R v Théroux

[1993] 2 SCR 5
Supreme Court of CanadaQuebec1993Elements of fraud — dishonest act and subjective knowledge
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Case Overview

A real-estate developer took deposits from home buyers while misrepresenting that the deposits were insured. When the project failed, buyers lost their money.

Legal Issue

Elements of fraud — dishonest act and subjective knowledge

Decision

Set out the modern two-element test for fraud: dishonest act + deprivation, with subjective knowledge of both.

Why this Case Matters

Clarified that the actus reus of fraud is a dishonest act causing deprivation or risk of deprivation, and the mens rea is subjective knowledge of that conduct.

What Changed Because of This Case

Replaced earlier formalist approaches with a functional, two-element test grounded in dishonesty and deprivation.

Practical Implications for Investigators

Document the dishonest representation and tie it directly to the victim's loss or exposure to loss.