California's Check Fraud Laws - What You Need to Know (2024)

Check fraud is one of the most prominent forms of fraud in the United States. This is partly due to the increased sophistication and availability of technology such as scanners and certain types of computer software.

Check fraud is the use of a check to obtain money illegally, either from a bank account or financial institution to which the check writer is not entitled. This can include, but is not limited to, writing a check, cashier’s check or money order with insufficient funds, or for goods or services that were never received.

In California, check fraud falls under California Penal Code 476 PC. Charges under 476 PC are quite serious and the penalties, if convicted, are severe. If you have been accused of committing check fraud in California, you need to contact a criminal defense attorney who can represent you.

What is Check Fraud?

In California, check fraud refers tothe making, possession, passing on, or use of a false or altered check to be used as payment, or the attempt to do any of the above. Additionally, in order to be convicted of check fraud, the prosecutor must prove that you committed the fraudulent activity knowingly and intentionally.

The most frequent form of check fraud in California is the signing or endorsem*nt of a check with another person’s name without his or her permission, but check fraud can take many other forms including:

• False fabrication of checks
• Altering the routing numbers on a check
• Changing the dollar amount on a check

Fictitious or “Fake” Checks

In California, it is illegal to make, possess, pass on, or use fake checks. This could include making computer generated checks, using a check from a non-existent bank or using a check endorsed by a non-existent person.

Using checks from closed accounts does not necessarily constitute passing bad checks. The following examples provide a bit more clarification:

Example 1: Ellen fabricates computer-generated checks using publishing software. When she attempts to cash one of the checks at the grocery store, the account comes up “closed” and the store manager notifies the authorities. Ellen is charged with violating Penal Code 476 for her fake check scam.

Example 2: Ellen attempts to pay for her groceries at the store with a check from an account of hers that was recently closed. The account comes up “closed” and the store manager notifies the authorities. Although Ellen may be subject to penalties covered by other statutes, she is not charged with violating Penal Code 476 because, although the account has been closed, the bank they were drawn from is real, Ellen was an account holder at the financial institution, and Ellen is an existing person.

Altered Checks

You are guilty of check tampering when you erase, change, or add to part of a check in such a way that it appears different from its original form and is changed in its legal effect. This can include include:

• Altering the dollar amount. For example, changing a $50 check to a $500 check by adding an extra “0” to the dollar amount.
• Altering the routing number, account number or check number
• Altering the date on a check. For example, changing the date on a post-dated check so that it reads as an earlier date.

Cashier’s Checks and Money Order Fraud

In California, check fraud also encompasses money orders, money transfer service and cashier’s checks. A money order is effectively the same as a check, but instead of being drawn on a bank account, it is prepaid. You can buy a money order at most post offices, some grocery stores, and check cashing businesses.

Cashier’s checks are a form of check that is drawn on the account of a financial institution, such as a bank. The check is made out to a specific person or business and is often used to pay for goods or services. Cashier’s checks can also be used for wire transfers.

Intent to defraud

“Intent to defraud” (also known as “Fraudulent intent”) requires that you intended to deceive another person out of money or property and must be proven by the prosecutor in order for you to be convicted of check fraud. However, in order to be convicted of a scheme to commit check fraud, no one actually has to suffer any loss or be defrauded. In other words, attempted check fraud is still check fraud.

You only need to have intended to unlawfully gain from the fraudulent activity in order to be guilty of check fraud. In addition to representing a fraudulent check as though it is real and genuine, you must also have knowledge that the check is fraudulent in order to be convicted of check fraud. If, for example, someone pays you with a fake check and you attempt to cash it, believing that it is real, it is the person who knowingly gave you the fake check and not you who is guilty of fraud as you had no knowledge and no fraudulent intent.

Below are descriptions of some offenses that, while similar or related to Penal Code 476 PC, fall under different penal codes and may carry different penalties.

Forgery – Penal Code 470 PC

California’s forgery law prohibits having the intent to defraud when:

• Signing the name of another person without his or her consent or signing a name of a person who does not exist on an applicable document
• Altering a will, deed, or court judgment
• Forging the handwriting or seal of another person

While signing another person’s name on a check is a type of forgery and you could be charged under Penal Code 470 PCorPenal Code 476 PC, forgery applies to a much broader category of documents than check fraud does. Forgery carries the same penalties as check fraud, outlined in more detail below.

Bad Checks – Penal Code 476a PC

You are guilty of violating California’s bad checks law if you write or pass a check with the knowledge that there are insufficient funds in the account to cover the amount of the check. As with check fraud, you must have the intent to commit fraud to be guilty of violating Penal Code 476a PC.

Grand Theft – Penal Code 487 PC

California’s grand theft law prohibits stealing money or property exceeding a value of $950. This includes making or passing a fraudulent check exceeding $950, or using a fraudulent check exceeding $950 by cashing it or exchanging it for goods.

In California, grand theft is a “wobbler” offense which means that it can be prosecuted as either a misdemeanor or a felony.

Petty Theft

Theft of money or goods with a value of less than $950 is considered petty theft in the state of California. You could be charged with petty theft in addition to check fraud if you obtain money or goods with a fake or altered check. Petty theft is a misdemeanor and the penalties if convicted include 6 months in jail and a fine of up to $1,000.

Penalties for a Check Fraud Conviction in California

In California, check fraud is a “wobbler” offense, which means that it can be charged as either a misdemeanor or a felony depending on the facts of the case and the defendant’s criminal history. However, if the value of a forged check exceeds $950andthe defendant is also convicted of violating Penal Code 530.5 PCidentity theft, then the check fraud can only be prosecuted as a felony.

If charged as a misdemeanor, potential penalties include:

• Up to 1 year in county jail
• A fine of up to $1,000

If treated as felony check fraud, potential penalties include

• Probation and up to 1 year in county jail, or
• 16 months, 2 years, or 3 years in county jail, and/or
• A fine of up to $10,000

Immigration Consequences

Check fraud may be considered an aggravated felony under United States immigration laws. If you are not a U.S. citizen, a check fraud conviction on your criminal record could have serious effects on your immigration status and it is critical that you consult with a criminal defense or immigration attorney. If convicted, you may be subject to deportation, denial of naturalization, or exclusion of admission to the United States.

Legal Defenses

Depending on the details of your case, there are several defense strategies that your attorney may use to defend you against Penal Code 476 PC charges. A few of these strategies are detailed below.

No Fraudulent Intent

You cannot be convicted of fraud in California unless it can be proven that you intended to commit fraud. If, for example, you pass a fake check without realizing that is is fake, then you are not guilty of fraud. If you had no intention of deceiving another person in order to gain money, goods, or services, then your attorney may choose to demonstrate that you lacked fraudulent intent.

Consent

There are some circ*mstances where altering a check is not considered fraud. It is not illegal to make alterations to a check or sign another person’s name to a check if you had permission to do so from the person who had the authority to grant that permission. If you are able to prove that you had consent to sign a check or make alterations, you cannot be convicted of violating Penal Code 476 PC.

Lack of Knowledge

Similar to the “lack if intent” defense, lack of knowledge requires that you are aware of the fact that you are attempting to use or pass a check that is fraudulent. If, as in one of the examples we saw in a previous section, you are paid by another party with a counterfeit check and attempt to cash the check with no knowledge of its fraudulence, you are not the party who has committed fraud and should not be convicted of violating Penal Code 476 PC.

California Check Fraud Attorney

The penalties for check fraud in California are severe. If you are facing check fraud charges, you need to have a tough and knowledgeable criminal defense attorney on your side. As a California defense attorney with over 30 years of experience, I can build the best defense for you based on the details of your case. Call today for a free case review – 800-834-6434.