Is Check Fraud a Federal Offense?
Check fraud is a serious crime that can lead to severe legal consequences for those who engage in such activities. In this article, we will explore the answer to the question Is check fraud a Federal offense? and delve into the details of this type of fraud.
Is check fraud a Federal offense?
Yes, check fraud is a Federal offense and can be prosecuted under specific Federal laws. The law enforcement agencies, such as the Federal Bureau of Investigation (FBI), has jurisdiction over Federal check fraud cases.
Federal Law
The United States Mail Fraud Statute (15 U.S.C. Section 1302) regulates check fraud. This Statute makes it illegal for anyone to use the "mail or any other facility within the jurisdiction of the Government" to commit fraud schemes, including check fraud. The statute states that
"Whoever, having devised or intending so to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell or dispose of, or of attempting to sell or dispose of, or to effect any transaction involving any shares of stock or other opportunity, or to obtain for himself or herself, as the case may be, any money, property or other thing of value, by means of false or fraudulent pretenses, representations, or promise, or by means of any other fraudulent device,"
can be investigated and prosecuted by federal authorities.
Other Related Federal Laws
In addition to the Mail Fraud Statute, other Federal laws also address check fraud.
- The Check Cashing Act (8 U.S.C. Chapter 7): This Statute regulates the cashing of checks and makes it illegal to cash a worthless check.
- The Electronic Fund Transfer Act (EFTA) (12 U.S.C. section 1693 et. seq.): This Statue regulates electronic fund transfers (EFTs) including checks, debit cards and credit cards.
- The Identity Theft and Restoration Act (18 U.S.C. section 1028 et. seq.): This Statue made it illegal to use one’s identity to commit federal crimes, including check fraud.
Penalties and Sentencing
Check fraud is a serious crime punishable by Federal law. Sentencing guidelines are outlined under the Sentencing Commission Guidelines. The United States Sentencing Commission (USCS) is responsible for defining the sentencing ranges for federally prosecuted crimes, including those related to check fraud. The penalties for check fraud can include:
- *Fines**: Up to $1 million or fine equivalent to twice the sum involved in the fraud in the case of an aggregate amount of loss exceeding the greater of $1.5 million or the maximum amounts set forth in 10 U.S.C. paragraph 284(c)(13).
- *Imprisonment**: Up to 20 years in the case of an aggregate loss exceeding the greater of the maximum amounts set forth in 10 U.S.C. paragraph 284(a)(1) or of $1.5 million.
- *Restoration**: The court may restore the victim’s losses at the time of sentencing as part of the sentence in the case of an asset forfeiture.
State law
While Federal law regulations check fraud, check fraud is also a misdemeanor or felony under state laws. The specific sentences and penalties for check fraud vary by state. Some states may have special laws or procedures for punishing check fraud.
The following table provides an outline of the types of State laws related to check fraud:
| State/Law | Section | Description of Law |
|---|---|---|
| California | PC 475 | Forgery and Passing of Checks |
| Florida | 732.09 | Forgery and Uttering of Foreign Checks |
| Massachusetts | M.C. 265.08 | Forgery and Similar Offenses |
| Illinois | 17-27-1 | Forgery and Uttering of Writing |
| Texas | Forgery and Passing Bad Checks |
Conclusion
In conclusion, check fraud is a Federal offense covered under specific Federal laws including the Mail Fraud Statute, the Check Cashing Act, the Electronic Fund Transfer Act, and other related laws. The specific penalties and sentencing guidelines also vary by Federal law but can include fines, imprisonment, and restoration of damages. Additionally, check fraud is also a misdemeanor or felony under state laws that vary by jurisdiction. In order to avoid legal ramifications, it is essential that individuals and businesses take diligent measures to prevent and respond to check fraud. By understanding the laws regarding check fraud, individuals can better protect themselves and safeguard their financial assets.
