• Payroll check fraud in Indiana may be charged under two criminal statutes.check book image by Rob Hill from Fotolia.com
  
  Under Indiana law, there are two circumstances where a person may be found guilty of payroll check fraud. Under the "check deception" statute, anyone who intentionally offers a check for cash or as payment in return for property knowing that the maker of the check will not honored by the bank or credit institution it was drawn on is guilty of check deception.
  
  Alternatively, under the "check fraud" statute, anyone with the intent to defraud another who presents a check for cash or as payment for property knowing that either: (1) the check is forged, fake or false, (2) the account on which the check was drawn is without sufficient funds to cover the amount of the check, (3) uses false, forged or fake identity in presenting the check or (4) the account number on the check is fake or altered is guilty of check fraud.
  
  

Classification and Standard Penalties

• According to Indiana criminal law, the crime of check deception is classified as Class A misdemeanors. Class A misdemeanors carry a potential jail penalty of up to one year imprisonment and a fine of not more than $5,000. Check fraud, under the law, is a Class D felony. Class D felonies in Indiana is punishable by up to three years in a state prison and a maximum fine of $10,000. Additionally, for both charges, you can be sued for civil damages of up to $500 penalty, attorney's fees and accrued interest on the damages of 18 percent a year.
  
  

Enhanced Penalties

• Indiana criminal law allows allows for enhanced penalties for check deception and check fraud. For check deception, if the amount of the check was at least $2,500 and the property obtained was a motor vehicle, the charge will be filed as a Class D felony. For check fraud, if you have a prior check fraud conviction or the aggregate amount of the checks you passed was $25,000 or more, the case will be filed as a Class C felony.
  
  

Defenses

• An absolute defense to the charge of check deception is either: (1) the person who accepted the presented check for payment, knew at the time that the check would not be honored or (2) the bank or credit union on which the check is drawn on erred in management/analysis of how much was in the account without informing the person who made the check.