Scheme to Defraud in New York

The Legal Definition of Scheme to Defraud in New York

Article 190.60, 190.65, 190.70, and 195.20 sets out the legal definition of Scheme to Defraud in New York. Below we will discuss the elements of:

Misdemeanors

New York Penal Law § 190.60 – Scheme to Defraud in the Second Degree
New York Penal Law § 190.70 – Scheme to Defraud by Unlawfully Selling Prescriptions

Felonies

New York Penal Law § 190.65 – Scheme to Defraud in the First Degree
New York Penal Law § 195.2 – Defrauding the Government

Examples

The following are examples of situations where charges of scheme to defraud in New York may be filed:

The defendant fooled individuals into giving them some form of property. An example includes an investment scheme.
The individual being defended defrauded an elderly person. For example, they called them and schemed them out of thousands of dollars.

“Elements” of Scheme to Defraud in New York

The “elements” of Scheme to Defraud in New York are the things that the prosecutor must prove for you to be found guilty of this offense. For a defendant to be convicted in a criminal trial for Scheme to Defraud in New York, all of the following must be true:

Creating Reasonable Doubt: The prosecution must prove the approximate date, time, and whereabouts of the defendant.
Specific Intent: Their course of conduct must be proven as a scheme that was systematic and ongoing.
The Burden of Proof: The defendant must be proven to have had the intent to defraud more than one individual, or have obtained property from more than one individual under false pretenses, promises, or representations.
Material Evidence: The prosecution must be able to identify the property, as well as one or more of the people from whom the defendant allegedly obtained it.

Let’s delve a bit more deeply into these elements of the crime of assault to understand their meaning better.

Element #1: Creating Reasonable Doubt

The definition of creating reasonable doubt is when evidence and arguments are presented during a criminal case the prove facts. Streep v. the United States, 160 U.S. 128 (1895)

When you hear that the case should be proven beyond a reasonable doubt, the prosecution is faced with showing the burden of proof. Therefore, the defense must present clear and convincing evidence that imparts doubt in the judge or jury’s minds.

For example, David is in court with his attorney and, during arguments, his attorney states that he was in Nassau County the third weekend of March at his daughter’s house. His attorney was attempting to prove the approximate date of his location while setting up a timeline.

Element #2: Specific Intent

The definition of specific intent is the defendant systematically set out to commit this crime during an ongoing basis despite knowing it was unlawful. 25 Defendants Charged In Manhattan Federal Court With Multimillion-Dollar Wire Fraud And Money Laundering Scheme

Specific intent means the individual who is standing accused meant to commit the crime for a particular time frame even though they knew it was against the law.

For example, Jessica and Phillip decided to pose as IRS agents and call people in their aging community. They said they needed to wire funds to an account or risk imprisonment. The two worked on this scheme for several weeks until they were caught.

Element #3: Burden of Proof

The definition of burden of proof is when credible or convincing evidence is provided that provides reasonable doubt with the judge or jury. People v Gross.

The burden of proof means attorneys must use documents, witness testimonies, and evidentiary objects to help prove their case.

For example, Brady decided to pose as the landlord’s assistant at an apartment complex where he knew the property owner was away. He collected rental payments and left the state. Brady knew what he was doing was against the law. He wanted a quick way to get cash.

Element #4: Material Evidence

The definition of material evidence is fact, matters, or property that’s admitted to using to prove or disprove issues during a court case. In Narrow Decision, Court Holds Dishonorably Discharged Veterans May be Denied Gun (and Bullet) Ownership.

Describe the element in your own words. Material evidence is when an attorney present items or witnesses to help prove their case.

For example, Aaron showed up to court as a witness for his company who was defrauded by the defendant. Aaron brought several examples of business documents falsified by the defendant.

What are the federal statutes?

When you start researching the federal laws for a Scheme to Defraud in New York, the first U.S. Code you’ll come across is under Title 18: § 1346. Definition of ‘‘scheme or artifice to defraud.’’

There it explains that the term means that, when this act occurs, another is being deprived of honest services that are intangible. Further research will bring you to the United States Department of Justice’s Criminal Resource Manual: 942. The Scheme and Artifice to Defraud.
Initially intended to implicate those who were committing wire and mail fraud, this definition has further evolved. It now includes the act of embezzlement, as well as obtaining another individual’s property using schemes or dishonest methods.

Creating reasonable doubt: it’s the attorney’s responsibility to prove the location, as well as approximate date and time of their whereabouts.
Specific intent: the defendant must have been shown to have worked in a systematic manner that’s proven to have been on-going.
The burden of proof: those who stand accused must have defrauded more than one individual. It must also be proven that they were working under false pretenses, representations, or promises when obtaining property.
Material evidence: the property the defendant allegedly obtained must be identified, as well as one or more individual from which it was obtained.

Let’s delve a bit more deeply into these elements of the crime of assault to understand their meaning better.

Element #1: Creating Reasonable Doubt

The definition of creating reasonable doubt is when evidence and arguments are presented during a criminal case the prove facts. Man pleads guilty to wire fraud in a scheme with a deputy to steal from the insurance company.

For example, Bruce’s attorney states he was at work during the alleged crime and produces timecards to prove the date and time of his whereabouts. Had Bruce called in sick that day, his attorney wouldn’t have been able to create reasonable doubt using that tactic.

Element #2: Specific Intent

The definition of specific intent is the defendant systematically set out to commit this crime during an ongoing basis despite knowing it was unlawful. 7 indicted in A scheme to defraud banks of $1 million.

Specific intent means the individual who is standing accused meant to commit the crime for a particular time frame even though they knew it was against the law.

For example, Susan convinced her co-worker to use the petty cash fund to write checks to each other for bogus expenses every week. Because her co-worker worked in the accounting department and was in charge of writing checks, no one caught on for a long time. Once they did, the two employees faced felony charges.

Element #3: Burden of Proof

The definition of burden of proof is when credible or convincing evidence is provided that provides reasonable doubt with the judge or jury. Nigerian nationals are facing charges in bitcoin scheme that defrauded victims in Oregon, California.

The burden of proof means attorneys must use documents, witness testimonies, and evidentiary objects to help prove their case.

For example, Stephen figured out how to send phony emails that looked like they were from credit card agencies stating payments were delinquent. When the individual clicked the link, payments were sent to his account. It was Stephen’s attorney’s responsibility to prove how he did this and how many people he defrauded.

Element #4: Material Evidence

The definition of material evidence is fact, matters, or property that’s admitted to using to prove or disprove issues during a court case. Feds Charge 24 In Alleged $1.2 Billion Medicare Fraud Scheme.

Material evidence is when an attorney present items or witnesses to help prove their case.

For example, Charlie appeared as a witness for the prosecution. He was proving that he received fraudulent investment documents from the defense. Charlie brought other witnesses with him, as well as documents, to support his testimony.

Related Offenses

Charges of Scheme to Defraud in New York may be brought in addition to, or in place of, charges for certain other related offenses, including:

Related Offense #1: Grand Larceny

The definition of grand larceny is defined differently from state to state. In New York, under Article 155.0, it means that someone is taking another individual’s property without the use of force either permanently or for a lengthy period of time.

Someone can be committing grand larceny if they’re acquiring lost property, issuing bad checks, making false promises, or extorting other individuals.

For example, Bridgette paid her employees and vendors with checks she knew they couldn’t cash because they were drawn off of an account that didn’t exist. She held funds from these employees for a month before issuing the bad checks.

Related Offense #2: Criminal Possession of Stolen Property

The definition of criminal possession of the stolen property is found under Article 165.

There, you’ll see defendants can be charged with criminal possession of the stolen property corroboration, no defense, presumptions, in the first degree, in the second degree, in the third degree, in the fourth degree, and the fifth degree. These are Articles 165.40 to 165.65 under the state of New York law.

So, when someone is found guilty of criminal possession of the stolen property, it’s when they knowingly possess this property with the intent of benefiting themselves.

For example, Kerry is a homeowner in a large city and has a large attached garage. Her friend Nick asked her to hold items for her every month in exchange for a sum of money.

Kerry knew the items she was storing for Nick were stolen. However, she didn’t think she’d get caught because she lived in a good neighborhood. She also liked the money she accepted from him.

Related Offense #3: Criminal Possession of a Forged Instrument

The definition of criminal possession of a forged instrument is found under Article 170 of the state of New York’s law.

When you look at these articles, you’ll see that defendants be charged with criminal possession of a forged instrument no defense, in the first degree, in the second degree, and the third degree. These are all found between articles 170.20 and 170.35.

Those who are accused of being in possession of a forged instrument know it’s forged, have the intent to defraud another individual and may have participated in the forgery.

For example, Beth works at a check cashing company and, instead of processing unsigned checks, she gives them to her friend to sign and cash for her. Her friend knows this is stolen property and that she’s going to be committing forgery, but she’s getting a share of the funds, so she does it anyway.

Related Offense #4: Forgery

The definition of forgery is found under article 170 of the state of New York’s law.

The term forgery can be defined as a written instrument, a complete written instrument, a “falsely” mistake, a falsely alter, a forged instrument, and an electronic access device under this article. Those standing accused can face charges in the first, second, and third degree.

So, if someone is signing a check or credit card slip using another individual’s signature, they’re committing forgery. The same is true if they’re signing legal documents such as tax forms or a will.

For example, George signed his father’s name, George Sr., on the documents for the sale of the property. His father owned the property and was in the hospital. George took his father’s extended stay as an opportunity to cash in on real estate he believed was owed to him.

Essential and Impactful Cases:

How These Cases Further Define the Written Statute:

These cases further define Scheme to Defraud in New York under Article 190 and 195 because they all occurred within the past year and provide examples of how attorneys must test elements to prove cases.

Each case involves either an individual acting alone or people working together to scheme in a manner by which a company or other individuals experience losses.

How These Cases Have an Impact on the Defense and Clients

It’s part of the attorney’s responsibility to prove their client’s innocence beyond a reasonable doubt. They do this by testing the elements involved in the case, including reasonable doubt, specific intent, the burden of proof, and material evidence.

The main reason is that, when someone is standing accused of Scheme to Defraud in New York, it’s because they found benefits or financial gain as a result of someone else’s loss. Attorneys work in a manner by which their clients are innocent until proven guilty.

However, in cases like the business owner admitting to scheming to defraud a company out of millions, the lawyer will work in a manner that is in everyone’s best interests.

Entities involved in detection, investigation, and prosecution:

New York’s Department of Investigation
New York State Attorney General
Office of the New York State Comptroller – Investigations
New York State Police Department – Special Investigations Unit

What is the prosecution like?

It’s the prosecution’s responsibility to use the elements of criminal intent to prove the defendant is guilty. In doing so, they’re attempting to prove beyond a reasonable doubt they’re working to Scheme to Defraud in New York. They’ll use tactics including proving specific intent, as well as finding material evidence to support their case.

Do government agencies collaborate with local agencies?

Yes.

What specific type of wrongdoing are they interested in preventing?

Local and government agencies are working toward preventing individuals from defrauding each other. They’re also working toward ensuring related criminal activities aren’t occurring, either, including forgery, grand larceny, or criminal possession of a forged instrument, for example.

Penalties for Violating Article 190 or 195

Scheme to Defraud in New York under Articles 190.60 and 190.70 is a misdemeanor. The potential penalties include:

The penalties for Scheme to Defraud in New York in most cases include:

a fine that’s determined by the judge; and/or
Imprisonment for up to twelve months.

Scheme to Defraud in New York under Articles 190.65 and 195.2 is a felony. The potential penalties include:

The penalties for Scheme to Defraud in New York in most cases include:

a fine between $5,000 and $10,000; and/or
Imprisonment for up to four years.

Sentencing Enhancements

The penalties for Scheme to Defraud in New York are steeper if (describe actions that may lead to a sentencing enhancement.)

Specifically, you face heightened penalties if you:

Commit more than one crime and have multiple charges filed against you.
Work with others to help you commit the scheme to defraud.
It’s proven that you were working on an ongoing basis.
Witnesses can speak against you for the prosecution regarding your actions.

If your case falls into one of these categories—and you knew or reasonably should have known that they did—then the maximum sentence will increase to four years per charge.

The maximum fine for Scheme to Defraud in New York also increases to an amount determined by the judge.

What are some of the additional consequences of being convicted?

If individuals are facing misdemeanor charges, they are easier from which to recoup. The main reason is there are lower fines and less jail time involved. Under some circumstances, instead of going to jail, those convicted may serve community service time instead.

However, they’ll still experience a tarnishment of their reputation, as well as the loss of income from fighting their case. Those who are facing felony charges will experience a much different outcome regarding committing a Scheme to Defraud in New York. In addition to tarnishment to their reputation, they’ll also face stiffer penalties.

The loss of income from fighting their case is compounded with the fines they’ll face as well as jail time they may have to serve. Upon release, it may be challenging for them to obtain housing or employment due to their conviction.

Legal Defenses to Scheme to Defraud in New York

Nobody wants to go to jail or pay a fine—and nobody wants a conviction for Scheme to Defraud in New York on their record.

People may start to associate you with this crime, even though they do not understand the specifics of your case.

There are several powerful legal defenses you can use to fight these charges. They include:

Defense #1: Lack of Intent

One of the defense for Scheme to Defraud in New York is that the defendant must show the defendant didn’t have intent. United States v. Elbaz.

Example: Brent was accused of working training representatives of a fraudulent wire transfer company whereby they made personal financial gains when investors made deposits.

Defense #2: Lack of Authority

The second defense for Scheme to Defraud in New York is that the defendant must show the accused had proper authority. Victims of Ponzi scammer Renwick Haddow to appeal from the judgment in a case against JPMorgan.

Example: Witnesses for the prosecution were attempting to prove that Sandy had access to the information necessary to Scheme to Defraud in New York.

Defense #3: Lack of Purpose

The third defense for Scheme to Defraud in New York is that the defendant must show the accused was executing their actions to scheme to defraud. United States vs. Peter Hoffman.

Example: Taylor was accused of defrauding a company she was in joint partnership with loan money that was borrowed to fund a project and complete renovations.

Defense #4: Expiration of Statute of Limitations

The fourth defense for Scheme to Defraud in New York is that the defendant must have committed the crime within the past six years. Troy political fallout has its day in the nation’s highest court.

Example: Stephanie’s lawyer attempted to file a motion, but it fell beyond the state’s statute of limitations.

Call us for help.

For questions about Article 190 and 195, as well as Scheme to Defraud in New York, or to discuss your case confidentially with one of our criminal defense attorneys, do not hesitate to contact us. We have local criminal law offices in your area. We have the knowledge and expertise to help negotiate your case.