To better understand the crime of pretenses, you must first understand the crimes of larceny, embezzlement, and fraud. All three are theft crimes that involve taking another’s property without permission:
- Larceny is the most common type of what people think of as theft. Specifically, it is the unlawful taking of the property of another without the permission of the owner, coupled with the intent to deprive the owner of that property permanently. It’s stealing, in other words.
- Embezzlement occurs when a person entrusted to handle funds takes some funds for their own personal use. An embezzlement is a white-collar form of theft. It is similar to larceny in that it involves taking the property of another person or business; however, in embezzlement, the person has permission to access and handle the funds as part of their job or other connection.
- Fraud involves developing a scheme to cheat or deceive another individual or entity for financial gain. The person committing fraud uses false statements, lies, or misrepresentation; hides or conceals important information; and uses deceptive conduct. Fraud involves getting property to which the criminal is not entitled, which sounds like larceny.
- However, fraud is different from larceny. Larceny means obtaining property or money by stealing it, often with the use or threat of force. By contrast, fraud involves a “scheme or artifice” to convince someone to give up property or cash based on false statements. Fraud does not occur when an individual provides the plaintiff with a fact they believed to be true, even if mistaken.
False pretenses, also known as “obtaining property by false pretenses,” is a crime that is a combination of fraud and larceny.
In false pretenses, the defendant lies or makes misrepresentations in order to obtain someone else’s property. False pretenses are very similar to the theft crime of “larceny by trick,” which involves convincing someone to transfer possession of their property by deceiving them. However, false pretenses differ from the crime of larceny by trick because false pretenses involve obtaining possession of another’s property through deception and the title to the property.
For example, if you convince another person to let you borrow their car but have no intention of returning the vehicle, you may be convicted of larceny by trick. However, in the same example, if you convince someone to sell you instead of their vehicle and transfer the title to you, and you get the title, but you never pay for the car, you will likely be convicted of false pretenses.
What Are the Legal Elements of False Pretenses?
Although the exact definition and legal elements of the crime of false pretenses vary by state, generally, the elements of the crime of false pretenses are:
- There is a false representation of a material past or present fact
- The person who made the representation knew it was false
- The representation was made with the intent to defraud the other person
- The victim actually relied on the false representation
- Due to the false representation, the victim passed ownership (title) of their property to the statement maker
As can be seen, false pretenses involves fraudulently representing a fact to deceive another individual into transferring title to their property. Under common law, which is the body of law derived from precedent and judicial decisions, false pretenses is defined as:
- A representation of a present or past fact
- That the thief knows to be false
- With the intention of causing the victim to pass the title of their property, and
- The victim passes the title of their property.
Importantly, no matter which definition your state follows, false pretenses involve a fraudulent statement to deceive an individual into passing the title of their property to the thief.
Additional Considerations
Eligibility: It is important to note that anyone can fall victim to false pretenses, though people who are elderly, financially stressed, or less experienced in business or consumer transactions may be targeted more often because they’re easier to mislead.
Likewise, anyone who intentionally makes deceptive statements to obtain someone else’s property can also be considered a perpetrator, as long as the legal elements are satisfied. The exact standards can differ depending on the jurisdiction.
Process/Steps: If you are a victim who suspects you were defrauded through false pretenses, you should start by collecting any evidence that shows what was promised and what property or money was transferred. You should then report the situation to local law enforcement so an investigation can begin. It’s also wise to speak with an attorney near you to understand possible civil options for recovering any losses and protecting your rights.
Costs/Fees: Importantly, there are usually no fees for reporting a false pretenses case to law enforcement, since criminal investigations are funded by the government. However, a victim might still face some personal expenses, such as gathering documents or consulting an attorney about their rights.
Further, if the victim chooses to pursue a civil lawsuit, they would also be responsible for filing fees and other litigation related costs.
Evidence/Documents: Evidence is crucial in a false pretenses case. Key evidence in a false pretenses case usually includes anything showing that a false statement was made, that the person knew it wasn’t true, and that they intended to deceive. It’s also important to show that the victim relied on the lie and transferred property because of it. Useful evidence can include contracts, emails, text messages, receipts, financial records, and witness testimony.
State Variations: Importantly, the legal elements of false pretenses differ from state to state, and those differences can affect how a case is charged or proven. For instance, some states require a more specific level of intent, others define the types or value of property covered differently, and many classify the offense based on the amount obtained.
Timelines: You should note that most jurisdictions set statutes of limitations for prosecuting false pretenses. The specific time limits depend on both the location and the seriousness of the offense. Civil claims based on fraudulent misrepresentation also have their own deadlines, which vary by state.
For example, in California, many fraud related criminal charges must generally be filed within three years, while civil fraud claims typically have a three year limit from when the fraud was discovered.
What Are Some Examples of the Crime of False Pretenses?
As noted above, one common example of false pretenses is when a thief convinces someone to sell and transfer the title to their vehicle to the thief for $10,000, but the thief has no intention of paying the $10,000.
The most common example of the crime of false pretenses involves someone with superior knowledge of the truth taking advantage of someone unaware. For example, an antique dealer tries to sell a purportedly vintage Tiffany lamp, but it is an imitation, and the dealer knows it. If the buyer relies on the seller’s claim that the lamp is a valuable and rare antique, the seller is guilty of false pretenses.
It is important to note that if the seller of the property is unaware that the lamp is a fake, they would not likely be guilty of obtaining property by false pretenses. This is the most common defense offered by plaintiffs: they were unaware that the information they gave wasn’t true.
Typically, the material misrepresentation must be affirmative, meaning that pretenses do not occur if it is an omission of facts rather than a statement. In the example above, if the buyer thought it was a Tiffany lamp, never asking the seller whether it was, and the seller did not independently claim that it was a real Tiffany, there is no act of false pretenses.
That is because sellers are under no obligation to tell buyers about the product’s actual value. The buyer who does not want to pay more for the product than it’s worth must ask questions themself.
Risks/Penalties: Penalties for a false pretenses conviction vary widely by jurisdiction and often depend on the value of the property obtained. For instance, lower value cases are often treated as misdemeanors, carrying smaller fines and short jail terms, while higher value or more serious cases can be charged as felonies with substantial fines and lengthy prison sentences.
The Importance of Hiring a Lawyer: Individuals may try to handle false pretenses matters without an attorney if the situation seems simple, such as when the potential consequences are minor, or they feel confident navigating basic legal procedures on their own. However, even these cases often involve complicated proof requirements and meaningful risks.
As such, proceeding without legal counsel can be challenging. Because of the complexity of false pretenses cases, speaking with an attorney is generally the safer approach.
What Is the Difference Between False Pretenses and Fraudulent Misrepresentation?
The legal elements of fraudulent misrepresentation are almost completely identical to those of a false pretenses case. The major difference between the two is that false pretenses are a criminal offense, whereas fraudulent misrepresentation is a civil offense.
Therefore, if you are charged with obtaining property by false pretenses, you will face possible imprisonment, criminal fines, or a combination of both. In addition, you may also be sued in civil court for fraudulent misrepresentation and be ordered to pay the plaintiff civil damages.
Should I Hire an Attorney for Help with False Pretenses Issues?
As can be seen, forming a defense against an accusation of false pretenses is complex because it involves a combination of both contract and criminal law. Additionally complicating things, every state has different laws regarding the definition of a crime of false pretenses and the range of criminal punishments.
It is important to consult with a well-qualified and knowledgeable criminal defense attorney if you have been accused of defrauding someone by false pretenses.
An experienced criminal defense attorney in your area can help explain the laws of your state regarding false pretenses and advise you of your best course of legal action in facing criminal charges. Additionally, they can help you assert your best legal defenses and represent you in any necessary court hearings.
