Obtaining Pecuniary Advantage by Deception

Obtaining Pecuniary Advantage by Deception

Under section 18 of the Theft Ordinance (Cap. 210), it is an offence for a person to dishonestly obtain a pecuniary advantage by deception. The maximum penalty is 10 years’ imprisonment. 

Apart from proving dishonesty and deception, the prosecution must also prove that there is a causal relationship between the deception and the obtaining of the pecuniary advantage 

“Pecuniary advantage” simply means a financial benefit, and it was defined in detail in section 18(2) of the Theft Ordinance. 

Firstly, “Pecuniary advantage” covers financial benefits in relation to credit facilities. This includes both the granting of credit facility or arrangement, and also being provided with better terms for a credit facility or arrangement. It also covers when money was being added to one’s account or his debt was being reduced or otherwise relieved.  

Secondly, “Pecuniary advantage” covers the provision and improvement of different financial schemes, namely overdraft, insurance policy and annuity contract. One would be considered as obtaining pecuniary advantage when he was being provided with the scheme, and it is immaterial whether he actually draws the money or takes out the policy. 

Thirdly, “Pecuniary advantage” also covers the opportunity given to a person for him to earn remuneration in employment or the opportunity to win money by betting, even before any money is actually received.  “Office or employment” is interpreted broadly. It is not limited to a traditional employer–employee relationship and can include situations such as providing services on a selfemployed basis.

In short, the offence prohibits someone to obtain financial benefit by deception which he was not entitled to. 

The deception must be effective in securing the specific pecuniary advantage obtained. Once a causal link is established between the deception employed and the advantage gained, it does not matter that the person deceived has suffered no actual loss as a result of the deception.

Below are some typical situations that may fall within this offence:

1. Submitting fake bank statements and tax assessments to obtain credit cards and the associated credit limits from a bank.
2. Providing false income information so a bank will approve a higher overdraft limit.

3. Misrepresenting qualifications to be offered a paid position or consultancy that would not otherwise have been available.