When Broken Promises Become Criminal Charges

When Failing to Deliver Becomes a Criminal Offence

Most disputes involving unmet expectations are civil matters, not criminal ones.

However, under the Criminal Code of Canada, fraud may be established where there is:

• Dishonest conduct or false representation
• Intent to deceive
• Financial loss or risk of loss

The key issue is not whether a promise was broken, but whether there was intentional deception from the beginning.

Real-World Example: When Business Conduct Becomes Fraud

Consider a common scenario:

A marketing company promises a client:

“We will get you #1 rankings on Google.”

If the company attempts to deliver but fails, this is typically:

• Overpromising
• Poor performance
• A contractual dispute

 Not criminal.

Now consider a different situation:

• Fake results or fabricated case studies are presented
• False claims of success are used to secure payment
• The service was never intended to be delivered
• Ongoing misleading communication is used to avoid refunds

In this case, the issue may go beyond poor service.

 It may lead to allegations of fraud or misrepresentation.

 Types of Fraud & Misrepresentation Charges

Depending on the circumstances, charges may include:

• Fraud under $5,000
• Fraud over $5,000
• False pretences

These are serious criminal offences that can carry penalties including fines, probation, or imprisonment.

The Role of Intent in Fraud Cases

Intent is the most important factor in these cases.

To secure a conviction, the Crown must prove:

• You knowingly made false or misleading representations
• Your actions were dishonest
• There was intent to cause financial loss or risk

Without clear proof of intent, many cases remain civil disputes—not criminal offences.

Why Fraud Allegations Are Often Misunderstood

Business disputes are sometimes mistaken for criminal conduct.

Situations that may appear suspicious can involve:

• Miscommunication between parties
• Unmet expectations
• Poor business practices
• Lack of documented agreements

These issues do not automatically meet the legal threshold for criminal fraud.

How a Criminal Defence Lawyer Can Help

If you are facing fraud or misrepresentation allegations, early legal advice is essential.

A criminal defence lawyer can:

• Determine whether the matter is civil or criminal
• Analyze financial records and communications
• Challenge the Crown’s evidence of intent
• Identify inconsistencies or weaknesses
• Build a defence strategy tailored to your case

These cases are often complex and require a detailed and strategic approach.

Possible Outcomes in Fraud Cases

Every case is different, but outcomes may include:

• Charges withdrawn
• Charges reduced
• Alternative resolutions
• Trial and acquittal

A strong defence focuses on minimizing long-term consequences and protecting your future.

 What You Should Do If You Are Accused

If you are under investigation or have been charged:

• Do not make statements without legal advice
• Do not attempt to resolve the situation informally
• Do not assume it is “just a business issue”

Instead:

• Speak with a criminal defence lawyer immediately
• Preserve all relevant documents and communications
• Focus on protecting your legal position