Fraud in Obtaining Property or Services Defense Attorneys

Fraud in Obtaining Property or Services are serious criminal charges. If you are facing any of these charges you should consult with a Denver criminal defense attorney immediately.

Fraud by Check

  • As used in this section, unless the context otherwise requires:
    1. "Check" means a written, unconditional order to pay a sum certain in money, drawn on a bank, payable on demand, and signed by the drawer. "Check", for the purposes of this section only, also includes a negotiable order of withdrawal and a share draft.
    2. "Drawee" means the bank upon which a check is drawn or a bank, savings and loan association, or credit union on which a negotiable order of withdrawal or a share draft is drawn.
    3. "Drawer" means a person, either real or fictitious, whose name appears on a check as the primary obligor, whether the actual signature be that of himself or of a person authorized to draw the check on himself.
    4. "Insufficient funds" means a drawer has insufficient funds with the drawee to pay a check when the drawer has no checking account, negotiable order of withdrawal account, or share draft account with the drawee or has funds in such an account with the drawee in an amount less than the amount of the check plus the amount of all other checks outstanding at the time of issuance; and a check dishonored for "no account" shall also be deemed to be dishonored for "insufficient funds".
    5. "Issue". A person issues a check when he makes, draws, delivers, or passes it or causes it to be made, drawn, delivered, or passed.
    6. "Negotiable order of withdrawal" and "share draft" mean negotiable or transferable instruments drawn on a negotiable order of withdrawal account or a share draft account, as the case may be, for the purpose of making payments to third persons or otherwise.
    7. "Negotiable order of withdrawal account" means an account in a bank or savings and loan association and "share draft account" means an account in a credit union, on which payment of interest or dividends may be made on a deposit with respect to which the bank or savings and loan association or the credit union, as the case may be, may require the depositor to give notice of an intended withdrawal not less than thirty days before the withdrawal is made, even though in practice such notice is not required and the depositor is allowed to make withdrawal by negotiable order of withdrawal or share draft.
  • Any person, knowing he has insufficient funds with the drawee, who, with intent to defraud, issues a check for the payment of services, wages, salary, commissions, labor, rent, money, property, or other thing of value, commits fraud by check.
  • Fraud by check is:
    1. (Deleted by amendment, L. 2007, p. 1693, 8, effective July 1, 2007.)

 

(a.5) A class 1 petty offense if the fraudulent check was for the sum of less than fifty dollars or if the offender is convicted of fraud by check involving the issuance of two or more checks within a sixty-day period in the state of Colorado totaling less than fifty dollars in the aggregate;

 

(a.7) A class 3 misdemeanor if the fraudulent check was for the sum of fifty dollars or more but less than three hundred dollars or if the offender is convicted of fraud by check involving the issuance of two or more checks within a sixty-day period in the state of Colorado totaling fifty dollars or more but less than three hundred dollars in the aggregate;

  1. A class 2 misdemeanor if the fraudulent check was for the sum of three hundred dollars or more but less than seven hundred fifty dollars or if the offender is convicted of fraud by check involving the issuance of two or more checks within a sixty-day period in the state of Colorado totaling three hundred dollars or more but less than seven hundred fifty dollars in the aggregate;

(b.5) (Deleted by amendment, L. 2014.)

  1. A class 1 misdemeanor if the fraudulent check was for the sum of seven hundred fifty dollars or more but less than two thousand dollars or if the offender is convicted of fraud by check involving the issuance of two or more checks within a sixty-day period in the state of Colorado totaling seven hundred fifty dollars or more but less than two thousand dollars in the aggregate;
  2. A class 6 felony if the fraudulent check was for the sum of two thousand dollars or more or if the offender is convicted of fraud by check involving the issuance of two or more checks within a sixty-day period in the state of Colorado totaling two thousand dollars or more in the aggregate;
  3. A class 6 felony if the fraudulent check was drawn on an account which did not exist or which has been closed for a period of thirty days or more prior to the issuance of said check.
  • Any person having acquired rights with respect to a check which is not paid because the drawer has insufficient funds shall have standing to file a complaint under this section, whether or not he is the payee, holder, or bearer of the check.
  • Any person who opens a checking account, negotiable order of withdrawal account, or share draft account using false identification or an assumed name for the purpose of issuing fraudulent checks commits a class 2 misdemeanor.
  • If deferred prosecution is ordered, the court as a condition of supervision shall require the defendant to make restitution on all checks issued by the defendant that are unpaid as of the date of commencement of the supervision in addition to other terms and conditions appropriate for the treatment or rehabilitation of the defendant.
  • A bank, savings and loan association, or credit union is not civilly or criminally liable for releasing information relating to the drawer's account to a sheriff, deputy sheriff, undersheriff, police officer, agent of the Colorado bureau of investigation, division of gaming investigator, division of lottery investigator, parks and outdoor recreation officer, Colorado wildlife officer, district attorney, assistant district attorney, deputy district attorney, or authorized investigator for a district attorney or the attorney general investigating or prosecuting a charge under this section.
  • This section does not relieve the prosecution from the necessity of establishing the required culpable mental state. However, for purposes of this section, the issuer's knowledge of insufficient funds is presumed, except in the case of a postdated check or order, if:
    1. He has no account upon which the check or order is drawn with the bank or other drawee at the time he issues the check or order; or
    2. He has insufficient funds upon deposit with the bank or other drawee to pay the check or order, on presentation within thirty days after issue.
  • Restitution for offenses described in this section may be collected as a condition of pretrial diversion by a district attorney, an employee of a district attorney's office, or a person under contract with a district attorney's office. Such collection is governed by the provisions of article 5of title 16, C.R.S., and is not the collection of a debt.

Defrauding a Secured Creditor or Debtor

  • If a person, with intent to defraud a creditor by defeating, impairing, or rendering worthless or unenforceable any security interest, sells, assigns, transfers, conveys, pledges, encumbers, conceals, destroys, or disposes of any collateral subject to a security interest, the person commits:
    1. (Deleted by amendment, L. 2007, p. 1694, 9, effective July 1, 2007.)
    2. A class 1 petty offense if the value of the collateral is less than fifty dollars;

(b.5) (Deleted by amendment, L. 2014.)

  1. A class 3 misdemeanor if the value of the collateral is fifty dollars or more but less than three hundred dollars;
  2. A class 2 misdemeanor if the value of the collateral is three hundred dollars or more but less than seven hundred fifty dollars;
  3. A class 1 misdemeanor if the value of the collateral is seven hundred fifty dollars or more but less than two thousand dollars;
  4. A class 6 felony if the value of the collateral is two thousand dollars or more but less than five thousand dollars;
  5. A class 5 felony if the value of the collateral is five thousand dollars or more but less than twenty thousand dollars;
  6. A class 4 felony if the value of the collateral is twenty thousand dollars or more but less than one hundred thousand dollars;
  7. A class 3 felony if the value of the collateral is one hundred thousand dollars or more but less than one million dollars; and
  8. A class 2 felony if the value of the collateral is one million dollars or more.
  • If a creditor, with intent to defraud a debtor, sells, assigns, transfers, conveys, pledges, buys, or encumbers a promissory note or contract signed by the debtor, the creditor commits:
    1. (Deleted by amendment, L. 2007, p. 1694, 9, effective July 1, 2007.)
    2. A class 1 petty offense if the amount owing on the note or contract is less than fifty dollars;(b.5)(Deleted by amendment, L. 2014.)
    3. A class 3 misdemeanor if the amount owing on the note or contract is fifty dollars or more but less than three hundred dollars;
    4. A class 2 misdemeanor if the amount owing on the note or contract is three hundred dollars or more but less than seven hundred fifty dollars;
    5. A class 1 misdemeanor if the amount owing on the note or contract is seven hundred fifty dollars or more but less than two thousand dollars;
    6. A class 6 felony if the amount owing on the note or contract is two thousand dollars or more but less than five thousand dollars;
    7. A class 5 felony if the amount owing on the note or contract is five thousand dollars or more but less than twenty thousand dollars;
    8. A class 4 felony if the amount owing on the note or contract is twenty thousand dollars or more but less than one hundred thousand dollars;
    9. A class 3 felony if the amount owing on the note or contract is one hundred thousand dollars or more but less than one million dollars; and
    10. A class 2 felony if the amount owing on the note or contract is one million dollars or more.

Purchase on Credit to Defraud

A person who purchases any personal property on credit and thereafter, before paying for it, sells, hypothecates, pledges, or disposes of it with intent to defraud the seller or vendor commits a class 2 misdemeanor.

Dual Contracts to Induce Loan

It is a class 3 misdemeanor for any person to knowingly make, issue, deliver or receive dual contracts for the purchase or sale of real property. The term “dual contracts”, either written or oral, means two separate contracts concerning the same parcel of real property, one of which states the true and actual purchase price and one of which states a purchase rice in excess of the true and actual price, and is used, or intended to be used, to induce persons to make or a loan or a loan commitment on such real property in reliance upon the stated inflated value.

Issuing a False Financial Statement – Obtaining a Financial Transaction Device by False Statements

  1. A person commits issuing a false financial statement if, with intent to defraud, he:
    1. Knowingly makes or utters a written instrument which purports to describe the financial condition or ability to pay of himself or another person and which is false in some material respect and reasonably relied upon; or
    2. Represents in writing that a written instrument purporting to describe another person's financial condition or ability to pay as of a prior date is accurate with respect to that person's current financial condition or ability to pay, knowing the instrument to be materially false in that respect and reasonably relied upon.
  2. Issuing a false financial statement is a class 2 misdemeanor.
  3. A person commits issuing a false financial statement for purposes of obtaining a financial transaction device, as defined in section 18-5-701(3), if, with intent to defraud, upon filing an application for a financial transaction device with an issuer, he knowingly makes or causes to be made a false statement or report, which is false in some material respect and reasonably relied upon, relative to his name, occupation, financial condition, assets, or liabilities or willfully and substantially overvalues any assets or willfully omits or substantially undervalues any indebtedness for the purpose of influencing the issuer to issue a financial transaction device.
  4. Issuing a false financial statement for purposes of obtaining a financial transaction device when such device is used to obtain property or services or money is a class 1 misdemeanor.
  5. Issuing two or more false financial statements for purposes of obtaining two or more financial transaction devices when such devices are used to obtain property or services or money is a class 6 felony.

If you would like to schedule an initial consultation, contact a Colorado criminal defense attorney, we represent clients in Denver, Colorado, and the surrounding area. The Savela Law Firm, P.C. Give us a call at (720) 821-1001 or complete our inquiry form.

Receiving Deposits in a Failing Financial Institution

A person commits a class 6 felony if, as an officer, manager, or person participating in the direction of a financial institution, he knowingly receives or permits the receipt of a deposit or investment, knowing that the institution is insolvent. A financial institution is insolvent within the meaning of this section when from any cause it is unable t pay its obligations in the ordinary or usual course of business or its liabilities exceed its assets.

The potential penalties for fraud offenses vary depending upon the offense level. Fraud can be anything from a class 3 misdemeanor to a class 2 felony. The following are the presumptive penalties for the varying offense levels:

A class 2 felony is punishable by 8 to 24 years in prison and a fine of up to $1,000,000.

A class 3 felony is punishable by 4-12 years in prison and a fine of up to $750,000.

A class 4 felony is punishable by 2-6 years in prison and a fine of up to $500,000.

A class 5 felony is punishable by 1-3 years in prison and a fine of up to $100,000.

A class 6 felony is punishable by 12-18 months in prison and a fine of up to $100,000.

A class 1 misdemeanor is punishable by 6 to 18 months in jail and a fine of up to $5,000.

A class 2 misdemeanor is punishable by 6 to 18 months in jail and a fine of up to $1,000.

A class 3 misdemeanor is punishable by 6 to 18 months in jail and a fine of up to $750.

If you have been charged with a form of fraud in obtaining property or services an experienced Denver criminal defense lawyer is essential. Get in touch with experienced Denver criminal defense attorney Jason Savela by calling (720) 821-1001.