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Fraudulent Transfer of Motor Vehicle

January 24, 2012 By

Dallas – Plano Criminal Defense Fraud Attorneys

A “fraudulent transfer of motor vehicle” happens when a car is sold or taken without the consent of its owner. This involves car sales, leases, subleases, and property transfers involving cars and other motor vehicles. Section 32.34 of the Texas Penal Code, Title 7 states the following:

  1. “Lease” means the grant of use and possession of a motor vehicle for consideration, whether or not the grant includes an option to buy the vehicle.
  2. “Motor vehicle” means a device in, on, or by which a person or property is or may be transported or drawn on a highway, except a device used exclusively on stationary rails or tracks.
  3. “Security interest” means an interest in personal property or fixtures that secures payment or performance of an obligation.
  4. “Third party” means a person other than the actor or the owner of the vehicle.
  5. “Transfer” means to transfer possession, whether or not another right is also transferred, by means of a sale, lease, sublease, lease assignment, or other property transfer.

A person commits an offense if the person acquires, accepts possession of, or exercises control over the motor vehicle of another under a written or oral agreement to arrange for the transfer of the vehicle to a third party and:

  1. knowing the vehicle is subject to a security interest, lease, or lien, the person transfers the vehicle to a third party without first obtaining written authorization from the vehicle’s secured creditor, lessor, or lienholder;
  2. intending to defraud or harm the vehicle’s owner, the person transfers the vehicle to a third party;
  3. intending to defraud or harm the vehicle’s owner, the person disposes of the vehicle in a manner other than by transfer to a third party; or
  4. the person does not disclose the location of the vehicle on the request of the vehicle’s owner, secured creditor, lessor, or lienholder.

Penalties for Fraudulent Transfer of Motor Vehicle

The fraudulent transfer of a motor vehicle is a state jail felony in Texas. If the value of the car fraudulently transferred is in excess of $20,000, you face a third degree felony charge. Under Section 12.34 of the Texas Penal Code, a third degree felony is punishable by imprisonment 2 – 10 years in prison. Depending on the circumstances of your case, in addition to your prison sentence you may be punished by a fine of up to $10,000.

Avoiding Charges of Fraudulent Transfer of Motor Vehicle

The Texas Department of Motor Vehicles requires dealers to keep the following records in regard to any car involved in a sale:

  • A copy of the Application for Certificate of Title
  • Odometer Disclosure Statement The VTR Form 136
  • Bill of Sale
  • Retail agreement
  • Sales contract
  • Copy of the title and any related power of attorney

If you were involved in the sale of a car and were unable to provide certain required documents, there may be issues with what you received from the dealer originally.

Proving that you intentionally sold a car with the intent to defraud the owner or buyer is not always a straightforward affair. Before talking to investigators, contact Dallas – Fort Worth criminal defense attorneys at Clancy & Clancy today.

Filed Under: Criminal Defense, dallas, Fraud Tagged With: , , , , , , , , , , , , , , , ,

Hindering Secured Creditors

January 11, 2012 By

Dallas–Ft. Worth Bankruptcy Fraud Attorneys

It’s not unusual for emotions to run high when a bank forecloses your house or a car dealer informs you your car is about to be repossessed. Given the difficult current economic times and the stress of trying to stay afloat, some people intentionally damage, destroy, or sell property that is secured by a creditor or bank. In other cases, a person who can no longer afford car payments might close out their bank account and deposit their savings in a friend’s account. When the car dealership takes action to recover delinquent payments, they can’t legally go after the car owner’s bank account since it’s been closed out.

In these kinds of cases, actions have been undertaken to prevent or hinder a creditor from collecting or securing property they have a claim against. Such actions, however, are illegal. Section 32.33 Secured Creditors, of the Texas Penal Code states:

  • (1)”Remove” means transport, without the effective consent of the secured party, from the state in which the property was located when the security interest or lien attached.
  • (2)”Security interest” means an interest in personal property or fixtures that secures payment or performance of an obligation.
  • (b)A person who has signed a security agreement creating a security interest in property or a mortgage or deed of trust creating a lien on property commits an offense if, with intent to hinder enforcement of that interest or lien, he destroys, removes, conceals, encumbers, or otherwise harms or reduces the value of the property.
  • (c) For purposes of this section, a person is presumed to have intended to hinder enforcement of the security interest or lien if, when any part of the debt secured by the security interest or lien was due, he failed:
    • (1)to pay the part then due; and
    • (2) if the secured party had made demand, to deliver possession of the secured property to the secured party.

Depending on the value of the property involved, hindering a secured creditor may be charged as a Class C misdemeanor (involving property valued at less than $20) or a felony in the first degree (involving property valued at $200,000 or more).

Hindering a Secured Creditor and Bankruptcy

Under the terms of § 32.33, it’s also a crime to undertake actions intended to prevent the execution of a lien. It’s also a crime to try and sell secured property in order to collection actions against you. While it may be difficult to sell a home or car with liens against them, selling equipment, appliances, or smaller items during bankruptcy may result in a charge of hindering a secured creditor and charges of bankruptcy fraud. As such, if you plan on filing for Chapter 7 or Chapter 13 bankruptcy, don’t try and transfer or sell property as it could result in a criminal charge of hindering a secured creditor and bankruptcy fraud.

Contact Dallas – Fort Worth Criminal Defense Fraud Attorneys

Proving that you intentionally acted to prevent a creditor from securing property and executing a lien is not always a simply, straightforward matter. If you’ve been charged with hindering a secured creditor, contact Dallas criminal defense fraud lawyers at Clancy & Clancy today.

Filed Under: Bankruptcy Fraud Attorneys, Criminal Defense, dallas, white collar crime Tagged With: , , , , , , , , , , , ,