Is Falsifying Business Records a Felony in NY?
Falsifying business records is a serious offense in New York State, and it can carry significant legal consequences. As a business owner or manager, it is essential to understand the laws and regulations surrounding business record-keeping and the penalties for violating them.
What is Falsifying Business Records?
Falsifying business records refers to the act of intentionally altering, falsifying, or destroying records that are required by law to be kept accurate and complete. This can include financial records, invoices, receipts, and other documents that are used to record business transactions.
Is Falsifying Business Records a Felony in NY?
Yes, falsifying business records is a felony in New York State. According to Section 175.10 of the New York State Penal Law, "falsifying business records" is a class E felony.
Penalties for Falsifying Business Records in NY
The penalties for falsifying business records in NY can be severe and can include:
- Felony charges: Falsifying business records is a class E felony, which carries a maximum sentence of 4 years in prison.
- Criminal fines: In addition to imprisonment, individuals found guilty of falsifying business records can also be fined up to $5,000.
- Criminal forfeiture: The court can also order the forfeiture of any profits or property derived from the falsified records.
- Criminal restitution: The court can also order the individual to pay restitution to any party that was harmed by the falsified records.
Examples of Falsifying Business Records in NY
Some examples of falsifying business records in NY include:
- Falsifying financial records: Falsifying financial records, such as invoices or receipts, to hide or exaggerate business income or expenses.
- Destroying records: Destroying records that are required to be kept for a certain period of time, such as financial records or customer lists.
- Falsifying business documents: Falsifying business documents, such as contracts or receipts, to deceive customers, suppliers, or the government.
Consequences of Falsifying Business Records in NY
Falsifying business records in NY can have serious consequences, including:
- Criminal charges: Falsifying business records is a criminal offense, and individuals found guilty can face imprisonment, fines, and criminal forfeiture.
- Civil lawsuits: Victims of falsified records may also bring civil lawsuits against the individual or business responsible for the falsification.
- Loss of credibility: Falsifying business records can damage the credibility of the business and its owners, making it difficult to do business in the future.
- Regulatory action: Falsifying business records can also lead to regulatory action by government agencies, such as the New York State Department of Taxation and Finance or the New York State Department of Labor.
How to Avoid Falsifying Business Records in NY
To avoid falsifying business records in NY, businesses and individuals should:
- Keep accurate and complete records: Ensure that all records are accurate, complete, and up-to-date.
- Use secure storage: Store records in a secure and confidential manner to prevent unauthorized access or destruction.
- Use secure electronic storage: Use secure electronic storage solutions, such as cloud-based storage services, to ensure that electronic records are protected.
- Have a record retention policy: Establish a record retention policy that outlines the length of time records must be kept and how they will be destroyed or disposed of when they are no longer needed.
- Consult with a lawyer: Consult with a lawyer or accountant if you are unsure about any aspect of record-keeping or if you are concerned about the accuracy or completeness of your records.
Table: Penalties for Falsifying Business Records in NY
| Charge | Penalty |
|---|---|
| Class E Felony | Maximum sentence of 4 years in prison |
| Criminal Fine | Up to $5,000 |
| Criminal Forfeiture | Forfeiture of profits or property derived from falsified records |
| Criminal Restitution | Restitution to parties harmed by falsified records |
Conclusion
Falsifying business records is a serious offense in New York State, and it can carry significant legal consequences. Businesses and individuals must ensure that they keep accurate and complete records, use secure storage solutions, and have a record retention policy in place to avoid falsifying business records. If you are unsure about any aspect of record-keeping or if you are concerned about the accuracy or completeness of your records, consult with a lawyer or accountant to ensure compliance with New York State laws and regulations.
