Check Fraud

What is Check Fraud Under California Fraud Laws?

Check fraud involves creating, using, or passing a fake or altered check to deceive someone. The most common type is attempting to endorse or use a fake check to buy something. In California, various actions can lead to check fraud charges, including:

• Check theft—If you steal a check and try to deposit it or use it to pay for items, you will be committing check fraud. Signing someone else’s checks without permission can also lead to charges
• Paper hanging—Paper hanging occurs when someone writes checks from an account that has been closed
• Chemical alteration—This involves erasing information on a check with the intent to rewrite it for financial gain. You can still face charges even if your attempt to commit fraud fails
• Forgery—Writing a check without authorization is considered check fraud. This often happens in workplaces where employees write checks without their employer’s consent
• Money order fraud—This happens when you trick someone into giving you money for a money order, only to deposit the funds in another account
• Counterfeiting—This involves creating multiple fake checks to commit fraud
• Identity check theft—Identity check theft occurs when someone opens an account in another person’s name and writes checks from that account

If you face charges related to these actions, seek legal counsel immediately.

What the Prosecutor Needs to Prove For a Conviction

To be convicted of check fraud under California Penal Code 476, the prosecution must establish certain key elements beyond a reasonable doubt:

You Created, Passed, or Used a Fake Check

To use or present a fake check means you attempted to represent the check as real. This can be shown through your words or actions. The prosecutor must demonstrate that you had the check and planned to show it to someone else, such as an individual or a business.

You Were Aware that the Check Was Fake

To alter a check means adding, changing, or erasing information. A check from a non-existent account or one signed by someone without permission is also considered fake. If you were unaware that the check was false, you cannot be convicted of check fraud.

You Had the Intention of Defrauding

Another important point that the prosecutor must prove is that you meant to deceive the person you were paying. Defraud means gaining an advantage over someone through dishonest actions or false information.

According to California PC 476, proving guilt relies on intent. The prosecution cannot find you guilty if you did not intend to deceive. The prosecution must demonstrate that you aimed to mislead someone for financial gain. Even if your scheme did not succeed, simply having the intent to defraud can still lead to a conviction.

If the prosecutor does not prove these elements beyond a reasonable doubt, you may have an opportunity to challenge the charges and potentially avoid severe penalties.

Penalties for California Check Fraud Offenses

You will face forgery charges if you violate California PC 476’s provisions. Depending on the case’s specifics, check fraud charges can be felonies or misdemeanors. The amount of the fake check is one important factor to consider. If the check’s value exceeds $950, you could potentially face felony charges. You may face a misdemeanor charge if the check value does not exceed $950.

Your criminal history also plays a key role. California has strict laws for repeat offenders. You are more likely to face a felony if you have prior convictions for similar crimes or other serious offenses.  A felony conviction for check fraud may result in:

• A jail term of sixteen months to three years.
• Fines not exceeding $10,000.

If you receive a felony sentence, you will also lose your right to own or possess a firearm.

If charged with a misdemeanor, a conviction can lead to:

• A jail term of one year.
• Fines of up to $1,000.

Probation Sentence

Probation is a period of supervision that replaces jail time. It can be given in cases of check fraud, but whether a person receives probation after being convicted depends on the severity of the case and their past criminal record, if they have one.

For felony charges under Penal Code 476a(b), probation is formal, with a probation officer monitoring the individual. Misdemeanor charges under Penal Code 476a(a) are called informal or summary probation, and the person does not have a probation officer watching them.

Individuals must abide by certain guidelines to avoid facing further consequences while on probation. One of the conditions of probation could be serving a short jail sentence. House arrest or work release are common ways of completing this sentence. You could lose your probation and be returned to jail if you do not follow the rules.

Immigration Consequences

Being convicted under this law can lead to serious issues for immigration status. U.S. immigration laws state that certain criminal convictions may result in:

• A non-citizen facing deportation
• A non-citizen is labeled as “inadmissible.”

A court can determine that a forgery charge is a valid reason for deportation. Depending on the case’s specific details, a conviction for check fraud could harm immigration status.

Gun Ownership Rights

A conviction under this law may affect your right to own firearms. In California, individuals with felony convictions face a strict prohibition when it comes to firearms. If you are charged with a felony and subsequently found guilty, you will lose your right to purchase or own a gun.

Defending Against a California Check Fraud Charge

A conviction for check fraud can greatly affect your life. Therefore, you should seek help from a criminal lawyer. Here are some strategies you can consider to reduce your penalties, lessen charges, or even have the case dismissed:

You Did Not Intend to Defraud

Intent to defraud is a key part of check fraud. You must have intended to deceive and gain something from the act to violate California PC 476. If the prosecutor cannot prove your intent to defraud beyond a reasonable doubt, a conviction cannot occur.

Your defense attorney can investigate the details of your case to find evidence that you did not intend to commit fraud. Another way to demonstrate that you did not mean to defraud the check recipient is by arguing that you did not try to present the check as real.

You Did Not Know That The Document Was Falsified

You can only face charges for check fraud if you were aware that the document was fake or changed. As a defense, you can claim that you did not know the document was fraudulent. For example, you can use this defense if someone gives you a fake check and you try to cash it. Your charges might be dropped if you prove you did not know it was fake.

You Had Consent to Sign or Make Changes to the Check

The prosecution team must prove that you intended to deceive someone by using, passing, or creating a fake check to secure a conviction for check fraud. However, your actions are not fraudulent if you have permission to write or change the check. You can demonstrate to the court that you had the right to act as you did with help from a lawyer.

You Have Been Falsely Accused

It is possible to be wrongly accused of crimes, including check fraud. Sometimes, a simple mistake can lead to serious legal issues. Many individuals who commit check fraud try to avoid detection. As a result, you might face circumstantial evidence, or someone might accuse you out of spite. If you are facing false accusations, an experienced lawyer can help uncover the truth and assist you in avoiding a conviction.

The Check is Genuine

Sometimes, a legitimate check may be wrongly identified as fake. In your defense, you can ask for a proper check of the document or the bank account balance. If it is shown that the check you used is legitimate, your charges might be dropped.

You Did Not Present the Check as Being Genuine

The prosecution must prove that you tried to present a fake check as if it were real for you to be convicted. The check should closely resemble a legitimate document and be accepted as genuine. You can argue that the check you created, used, or passed was fake and that you did not expect anyone to take it seriously.

Not using the check cannot be a justification while preparing your defense. One key aspect of this crime is the intention to defraud. Therefore, you can still be convicted even if you did not have the chance to use it. Paying back the victim does not eliminate guilt. However, you can work towards having your charges reduced to attempted check fraud, which carries lighter penalties.

Expunging Check Fraud Convictions in California

If you receive a conviction for check fraud, it usually becomes public information. This could impact your opportunities with potential employers and result in job rejections. Having a felony conviction can also make it hard to obtain a professional license or enroll in a good school. Luckily, you can lessen the negative effects of the conviction by filing a petition to expunge it.

An expungement will remove the consequences linked to the conviction. If you successfully expunge your record, employers cannot use it against you when hiring. You can also answer “no” if asked about previous crimes truthfully. Pursuing an expungement is a smart move to prevent lasting effects from your conviction.

You qualify for expungement if you were convicted of a felony or misdemeanor and completed your probation. Even convicted individuals who did not receive probation may be eligible for expungement. Completing probation means you have met all conditions, which may include paying fines, counseling, and restitution.

After finishing your probation, you should petition the court for an expungement. The time it takes for the court to expunge your record can vary. However, an experienced attorney can help speed up the process by submitting the necessary documents. Once your conviction is expunged, records will still show that you were arrested and convicted, but they will indicate that your conviction was dismissed.

Related Offenses

In California, various actions fall under check fraud. Some offenses are connected to CPC 476 but are categorized under different penal codes, carrying distinct penalties. You may be charged with these crimes either instead of or alongside check fraud. Related crimes include:

Forgery Under PC 470

You commit forgery by engaging in activities meant to deceive for financial gain, such as:

1. Changing legal documents—This applies only to legal documents. The prosecutor must prove that you altered a document intending to use it legally
2. Falsifying an official seal—A seal makes a document legal, so altering it is considered forgery
3. Presenting fake documents—If you try to pass off a fake document as real for financial benefit, you can be charged with forgery.
4. Signing someone else’s name—The prosecutor must show that you signed a legal document without the owner’s permission.

If you write or change a check and claim it is genuine, you may face charges for either forgery or check fraud. The prosecutor must demonstrate your intent to defraud. If they cannot establish this intent, you cannot be convicted.

Forgery can be classified as either a felony or a misdemeanor, depending on the details of your case and your criminal record. It is treated as a misdemeanor if:

• The forged document is worth less than $950
• You have not committed identity theft
• You do not have a serious felony or sex crime record

Forgery is a felony that can carry a potential three-year prison sentence and fines up to $10,000. A misdemeanor conviction results in a maximum one-year jail sentence and a fine not exceeding $1,000. The court may also require you to compensate the victim for their losses.

Grand Theft Charges

According to California Penal Code 487, grand theft involves unlawfully taking someone else’s property worth $950 or more. If you write or present a fake check that causes a loss of $950 or more, you may face grand theft charges and check fraud. Being convicted of both can lead to a lengthy jail sentence.

Grand theft can also be classified as a felony or misdemeanor. If charged as a misdemeanor, the penalty can be a one-year jail sentence. However, if you are a repeat offender or the circumstances are aggravated, you may face felony charges, leading to a maximum three-year jail sentence.

A felony conviction has further consequences. If you or someone you know is facing theft charges and check fraud, it is crucial to seek skilled legal help.

Writing Bad Checks

Writing bad checks occurs when you issue a check, knowing insufficient funds to cover it. To convict you under California Penal Code 476(a), the prosecutor must show that you wrote the check either for yourself or as an agent and that you were aware of the lack of funds.

Typically, this violation is charged as a misdemeanor if the check is worth $950 or less, leading to a one-year jail sentence.

If you write a bad check for $950 or more or have a history of forgery or other fraud crimes, you may face felony charges. A felony conviction for writing bad checks can result in a three-year prison sentence and possible restitution to the victims.

Intent to defraud is key for the prosecution. You cannot be convicted without evidence of your fraudulent intent. Depending on the specifics of your situation, you may be charged with either writing a bad check or check fraud.

Petty Theft

Under CPC 488, petty theft is the unlawful taking of property worth less than $950. If you commit check fraud involving $950 or less, you might face petty theft charges and check fraud. For a petty theft conviction, the prosecutor must prove:

• You took someone else’s property.
• You did not have the owner’s permission.
• You intended to deprive the owner of the property.
• The value of the property was $950 or less.

Petty theft is always a misdemeanor. If convicted, you may face a one-year jail sentence and a fine of up to $1,000. In some cases, the court may allow informal probation as an alternative to jail time, meaning you could spend part of the sentence in jail and the rest under probation.

Check Fraud Frequently Asked Questions

The following are some of the frequently asked questions about check fraud.

Will I be charged with fraud if I try to return or repay money taken with a false check?

Returning the money or property taken with a fake check is not a legal defense against check fraud charges. You can still be held legally responsible for the crime of forgery. However, making restitution to the victim quickly, ideally through your lawyer, can be seen as a mitigating factor. This may help you receive a lighter sentence.

Will I Face Check Fraud Charges For Using a Fake Check If No One Was Defrauded?

The law does not require that anyone be defrauded or experience a financial or property loss. As soon as you alter a check or attempt to use it fraudulently, you become liable for check fraud.

Can The Charges Be Lowered?

Depending on your situation, the check fraud charge can be changed to attempted check fraud. According to California Penal Code Section 664, if you attempt a crime but do not complete it, the potential punishment is half what it would have been for the completed crime. For instance, if the maximum penalty for a check fraud conviction is three years in state prison, the maximum sentence for attempted check fraud would be reduced to eighteen months.

Can I still face charges if I only possess the fake check and do not make or change it?

Simply having or receiving a forged check can lead to criminal charges if it can be proven that you intended to use it to commit fraud. This rule applies even to blank or incomplete checks. It is unnecessary to prove that you planned to fill out the incomplete check; it is enough to show that you were aware of the check’s fraudulent purpose.

What If The Check I Tried To Use Was Fake, And No One Could Take It Seriously?

If the fake check is so obviously false that no one could realistically be tricked by it, just being fake is not enough for a check fraud conviction. This crime requires that the check not only be false but also appear credible.