HOUSING FRAUD AND THE LAW
ROBERT DARBYSHIRE
RICHARD PRICE
9 ST JOHN STREET
What is Fraud?
Civil proceedings have for their object the
recovery of money or other property, or the
enforcement of a right or advantage on behalf
of the claimant
Criminal proceedings have for their object the
punishment of a person who has committed a
crime
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
What is Fraud?
(Criminal)
(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
What is Fraud?
(Criminal)
(3) he occupies a position in which he is
expected to safeguard, or not to act against, the
financial interests of another person,
dishonestly abuses that position, and intends, by
means of the abuse of that position, 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 4
What is Fraud?
(Criminal)
Specific acts of obtaining sums of money,
benefits, grants, subsidies, licences etc or other
property or benefit by knowingly or recklessly
making false statements or representations are
made offences under various statutes
Eg: Social Security Administration Act 1992
Section 112
What is Fraud?
(Civil)
E.g. A misrepresentation is fraudulent if it was
known or believed by the representor to be false
when made, but mere non-belief in the truth is
also indicative of fraud.
What is Fraud?
(Civil)
Whenever a person makes a false statement
which he does not actually and honestly believe
to be true, for purposes of civil liability that
statement is as fraudulent as if he had stated
that which he did not know to be true, or knew
or believed to be false.
What is Fraud?
(Civil)
Proof of absence of actual and honest belief is
all that is necessary to satisfy the requirements
of the law, whether the representation has been
made recklessly or deliberately
What is Fraud?
(Civil)
A representor will not be fraudulent if he
believed the statement to be true in the sense in
which he understood it, provided that was a
meaning which might reasonably be attached to
it
What is Fraud?
(Civil)
The standard of proof applicable is the civil
standard of balance of probability and not the
criminal standard of proof beyond reasonable
doubt
The degree of probability required to establish
proof may vary according to the gravity of the
allegation to be proved
What is Fraud?
(Civil)
The question whether there is any evidence to
support an allegation that a representation
made was fraudulent is a question of law.
Subject to this, the question whether a false
representation was actually fraudulent is, in
every 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
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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
Building a civil case
• 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
Building a civil case
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”
Building a civil case
• Interlocutory applications
– Part 18 request
– Strike out
– Summary Judgment
Building a civil case
• Trial
– Legal and evidential burden of proof
– Approach of judge to cases involving fraud
QUESTIONS?