2/8/2010 Fraudulent misstatements Civil liability for compensation: Tort of deceit;MOs 3(1) ·C0s40,SF0ss108,277and281 ·Criminal liability: COs 40A-untrue statements in prospectus where no reasonable grounds for belief SFO s 107-fraudulent or reckless misrepresentations SFO s 298-fraudulent or reckless disclosures of false or misleading information [SFO Pt XIV] Theft Ordinance (Cap 210)s 16A-fraud Common law:conspiracy to defraud Fraudulent misstatements Proving fraud:Derry v Peek Fraud is proved if: Person knows statement to be false; Person did not believe in the truth of the statement;or Person was reckless as to the truth or falsity of the statement. ·CfM0s3(1),C0s40A,SF0ss107,298 32/8/2010 3 5 Fraudulent misstatements • Civil liability for compensation:  Tort of deceit; MO s 3(1)  CO s 40, SFO ss 108, 277 and 281 • Criminal liability:  CO s 40A - untrue statements in prospectus where no reasonable grounds for belief  SFO s 107 - fraudulent or reckless misrepresentations  SFO s 298 - fraudulent or reckless disclosures of false or misleading information [SFO Pt XIV]  Theft Ordinance (Cap 210) s 16A - fraud  Common law: conspiracy to defraud 6 Fraudulent misstatements • Proving fraud: Derry v Peek Fraud is proved if:  Person knows statement to be false;  Person did not believe in the truth of the statement; or  Person was reckless as to the truth or falsity of the statement. • Cf MO s 3(1), CO s 40A, SFO ss 107, 298