15.3 Forgery, Fraud & Financial Crimes
Key Takeaways
- 18 Pa.C.S. § 4101 Forgery grades F2 for money/securities/stamps, M1 for wills/deeds/contracts/releases/commercial instruments, M2 for other writings.
- 18 Pa.C.S. § 4105 Bad Checks grades by amount: F3 at $75,000+, F2 at $25,000–$74,999, M1 at $2,000–$24,999.
- 18 Pa.C.S. § 4106 Access Device Fraud reaches unauthorized use of credit/debit cards and account numbers; graded F2/F3/M1 by loss.
- 18 Pa.C.S. § 4117 Insurance Fraud is F3 — a false statement in an insurance application or claim with intent to defraud.
- 18 Pa.C.S. § 4120 Identity Theft is F3 — using another's identifying information (name, SSN, DOB) without consent to harm or defraud.
Forgery, Fraud & Financial Crimes (18 Pa.C.S. Chapter 41)
PA's forgery and fraud statutes live in 18 Pa.C.S. Chapter 41. The exam expects you to grade forgery by the type of writing, recognize the bad-check and access-device gradings by dollar amount, and identify identity theft and insurance fraud as distinct F3 offenses.
Forgery Grading by Writing Type
§ 4101 Forgery elements: (1) alter, make, complete, execute, or authenticate any writing; (2) with intent to defraud, injure, or disadvantage another. Grading turns on what was forged.
| Forged Writing | Grading |
|---|---|
| Money, securities, stamps, or other instruments | F2 |
| Will, deed, contract, release, commercial instrument, or other document of legal efficacy | M1 |
| Other writings | M2 |
This three-tier grading is heavily tested. A forged $100 bill is F2 (money). A forged deed transferring real estate is M1 (deed). A forged love letter or a forged hall pass is M2 (other writing). The exam may present a forged endorsement on a personal check — a commercial instrument — which grades as M1, not F2.
Bad Checks (§ 4105)
§ 4105 Bad Checks makes it an offense to issue a check knowing it will not be paid. Grading is by amount of the check:
- F3 if the amount is $75,000 or more
- F2 if the amount is $25,000 to less than $75,000
- M1 if the amount is $2,000 to less than $25,000
- Lower misdemeanor/summary tiers for smaller amounts
The knowledge element is key: the suspect must know the check will not be paid. A post-dated check with the payee's knowledge is generally not bad-check fraud; a check drawn on a closed account is.
Access Device Fraud (§ 4106)
§ 4106 Access Device Fraud reaches unauthorized use of credit cards, account numbers, debit cards, and similar devices. Grading tracks the loss: F2 / F3 / M1 depending on the dollar amount and circumstances. Using a lost credit card you found, or copying a card number onto a blank magnetic stripe, is access device fraud. The exam may distinguish this from identity theft — using a card you found is access device fraud; using the cardholder's SSN and DOB to open a new account is identity theft.
Insurance Fraud (§ 4117)
§ 4117 Insurance Fraud is F3. The elements: making a false statement in an insurance application or claim with intent to defraud. A staged auto accident claim, an inflated theft claim, or a false worker's comp injury are all § 4117. The exam may pair this with arson — a suspect who torches his own business and files a fire-insurance claim commits both arson and § 4117 insurance fraud.
Identity Theft (§ 4120)
§ 4120 Identity Theft is F3 (graded up to M1/F2 by loss amount in some circumstances). Elements: using identifying information of another person, without that person's consent, to harm or defraud. Identifying information includes name, SSN, DOB, account numbers, biometric data, and similar identifiers. The exam trap is distinguishing identity theft from access device fraud and forgery:
- Identity theft — using another's identifying information to obtain credit/goods/services.
- Access device fraud — using a card or card number.
- Forgery — making or altering a writing.
A suspect who uses a found credit card commits access device fraud; a suspect who uses the cardholder's SSN to open a new credit line commits identity theft.
Street Scenario — Retailer Fraud Report
A loss-prevention officer at a big-box retailer reports that a customer attempted to pass a forged $200 payroll check. Investigation reveals the check is a counterfeit drawn on a real business, the suspect used a fake PA driver's license in another person's name to cash it, and the suspect has passed four similar checks in three counties.
Charges:
- § 4101 Forgery, M1 (a commercial instrument — a payroll check).
- § 4120 Identity Theft, F3 (used another person's identifying information, the name and DOB on the fake DL, to defraud).
- § 4106 Access Device Fraud may also apply if the check is treated as an access device; check with the DA on charging.
- For the multi-county pattern, aggregate loss determines grading; if the aggregate exceeds $2,000, the bad-check grading rises to M1.
Exam Traps
- Forgery grading by writing type: money/securities = F2; deeds/wills/commercial instruments = M1; other = M2.
- Bad-check grading by amount: $75,000+ = F3; $25,000–$74,999 = F2; $2,000–$24,999 = M1.
- Identity theft vs. access device fraud: identity theft uses identifying information; access device fraud uses a card or device.
- Insurance fraud is F3 and pairs naturally with arson, theft, and false police reports.
A suspect forges the signature of the property owner on a deed transferring real estate to himself, with intent to defraud. What is the correct grading under 18 Pa.C.S. § 4101?
A suspect issues a single check for $40,000 drawn on a closed account, knowing it will not be paid. What is the correct grading under 18 Pa.C.S. § 4105?
A suspect finds a lost credit card on the sidewalk and uses it to buy $300 of groceries. He did not steal the cardholder's identity or open new accounts. What is the most appropriate charge?