CONSOLIDATED STATUTES OF CANADA
C
Criminal Code
PART X FRAUDULENT TRANSACTIONS RELATING TO CONTRACTS AND TRADE
Fraud
Fraudulent manipulation of stock exchange transactions
382. Every one who, through the facility of a stock exchange, curb market or other market, with intent to create a false or misleading appearance of active public trading in a security or with intent to create a false or misleading appearance with respect to the market price of a security,
(a) effects a transaction in the security that involves no change in the beneficial ownership thereof,
(b) enters an order for the purchase of the security, knowing that an order of substantially the same size at substantially the same time and at substantially the same price for the sale of the security has been or will be entered by or for the same or different persons, or
(c) enters an order for the sale of the security, knowing that an order of substantially the same size at substantially the same time and at substantially the same price for the purchase of the security has been or will be entered by or for the same or different persons,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
R.S., c. C-34, s. 340.
Gaming in stocks or merchandise
383. (1) Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years who, with intent to make gain or profit by the rise or fall in price of the stock of an incorporated or unincorporated company or undertaking, whether in or outside Canada, or of any goods, wares or merchandise,
(a) makes or signs, or authorizes to be made or signed, any contract or agreement, oral or written, purporting to be for the purchase or sale of shares of stock or goods, wares or merchandise, without the bona fide intention of acquiring the shares, goods, wares or merchandise or of selling them, as the case may be, or
(b) makes or signs, or authorizes to be made or signed, any contract or agreement, oral or written, purporting to be for the sale or purchase of shares of stock or goods, wares or merchandise in respect of which no delivery of the thing sold or purchased is made or received, and without the bona fide intention of making or receiving delivery thereof, as the case may be,
but this section does not apply where a broker, on behalf of a purchaser, receives delivery, notwithstanding that the broker retains or pledges what is delivered as security for the advance of the purchase money or any part thereof.
(2) Where, in proceedings under this section, it is established that the accused made or signed a contract or an agreement for the sale or purchase of shares of stock or goods, wares or merchandise, or acted, aided or abetted in the making or signing thereof, the burden of proof of a bona fide intention to acquire or to sell the shares, goods, wares or merchandise or to deliver or to receive delivery thereof, as the case may be, lies on the accused.
R.S., c. C-34, s. 341.
Broker reducing stock by selling for his own account
384. Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years who, being an individual, or a member or an employee of a partnership, or a director, an officer or an employee of a corporation, where he or the partnership or corporation is employed as a broker by any customer to buy and carry on margin any shares of an incorporated or unincorporated company or undertaking, whether in or out of Canada, thereafter sells or causes to be sold shares of the company or undertaking for any account in which
(a) he or his firm or a partner thereof, or
(b) the corporation or a director thereof,
has a direct or indirect interest, if the effect of the sale is, otherwise than unintentionally, to reduce the amount of those shares in the hands of the broker or under his control in the ordinary course of business below the amount of those shares that the broker should be carrying for all customers.
R.S., c. C-34, s. 342.
Fraudulent concealment of title documents
385. (1) Every one who, being a vendor or mortgagor of property or of a chose in action or being a solicitor for or agent of a vendor or mortgagor of property or a chose in action, is served with a written demand for an abstract of title by or on behalf of the purchaser or mortgagee before the completion of the purchase or mortgage, and who
(a) with intent to defraud and for the purpose of inducing the purchaser or mortgagee to accept the title offered or produced to him, conceals from him any settlement, deed, will or other instrument material to the title, or any encumbrance on the title, or
(b) falsifies any pedigree on which the title depends,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
(2) No proceedings shall be instituted under this section without the consent of the Attorney General.
R.S., c. C-34, s. 343.
Fraudulent registration of title
386. Every one who, as principal or agent, in a proceeding to register title to real property, or in a transaction relating to real property that is or is proposed to be registered, knowingly and with intent to deceive,
(a) makes a material false statement or representation,
(b) suppresses or conceals from a judge or registrar, or any person employed by or assisting the registrar, any material document, fact, matter or information, or
(c) is privy to anything mentioned in paragraph (a) or (b),
is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
R.S., c. C-34, s. 344.
Fraudulent sale of real property
387. Every one who, knowing of an unregistered prior sale or of an existing unregistered grant, mortgage, hypothec, privilege or encumbrance of or on real property, fraudulently sells the property or any part thereof is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
R.S., c. C-34, s. 345.
388. Every one who wilfully
(a) with intent to mislead, injure or defraud any person, whether or not that person is known to him, gives to a person anything in writing that purports to be a receipt for or an acknowledgment of property that has been delivered to or received by him, before the property referred to in the purported receipt or acknowledgment has been delivered to or received by him, or
(b) accepts, transmits or uses a purported receipt or acknowledgment to which paragraph (a) applies,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
R.S., c. C-34, s. 346.
Fraudulent disposal of goods on which money advanced
389. (1) Every one who
(a) having shipped or delivered to the keeper of a warehouse or to a factor, an agent or a carrier anything on which the consignee thereof has advanced money or has given valuable security, thereafter, with intent to deceive, defraud or injure the consignee, disposes of it in a manner that is different from and inconsistent with any agreement that has been made in that behalf between him and the consignee, or
(b) knowingly and wilfully aids or assists any person to make a disposition of anything to which paragraph (a) applies for the purpose of deceiving, defrauding or injuring the consignee,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
(2) No person is guilty of an offence under this section where, before disposing of anything in a manner that is different from and inconsistent with any agreement that has been made in that behalf between him and the consignee, he pays or tenders to the consignee the full amount of money or valuable security that the consignee has advanced.
R.S., c. C-34, s. 347.
Fraudulent receipts under Bank Act
390. Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years who
(a) wilfully makes a false statement in any receipt, certificate or acknowledgment for anything that may be used for a purpose mentioned in the Bank Act; or
(b) wilfully,
(i) after giving to another person,
(ii) after a person employed by him has, to his knowledge, given to another person, or
(iii) after obtaining and endorsing or assigning to another person,
any receipt, certificate or acknowledgment for anything that may be used for a purpose mentioned in the Bank Act, without the consent in writing of the holder or endorsee or the production and delivery of the receipt, certificate or acknowledgment, alienates or parts with, or does not deliver to the holder or owner the property mentioned in the receipt, certificate or acknowledgment.
R.S., c. C-34, s. 348.
391. Where an offence is committed under section 388, 389 or 390 by a person who acts in the name of a corporation, firm or partnership, no person other than the person who does the act by means of which the offence is committed or who is secretly privy to the doing of that act is guilty of the offence.
R.S., c. C-34, s. 349.
Disposal of property to defraud creditors
392. Every one who,
(a) with intent to defraud his creditors,
(i) makes or causes to be made any gift, conveyance, assignment, sale, transfer or delivery of his property, or
(ii) removes, conceals or disposes of any of his property, or
(b) with intent that any one should defraud his creditors, receives any property by means of or in relation to which an offence has been committed under paragraph (a),
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
R.S., c. C-34, s. 350.
Fraud in relation to fares, etc.
393. (1) Every one whose duty it is to collect a fare, toll, ticket or admission who wilfully
(a) fails to collect it,
(b) collects less than the proper amount payable in respect thereof, or
(c) accepts any valuable consideration for failing to collect it or for collecting less than the proper amount payable in respect thereof,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
(2) Every one who gives or offers to a person whose duty it is to collect a fare, toll, ticket or admission fee any valuable consideration
(a) for failing to collect it, or
(b) for collecting an amount less than the amount payable in respect thereof,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
Fraudulently obtaining transportation
(3) Every one who, by any false pretence or fraud, unlawfully obtains transportation by land, water or air is guilty of an offence punishable on summary conviction.
R.S., c. C-34, s. 351.
394. (1) Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years who
(a) being the holder of a lease or licence issued
(i) under an Act relating to the mining of precious metals, or
(ii) by the owner of land that is supposed to contain precious metals,
by a fraudulent device or contrivance defrauds or attempts to defraud any person of any precious metals or money payable or reserved by the lease or licence, or fraudulently conceals or makes a false statement with respect to the amount of precious metals procured by him;
(b) sells or purchases any rock, mineral or other substance that contains precious metals or unsmelted, untreated, unmanufactured or partly smelted, partly treated or partly manufactured precious metals, unless he establishes that he is the owner or agent of the owner or is acting under lawful authority; or
(c) has in his possession or knowingly has on his premises
(i) any rock or mineral of a value of fifty-five cents per kilogram or more,
(ii) any mica of a value of fifteen cents per kilogram or more, or
(iii) any precious metals,
that there are reasonable grounds to believe have been stolen or have been dealt with contrary to this section, unless he establishes that he is lawfully in possession thereof.
(2) Where a person is convicted of an offence under this section, the court may order anything by means of or in relation to which the offence was committed, on such conviction, to be forfeited to Her Majesty in right of the province in which the proceedings take place.
R.S., 1985, c. C-46, s. 394; R.S., 1985, c. 27 (1st Supp.), s. 186.
395. (1) Where an information in writing is laid under oath before a justice by any person having an interest in a mining claim, that any precious metals or rock, mineral or other substance containing precious metals is unlawfully deposited in any place or held by any person contrary to law, the justice may issue a warrant to search any of the places or persons mentioned in the information.
(2) Where, on search, anything mentioned in subsection (1) is found, it shall be seized and carried before the justice who shall order
(a) that it be detained for the purposes of an inquiry or a trial; or
(b) if it is not detained for the purposes of an inquiry or a trial,
(i) that it be restored to the owner, or
(ii) that it be forfeited to Her Majesty in right of the province in which the proceedings take place if the owner cannot be ascertained.
(3) An appeal lies from an order made under paragraph (2)(b) in the manner in which an appeal lies in summary conviction proceedings under Part XXVII and the provisions of that Part relating to appeals apply to appeals under this subsection.
R.S., c. C-34, s. 353.
396. (1) Every one who
(a) adds anything to or removes anything from any existing or prospective mine, mining claim or oil well with a fraudulent intent to affect the result of an assay, a test or a valuation that has been made or is to be made with respect to the mine, mining claim or oil well, or
(b) adds anything to, removes anything from or tampers with a sample or material that has been taken or is being or is about to be taken from any existing or prospective mine, mining claim or oil well for the purpose of being assayed, tested or otherwise valued, with a fraudulent intent to affect the result of the assay, test or valuation,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding ten years.
(2) For the purposes of proceedings under subsection (1), evidence that
(a) something has been added to or removed from anything to which subsection (1) applies, or
(b) anything to which subsection (1) applies has been tampered with,
is, in the absence of any evidence to the contrary, proof of a fraudulent intent to affect the result of an assay, a test or a valuation.
R.S., c. C-34, s. 354.
Falsification of Books and Documents
397. (1) Every one who, with intent to defraud,
(a) destroys, mutilates, alters, falsifies or makes a false entry in, or
(b) omits a material particular from, or alters a material particular in,
a book, paper, writing, valuable security or document is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
(2) Every one who, with intent to defraud his creditors, is privy to the commission of an offence under subsection (1) is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
R.S., c. C-34, s. 355.
398. Every one who, with intent to deceive, falsifies an employment record by any means, including the punching of a time clock, is guilty of an offence punishable on summary conviction.
R.S., 1985, c. C-46, s. 398; 1992, c. 1, s. 60(F).
False return by public officer
399. Every one who, being entrusted with the receipt, custody or management of any part of the public revenues, knowingly furnishes a false statement or return of
(a) any sum of money collected by him or entrusted to his care, or
(b) any balance of money in his hands or under his control,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
R.S., c. C-34, s. 357.
400. (1) Every one who makes, circulates or publishes a prospectus, a statement or an account, whether written or oral, that he knows is false in a material particular, with intent
(a) to induce persons, whether ascertained or not, to become shareholders or partners in a company,
(b) to deceive or defraud the members, shareholders or creditors, whether ascertained or not, of a company, or
(c) to induce any person to
(i) entrust or advance anything to a company, or
(ii) enter into any security for the benefit of a company,
(d) [Repealed, 1994, c. 44, s. 26]
is guilty of an indictable offence and liable to imprisonment for a term not exceeding ten years.
(2) In this section, "company" means a syndicate, body corporate or company, whether existing or proposed to be created.
R.S., 1985, c. C-46, s. 400; 1994, c. 44, s. 26.
Obtaining carriage by false billing
401. (1) Every one who, by means of a false or misleading representation, knowingly obtains or attempts to obtain the carriage of anything by any person into a country, province, district or other place, whether or not within Canada, where the importation or transportation of it is, in the circumstances of the case, unlawful is guilty of an offence punishable on summary conviction.
(2) Where a person is convicted of an offence under subsection (1), anything by means of or in relation to which the offence was committed, on such conviction, in addition to any punishment that is imposed, is forfeited to Her Majesty and shall be disposed of as the court may direct.
R.S., c. C-34, s. 359.
Trader failing to keep accounts
402. (1) Every one who, being a trader or in business,
(a) is indebted in an amount exceeding one thousand dollars,
(b) is unable to pay his creditors in full, and
(c) has not kept books of account that, in the ordinary course of the trade or business in which he is engaged, are necessary to exhibit or explain his transactions,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years.
(2) No person shall be convicted of an offence under this section
(a) where, to the satisfaction of the court or judge, he
(i) accounts for his losses, and
(ii) shows that his failure to keep books was not intended to defraud his creditors; or
(b) where his failure to keep books occurred at a time more than five years prior to the day on which he was unable to pay his creditors in full.
R.S., c. C-34, s. 360.
Personation
403. Every one who fraudulently personates any person, living or dead,
(a) with intent to gain advantage for himself or another person,
(b) with intent to obtain any property or an interest in any property, or
(c) with intent to cause disadvantage to the person whom he personates or another person,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding ten years or an offence punishable on summary conviction.
R.S., 1985, c. C-46, s. 403; 1994, c. 44, s. 27.
404. Every one who falsely, with intent to gain advantage for himself or some other person, personates a candidate at a competitive or qualifying examination held under the authority of law or in connection with a university, college or school or who knowingly avails himself of the results of such personation is guilty of an offence punishable on summary conviction.
R.S., c. C-34, s. 362.
Acknowledging instrument in false name
405. Every one who, without lawful authority or excuse, the proof of which lies on him, acknowledges, in the name of another person before a court or a judge or other person authorized to receive the acknowledgment, a recognizance of bail, a confession of judgment, a consent to judgment or a judgment, deed or other instrument is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
R.S., c. C-34, s. 363.
Forgery of Trade-marks and Trade Descriptions
406. For the purposes of this Part, every one forges a trade-mark who
(a) without the consent of the proprietor of the trade-mark, makes or reproduces in any manner that trade-mark or a mark so nearly resembling it as to be calculated to deceive; or
(b) falsifies, in any manner, a genuine trade-mark.
R.S., c. C-34, s. 364.
407. Every one commits an offence who, with intent to deceive or defraud the public or any person, whether ascertained or not, forges a trade-mark.
R.S., c. C-34, s. 365.
408. Every one commits an offence who, with intent to deceive or defraud the public or any person, whether ascertained or not,
(a) passes off other wares or services as and for those ordered or required; or
(b) makes use, in association with wares or services, of any description that is false in a material respect regarding
(i) the kind, quality, quantity or composition,
(ii) the geographical origin, or
(iii) the mode of the manufacture, production or performance
of those wares or services.
R.S., 1985, c. C-46, s. 408; 1992, c. 1, s. 60(F).
Instruments for forging trade-mark
409. (1) Every one commits an offence who makes, has in his possession or disposes of a die, block, machine or other instrument designed or intended to be used in forging a trade-mark.
(2) No person shall be convicted of an offence under this section where he proves that he acted in good faith in the ordinary course of his business or employment.
R.S., c. C-34, s. 367.
Other offences in relation to trade-marks
410. Every one commits an offence who, with intent to deceive or defraud,
(a) defaces, conceals or removes a trade-mark or the name of another person from anything without the consent of that other person; or
(b) being a manufacturer, dealer, trader or bottler, fills any bottle or siphon that bears the trade-mark or name of another person, without the consent of that other person, with a beverage, milk, by-product of milk or other liquid commodity for the purpose of sale or traffic.
R.S., c. C-34, s. 368.
Used goods sold without disclosure
411. Every one commits an offence who sells, exposes or has in his possession for sale, or advertises for sale, goods that have been used, reconditioned or remade and that bear the trade-mark or the trade-name of another person, without making full disclosure that the goods have been reconditioned, rebuilt or remade for sale and that they are not then in the condition in which they were originally made or produced.
R.S., c. C-34, s. 369.
412. (1) Every one who commits an offence under section 407, 408, 409, 410 or 411 is guilty of
(a) an indictable offence and is liable to imprisonment for a term not exceeding two years; or
(b) an offence punishable on summary conviction.
(2) Anything by means of or in relation to which a person commits an offence under section 407, 408, 409, 410 or 411 is, unless the court otherwise orders, forfeited on the conviction of that person for that offence.
R.S., c. C-34, s. 370.
Falsely claiming royal warrant
413. Every one who falsely represents that goods are made by a person holding a royal warrant, or for the service of Her Majesty, a member of the Royal Family or a public department is guilty of an offence punishable on summary conviction.
R.S., c. C-34, s. 371.
CONSOLIDATED STATUTES OF CANADA
C
Criminal Code
PART X FRAUDULENT TRANSACTIONS RELATING TO CONTRACTS AND TRADE
Fraud