San Diego Criminal Defense Lawyer Explains Check Fraud Laws in California:

What is Check Fraud?

Check Fraud is considered a type of Forgery. You could be charged if you:

1) make, pass, and/or publish (or attempt to)

2) a fake or altered check

3) with the “intend to defraud”

3) any other person(s) or financial intuition^[1]

“Intend to defraud” means that your purpose was to deceive another person(s) to gain money or to cause financial loss or damage.

For example, Joe is taking care of Bob’s house while he is out of town. While there, Joe decided he wants to have a party but needs money to do that. He takes Bob’s checks, makes a check out to himself, signing Bob’s name and cashes it in at the bank. In this situation, Joe could be facing Forgery charges due to Check Fraud.

What is the Bad Check Law?

In simple terms, the Bad Check Law says that it is against the law to write a check knowing it will not clear the bank, with the intent to defraud the recipient.[2]

For example, Mary and Bill know they are going to foreclose on their house. They liquidate their funds, emptying their bank account. When they pay the mortgage company, they use a check from that account, knowing that there are not enough funds in the account to cover the amount of the check.

How do I fight a charge of Check Fraud?

No two cases are exactly alike. By actively participating in your defense, you can help your lawyer develop a defense strategy. Defending your intent is often the first step in fighting a charge of Check Fraud. Another common defense is to prove that the document is not fraudulent.

It is not uncommon where the person charged with the Check Fraud is the real victim of a crime by being duped by the real criminal. For example, a person may claim to not have a bank account because of his illegal status in the country. He says he just got paid by a person with a check, but that he is unable to cash it because he lacks an account. So he asks you to cash it for him, and to compensate you for your help, he will give you a portion of the check. Next thing you know, you are being charged with Check Fraud for cashing the check. The prosecutor will have to prove that you knew or should have known that the check was forged. In this type of situation, it is imperative that you have witnesses and evidence to support your defense that you did not intend to defraud anyone—but that, as far as you knew, you were just trying to do this guy a favor.

What are the penalties of Check Fraud?    

Depending on the nature of the case (how many checks and the amount of money involved) and your criminal history, you may face either a misdemeanor or felony charge. A misdemeanor Forgery has a maximum sentence of no more than one year in the county jail[3], a fine of up to $1,000[4], informal probation and payment of restitution to the victim. For a felony Forgery charge, the maximum sentence would be 3 years in prison[5], a fine of up to a $10,000, formal or informal probation (if you are not sentenced to state prison), and payment of restitution to the victim.[6]