Fraud to Conceal Fraud

The legal maxim Fraus est celare fraudem “It is fraud to conceal fraud” was applied by the Supreme Court of Victoria in Montgomerie’s Brewery Co Ltd v Blyth (1901) 27 VLR 176.

The Supreme Court ruled:

“Non-disclosure of a fraud becomes active concealment of the fraud where it is the duty of the man who knows of it to disclose that fraud and fails to do so.”

M Brewery #1

M Brewery #2

A Transcript of the Trusts Act 1896 (Vic) can be found here.

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This tab updated on 19 March 2015