Fraud Sentences in Canada

The short answer

Fraud sentences in Canada range from a discharge, which is not a conviction, to many years in jail. The amount involved, whether there was a breach of trust and whether the money has been repaid are usually the most important factors. In many cases, repaying the loss before sentencing has a larger effect on the result than anything else, so planning for repayment should start early. This guide explains the penalties, the factors judges weigh and the steps that can help you prepare for a sentencing hearing.

Penalties by amount

• $5,000 or less: The maximum is 2 years by indictment, or the Crown can proceed by summary conviction. There is no minimum sentence, and a discharge is possible.
• Over $5,000: The maximum is 14 years, and the charge can only be prosecuted by indictment. There is no minimum, but a discharge is not available because the maximum is 14 years.
• Over $1 million: The maximum is 14 years, and there is a minimum sentence of 2 years when the Crown proceeds by indictment (s. 380(1.1)).

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.

Discharges and conditional sentences

A discharge is available only for fraud of $5,000 or less (s. 730). A conditional sentence, which is a sentence of less than 2 years served in the community, is possible when there is no minimum and the judge is satisfied that it would not endanger the public (s. 742.1). Because of the minimum, a conditional sentence is not available for fraud over $1 million.

How judges decide

Every sentence must fit the seriousness of the offence and your degree of responsibility (s. 718.1). In fraud cases, judges often place extra weight on deterrence, because fraud is usually planned rather than impulsive. However, rehabilitation, repayment and your personal circumstances still matter, and they can make a significant difference.

What makes a fraud sentence higher

The Criminal Code lists specific aggravating factors for fraud in s. 380.1. They include a large amount, or a fraud that was complex, carefully planned or carried on for a long time. They also include a large number of victims, a significant impact on victims given their age, health or financial situation, and destroying or hiding records connected to the fraud.

Breach of trust, such as defrauding an employer or a vulnerable person, is also a strong aggravating factor. In addition, the law says that your job, skills or good reputation cannot count in your favour if they were used in committing the fraud (s. 380.1(2)).

What makes it lower

Factors that usually lower a fraud sentence include repaying the money before sentencing, pleading guilty and showing genuine remorse, having no prior record, and getting treatment for gambling or an addiction that contributed to the offence. For example, someone who took $20,000 from an employer and repaid it all before sentencing is in a very different position from someone who repaid nothing.

Restitution

The court must consider a restitution order in every case (s. 737.1), and it can order you to repay the victims for their losses (s. 738). An unpaid restitution order can be enforced like a civil judgment, so it does not simply disappear when the sentence ends. Paying back the loss before sentencing usually helps more than an order made afterwards.

Victim impact statements

Victims have the right to tell the court how the fraud affected them, either in writing or by reading a statement aloud. The judge must consider these statements, and in large frauds that affected a whole community, a community impact statement can also be filed.

Other orders

• Prohibition order: The court can ban you from jobs or volunteer roles that involve authority over other people's money or property, for a period the court sets (s. 380.2).
• Forfeiture: The Crown can ask the court to take property that was bought with the proceeds of the fraud.

Probation and conditions

Many fraud sentences include probation, which can last up to 3 years. Common conditions include repaying the loss on a schedule, not having bank or credit cards in anyone else's name, not working in jobs that involve handling other people's money and attending counselling, such as for gambling. Breaking a probation condition is a separate criminal offence.

Sentence length and immigration

For a permanent resident, a sentence of more than 6 months can cause inadmissibility for serious criminality, even for fraud of $5,000 or less. For fraud over $5,000, the 14-year maximum is enough on its own. If you are not a Canadian citizen, get immigration advice before your sentencing hearing.

Preparing for sentencing

Good preparation can change the result. It may include proof of repayment or a realistic repayment plan, letters from employers, family and community members, proof of counselling or treatment, and a pre-sentence report prepared by a probation officer.

Gambling and addiction

Many fraud cases are connected to a gambling problem or an addiction. This does not excuse the offence. But it can help explain it. A judge may give real weight to treatment that started before sentencing and is still going on. Proof of attendance and a letter from the counsellor are usually the most helpful records.

Fines and the victim surcharge

A judge can impose a fine for fraud, either alone or with probation. When a fine is imposed, a victim surcharge of 30% of the fine is usually added (s. 737). The judge can decline to order the surcharge if it would cause undue hardship. In fraud cases, restitution to the victims usually comes before any fine.

How we can help

We can help you plan repayment, prepare for sentencing and argue for the least serious outcome that the facts allow. Call (647) 223-1980 for a free consultation.

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