Victorian Consolidated Legislation

Crimes Act 1958 - SECT 191

Fraudulently inducing persons to invest money

191. Fraudulently inducing persons to invest money





(1) Any person who, by any statement promise or forecast which he knows to be
misleading false or deceptive or by any dishonest concealment of material
facts or by the reckless making of any statement promise or forecast which is
misleading false or deceptive, induces or attempts to induce another person-



   (a)  to enter into or offer to enter into-

   (i)  any agreement for or with a view to acquiring disposing of subscribing
        in or underwriting securities or lending or depositing money to or
        with any corporation; or

   (ii) any agreement the purpose or pretended purpose of which is to secure a
        profit to any of the parties from the yield of securities or by
        reference to fluctuations in the value of securities; or

   (b)  to acquire or offer to acquire any right or interest under any
        arrangement the purpose or effect or pretended purpose or effect of
        which is to provide facilities for the participation by persons in
        profits or income alleged to arise or to be likely to arise from the
        acquisition holding management or disposal of any property other than
        securities; or

   (c)  to enter into or offer to enter into an agreement the purpose or
        pretended purpose of which is to secure a profit to any of the parties
        by reference to fluctuations in the value of any property other than
        securities-

shall be guilty of an indictable offence and liable to level 4 imprisonment
(15 years maximum).

(2) Any person guilty of conspiracy to commit any offence against the last
preceding subsection shall be punishable as if he had committed such an
offence.





(3) In this section unless inconsistent with the context or subject-matter-

corporation means any body corporate whether incorporated in Victoria or
elsewhere;

debentures means any debentures debenture stock or bonds of a corporation,
whether constituting a charge on the assets of the corporation or not;

securities means-

   (a)  shares or debentures or rights or interests (whether described as
        units or otherwise) in any shares or debentures; or

   (b)  securities of the Government of any part of Her Majesty's dominions or
        the Government of any foreign state; or

   (c)  rights (whether actual or contingent) in respect of money lent to or
        deposited with any corporation- and includes rights or interests
        (whether described as units or otherwise) which may be acquired under
        any trust scheme under which all property for the time being subject
        to any trust created in pursuance of the scheme consists of such
        securities as are mentioned in paragraph (a)(b) or (c) of this
        interpretation;

shares means shares in the share capital of a corporation or stock of a
corporation.