I'm not sure if this is the right area to ask this, so forgive me if I'm in the wrong place.

My work recently hired a new employee, and she was looking for a new car. However, to get the car loan she needed to be finished her probation here. (It takes 3 months with my company to get off probation.) Even though she wasn't off probation, she convinced her manager to give an incorrect/fake reference for her saying that she had finished her probation. (she'd only been working here for about 3 weeks at the time)

Is knowingly lying like this to a financial institution on behalf of an employer considered fraud?

  • 4
    Linguistically, fraud is Fraud is a type of criminal activity, defined as: 'abuse of position, or false representation, or prejudicing someone's rights for personal gain' I'd say what your describing is a false representation. So yes. though I'm not familiar with the law in Canada and I presume you mean legal fraud, which is likely more complex.
    – user24734
    Commented Jan 21, 2015 at 16:03
  • 3
    Yes, it is. Does it rise to the level of criminal prosecution? Probably not.
    – littleadv
    Commented Jan 21, 2015 at 16:23
  • 3
    Note that as your manager has legally stated she has finished her probation, she has now legally finished her probation. Commented Jan 21, 2015 at 16:29

1 Answer 1


This potential fraud is why may companies outsource these types of verifications to a 3rd party. When a bank wants to know about employment dates and income level there is a toll-free-number to call to get that information. The person looking in the database doesn't have a stake in the information, so they don't have a reason to stretch the truth.

There are risks here. If the employee quits or doesn't complete the probation, then they may have trouble making the payments. The bank could then recheck the info looking for another person who could be forced into making the payments. They may also want to review the info on the application if the borrower tried to get rid of the obligation through bankruptcy.

The manager committed a fraud, and now has to wait out the length of the loan.

  • 2
    As in another comment, if the manager says she has finished her probation, then she has finished her probation. The manager didn't lie, he changed the facts.
    – gnasher729
    Commented Jan 22, 2015 at 15:03

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