A conditional sale contract involves a sale in which the buyer receives possession of and the right to use the property, but title remains with the seller until the performance of a condition is met by the buyer. Typically, the condition is the buyer's full payment of the purchase price. If the buyer disposes of the property before the condition is met, that buyer would have committed fraud. Under New York Penal Law § 185.15, you could be charged with fraudulent disposition of property subject to a conditional sale contract if you are a buyer who is part of a conditional sale contract, prior to the performance of the condition you sell, mortgage, destroy or otherwise disposes of the property subject to the conditional sale contract under claim of full ownership, with intent thereby to defraud another.
ExampleDaniel is an art collector and dealer. He found a beautiful sculpture that he just had to have. However, he was experiencing a temporary cash flow crisis. Ted, who was the owner of the piece, agreed to sell it to Daniel. Daniel explained that he would not have the $10,000 to pay for it for another 6 weeks. Ted agreed to allow Daniel to take the sculpture and display it in his home. However, Ted was clear that he would remain the owner of the piece until Daniel paid for it full. A couple of weeks later Ted had a dinner party at which he unveiled the new sculpture. One of his guests liked it so much that he offered Daniel $20,000 for it. Daniel sold it immediately. Daniel could be charged with fraudulent disposition of property subject to a conditional sale contract, as Daniel did not yet pay for the sculpture.
Related OffensesFraudulent disposition of property subject to a conditional sale contract is a class A misdemeanor. If you are convicted of this offense you could be sent to jail for up to a year. You could also receive a probation sentence of up to 3 years and be required to pay a fine.
New York Penal Law § 185.15: Fraudulent disposition of property subject to a conditional sale contractA person is guilty of fraudulent disposition of property subject to a conditional sale contract when, prior to the performance of the condition of a conditional sale contract and being the buyer or any legal successor in interest of the buyer, he sells, assigns, mortgages, exchanges, secretes, injures, destroys or otherwise disposes of the goods subject to the conditional sale contract under claim of full ownership, with intent thereby to defraud another.
Contact the Law Offices of Stephen Bilkis & AssociatesEven though fraudulent disposition of property subject to a conditional sale contract is a misdemeanor and not a felony you should still take it seriously. If you are convicted part of your sentence could include up to a year in jail. The staff at the Law Offices of Stephen Bilkis & Associates has years of experience successfully defending clients in New York criminal courts who have been charged with fraud, grand larceny, white collar crimes, and other serious crimes. Contact us at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We serve those accused of larceny in the following locations: the Bronx, Brooklyn, Long Island, Manhattan, Nassau County, Queens, Staten Island, Suffolk County and Westchester County.