New York Penal Law § 190.65: Scheme to Defraud in the First Degree

This offense involves intentionally defrauding someone or multiple people out of their property, money, or other valuable assets through a fraudulent scheme or plan. Under this law, a person is guilty of scheme to defraud in the first degree when they engage in a scheme or plan to defraud someone or multiple people, and the value of the property, money, or assets obtained through the scheme exceeds $1 million.

The statute defines a "scheme to defraud" as a plan or scheme to obtain property, money, or other valuable assets from another person through false or fraudulent pretenses, representations, or promises. The key element of this offense is the use of deceit or deception to obtain property or assets that would not have been given if the victim had known the truth.

The statute requires that the person committing the offense act intentionally. This means that the person must have known that their actions were fraudulent and intended to deceive the victim. The statute also requires that the value of the property or assets obtained through the scheme exceed $1 million. This means that the prosecution must prove that the defendant obtained at least $1 million worth of property or assets through their fraudulent scheme.

People v. Echevarria, 15 N.Y.3d 108 (2010). In this case, the defendants, a group of individuals who owned and operated several debt collection companies, were charged with scheme to defraud in the first degree under New York Penal Law § 190.65. The defendants were accused of engaging in a fraudulent scheme to collect debts from consumers by making false and misleading statements, engaging in abusive and harassing collection tactics, and using fake law firms and other fictitious entities in their collection efforts.

The evidence presented at trial included testimony from numerous consumers who had been targeted by the defendants' debt collection efforts, as well as recordings of phone calls made by the defendants to these consumers. The evidence showed that the defendants had made false statements about the amount of the debts owed, threatened consumers with arrest or legal action if they did not pay, and engaged in other deceptive practices in order to coerce payment.

The defendants argued that their debt collection practices were lawful and that any misrepresentations were unintentional, but the jury ultimately found the defendants guilty of scheme to defraud in the first degree. The defendants were sentenced to prison terms ranging from one to four years.

1. Criminal usury in the second degree: New York Penal Law section 190.40
2. Criminal usury in the first degree: New York Penal Law section 190.42
3. Possession of usurious loan records: New York Penal Law section 190.45

Scheme to Defraud in the First Degree is a class E felony in New York, which carries a maximum sentence of four years in prison and a fine of up to $5,000. However, the actual sentence may vary based on factors such as the severity of the offense, the defendant's criminal history, and any mitigating or aggravating circumstances present in the case..

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 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 felony.

If you are charged with violating New York Penal Law § 190.65 for scheme to defraud in the first degree, do not try to handle the case on your own. Instead, immediately contact an experienced New York criminal lawyer. Being convicted of this crime can have severe consequences, including imprisonment, fines, and damage to your reputation. You should avoid talking to anyone other than your attorney about the charges against you. Criminal law is complex, and an experienced New York criminal lawyer can help you navigate the legal process and build a strong defense. Contact Stephen Bilkis & Associates at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We represent clients in the following locations: Nassau County, Queens, Bronx, Brooklyn, Long Island, Manhattan, Staten Island, Suffolk County, and Westchester County.