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Mick Is a Trustee for Luke, a 10 Year Old

Question 6

Multiple Choice

Mick is a trustee for Luke, a 10 year old whose parents have died. Mick is given a credit card to use for "trustee business only". Mick uses the card to take his girlfriend Fatima to Cambridge for a romantic weekend. He knows that the other trustee, Ian, does not mind, even if most other people would. Has Mick committed fraud?


A) No. There is no false representation made here. All fraud offences require a false representation.
B) Yes. Mick has abused his position as a trustee and has intentionally gained from this.
C) No, because to constitute fraud by abuse of position, Mick would have to be dishonest. As Mick knew that Ian would not mind, this would not amount to dishonesty.
D) Mick has breached his fiduciary duties as a Trustee. Mick cannot be prosecuted for a criminal offence as the civil law gives Luke a right to sue Mick and recover the money.

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