The crime of fraud is one of the most common crimes in the criminal field and is classified in most legal systems in the world.
In this article, we will delve into what the crime of fraud consists of, how it is classified and what elements are necessary for its configuration.
Definition of crime of fraud
Fraud is an illegal act that consists of deceiving a person in order to obtain an undue economic or patrimonial benefit.
That is, it is an act that aims to cause economic harm to the victim, through deception or falsehood.
The crime of fraud is defined in the Penal Code of many countries, such as Spain, Mexico, Argentina, Colombia, among others.
In Spain, for example, it is defined in article 248 of the Penal Code , which states that "he who, with the intention of making a profit, uses sufficient deception to produce error in another, inducing him to carry out an act of disposal to his own or another's detriment, commits fraud."
Fundamental elements that make up the crime of fraud
- Deception: The first element that must be present in a scam is deception. Deception can take various forms, such as falsifying documents, concealing relevant information, simulating circumstances that are not real, among others. The important thing is that the deception is sufficient to produce an error in the victim.
- Error: The second element is the victim's error. Fraud cannot be committed if the victim knows the reality of the facts and has not been deceived. The error can be of various kinds, such as an error in the nature or quality of the goods or services, an error in the price or value of the same, an error in the capacity of the person with whom the contract is made, among others.
- Act of disposition: The third element of fraud is the act of disposal carried out by the victim. This act may consist of the delivery of money, the transfer of assets or rights, the signing of a contract, among others. The important thing is that this act was carried out as a result of the deception and the error produced by the victim.
- Profit motiveThe fourth element is the profit motive of the perpetrator of the fraud. That is, the purpose of his actions was to obtain an undue economic or patrimonial benefit at the expense of the victim. This benefit can be direct, such as the money received by the victim, or indirect, such as obtaining goods or services at a lower price than they should have been.
If these four elements are present in a conduct, it can be considered that the crime of fraud has been committed.
It is important to note that the crime of fraud can be committed by anyone , whether a company , an organization , or an individual.
Possible penalties?
As for the penalties that can be imposed for committing this crime, these vary depending on each country and the specific circumstances of the case.
In Spain, for example, the crime of fraud is punishable by prison sentences of between six months and six years , depending on the seriousness of the act.
In addition, the person convicted of fraud may be forced to pay a fine and compensate the victim for any damages suffered.
Crime of fraud in the international arena
Internationally, fraud is considered a serious crime and is defined in the United Nations Convention against Transnational Organized Crime , known as the Palermo Convention , which establishes measures to prevent and combat transnational organized crime.
The Convention defines fraud as :
"any fraudulent conduct intended to deceive a person in order to obtain, directly or indirectly, an undue financial advantage for oneself or another person."
In addition, there are specific forms of fraud that are classified in the Penal Code, such as computer or cyber fraud, which consists of the use of electronic means to commit the fraud, and procedural fraud, which occurs when a court is deceived. or to a judge in order to obtain a favorable resolution in a judicial process.
Who is affected?
It is important to note that the crime of fraud not only affects the direct victim, but can also have indirect consequences for society as a whole.
For example, it can affect citizens' trust in trade and business relations, which can have a negative impact on the economy.
Current example of the crime of fraud: the case of the financial chiringuito
A recent case of massive fraud, widely reported by the newspaper El Mundo , highlights the sophisticated tactics used by criminal organizations to deceive their victims.
This case involves a group of 33 people arrested by the National Police and the Customs Surveillance Service (SVA) after being accused of defrauding dozens of investors of more than 50 million euros .
The scheme, described as a «financial scam», operated from centers such as call centers located in MadridRivas Vaciamadrid and San Sebastián de los Reyes.
The organization's leaders created an environment inspired by the movie The Wolf of Wall Street , with noisy celebrations upon capturing new victims, flashy decorations, and an artificial bustle designed to feign thriving financial activity.
According to Inspector Óscar López, from the Fraud Unit of the Judicial Brigade MadridThe modus operandi consisted of contacting the victims, mostly elderly people or those with little knowledge about investments, and persuading them to deposit their savings in supposed investment opportunities.
The criminals used pre-designed scripts to manage the victims' responses, whether positive or negative , and when the scammed people tried to recover their money, they assured them that it had been lost in the market or even offered them bribes to avoid complaints.
The profits, divided among the ringleaders, were used to purchase luxury goods such as high-end cars, works of art and other valuable items.
During the police operation, more than 200.000 euros in cash , computer equipment and 21 works of art were seized , including pieces by renowned artists such as Joan Miró.
Although it is estimated that the number of victims could exceed one hundred, many people do not report the scam out of shame or lack of knowledge of having been scammed.
Relationship of the case to the elements of the crime of fraud
The recent case of the financial scam , published by El Mundo , not only illustrates a sophisticated fraud scheme, but also perfectly fits the four elements necessary to be considered a fraud offense according to the Spanish Penal Code:
1. Enough deception
The first element of the scam is the use of a suitable deception to mislead the victim.
In this case, members of the criminal group created a fictitious professional environment to gain the trust of the victims.
They used detailed and customized scripts, simulated private banking calls for VIP clients, and set the call centers with noises that simulated intense financial activity.
In addition, they sent fraudulent informational material to reinforce their credibility, convincing victims that their investments were real and safe.
2. Error
The deception sought to cause a fundamental error in the victim , leading them to believe that they were investing in legitimate financial products.
This deception was carefully induced, and victims trusted the false promises of profitability and security, depositing significant sums of money.
The trust generated by the professional appearance and convincing speeches meant that the victims did not question the legitimacy of the operations.
3. Act of disposition of assets
The error caused led the victims to carry out an act of asset disposal to their own detriment , transferring their savings to accounts controlled by the scammers.
According to the police report, the amounts defrauded reached up to 50 million euros , the most common act being the direct transfer of funds under the promise of future profits.
4. Profit motive
Finally, the profit motive is evident in this case, since the group's leaders appropriated the deposited funds for their personal benefit.
The illicit profits were used to purchase luxury goods such as high-end cars and valuable works of art, in addition to financing his opulent lifestyle.
The leaders, one located in Madrid and another Cyprus, they shared the profits at 50%.
Reflection
This case highlights the need to be wary of unclear or too-good-to-be-true investment offers and reinforces the importance of reporting any suspicious activity.
If you need legal advice to protect yourself from possible scams or recover your assets, do not hesitate to contact us.
FAQ
Illegal conduct that consists of deceiving a person in order to obtain an economic benefit.
Deception, error, act of disposition and profit motive.
The crime of fraud is punishable by prison sentences of between six months and six years, depending on the severity of the act.
Conclusion
In conclusion, the crime of fraud is an illegal act that consists of deceiving a person in order to obtain an undue economic or patrimonial benefit.
This crime is defined in most penal codes worldwide and requires the presence of four fundamental elements: deception, error, the act of disposal, and the intent to profit.
The penalties for committing this crime vary depending on the country and the specific circumstances of the case.
If you need help with this issue, at RRYP Global we advise you and help you solve your legal problems.
