Fraud Over $5,000 vs Fraud Under $5,000 in Ontario

The short answer

The $5,000 line changes almost everything about a fraud charge. Fraud over $5,000 can only be prosecuted by indictment, carries up to 14 years in jail and rules out a discharge. Fraud of $5,000 or less can be prosecuted summarily, carries up to 2 years by indictment and allows a discharge. Because so much depends on this line, the amount is one of the first things your lawyer should test. This guide explains how the two levels compare and how the amount is calculated and challenged.

The two levels compared

Fraud over $5,000 (s. 380(1)(a))

• Prosecution: The charge can only be prosecuted by indictment.
• Maximum: The maximum sentence is 14 years.
• Minimum: There is a 2-year minimum only if the total is over $1 million (s. 380(1.1)).
• Discharge: A discharge is not available.

Fraud of $5,000 or less (s. 380(1)(b))

• Prosecution: The Crown can proceed by indictment or summary conviction.
• Maximum: The maximum sentence is 2 years by indictment.
• Minimum: There is no minimum sentence.
• Discharge: A discharge is possible.

How the $5,000 line is measured

The value is the money, property or service involved, not what you personally gained from it. The Crown can also group several smaller transactions into a single charge. For example, ten fraudulent transactions of $700 each can be charged as one fraud over $5,000.

Testing the amount

The amount in the police report is not always the amount the Crown can prove at trial. Common problems include transactions that were actually authorized or legitimate, amounts that were repaid or reversed, the same transaction being counted twice, and losses that came from something other than the alleged fraud. If the proven amount falls to $5,000 or less, the charge, the court process and the possible outcomes all change. For that reason, a detailed review of bank statements and transaction records is often one of the most valuable steps in the defence.

How the court process differs

For fraud of $5,000 or less, the Crown chooses whether to proceed summarily or by indictment, and the case stays in the Ontario Court of Justice without a jury (s. 553). Diversion is sometimes possible for a first offence.

For fraud over $5,000, the case is indictable only. You choose a trial in the Ontario Court of Justice, or a trial in the Superior Court of Justice with or without a jury. Because the maximum is 14 years, you can also ask for a preliminary inquiry (s. 535), which allows your lawyer to test key witnesses before the trial.

Why a fraud over $5,000 charge matters

• No discharge: A finding of guilt means a conviction and a criminal record.
• Immigration: A conviction can make a permanent resident inadmissible for serious criminality. See criminal charges and immigration status.
• Aggravating factors: Larger frauds, breach of trust, many victims and careful planning all increase sentences (s. 380.1).

Bill C-16, passed in June 2026, allows judges to go below a mandatory minimum in rare cases where the minimum would be grossly disproportionate.

Can a fraud over $5,000 charge be reduced?

A fraud over $5,000 charge can sometimes be reduced. This may happen through proof that the value was actually $5,000 or less, or through a plea to a different offence that fits the facts better. Repayment does not change the value of the fraud, but it can make a lesser outcome more realistic.

Fraud vs theft over $5,000

Theft over $5,000 has a 10-year maximum, so a discharge is legally possible for that offence. Fraud involves deceit or other dishonest means, while theft involves taking property without consent. See theft over $5,000 and what counts as fraud.

Record suspensions

After a conviction, you can apply to the Parole Board of Canada for a record suspension. For fraud over $5,000, which is indictable, the waiting period is 10 years after the sentence is completed. For fraud of $5,000 or less prosecuted summarily, the waiting period is 5 years. See our criminal records page.

What to do now

• Ask for the full list of transactions behind the amount charged.
• Gather proof of any repayments, reversals or approved transactions.
• Do not contact the complainant about money before you receive legal advice.
• If you are not a Canadian citizen, get immigration advice early, because the $5,000 line can matter a great deal for your status.

Common situations near the $5,000 line

Many fraud cases sit close to the $5,000 line, which makes the calculation especially important. Typical examples include a series of e-transfers that individually seem small but add up to a larger total, expense claims made over several months, and online sales where some transactions were genuine and others were disputed. In each of these situations, a careful review of the underlying records can determine whether the Crown is able to prove the higher amount.

Possible outcomes

Summary or indictable: why it matters

For fraud of $5,000 or less, the Crown's choice between a summary and an indictable proceeding affects more than the maximum sentence. A summary conviction generally leads to a shorter waiting period for a record suspension, and summary proceedings usually move through the Ontario Court of Justice more quickly. For that reason, your lawyer may ask the Crown to proceed summarily as part of any resolution discussion.

How we can help

We can test how the Crown calculated the amount, and argue for the charge and outcome that fit the facts. Call (647) 223-1980 for a free consultation.

Frequently asked questions