People facing charges for fraud under the Indiana Code often wonder, “Is fraud a felony in Indianapolis?” This offense is a wobbler, meaning that it can be a felony or a misdemeanor, depending on the circumstances. In either case, you need a criminal defense attorney to defend you from a conviction that could result in jail time, fines, and a restitution order
Take a closer look at what fraud entails in Indiana and why taking steps, such as hiring a fraud lawyer to build a strong defense, is essential if you’re facing these charges.
Is Fraud a Felony in Indianapolis?
Fraud charges can be a felony under Indiana’s criminal fraud statute, depending on the circumstances. Specifically, fraud is typically a misdemeanor, but it can be elevated to a Level 4, Level 5, or Level 6 felony when certain elements are met.
Understanding Indiana Fraud Criminal Laws
Indiana has two types of fraud laws. First, the state has a criminal offense specifically called “fraud.” Someone commits fraud when they knowingly or intentionally use any of the following tactics to unlawfully obtain property, data, or employment benefits to which they are not entitled:
- Make a false or misleading statement
- Create a false or misleading impression
- Present or cause someone else to present a claim containing a false or misleading statement
- Possess, make, use, or alter a document, computer program, written instrument, or device to obtain property
Second, the state has several other statutes that include fraud as a mechanism for committing another offense. For example, forgery, insurance fraud, and counterfeiting involve defrauding others.
Felony Fraud Charges and Penalties Under the Indiana Code
So exactly when is fraud a felony in Indianapolis? Felony fraud conviction penalties in Indiana vary based on several factors. Level 6 felony fraud in Indiana occurs when the following aggravating circumstances apply:
- The offender has a prior unrelated conviction for an offense in the fraud chapter of the code within seven years of the current offense
- The offender was released from jail, probation, or parole for a prior conviction for fraud within seven years of the current offense
- The actual pecuniary loss was $750 or more but less than $50,000
- The victim was an endangered adult or younger than 18
- The offender made a false or misleading statement that they were a disadvantaged business enterprise or a woman-owned business enterprise
- The offender made a false or misleading statement that they would subcontract with a disadvantaged business enterprise or a woman-owned business
- The offender was confined to the department of corrections, a county jail, or a secure juvenile facility
- The person possesses, uses, makes, or alters a document issued by, made to appear that it was issued by, or presented to a public or government entity
- The offender used a document or written instrument to perpetrate the fraud
- The offender used an unconscionable contract
- The fraud involved human reproductive material
The punishment for a Level 6 felony includes a jail sentence of 6 to 30 months, with an advisory sentence of 1 year. The judge can also fine the defendant up to $10,000.
Fraud steps up to a Level 5 felony when any of the following circumstances are present:
- The actual pecuniary loss is at least $50,000 but less than $100,000
- The pecuniary loss is at least $750 but less than $50,000, and the victim is an endangered adult or younger than 18
- The victim was a financial institution
Since Level 5 felony fraud covers financial offenses, the credit card fraud penalties in Indiana fall into this category. The penalty for a Level 5 felony includes one to six years in prison, with an advisory sentence of three years. The court can also fine the offender up to $10,000.
Finally, the most serious penalty is reserved for a Level 4 felony fraud charge in Indianapolis, which applies when the pecuniary loss is at least $100,000, or if the pecuniary loss is at least $50,000, and the victim is an endangered adult or under 18.
The punishment for a Level 4 felony includes two to 12 years in prison, with an advisory sentence of six years. Again, the person may also be required to pay a fine of up to $10,000.
Judges can also issue a restitution order. Under Indiana law, restitution covers the victim’s property damages resulting from the crime. If the victim allegedly lost money as a result of the fraud, the restitution amount is straightforward. However, restitution for property fraud is based on the actual cost of replacement or repair if the property cannot be returned.
Check Fraud Felony vs. Misdemeanor Charges
Generally, the penalty for check fraud depends entirely on the amount. Specifically, the pecuniary loss thresholds for Indiana fraud involving checks are as follows:
- Less than $750 is a Class A misdemeanor
- $750 to $50,000 is a Level 6 felony
- Over $50,000 is a Level 5 felony
Note that other factors can also play into whether check fraud is a misdemeanor or a felony. For example, check fraud involving an adult at risk may increase the penalty level.
Misdemeanor Fraud Allegations in Indianapolis
Determining whether an offense is a fraud misdemeanor vs. felony in Indiana depends on the circumstances. Under Indiana fraud law, a prosecutor may pursue felony fraud charges only when the statute’s aggravating circumstances are proven.
Conversely, you will usually face misdemeanor penalties under Indiana Code 35-43-5-4 when prosecutors charge you with making a false statement or creating a false impression to obtain property or a benefit intended for someone else, without alleging any special factors.
Non-felony fraud is a Class A misdemeanor. Misdemeanor fraud sentencing in Indiana includes up to one year in jail and a fine of up to $5,000. You might also face a restitution order for Class A misdemeanor fraud in Indianapolis.
Immediate Steps When Facing Charges for Fraud
When you have been accused of fraud, consider taking the following steps to protect your rights:
Contact a Criminal Defense Attorney
Fraud investigations usually take time. The police might need to gather financial records and have them reviewed by a forensic accountant. Investigators may interview the alleged victims. Once they think they know what occurred, they might ask to speak to you.
Call a lawyer before you speak to any investigators. Your lawyer can advise you during questioning and may even prevent the prosecution from filing charges by providing an explanation that establishes no fraud occurred or that someone else committed it.
Understand Your Charges
If prosecutors file fraud charges, review them carefully. Fraud charges are not always clear. It’s important to understand exactly what the prosecutors have alleged because you and your attorney will need to identify weaknesses in their case.
Gather Your Records
Fraud cases often rely on financial records. These records can help you establish what happened and disprove that any fraud occurred.
For example, some people accused of fraud were conducting legitimate business activities but lost the alleged victims’ money due to risks they knew about. In this case, the investors might be rightly upset about their losses, but your activities probably did not constitute fraud.
Build Your Defenses
Work with your lawyer to build your defenses. These defenses can include disproving the prosecution’s allegations and raising affirmative defenses. For example, if everything you said to the alleged victims was either true or merely your opinion, you might be able to disprove that any fraud occurred.
Comprehensive Guide to the Collateral Consequences of a Fraud Conviction
Fraud convictions can affect more than your freedom. Some collateral consequences include the following:
Job and Educational Opportunities
Fraud calls your honesty into question. Many employers will perform a background check that will uncover your fraud conviction. If the job involves handling money, engaging with customers, or other tasks that require trust, the employer might refuse to hire you due to your conviction for an offense involving dishonesty.
Similarly, some educational institutions ask about your criminal background. If you have a conviction for fraud, you might not be admitted to the school.
Professional Licensing
Many professional licenses require licensees to have a clean criminal record. Licensing boards can deny licenses if the applicant has a conviction for fraud. They can also initiate disciplinary proceedings to suspend or revoke a licensee’s license.
The risk of professional discipline is especially high if the fraud involved the licensee’s business. For example, suppose a contractor was accused of defrauding clients. The Indianapolis Board of Contractors might initiate the process to take the contractor’s license.
Government Programs
People with fraud convictions, particularly felony convictions, may be barred from government programs. For example, you might be ineligible for small business loans, grants, and scholarships if you have a fraud conviction.
Private Loans
Private lenders, including mortgage lenders, may conduct a criminal background check before lending you money. If you have a record of financial crimes such as fraud, the lender may decline your loan application.
Schedule a Free Consultation With an Experienced Criminal Defense Attorney
The Indiana fraud sentencing guidelines can be complicated. A fraud defense attorney from the top-rated team at Gemma & Karimi understands the nuances of these laws and has the experience to fight for your freedom and reputation.
We are dedicated to providing transparent communication and exceptional representation to our clients. Contact us for a free consultation today.
