How to Fight a Check Fraud Charge in NJ
Handling Check Fraud Charges in Bergen County Superior Court, Hackensack NJ
Under New Jersey Law, check fraud, often referred to as “issuing back checks,” can be considered a second, third, or fourth degree crime, as well as a disorderly persons offense, depending on the circumstances of the specific case. The degree of the charges against a given defendant is contingent upon the amount associated with the check or money order involved in the alleged crime. For example, any fraudulent check issued in an amount above $200 will result in an indictable felony charge against the accused. The specific degree of the felony-level offense is then determined by the monetary range within which the check amount falls. These ranges are provided in more detail below.
Call The Tormey Law Firm anytime at (201)-556-1570 for a free consultation with one of the firm’s skilled criminal defense attorneys. We are happy to discuss your case, answer your pressing questions, and if you choose to obtain further services, you can move forward with confidence and a dedicated defender on your side.
Check Fraud Charges in NJ: N.J.S.A. 2C:21-5
The New Jersey Criminal Code addresses the crime of check fraud or “issuing bad checks” in Statute N.J.S.A. 2C:21-5, which dictates:
A person who issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee, commits an offense as provided for in subsection c. of this section. For the purposes of this section as well as in any prosecution for theft committed by means of a bad check, an issuer is presumed to know that the check or money order (other than a post-dated check or order) would not be paid, if:
a) The issuer had no account with the drawee at the time the check or order was issued; or
b) Payment was refused by the drawee for lack of funds, or due to a closed account, after a deposit by the payee into a bank for collection or after presentation to the drawee within 46 days after issue, and the issuer failed to make good within 10 days after receiving notice of that refusal or after notice has been sent to the issuer’s last known address. Notice of refusal may be given to the issuer orally or in writing in any reasonable manner by any person.
c) An offense under this section is:
1) A crime of the second degree if the check or money order is $75,000.00 or more;
2) A crime of the third degree if the check or money order is $1,000.00 or more but is less than $75,000.00;
3) A crime of the fourth degree if the check or money order is $200.00 or more but is less than $1,000.00;
4) A disorderly persons offense if the check or money order is less than $200.00.
What is Required to Prove Check Fraud in NJ?
Bouncing a check is common but can have devastating consequences. While most people do not realize they wrote a check from an overdrawn bank account, others do know the check they pay for goods, services, or debts is bad. If you purchase items with insufficient funds in your bank to cover a check, the state may charge you with check fraud. New Jersey law defines check fraud in N.J.S.A. 2C:21-5 as passing a check for money payment, knowing that the bank obligated to pay on that check account number will not pay the draft. Check fraud includes stopping payment on a check with the intent to defraud another. The law presumes the one tendering the check knows the check is bad if they did not have an account with the bank listed on the check, or they failed to make the check good after ten days of being notified that the check was bad. The check recipient must have deposited the check within 46 days of its issue.
Again, a prosecutor must prove you knew you wrote a bad check. Without compelling proof, they cannot convict you. To prove check fraud, a prosecutor must prove that you wrote a check to someone who tried to cash it within a month and a half from the time you wrote it, but your bank did not pay out on the check due to insufficient funds. Once that happens, the check recipient notifies the check writer of the bank’s refusal to pay the check. The check writer then has ten days to make the bank draft good. Once ten days pass, the payee and a prosecutor can assume you meant to write a bad check.
What are the Potential Penalties Associated with a Conviction for Check Fraud?
Check fraud is a crime under New Jersey law. As stated above, the potential penalties to which a given defendant may be subject depend on the degree of the charges against him or her. New Jersey law penalizes check fraud according to the check amount. If the check amount is less than $200.00, the state may charge you with a disorderly persons offense. For bad checks over $200.00 but less than $1,000.00, the writer faces a fourth degree indictable crime. The next tier is the $1,000.00 to $75,000.00 range, which is a third degree crime. For all amounts above $75,000.00, you are looking at a second degree criminal charge, which is the most severe form of check fraud, with the most serious corresponding penalties. In New Jersey, the penalties for violating N.J.S.A. 2C:21-5 are as follows:
° Second Degree Check Fraud : term of incarceration ranging from 5 to 10 years in New Jersey State Prison
° Third Degree Check Fraud: term of incarceration ranging from 3 to 5 years in New Jersey State Prison
° Fourth Degree Check Fraud: maximum sentence of 18 months to be served in New Jersey State Prison and a fine of up to $10,000
° Disorderly Persons Offense for Check Fraud: maximum sentence of 6 months to be served in the county jail and a fine of up to $1,000
Defense Strategies to Beat Check Fraud Charges
Aside from delaying the check deposit, the payee may make mistakes that prevent a check fraud conviction. For example, if they accepted a check with the wrong signatures on it or sent the bounced check notice to the incorrect address and you never received it, you may not be convicted of check fraud. Also, the bank can play a part in your defense. If the bank did not honor your check when they should have, they might be responsible for the check bouncing, not you. Banks sometimes put holds on bank drafts over a certain amount but pay the check after the hold period ends, assuming there are funds to cover the check. When the bank fails to honor the check after the hold period ends, the bank usually is in error. Finally, a post-dated check that the recipient knew was post-dated should not be deposited before that date. If it is, they cannot complain if the check bounces. And, if you did not know that your check would bounce, a talented criminal defense lawyer may be able to show that you did not intend to commit fraud.
Frequently Asked Questions (FAQ) regarding check fraud in New Jersey
FAQ: Is check fraud a felony in New Jersey? In any amount over $200, yes. Otherwise, it it is under $200, this is a disorderly persons offense (misdemeanor).
FAQ: If I’m convicted of check fraud will this go on my criminal record? Yes, this will appear on a criminal case history (CCH). Check fraud is either a disorderly persons offense or an indictable crime, depending on the check amount. A conviction for either type of charge means a criminal record. You may be able to expunge (remove) it from your record after a period of time depending on what else is on your record.
FAQ: If I’m convicted of check fraud, am I going to jail? In most cases, no, but it depends on the degree of your check fraud charges and your prior criminal record, among other factors. Typically, one bounced check may cost you penalties and fees over the check amount unless this is not your first bounced check. A history of bad checks or a higher amount may increase your chances of going to jail or prison.
FAQ: Am I eligible for a first offender program like PTI or a conditional dismissal on my check fraud charges? Yes, if you have no prior criminal history and you have never used a first offender diversionary program before.
FAQ: Will I lose my job due to a check fraud conviction? Some employers require that you have no criminal convictions on your record as a condition of employment. Even if your current job is not in jeopardy, however, a future employer may view a check fraud conviction as a sign that you are not honest or trustworthy, and so, they may not hire you. In addition, the application for licenses for jobs as police officers, lawyers, nurses, doctors, paralegals, attorneys, accountants, financial planners, and teachers requires you to list all criminal convictions. As a result, background checks that reveal a check fraud conviction may stand in the way of your career.