceives someone with the intention of obtaining property, but fails to obtain the property, s/he may be guilty of attempting to obtain property by deception (R v Kalajdic [2005] VSCA 160; R v King [1987] QB 547). Property 11. The thing that the accused obtained must have been “property” (Crimes Act 1958 s81(1)). 12. “Property” is defined to include “money and all other property real or personal including things in action and other tangible property” (Crimes Act 1958 s71(1)). 13. This definition includes some things with no physical existence, such as debts (R v Lloyd [1985] QB 829). 14. However, other intangible items may not be classified as property. For example, in England it has been held that confidential information is not property (Oxford v Moss (1978) 68 Cr App R), and copyright may not be (R v Lloyd [1985] QB 829). 15. Whether the thing obtained by the accused was “property” can involve questions of both law and fact. It is for the judge to determine as a question of law whether a particular circumstance creates a property right. It is for the jury to determine whether that circumstance existed as a question of fact (See R v Hall [1973] QB 126; see also R v Baruday [1984] VR 685, Parsons v the Queen 2 (1999) 73 ALJR 270 and cf R v Preddy [1996] AC 815). 16. Sections 73(6) and 7 of the Crimes Act 1958 (concerning when land and wild animals are considered to be “property”) do not apply to the offence of obtaining property by deception (R v Salvo [1980] VR 401). Belonging to Another 17. The accused must have obtained property “belonging to another” (Crimes Act 1958 s81(1)). 18. Property “belongs” to anyone who has possession or control of it, or who has any other proprietary right or interest in it (Crimes Act 1958 s71(2); R v Salvo [1980] VR 401). 19. These interests include legal and equitable proprietary interests (R v Clowes (No 2) [1994] 2 All ER 316). 20. However, property does not “belong” to a person who only has an equitable interest in that property, if that equitable interest arose from an agreement to transfer the property or grant an interest in it (Crimes Act 1958 s71(2)). 21. Whether a person has a proprietary right or interest is a question of civil property law (R v Walker [1984] Crim LR 112). 22. Sections 73(8)-(11) of the Crimes Act 1958 ss73(8)-(11) (which deem certain property to “belong to” people who might not otherwise be regarded as property owners) do not apply to the offence of obtaining property by deception (R v Salvo [1980] VR 401). 23. The prosecution needs only to establish that someone other than the accused had the relevant property rights. There is no requirement that the prosecution prove who actually held those rights (Lodge v Lawton [1978] VR 112). Abandoned Property 24. Property no longer “belongs” to a person who has intentionally relinquished all ownership rights (abandoned the property) (R v Small [1987] Crim LR 777). 25. However, there is a distinction between “losing” and “abandoning” property. Property which is merely lost still “belongs” to the owner and can be obtained by deception (R v Small [1987] Crim LR 777). Intention to Permanently Deprive 26. The second element requires the accused to have intended to permanently deprive the owner of the property when s/he obtained it 3 (Crimes Act 1958 s81(1); R v Salvo [1980] VR 401). 27. The jury must consider the accused’s state of mind at the time s/he obtained the property. If the accused had an intention to permanently deprive the owner of the property at that time then this element will be satisfied – even if the accused later decided to return the property (see, e.g., R v Jost (2002) 135 A Crim R 202 (Vic CA)). 28. If the accused only had an intention to temporarily deprive the owner of his or her property, this element will not be met (subject to the exceptions specified in ss73(12) and (13)) (R v Lloyd [1985] 1 QB 829). 29. Similarly, this element will not be met if the accused had not decided how s/he was going to dispose of the property when s/he obtained it (subject to the exceptions specified in ss73(12) and (13)). S/he must have already formed the intention to permanently deprive the owner of the property at the time s/he obtained it (R v Easom [1971] 2 QB 315; Sharp v McCormick [1986] VR 869). 30. A person who takes property (e.g., goods or cash), intending to return equivalent (but not identical) property, will have an intention to permanently deprive the owner of the property (because s/he does not intend to return the exact same coins, notes or goods that s/he took) (R v Williams [1953] 1 QB 660; R v Cockburn [1968] 1 All ER 466; R v Pace [1965] 3 Can CC 55 (NSSC)). Acting Regardless of the Owner’s Rights: ss73(12)-(13) 31. Sections 73(12) and (13) of the Crimes Act 1958 apply (with necessary adaptations) to the offence of obtaining property by deception (Crimes Act 1958 s81(3); R v Salvo [1980] VR 401). 32. The accused is deemed to have an intention to permanently deprive a person of property, despite the fact that s/he did not actually have that intention when s/he obtained the property, if s/he intends to treat the property as his or her own to dispose of regardless of the owner’s rights (Crimes Act 1958 s73(12)). 33. Section 73(12) will only be relevant in exceptional cases. It is apt to confuse and should only rarely be introduced into a charge (R v Dardovska [2003] VSCA 4). 34. Circumstances in which s73(12) has been held to be relevant include: Where the accused takes the property, promising to return it only in exchange for payment (R v Lloyd [1985] 1 QB 829); Where the accused takes the property, intending to return it only after fundamentally altering its nature (e.g., returning the piece 4 of paper a cheque is written on, after receiving payment from the bank) (R v Duru [1974] 1 WLR 2); Where the accused takes the property, while leaving open the possibility that s/he might return it to the owner at a later date, but in the meantime treats it as his/her own (Sharp v McCormick [1986] VR 869). 35. Two other circumstances in which s73(12) may be relevant are: Where the accused borrows the property from its owner, ultimately intending to return it; or Where the accused lends the owner’s property to a third party, intending to return it to the owner upon retrieving it. 36. In such cases, the accused will only be deemed to have an intention to permanently deprive the owner of the property if the borrowing or lending was for a period, or in circumstances, which made it equivalent to an outright taking or disposal (Crimes Act 1958 s73(12)). 37. Section 73(12) may also be relevant where the accused parts with property belonging to another, under a condition as to its return which s/he may not be able to perform (e.g., pawning it). If this was done for the accused’s own purposes, and without the consent of the owner, the accused will be deemed to have treated the property as his or her own to dispose of regardless of the owner’s rights (Crimes Act 1958 s73(13)). By virtue of s73(12), s/he will be regarded as having had an intention to permanently deprive the owner of that property. Deception 38. The third element requires the accused to have obtained the property by deception (Crimes Act 1958 s81(1); R v Salvo [1980] VR 401). 39. For this element to be met, the prosecution must prove that: The accused made a representation by words or conduct; The representation was about existing or past facts or law; The representation was false; The accused knew the representation was false, or was reckless as to whether it was true or false; The accused intended to obtain the property by making the representation; 5 The false representation was believed by the victim (who was thereby deceived); and The accused obtained the property as a result of the deception. 40. The jury must be unanimous about the particular representation which the accused made (Magnus v R [2013] VSCA 163; R v Brown (1984) 79 Cr App R 115; R v Holmes [2006] VSCA 73). 41. As “deception” has the same meaning in relation to the offence of obtaining a financial advantage by deception as it does for the offence of obtaining property by deception (Crimes Act 1958 s82(2)), cases decided in relation to that offence will be applicable to s81. Representation by Words or Conduct 42. The accused must have made a representation in words (spoken or written) or by conduct (Crimes Act 1958 s81(4)(a); R v Benli [1998] 2 VR 157). 43. The representation may be constituted by a number of statements or a course of conduct (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 44. The representation does not need to be explicit. It can be implied from the accused’s words or conduct (DPP v Ray [1974] AC 370; Smith v R (1982) 7 A Crim R 437 (Vic CCA); R v Vasic (2005) 11 VR 380). 45. There will often be implicit representations in ordinary transactions. For example: When a person orders food in a restaurant, s/he implicitly agrees to pay for the food if it is provided properly (DPP v Ray [1974] AC 370). When a person proffers a cheque to another person in payment of a debt, s/he implies that ordinarily the cheque will be honoured by a bank upon presentation at the bank upon which it has been drawn (Smith v R (1982) 7 A Crim R 437 (Vic CCA); R v Vasic (2005) 11 VR 380). When a person uses a credit card, s/he implies that s/he is acting within the terms of the contract with the card provider (R v Lambie [1982] AC 449; Metropolitan Police Commissioner v Charles [1977] AC 177). Representation About Existing or Past Facts or Law 46. The representation must have been about existing or past facts or law. This is defined to include representations about a person’s present intentions (Crimes Act 1958 s81(4)(a); R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 6 47. This element will not have been met if the representation was about something that was going to happen in the future (e.g., a promise). Representations about what will occur in the future cannot amount to a “fact” (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 48. However, most promises implicitly carry with them a representation that it is the person’s present intention to bring about the predicted event. This aspect of the third element will be satisfied if it can be shown that the accused made such a representation when s/he made the promise (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA); R v Dent [1955] 2 QB 590; R v Gilmartin [1983] QB 953).3 49. As it is unlikely that the accused will have explicitly stated that s/he had an “intention” to do anything, it will usually be left to the jury to infer that the promise implied that the accused intended to do what was promised (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 50. The jury must be able to infer, beyond reasonable doubt, that when the accused made the promise, s/he was stating his or her current intention to carry out the promise (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 51. Service of an unverified statement of claim is not to be treated as a positive representation regarding the truth of the facts contained in the statement (Jamieson v the Queen (1993) 177 CLR 574). Falsity of the Representation 52. A person only deceives someone if s/he induces them to believe that something which is actually false is true (DPP v Ray [1974] AC 370; In re London and Globe Financing Corporation Ltd [1903] 1 Ch 728). 53. The prosecution must therefore demonstrate that the alleged representation was false at the time it was made (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). Deception by Silence about Changed Circumstances 54. Difficulties can arise where: The accused made a representation which was initially true; That representation subsequently became false; and The accused knew the representation had become false, but did not advise the other party prior to obtaining the property (see, In such cases, the count and the particulars should refer to the accused’s (implicit) representation about his or her intentions when s/he made the promise, rather than the promise itself (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 3 7 e.g., DPP v Ray [1974] AC 370). 55. In such circumstances, it may appear that the accused has not made a false representation. However, it has been held that the accused’s silence in such circumstances can be considered to be an implicit (false) representation that the situation remains the same as initially represented (DPP v Ray [1974] AC 370; R v Firth (1989) 91 Cr App R 217). 4 Broken Promises 56. Where a case is based on a promise made by the accused (see “Representation About Existing or Past Facts or Law” above), it is not sufficient for the prosecution to prove that the promise was not fulfilled. The prosecution must prove that, at the time the representation was made and acted upon, the accused had no intention to carry out the promise (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 57. The non-fulfilment of the promise may be used as evidence that, when s/he made the promise, the accused had no intention to carry it out (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 58. It is important to instruct the jury clearly about this issue, as without such instruction the jury may wrongly think that a bare broken promise, without more, is sufficient (R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). Knowledge or Recklessness as to Falsity 59. The deception must have been deliberate or reckless (Crimes Act 1958 s81(4)(a)). 60. This requires the false representation to have been made: With knowledge of its falsity; or Recklessly without an honest belief in its truth, careless of whether it were true or false (R v Salvo [1980] VR 401; Mattingley v Tuckwood (1989) 43 A Crim R 11 (ACT SC)). 61. This element will not be satisfied if the accused made an innocent misrepresentation which misled the victim (R v Salvo [1980] VR 401; Mattingley v Tuckwood (1989) 43 A Crim R 11 (ACT SC)). In R v Vasic (2005) 11 VR 380 the court held that it was Parliament’s intention that the English cases in this area, including DPP v Ray, would be followed in Victoria. 4 8 Reckless Deception 62. In this context, “recklessness” is a subjective concept. It focuses on the accused’s state of mind at the relevant time (R v Smith (1982) 7 A Crim R 437; Pollard v Cth DPP (1992) 28 NSWLR 659). 63. For the deception to have been reckless, the accused must have known that the representation was probably untrue (R v Kalajdic [2005] VSCA 160; R v Campbell [1997] 2 VR 585; R v Nuri [1990] VR 641). 64. Some authorities have applied a weaker “substantial risk” test. Under this test, an accused makes a false representation recklessly if he or she makes a representation knowing that there is a substantial risk that the representation is untrue (R v Kalajdic [2005] VSCA 160; Mattingley v Tuckwood (1989) 43 A Crim R 11 (ACT SC); Smith v R (1982) 7 A Crim R 437 (Vic CCA)). 65. It is likely that the “substantial risk” test understates the mens rea requirement for this element. It is also inconsistent with the recklessness test that is now required in more settled areas of the law – see Bench Notes: Recklessness. As a result the Charge Book Deception charges adopt only the “probably untrue” test. 66. It is not sufficient that the accused knew that the representation was possibly untrue (R v Kalajdic [2005] VSCA 160; R v Campbell [1997] 2 VR 585; R v Nuri [1990] VR 641). 67. Mere carelessness or negligence is not sufficient. The accused must have known that the representation was probably false but been indifferent as to whether the representation was true or false (Smith v R (1982) 7 A Crim R 437 (Vic CCA); Mattingley v Tuckwood (1989) 43 A Crim R 11 (ACT SC); Pollard v Cth DPP (1992) 28 NSWLR 659). Accused’s Intention 68. At the time s/he made the representation, the accused must have intended to obtain the property by his or her words or conduct (DPP v Stonehouse [1978] AC 55; Mattingley v Tuckwood (1989) 43 A Crim R 11 (ACT SC); R v Lo Presti (2005) 158 A Crim R 54 (Vic CA)). 69. In most cases5 this requires the accused, at the time s/he made the representation, to have intended that: The representation would be communicated to a person; That person would believe that the representation was true; An exception occurs where it is a computer or a machine that is deceived: see “Deception of Computers and Machines” below. 5 9 That belief would cause someone to part with ownership, possession or control of property; and The accused would thereby obtain that property (for him or herself or someone else) (DPP v Stonehouse [1978] AC 55; Mattingley v Tuckwood (1989) 43 A Crim R 11 (ACT SC)). The False Representation was Believed 70. In most cases6 a person or persons must have believed the false representation, and thus been deceived (DPP v Ray [1974] A.C. 370; R v Salvo [1980] VR 401). 71. Even where the victim is a company, the prosecution must prove that a natural person was deceived (R v Jenkins (2002) 6 VR 81. See “Deception of a Company” below). 72. The person deceived does not need to be the same as the person from whom the property is ultimately obtained. This element will be satisfied as long as the accused deceives someone, and that deception causes the accused to obtain the property (see “The Property was Obtained as a Result of the Deception” below) (R v Benli [1998] 2 VR 157; R v Clarkson [1987] VR 962). Deception of a Company Proposed section: Topic Not Yet Complete Deception of Computers and Machines 73. “Deception” is defined to include acts or omissions done with the intention of causing a computer system, or a machine that is designed to operate by means of payment or identification, to make a response which the accused is not authorised to cause the computer or machine to make (Crimes Act 1958 s81(4)(b)). 74. This provision allows this element to be met even if the accused has not made a false representation to a person, and no person has been deceived. As long as the accused intended to cause the computer or machine to respond in an unauthorised matter s/he will have engaged in “deception”. 75. Accordingly, the element of deception will be satisfied where a person: It is also possible for a computer or a machine to have been deceived: see “Deception of Computers and Machines” below. 6 10 Uses his or her own card to withdraw money from an ATM, despite having closed his or her account; or Uses another person’s card to withdraw money from an ATM without their authority (see, e.g., Kennison v Daire (1986) 160 CLR 129). 76. The fact that an ATM is programmed to give out money if a card is inserted and the correct password used does not mean that the bank consents to the withdrawal of money in that way by a person who does not have an account with the bank. The bank only consents to the withdrawal of money by people with current accounts (Kennison v Daire (1986) 160 CLR 129). The Property was Obtained as a Result of the Deception 77. The property must have been obtained as a result of the deception. That is, there must have been a causal connection between the deception used and the obtaining of the property (R v Jenkins (2002) 6 VR 81; R v Clarkson [1987] VR 962; R v King [1987] QB 547). 78. For this requirement to be met, the prosecution must prove that the deception operated on the mind of the person deceived (R v Jenkins (2002) 6 VR 81). 79. It is a question of fact for the jury to decide whether the deception was an “operative cause” of the obtaining (R v King [1987] QB 547). 80. As long as this causal connection is proved, the property does not need to have been obtained from the same person who was deceived (R v Benli [1998] 2 VR 157; R v Clarkson [1987] VR 962; R v Jenkins (2002) 6 VR 81). 81. It is not necessary to prove that the person deceived suffered a loss (R v Jenkins (2002) 6 VR 81; R v Kovacs [1974] AC 370). Proving Causation 82. Direct evidence should ordinarily be used to prove that the deception operated on the mind of the person deceived (R v Jenkins (2002) 6 VR 81; R v Laverty (1970) 54 Cr App R 495).7 83. However, direct evidence need not be given if the facts are such that the alleged false representation is the only reason which could be suggested as having been the operative inducement (R v Jenkins (2002) 6 VR 81; R v Sullivan (1945) 30 Cr App R 132). In most cases the person deceived will give evidence that s/he believed the representation, and that is why s/he parted with the property (R v Sullivan (1945) 30 Cr App R 132; R v Jenkins (2002) 6 VR 81). 7 11 84. In such circumstances, it is for the jury to determine whether the only inference which could be reasonably drawn is that the relevant party would not have parted with the property had the true position been known, and thus the deception was the cause of the obtaining (R v Jenkins (2002) 6 VR 81; R v Lambie [1982] AC 449). Dishonesty 85. The fourth element requires the property to have been obtained “dishonestly” (Crimes Act 1958 s81(1); R v Salvo [1980] VR 401). 86. This requirement is additional to the requirement that the property be obtained “by deception”. The prosecution must prove that when the accused, by deception, obtained the property, s/he was acting dishonestly (R v Salvo [1980] VR 401; Pollard v Cth DPP (1992) 28 NSWLR 659). 87. Whilst in a loose sense any form of deception might be characterised as “dishonest”, that is not the meaning which “dishonestly” bears in s81 (R v Salvo [1980] VR 401; Pollard v Cth DPP (1992) 28 NSWLR 659). 88. Dishonesty has a special meaning in s81. It means that the accused acted without a belief in a legal right to obtain the property (R v Salvo [1980] VR 401; R v Bonollo [1981] VR 633; R v Brow [1981] VR 783; R v Todo (2004) 10 VR 244). 89. This interpretation of “dishonesty” differs from the interpretation of “dishonesty” in the equivalent provision of the English Theft Act and the interpretation of “dishonesty” in s86 of the Commonwealth Crimes Act 1914. In those jurisdictions, “dishonesty” has its ordinary meaning, and is assessed according to the standards of the ordinary person (Peters v the Queen (1998) 192 CLR 493; Macleod v R [2003] HCA 24; R v Ghosh [1982] QB 1053).8 90. The claim of legal right must extend to all of the property taken, not just to part of it (R v Bedford [2007] SASC 276). 91. A moral belief in the right to obtain the property is not sufficient (R v Salvo [1980] VR 401; R v Bonollo [1981] VR 633). 92. The relevant belief is not a belief in ownership or in a right to possession or control. The accused must have believed that s/he had a legal right to obtain possession of the property. That is, s/he must have believed that s/he had legal right to take the property and deprive the other person of possession (R v Salvo [1980] VR 401). 8 Other Australian jurisdictions adopt different approaches to dishonesty, and their authorities should be approached with caution. 12 93. If the accused did not believe that s/he had a legal right to obtain the property, then s/he will have acted dishonestly, even if s/he intended to prevent the true owner from suffering any loss (R v Brow [1981] VR 783). Subjective Concept 94. Dishonesty is a subjective concept. It relates to the accused’s mental state (R v Salvo [1980] VR 401; R v Bonollo [1981] VR 633; R v Brow [1981] VR 783). 95. The prosecution must prove that the accused himself or herself did not believe that s/he had, in all the circumstances, a legal right to obtain the property (R v Salvo [1980] VR 401; R v Bonollo [1981] VR 633; R v Brow [1981] VR 783). 96. It does not matter if the accused’s belief was based on a mistake of fact9 or a mistake of law10. If the accused genuinely believed s/he had a legal claim of right, s/he will not have acted dishonestly (R v Langham (1984) 36 SASR 48; R v Lopatta (1983) 35 SASR 101). 97. The accused’s belief does not need to have been reasonable (R v Salvo [1980] VR 401; R v Dardovska [2003] VSCA 4). 98. If the jury is left in doubt whether the accused in fact believed that s/he had a legal right in the circumstances to obtain the property, the element will not be established (R v Salvo [1980] VR 401). Exhaustive Definition 99. The word “dishonestly” in s81 is to be defined exclusively as meaning without belief by the accused that s/he had a legal right to obtain the property (R v Salvo [1980] VR 401; R v Bonollo [1981] VR 633; R v Brow [1981] VR 783). 100. As this definition of “dishonestly” is exhaustive, if the accused did not believe s/he had a legal right to the property, then s/he will have acted “dishonestly” (R v Brow [1981] VR 783). 101. The provisions of ss73(2) and (3), which state that in certain circumstances an accused person’s appropriation of property is not to be regarded as dishonest, do not apply to s81 (R v Salvo [1980] VR 401). 9 A mistaken belief that certain facts existed, which would have created a legal claim if true. 10 A mistaken belief that certain interests create legal rights. 13 No Need to Believe in Right to Deceive 102. The accused does not need to have believed that s/he had a legal right to obtain the property by deception, or by the particular means employed. S/he merely needs to have believed that s/he had a legal right to obtain the property. The deception was simply his or her means of achieving that goal (R v Salvo [1980] VR 401; R v Bedford [2007] SASC 276). 103. So even if the accused used violent measures to take the property, s/he should not be convicted of obtaining property by deception if s/he genuinely believed s/he had a legal right to the property. However, s/he may be convicted of an offence relating to the violence used (R v Bedford [2007] SASC 276; R v Salvo [1980] VR 401). 104. It will therefore be a misdirection to tell the jury that the prosecution must prove that the accused believed s/he had a right to take the property by the deception actually employed. The jury should instead be directed that the prosecution must prove that the accused did not believe s/he had a legal right to obtain the property (R v Salvo [1980] VR 401). Relationship Between “Dishonesty” and “Deception” 105. There may be cases where property belonging to another has been obtained by deception, with the intention of permanently depriving the other of it, but which has not been done dishonestly (R v Salvo [1980] VR 401; Pollard v Cth DPP (1992) 28 NSWLR 659).11 106. Thus, the mere fact that the accused obtained the property by deception is not enough to prove that s/he acted dishonestly. The prosecution must prove that the accused acted without a claim of legal right (R v Salvo [1980] VR 401). 107. However, in many cases the practising of a deception will be strongly evidentiary of whether the acts charged were done dishonestly. The jury may be able to infer from the fact that the accused acted deceitfully that s/he was not making a claim of right (R v Salvo [1980] VR 401; Pollard v Cth DPP (1992) 28 NSWLR 659). 108. While in many cases the deception practised will be highly relevant to the element of dishonesty, this will not always be the case. For In R v Salvo [1980] VR 401 the court gives the example of a robber who forcibly detains goods from the true owner. Because the robber has possession or control of the goods, they are deemed to belong to him by virtue of s71(2). If the true owner, by a stratagem of deception, obtains the goods from the robber, he will not have acted dishonestly – as he believes he has a legal claim to the goods (and in fact does have a legal right to regain the goods by seizure). 11 14 example, where the accused admits engaging in deception, but advances an explanation for why s/he did so, the jury may not be able to infer anything about the accused’s dishonesty from the fact that s/he was deceitful (R v Salvo [1980] VR 401). Need for Jury Directions 109. Due to the difficulty in understanding the relationship between deception and dishonesty, and the special sense in which “dishonestly” is used in this context, the judge must explain the concept of “dishonestly” to the jury (R v Salvo [1980] VR 401; R v Bonollo [1981] VR 633; R v Todo (2004) 10 VR 244). 110. In such cases, the judge must: Tell the jury that the prosecution must prove that the property had been obtained dishonestly, in the sense that the accused did not believe that s/he had a legal right to it; and Assist the jury by relating the facts to the law, and the facts and issues raised by counsel to the actual charges (R v Todo (2004) 10 VR 244). 111. In some cases it may be desirable to point out that the question as to what constitutes “dishonestly” is not to be answered by considering the morality of the accused’s actions, but by considering whether the accused believed that s/he had a legal right to obtain the relevant property (R v Salvo [1980] VR 401). Offences Committed by Bodies Corporate 112. The offence of obtaining property by deception may be committed by a body corporate (Crimes Act 1958 s84). 113. Where an offence committed by a body corporate is proved to have been committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, that person will also be guilty of the offence (Crimes Act 1958 s84(1)). 114. Where the affairs of the body corporate are managed by its members, the members may also be found guilty of the offence (if they acted in connection with their management function) (Crimes Act 1958 s84(2)). Extraterritorial Offences 115. It is not necessary that the property was obtained in Victoria. Section 81 applies where there is a “real and substantial link” between the relevant act and Victoria (Crimes Act 1958 s80A). 15 116. The concept of a “real and substantial link” is defined in s80A(2). It includes cases where: A “significant part” of the conduct relating to, or constituting, the relevant act occurred in Victoria; or The act was done with the intention that substantial harmful effects arise in Victoria, and such effects did arise. 117. The words in s80A should be given their natural meaning (R v Keech (2002) 5 VR 312). 118. An act which forms an essential link in the chain of deception (rather than merely being part of the surrounding circumstances) is a “significant part” of the relevant conduct (R v Keech (2002) 5 VR 312). 16