If you’re accused of frauds on creditors in New York, remember you have options. It’s important to hire a criminal defense attorney as soon as you are accused and to make sure you understand the charges against you and possible penalties. Most often a fraud on creditors charge in the situations below applies if the person is or was the administrator of an estate.


Types of Frauds on Creditors

There are many ways that a defendant can be accused of frauds on creditors; including insolvency, frauds revolving around security interest, a mortgage, or a sales contract. Each of these counts has different scenarios but all include fraud. Under most situations, any of these crimes is considered a misdemeanor.

Fraud Insolvency in New York

A defendantcan be accused of fraud in insolvency in NY, if it is believed they otherwise disposed of a debtor’s estate, obtained interest in a debtor’s estate, submitted false information to a debtor’s estate, or misrepresented information brought to an estate administrator. Usually, this charge is only put into place if the defendant did this just prior to an arrangement that would benefit creditors.

Security Interest Fraud in NY

A person in NYcan be charged with fraud of a security interest if they execute a security agreement that creates interest in property or a monetary obligation that is owed to another party. Under this statute, a person can be charged if he sells or disposes of property and fails to account for it. If a defendant violates a security agreement by knowingly secreting, withholding, or disposing of property, they can be charged with security interest fraud.

Frauds on Creditors

Fraudulent Disposition of Mortgaged Property

Under New York Penal Code 185.10, a defendant can be charged with this if they execute a mortgage of personal or real property the intention to defraud the mortgage or purchaser.

Fraudulent Disposition of Property Subject to a Conditional Sale Contract

If a person disposes of property involved in a conditional sale contract, they can be charged with frauds on creditors. For this misdemeanor to be prosecuted, the defendant would have had to sell, assign, mortgage, exchange, destroy, secrete, or otherwise get rid of the goods that were subject to the sale.

Defenses for Fraud on Creditors in NY

If you have been accused of fraud on creditors in New York, it is important to hire a criminal defense attorney. To be convicted of this charge, a prosecutor must prove that you intended to defraud creditors with your actions. If it can be proved that you did not intend to defraud creditors with your actions, you may be able to avoid a conviction. A criminal defense attorney will go over the details of your case to determine what course of action should be followed.

Contact The Law Office of Stephan Jacob Siegel, Esq. Today for Criminal Defense!

Contact Stephan Jacob Siegel, Esq. to defend you in creditor fraud cases in NY. Stephan Siegel has been practicing law for over three decades and has provided defenses for over 1,200 cases. Contact his office today to begin building your defense.

Types of Frauds on Creditors