WHAT IS FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS?
The law against making a false statement to obtain property or credit or in the provision of certain services prohibits making false or misleading statements in credit applications or property appraisal documents.
WHAT IS THE FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES LAW IN TEXAS?
Tex. Penal Code § 32.32. FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES.
(b) A person commits an offense if he intentionally or knowingly makes a materially false or misleading written statement to obtain property or credit, including a mortgage loan.
(b-1) A person commits an offense if the person intentionally or knowingly makes a materially false or misleading written statement in providing an appraisal of real property for compensation.
(c) An offense under this section is:
(1) a Class C misdemeanor if the value of the property or the amount of credit is less than $100;
(2) a Class B misdemeanor if the value of the property or the amount of credit is $100 or more but less than $750;
(3) a Class A misdemeanor if the value of the property or the amount of credit is $750 or more but less than $2,500;
(4) a state jail felony if the value of the property or the amount of credit is $2,500 or more but less than $30,000;
(5) a felony of the third degree if the value of the property or the amount of credit is $30,000 or more but less than $150,000;
(6) a felony of the second degree if the value of the property or the amount of credit is $150,000 or more but less than $300,000; or
(7) a felony of the first degree if the value of the property or the amount of credit is $300,000 or more.
. . .
(e) With the consent of the appropriate local county or district attorney, the attorney general has concurrent jurisdiction with that consenting local prosecutor to prosecute an offense under this section that involves a mortgage loan.
WHAT IS THE PENALTY CLASS FOR FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS?
The penalty category for making a false statement to obtain property or credit or in the provision of certain services depends on the value of the property or the amount of credit. If the value of the property or amount of credit obtained is:
- Less than $100:
- Class C misdemeanor, punishable by up to a $500 fine, and no jail time;
- $100 to $749:
- Class B misdemeanor, punishable by up to 180 days in county jail;
- $750 to $2499:
- Class A misdemeanor, punishable by up to one year in county jail;
- $2500 to $29,999:
- State jail felony, punishable by 180 days to two years in a state jail facility;
- $30,000 to $149,000:
- Third degree felony, punishable by two to ten years in prison;
- $150,000 to $299,999:
- Second degree felony, punishable by two to 20 years in prison;
- $300,000 or more:
- First degree felony, punishable by five to 99 years or life in prison.
WHAT IS THE PUNISHMENT RANGE FOR FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS?
The punishment range for making a false statement to obtain property or credit or in the provision of certain services increases with the value of property or credit obtained through deception:
- Class C misdemeanor, if the value is less than $100:
- Maximum fine of $500, no jail time;
- Class B misdemeanor, if the value is $100 or more but less than $750:
- Up to 180 days in jail, maximum fine of $2,000;
- Class A misdemeanor, if the value is $750 or more but less than $2,500:
- Up to one year in jail, maximum fine of $4,000;
- State jail felony, if the value is $2,500 or more but less than $30,000:
- 180 days to two years in a state jail facility, maximum fine of $10,000;
- Third degree felony, if the value is $30,000 or more but less than $150,000:
- Two to ten years in prison, maximum fine of $10,000;
- Second degree felony, if the value is $150,000 or more but less than $300,000:
- Two to 20 years in prison, maximum fine of $10,000;
- First degree felony, if the value is $300,000 or more:
- Five to 99 years or life in prison, maximum fine of $10,000.
WHAT ARE THE PENALTIES FOR FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS?
A person charged with making a false statement to obtain property or credit or in the provision of certain services may be eligible for probation after a conviction, or deferred adjudication without a conviction.
- What is the maximum length of probation for making a false statement to obtain property or credit or in the provision of certain services in Texas? If a person is convicted of a Class C misdemeanor, the only punishment is a maximum fine of $500. But a person may be placed on probation for up to two years if convicted of a Class A or Class B misdemeanor. For state jail and third degree felony false statement charges, the probation term may range from two to five years, and may not exceed ten years for second degree and first degree felonies.
- What is the maximum length of deferred adjudication for making a false statement to obtain property or credit or in the provision of certain services in Texas? To avoid a false statement conviction, a person may plead guilty or nolo contendere (“no contest”) to a judge, and be placed on deferred adjudication. The period of deferred adjudication may not exceed 180 days for a Class C misdemeanor, or two years for a Class A or Class B misdemeanor. The deferred adjudication term for a state jail felony is between two and five years, with the possibility of extending it up to ten years. The deferred adjudication term may not exceed ten years for first degree, second degree, and third degree felonies.
WHAT ARE THE DEFENSES TO FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS?
An accused on trial for making a false statement to obtain property or credit or in the provision of certain services most commonly attempts to negate one of the elements. The State must prove beyond a reasonable doubt the person intentionally or knowingly made a materially false or misleading statement to obtain property or credit.
- What is “credit”? “Credit” is any loan of money or property, with the obligation to return or repay what was borrowed. It includes bank loans and credit or debit cards, mortgage loans, or lines of credit.In Briscoe v. State, a defendant involved in a property dispute sold farm equipment he did not own, including a Bobcat. The bill of sale gave the defendant the right to buy back the Bobcat within 90 days. The defendant was convicted of theft for selling another’s property, and for making a false statement to obtain credit, based on the Bobcat bill of sale. The appellate court reversed his false statement conviction, noting the evidence showed the defendant had a buyback option, rather than an obligation. This was a sale rather than a loan.
WHAT IS THE STATUTE OF LIMITATIONS FOR FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS?
The limitation period for false statement to obtain property or credit or in the provision of certain services is seven years.
FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES IN TEXAS
Texas law prohibits making a materially false or misleading statement to obtain property, credit, or certain services. A statement is “materially” false or misleading if it affects the outcome—i.e., if the person obtained a greater amount of property or credit than they would have had they not made the statement.
TEXAS FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES COURT CASES
The case law regarding false statement to obtain property or credit or in the provision of certain services in Texas demonstrates every materially false statement constitutes a separate offense.
- In Jones v. State, the defendant applied for a $680,000 mortgage loan, and a $544,000 mortgage loan. He misrepresented in each application that he had bank accounts he did not have, and submitted another’s credit report as his own. He was convicted of making a total of six false statements, and sentenced to 45 years in prison for each, due to the first-degree-felony amount of credit sought.The defendant argued on appeal he should have only been convicted of two charges, one for each application. The Court of Criminal Appeals affirmed the six convictions, holding each materially false statement is a separate offense.
