Criminal Breach of Trust occurs when someone entrusted with property or money misuses it dishonestly. This includes actions like misappropriating funds, using the property for personal gain, or violating terms of a contract or law related to the property. A classic example is the City Harvest Church case, where leaders misused over $50 million of church funds.
Key Elements of CBT
- Entrustment of Property:
- The person must have been given responsibility over the property.
- This includes professionals like bankers, admin staff, or agents.
- The person must have been given responsibility over the property.
- Dishonesty:
- The act must be done with dishonest intent to gain unfair benefit or cause harm.
- Example: A business owner using company money to repay personal debts.
- The act must be done with dishonest intent to gain unfair benefit or cause harm.
- Misappropriation or Conversion:
- Taking property meant for another purpose or using it as if it were their own.
- Example: An insurance agent using a client’s premium payments for personal expenses.
- Taking property meant for another purpose or using it as if it were their own.
- Violation of Law or Contract:
- If someone breaches a legal or contractual duty (e.g., an executor keeping inheritance funds), it can be CBT.
- If someone breaches a legal or contractual duty (e.g., an executor keeping inheritance funds), it can be CBT.
- Allowing Misuse by Others:
- Even if you don’t misuse the property yourself but knowingly allow someone else to, you can still be guilty of CBT.
- Even if you don’t misuse the property yourself but knowingly allow someone else to, you can still be guilty of CBT.
Penalties for CBT
- Basic CBT: Up to 7 years’ jail and/or fine.
- Aggravated CBT:
- Carriers, warehouse staff, employees: Up to 15 years’ jail and fine.
- Public servants, bankers, lawyers, directors, agents: Up to 20 years’ jail and fine.
- Carriers, warehouse staff, employees: Up to 15 years’ jail and fine.
These harsher penalties reflect the high level of trust placed in these roles.
Who is an “Agent”?
An “agent” (under section 409) is someone who provides agency services professionally. Directors or charity heads generally do not fall into this category unless they’re acting in a formal agent capacity.
Is CBT an Arrestable Offence?
Yes. Police can arrest without a warrant if CBT is suspected.
Does CBT Result in a Criminal Record?
Yes. However, if you remain crime-free for 5 years after your sentence (or release), your record may be treated as “spent”, meaning it won’t show up legally as a criminal record anymore—provided no further offenses are committed in that period.
Staying Protected
To avoid falling victim to CBT, regularly review financial transactions and monitor for suspicious activity in both personal and business finances.