Fraud and Breach of Trust
Explanation
The Lebanese Penal Code punishes the crime of fraud [l'escroquerie] with imprisonment and a fine (Article 655). This crime occurs when a person induces another to deliver to him money, a document, or a benefit, and misappropriates it. This is done through the use of fraudulent maneuvers. The law also punishes the attempted commission of fraud with the same penalty prescribed for the completed crime.
The law exclusively specified the acts that are considered fraudulent maneuvers. These acts include deceiving the victim with a fictitious project or creating a hope of profit or a fear of harm. They also include fabricating a lie that the victim believes due to the intervention of a third party, even if he was in good faith. It is also considered a fraudulent maneuver for a person to dispose of funds he does not have the right to dispose of, or to use a false name or a false capacity.
The penalty for fraud is doubled in specific cases stipulated by law (Article 656). This happens if the criminal uses the pretext of securing a job in a public administration. It is also doubled if a person solicits money from the public to issue shares or bonds for a company. The penalty is also doubled if the crime is committed by an authorized signatory for a company, association, or any other legal entity [personne morale].
The law addresses the crime of breach of trust [l'abus de confiance] and determines its penalty with imprisonment and a fine (Article 670). The crime occurs upon the concealment, embezzlement, or destruction of a document or a movable thing delivered to the perpetrator. This includes delivery by way of deposit, agency, lease, pledge, or loan for use. It is required that the delivery be coupled with a condition to return the thing or use it for a specific matter.
The law distinguishes the case of breach of trust occurring on fungible funds and things (Article 671). If a person receives an amount for a specific work and disposes of it knowing his inability to return it, he is punished with imprisonment and a fine. However, the law requires here sending a formal notice [mise en demeure] to him, and his failure to clear his liability despite this notice.
The penalty for breach of trust is aggravated if committed by persons holding specific capacities (Article 672). This includes the administrator of a waqf, the director of a charitable association, the guardian of a minor, the executor of a will, the lawyer, the notary public, and the paid employee. These are punished with imprisonment from three months to three years. The judge may also prohibit the criminal from practicing the work due to which the crime was committed.
Official legal articles
replace · 1983-11-10: Open the official text
amend · 1993-06-10: Open the official text
insert · 1983-11-10: Open the official text
amend · 1983-11-10: Open the official text
amend · 1993-06-10: Open the official text
amend · 1993-06-10: Open the official text
replace · 1983-11-10: Open the official text
Think deeper
How does the law distinguish between the crime of breach of trust occurring on a specific movable thing and that occurring on fungible funds and things, and why is it required to send a formal notice in the second case?
Flashcards
What is the penalty imposed by law for attempting to commit the crime of fraud?
The same penalty prescribed for committing the completed crime is applied (Article 655).
Mention two cases where the law aggravates and doubles the penalty for fraud.
The penalty is doubled under the pretext of securing a job in a public administration, or by the act of an authorized signatory for a company or another legal entity (Article 656).
What is the prerequisite for prosecuting a person who disposed of a financial amount delivered to him for a specific work?
A formal notice must be sent to him, and he must fail to clear his liability despite this notice (Article 671).
What is the additional penalty that can be imposed on a lawyer who committed the crime of breach of trust?
He can be prohibited from practicing the work due to which the crime was committed (Article 672).
Is the intervention of a third party in good faith to support a lie considered a fraudulent maneuver?
Yes, fabricating a lie that the victim believes as a result of a third party's support is considered a fraudulent maneuver even if this person was in good faith.
What are the contracts under which specific things are delivered in the crime of breach of trust?
The contracts include deposit, agency, lease, loan for use, pledge, or to perform work for or without a wage (Article 670).
Practice questions
Which of the following acts is not explicitly considered a punishable fraudulent maneuver by law?
Refusing to pay a debt is not among the legally defined fraudulent maneuvers for fraud crimes (Article 655). This may constitute a breach of trust crime if the money was delivered for a specific work (Article 671).
When is the penalty for the crime of fraud doubled according to the law?
The law explicitly doubles the penalty for fraud if the crime is committed under the pretext of securing a job in a public administration (Article 656).
What is the penalty imposed by law for attempting to commit the crime of fraud?
The law explicitly states that the same penalty is applied for attempting to commit the crime of fraud (Article 655).
A person received an amount of money for a specific work and disposed of it knowing he could not return it. What does the law require to punish him for this act?
The law requires the failure to clear liability despite the notice to punish someone who disposes of fungible things delivered to him for a specific work (Article 671).
Which of these persons does not have their penalty explicitly aggravated upon committing the crime of breach of trust?
The law lists specific persons whose penalty is aggravated, such as the guardian, the notary public, and the administrator of a waqf (Article 672). The text did not mention the partner in a general partnership.
Case problems
A lawyer received an original document from his client by way of deposit to present it to the court, and also received an amount of money to pay the lawsuit fees. The lawyer intentionally tore up the document, and disposed of the money for his personal needs. The client demanded the money verbally without sending a formal notice. What is the legal characterization of the lawyer's actions?
Model answer
Intentionally tearing up a document delivered by way of deposit constitutes the crime of breach of trust (Article 670).
The penalty for breach of trust is aggravated to imprisonment from three months to three years if the perpetrator is a lawyer (Article 672).
The law also allows prohibiting the criminal from practicing the profession due to which the crime was committed (Article 672).
The law punishes disposing of fungible things like money if the perpetrator knows he cannot return their equivalent (Article 671).
Punishing the disposal of fungible things requires sending a formal notice and failing to clear liability despite the notice (Article 671).
Since the client did not send a formal notice, the conditions for criminalizing the disposal of the money are not yet fulfilled.