Legal update
| Date | 01 January 1997 |
| Pages | 65-65 |
| DOI | https://doi.org/10.1108/eb024906 |
| Published date | 01 January 1997 |
| Author | Joanna Gray |
| Subject Matter | Accounting & finance |
Journal
of
Financial Regulation
and
Compliance
Volume
5
Number
1
Legal update
GOVERNMENT PROMISES AN EARLY
LEGISLATIVE REMEDY TO THE FRAUD
LAW LOOPHOLE EXPOSED BY THE
DECISION IN R v
PREDDY1
The decision of the House of Lords in the
Preddy appeal has led to a string of appeals
against conviction to the Court of Appeal
from individuals convicted under s.15 Theft
Act 1968. On 25th October the Court of
Appeal quashed the convictions of seven such
appellants as being rendered unsafe in law by
the Preddy judgment.2 In the course of their
decision the Court of Appeal outlined alterna-
tive charges which may be appropriate in cases
of dishonestly obtaining funds now that the
use of s.15 has been curtailed by the decision
in Preddy. These are: theft; false accounting
contrary to s.17 Theft Act 1968; evasion of lia-
bility by deception contrary to s.2 Theft Act
1978;
procuring the execution of a valuable
security contrary to s.20 Theft Act 1968;
obtaining services by deception contrary to s.1
Theft Act 1978 (a less attractive option after R
v Halai 1983); conspiracy to defraud; attempts.
However, the Law Commission has pub-
lished proposals designed to plug the loophole
in the Theft Act that Preddy opened up.3 What
is proposed is the creation of two new offences
for inclusion in the Theft Act 1968: i) dishon-
estly obtaining a money transfer by deception
including payments made by cheque as well as
electronically and irrespective of whether the
relevant accounts are overdrawn or not; and
ii),
retaining a credit from a dishonest source.
On 15th October the Home Secretary
announced that he accepted the Law Commis-
sion's recommendations and promised legisla-
tive implementation at the earliest possible
opportunity.
REFERENCES
(1) (1996) 3 Weekly Law Reports p.255 noted in
Journal of
Financial
Regulation and
Compliance
Vol 4(4).
(2) see R v Graham etc. CA Times Law Report
October 28.
(3) 'Offences of Dishonesty: Money Transfers'
(Law Com 243).
Joanna Gray
Editorial Board
Page
65
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