Texas Penal Code section 32.41 defines check fraud as passing a check when the individual who passes it knows that they do not have the funds in their account to pay the check in full.
The prosecutor is legally allowed to prove that the perpetrator of this type of check fraud had the required knowledge that the funds needed to cover the check were not in their account if the perpetrator did not have any account with the bank at the time they issued the check.
Or, proof of the knowledge needed to convict a perpetrator may be made by showing that payment of the check was refused by the bank because of insufficient funds within 30 days after it was presented and the payor failed to pay the holder in full within 10 days after receiving notice of the insufficient funds in the account.
Check fraud, as defined in Texas Penal Code section 32.41 is a Class C misdemeanor. However, if the check was submitted as payment for child support, it is a Class B misdemeanor. It is possible to get jail time for check fraud if it is a Class B misdemeanor.
The punishment for a Class B misdemeanor is as follows:
- Payment of a fine of not more than $2,000
- Incarceration in jail for not more than 180 days
- Or both payment of the fine and incarceration.
The punishment for a Class C misdemeanor is payment of a fine of not more than $500.
There are also other crimes in Texas that are defined as fraud. For example, according to Texas criminal definitions, an act of fraud is the attempt to steal or stealing the property or services of another person through the use of deceit or false information.
When it comes to check fraud, it is theft perpetrated through the use of checks. For example, an individual might offer a check they have stolen from someone else to pay for goods or services they have received. If the check is accepted by the recipient, the fraud has been completed.
It is a criminal offense in Texas to do any of the following:
- Alter
- Make
- Complete,
- Execute, or
- Authenticate any writing in such a way that it is presented as the act of a person who did not, in fact, authorize it.
So perpetrating any of these acts with checks can constitute fraud. A person commits a fraud offense if the person receives a stolen check with intent to use it, to sell it, or to transfer it to a person other than the person from whom the check was stolen.
This type of check fraud is a Class A misdemeanor. The punishment for a Class A misdemeanor is payment of a fine of up to $4,000 and/or incarceration in a county jail for up to 1 year.
Law enforcement actively works to identify perpetrators of check fraud. For example, an individual who tries to pay with or get cash for a check belonging to someone else can be asked to show identification. If they cannot produce the proper identification, the police can be called to make an arrest. Also, people who lose their checkbooks may report the loss so that their bank will be on the lookout for any checks that are written from the missing book.
The perpetrators of fraud are often caught with the help of banks. Banks have a vested interest in protecting their funds and the funds of their customers, and they do not hesitate to contact law enforcement about a check fraud.
What Are the Different Types of Check Fraud?
When it comes to check fraud, there are a variety of ways in which this crime can be committed. A couple of types of check fraud are noted above.
In addition, an individual can be charged with check fraud if they do the following:
- Steal an unsigned check for the purpose of using it, even if it is never actually used
- Present false identifying information in order to appear as if they are the owner of a check when they are not.
For example, a bank customer may not have enough money to buy groceries for the week. They may write a check to “pay” for their purchases at a grocery store. They know that it will take a minimum of 2 days for the check to be presented at their bank for payment.
They know they do not have the money in their account to cover the check at the time they write and present it as payment, but figure they will be able to deposit the amount by the time the check reaches the bank. This is a form of check fraud.
Check washing is another form of check fraud that has become increasingly common in recent years. A perpetrator can “wash” a check that has been stolen from the owner of a bank account who wrote it. The checks are often stolen from envelopes deposited in mail boxes that are on the street.
Checks can be “washed” of all the information that was written by hand with ink on the check, e.g. the payee and the amount to be paid. This “washing” is done by immersing the check in the right chemical bath, e.g., one that consists of nail polish remover.
Some criminals simply wash the check and then sell it on the darknet to other criminals who know how to make use of it to clean out the account on which the check is written. One way to avoid check washing is to write checks only with pens that have permanent ink. Another strategy is to put envelopes containing checks in the mail only in a post office and not into mail boxes on the street.
Another similar fraud is check counterfeiting where bad guys steal a bank account number and print fake checks using the number. They then have an unlimited number of checks that they can cash for themselves.
Another crime that may involve writing checks is forgery. Texas forgery laws define forgery as possessing, using, making, or altering a false document with the intent to commit fraud. In the case of checks, a forgery may involve creating false checks, or it may involve changing an authentic check, e.g., as with “washing” noted above.
Or a perpetrator may simply falsify the signature of the owner of a bank account on a legitimate check drawn on the owner’s account.
What Is the Penalty for Stealing and Forging a Check?
An individual who is accused of check fraud may face conviction of several different criminal offenses. For instance, a person who is caught using a check that belongs to another individual could face a conviction of check forgery. The punishment for this is as follows:
- A maximum of 2 years in a state jail or prison
- Payment of a fine of up to $10,000.
Stealing a check or accepting a stolen check from another person is a Class A misdemeanor, punishable by:
- A maximum of 1 year in a county jail
- Payment of a fine of up to $4,000.
If an individual is convicted of check fraud for making use of the stolen identification documents of another individual, they could face additional charges of identity theft. Identity theft is a very serious offense that can be charged as a federal crime. The punishment could be incarceration for years in prison with mandatory restitution to anyone who suffered a loss because of the crime.
The exact punishment to which an individual is sentenced in any given case is going to depend on the exact crime with which they are charged and the punishment that the law prescribes for it. Then, their particular circumstances, e.g., whether they have a criminal record, is a factor that judges take into consideration. A consultation with a Texas lawyer would help an individual understand what the possible punishment would be in their particular case.
What Are the Legal Defenses for Check Fraud?
The main defense that a defendant might claim to a charge of check fraud would be that they have been misidentified as the perpetrator. Surveillance cameras and other video technology might have been used to identify an individual as the perpetrator. The individual might challenge the identification of them as the perpetrator.
What Can I Do if I Think I Have Been the Victim of Check Fraud?
An individual who believes that they have been the victim of check fraud wants to report the incident to law enforcement. They would also want to report the incident to the bank where the account from which funds were stolen by fraudulent means is located.
An individual who has been the victim of check fraud or identity theft might want to get legal advice regarding how to respond.
Do I Need a Lawyer for an Issue Involving Check Fraud?
If you have been the victim of check fraud, you want to talk to a Texas fraud lawyer. LegalMatch.com can connect you to a lawyer who can guide you in your response, including your reports to law enforcement and your dealings with your bank and any other entities that were involved.
If you have been charged with a check fraud offense, you too want to talk to a Texas fraud lawyer. Your lawyer can negotiate with the prosecution on your behalf and identify your defenses. Better results are likely if you consult an experienced Texas lawyer.
