What's happening
This bill increases the penalties for schemes to defraud, making them higher-level felonies under New York law.
Why it matters
Reclassifies scheme to defraud crimes as more serious felonies. , meaning those convicted will face significantly harsher penalties—including potentially longer prison sentences and greater social consequences (such as employment restrictions)—than under current law.
Elevates second degree scheme to defraud from a misdemeanor to a class E felony. , which removes the possibility of non-jail sentences (like conditional discharge or probation only) and marks offenders with a felony record for even lower-level fraudulent schemes.
Increases first degree scheme to defraud from a class E to a class D felony. , ensuring even higher penalties for those targeting multiple victims or vulnerable elderly people, which could serve as a stronger deterrent but also risks disproportionately impacting defendants with limited prior records.
Signals a legislative priority on cracking down on fraud. , which could lead to more aggressive prosecution and investigation of fraud cases, affecting businesses, nonprofit leaders, and individuals involved in complex transactions.
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Who cares
Headline styles
Increase Fraud Penalties
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to codes
- Referred to codes
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4613
2017-2018 Regular Sessions
IN SENATE
February 22, 2017
Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Codes
AN ACT to amend the penal law, in relation to scheme to defraud in the first degree and scheme to defraud in the second degree
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 190.65 of the penal law, as amended by chapter 291 of the laws of 2008, is amended to read as follows: § 190.65 Scheme to defraud in the first degree.
1. A person is guilty of a scheme to defraud in the first degree when he or she: (a) engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud ten or more persons or to obtain property from ten or more persons by false or fraudulent pretenses, representations or promises, and so obtains property from one or more of such persons; or (b) engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud more than one person or to obtain property from more than one person by false or fraudulent pretenses, representations or promises, and so obtains property with a value in excess of one thousand dollars from one or more such persons; or (c) engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud more than one person, more than one of whom is a vulnerable elderly person [as defined in subdivision three of section 260.30 of this chapter] or to obtain property from more than one person, more than one of whom is a vulnerable elderly person [as defined in subdivision three of section 260.30 of this chapter], by false or fraudulent pretenses, representations or promises, and so obtains property from one or more such persons.
2. In any prosecution under this section, it shall be necessary to prove the identity of at least one person from whom the defendant so obtained property, but it shall not be necessary to prove the identity of any other intended victim, provided that in any prosecution under
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09899-02-7
S. 4613 2
paragraph (c) of subdivision one of this section, it shall be necessary to prove the identity of at least one such vulnerable elderly person [as defined in subdivision three of section 260.30 of this chapter].
Scheme to defraud in the first degree is a class [E] D felony.
§ 2. Section 190.60 of the penal law, as amended by chapter 491 of the laws of 1992, subdivision 1 as amended by chapter 357 of the laws of 1996, is amended to read as follows: § 190.60 Scheme to defraud in the second degree.
1. A person is guilty of a scheme to defraud in the second degree when he engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud more than one person or to obtain property from more than one person by false or fraudulent pretenses, representations or promises, and so obtains property from one or more of such persons.
2. In any prosecution under this section, it shall be necessary to prove the identity of at least one person from whom the defendant so obtained property, but it shall not be necessary to prove the identity of any other intended victim.
Scheme to defraud in the second degree is a class [A misdemeanor] E felony.
§ 3. This act shall take effect on the first of November next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the penal law, in relation to scheme to defraud in the first degree and scheme to defraud in the second degree
Purpose
This bill would increase the penalty for scheme to defraud in the first and second degrees.
Summary of provisions
Section 1 amends section 190.65 of the Penal Law to make scheme to defraud in the first degree a class D felony.
Section 2 amends section 190.60 of the Penal Law to make scheme to defraud in the second degree a class E felony.
Section 3 sets the effective date.
Justification
In light of scandals by state lawmakers, New York State has attempted to undergo ethics reforms to restore public trust in government. However, despite these attempts at reform, numerous scandals have continued to occur on both sides of the aisle. Lawmakers have repeatedly been charged with, and convicted of, bribery, extortion, money laundering and honest services fraud. The corruption must end and individuals must be deterred from conducting illegal activities. In an effort to do just that, this bill would raise penalties for those scheming to defraud in the first and second degrees.
Legislative history
New bill.
Fiscal implications
None
Effective date
On the first of November after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.