Fraudulent Misappropriation of Funds (NSW)

Fraudulent misappropriation of funds is an offence under the New South Wales Crimes Act. Under section 178A of the Act, a person who has collected or received money or valuable security and is required to deliver or pay it or part of it to someone and fraudulently misappropriates the funds is guilty of an offence. This offence is punishable by a maximum penalty of imprisonment for seven years.

On 22 February 2010 the offence of Fraudulent Misappropriation of Funds (NSW) was repealed and replaced with the offence of Obtain Property Belonging to Another By Deception pursuant to section 192E (1) (a) of the Act. However, if the offence occurred prior to 22 February 2010 then a person may still be charge with an offence under section 178A of the Act.

What Court Is Likely To Hear The Matter?

Where the value of the property charged exceeds $5000, the DPP or the accused can elect to have the matter dealt with in the District Court. If no election is made it will be dealt with in the Local Court.

Where the value of the property charged does not exceed $5000, the DPP can elect to have the matter dealt with in the District Court. If no election is made it will be dealt with in the Local Court.

What The Police Must Prove

In court, for the police to prove fraudulent misappropriation of funds, they must prove each of the following matters beyond a reasonable doubt:

• that the accused collected or received the money or valuable security charged in the indictment;
• that they did so upon terms that they should deliver, account for, or pay to some person named the whole or some part of such money or valuable security, or the proceeds thereof after any authorised deductions or payments had been made;
• that the accused fraudulently misappropriated the money or failed to account for it in violation of the terms upon which he collected or received it.

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