Episode F32 — Fraud by Silence: Material Non-Disclosure

Episode Summary

This episode examines when silence, omission, or material non-disclosure can become fraud under Canadian criminal law. Fraud is often imagined as a direct lie, but dishonest conduct may also involve withholding a material fact where the accused person had a duty to disclose it. The episode explains that silence is not automatically fraud, and not every incomplete statement or civil disclosure problem creates criminal liability. The key questions are what fact was withheld, why it was material, whether there was a duty to disclose, how the omission affected the victim's economic interests, and what the accused knew. The episode is especially important for investigations involving forms, contracts, benefit claims, investment pitches, business relationships, insurance claims, and trust-based dealings. For investigators, it provides a structured approach to proving non-disclosure through records, communications, disclosure duties, victim evidence, and economic risk.

What You'll Learn

• • When silence or omission may become fraud
• • Why duty to disclose is central to fraud by silence
• • How material non-disclosure differs from ordinary incomplete communication
• • What evidence proves what was known, withheld, and economically significant

Key Investigator Takeaways

• • Identify the exact fact that was not disclosed
• • Prove why the accused had a duty to disclose it
• • Connect the omission to victim action, economic risk, and accused knowledge

Cases Discussed

Visual Mind Map

Transcript

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