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NY Penal Law § 185.10: Fraudulent disposition of mortgaged property

It is illegal to sell, transfer property that is mortgaged without making sure all involved including the transferee and the mortgagee are aware of and approve of the transaction. Under New York Penal Law § 185.10, you could face prosecution for fraudulent disposition of mortgaged property if you take out a mortgage on property, and you then sell, assign, destroy or otherwise dispose of any part of the property that is encumbered with the mortgage, with the intent to defraud the mortgagee or purchaser of the property. This rule applies not only to residential property secured by a mortgage, but also to commercial and other types of property secured by a mortgage.

Related Offenses
  1. Fraud in Insolvency: New York Penal Law § 185.00
  2. Fraud involving a security interest: New York Penal Law § 185.05
  3. Fraudulent disposition of property subject to a conditional sale: New York Penal Law § 185.15

In order to be convicted of this crime, you must have had the intent to defraud. If the prosecutor cannot prove intent, or if you can show that you had another, innocuous intent, then you have a defense to the charge.


Fraudulent disposition of mortgaged property 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 § 185.10: Fraudulent disposition of mortgaged property

A person is guilty of fraudulent disposition of mortgaged property when, having theretofore executed a mortgage of real or personal property or any instrument intended to operate as such, he sells, assigns, exchanges, secretes, injures, destroys or otherwise disposes of any part of the property, upon which the mortgage or other instrument is at the time a lien, with intent thereby to defraud the mortgagee or a purchaser thereof.

Contact the Law Offices of Stephen Bilkis & Associates

Even though fraudulent disposition of mortgage property is a misdemeanor and not a felony, you should still take it seriously as a conviction has consequences to be avoided. While you could receive a probation sentence, there is also the possibility that you will be sent to 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.

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