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:
- “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.
- “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.
- “Security interest” means an interest in personal property or fixtures that secures payment or performance of an obligation.
- “Third party” means a person other than the actor or the owner of the vehicle.
- “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:
- 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;
- intending to defraud or harm the vehicle’s owner, the person transfers the vehicle to a third party;
- 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
- the person does not disclose the location of the vehicle on the request of the vehicle’s owner, secured creditor, lessor, or lienholder.
Common Scenarios That Lead to These Charges
Often, the person accused of this crime is innocent and unknowingly did not know they were committing this crime. If you are innocent, make sure you have an attorney on your case. Ensuring, the judge heres your side of the story and a conviction is avoided. Without an attorney, this mistake might become very costly and damage your chances at living a normal life.
- Selling or transferring a vehicle without disclosing a lien
- Failing to return a leased or financed vehicle
- Transferring ownership while intending to defraud a lienholder
- Using false documentation to complete a vehicle sale or trade
If you are accused of this crime, you need an attorney that understands the law, and know show to build a defense to keep you out of jail and keep your record clean. Before talking to investigators, contact Dallas criminal defense attorney Tim Clancy today.
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.
Penalties Based on Vehicle Value
Under Texas Penal Code §32.34, the penalties for fraudulent transfer of a motor vehicle vary based on the value of the vehicle:
- Class A Misdemeanor
Applies when someone knowingly fails to disclose the vehicle’s location upon request.
Penalties:- Up to 1 year in county jail
- Fine up to $4,000
- State Jail Felony
Vehicle value under $30,000.
Penalties:- 180 days to 2 years in a state jail facility
- Fine up to $10,000
- Third-Degree Felony
Vehicle value between $30,000 and $150,000.
Penalties:- 2 to 10 years in prison
- Fine up to $10,000
- Second-Degree Felony
Vehicle value between $150,000 and $300,000.
Penalties:- 2 to 20 years in prison
- Fine up to $10,000
- First-Degree Felony
Vehicle value over $300,000.
Penalties:- 5 to 99 years or life in prison
- Fine up to $10,000
Is Probation An Option?
Yes, it is up to the judge, but there are a few factors taken into consideration.
- Did the offender use a deadly weapon
- Does the sentence exceed 10 years
- Are there any prior convictions that disqualify the option?
Other Consequences
- Restitution
- Criminal Record
- Lack and Loss of Employment
- Immigration Issues
- Housing May Be Difficult
- Universities and College Acceptance
How To Avoid Being Charged With 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.
Statute of Limitations For Fraudulent Transfer Of A Motor Vehicle
- For Misdemeanor Offenses: 2 years from date of arrest
- For A Felony Offense: 3 years from date of arrest