Fraud charges in Texas can result in years in prison, heavy fines, and a permanent criminal record. If you’re facing fraud allegations in Dallas, the outcome depends heavily on who represents you. The Dallas fraud lawyers at Varghese Summersett defend clients against all types of fraud charges, from credit card abuse to complex federal white-collar investigations.
What Is Fraud Under Texas Law?
Under Texas law, fraud involves using deception to obtain money, property, or services from another person. The deception can take many forms: false statements, broken promises, or concealing information that should have been disclosed. Chapter 32 of the Texas Penal Code covers fraud offenses in detail.
Fraud cases are often document-heavy and require defense attorneys who understand complex financial records. Our team has decades of experience defending clients against financial crimes throughout North Texas. We’ve secured dismissals and reduced charges in cases involving forgery, credit card abuse, and aggregated theft schemes.
What Are the Most Common Types of Fraud in Texas?
Texas law recognizes dozens of fraud offenses. Here are the most common charges our Dallas fraud lawyers handle:
| Offense | Texas Penal Code Section |
|---|---|
| Credit/debit card fraud or abuse | Section 32.31 |
| Bank fraud | General fraud provisions |
| Wire fraud | General fraud provisions |
| Check fraud and check kiting | Section 32.41 |
| Forgery | Section 32.21 |
| Counterfeiting real estate deeds | General fraud provisions |
| Insurance fraud | Section 35.02 |
| Medicaid fraud | Chapter 35A |
| Medicare fraud | Chapter 35A |
| Healthcare fraud | Chapter 35A |
| Identity fraud | General fraud provisions |
| Misappropriation | General fraud provisions |
| Tax fraud | General fraud provisions |
| Counterfeiting | Section 32.23 |
| Criminal simulation | Section 32.22 |
| Trademark counterfeiting | Section 32.23 |
| Stealing or receiving stolen checks | Section 32.24 |
| Possession of credit/debit card information | General fraud provisions |
| Fraudulent use of credit/debit card information | General fraud provisions |
What Are the Penalties for Fraud in Texas?
Texas classifies fraud offenses based on the dollar amount involved. The higher the value, the more severe the punishment. Prosecutors use Texas’s value ladder to determine whether your charge is a misdemeanor or felony:
| Value | Offense Level | Punishment Range |
| Under $100 | Class C Misdemeanor | Up to $500 fine |
| $100 – $750 | Class B Misdemeanor | Up to 180 days in jail |
| $750 – $2,500 | Class A Misdemeanor | Up to 1 year in jail |
| $2,500 – $30,000 | State Jail Felony | 180 days – 2 years in state jail |
| $30,000 – $150,000 | Third-Degree Felony | 2 – 10 years in prison |
| $150,000 – $300,000 | Second-Degree Felony | 2 – 20 years in prison |
| Over $300,000 | First-Degree Felony | 5 – 99 years or life |
Beyond prison time, a fraud conviction can destroy your career, especially if you work in finance, healthcare, government, or any field requiring a professional license. If you’re facing fraud charges, talk to a Dallas fraud lawyer before making any statements to investigators.
What Are White-Collar Crimes?
Many fraud offenses fall under the category of white-collar crime. These are financially motivated, nonviolent crimes typically committed by business professionals, executives, or government officials. The term was first used in the 1930s to describe crimes committed by people in positions of trust.
Watch: What Is a White-Collar Crime?
Common white-collar fraud offenses include:
- Embezzlement
- RICO offenses
- Computer crimes
- Price fixing
- Insider trading
- Accounting crimes
- Mortgage fraud
In white-collar cases, investigators often build their case quietly before making an arrest. If you learn you’re under investigation for fraud, contact a defense attorney immediately. Early intervention can sometimes prevent charges from being filed.
Can Fraud Charges Be Enhanced in Texas?
Yes. Texas law allows prosecutors to increase fraud charges by one degree if the alleged victim was elderly. This enhancement applies even if you didn’t know the victim’s age. A third-degree felony fraud case becomes a second-degree case when an elderly victim is involved.
What Is Aggregate Theft in Fraud Cases?
Under Texas Penal Code §31.09, prosecutors can combine multiple thefts into a single charge if they were part of “one scheme or continuing course of conduct.” This means several small frauds can be aggregated into one major felony charge. The combined dollar amount determines the offense level and potential punishment.
Do Repeat Offenders Face Harsher Penalties?
Absolutely. Texas’s habitual offender laws dramatically increase penalties for people with prior felony convictions:
If you have two previous felony convictions, you could face a minimum 25-year prison sentence (up to life) for a third felony conviction. Someone convicted of two prior state jail felonies faces a third-degree felony enhancement on their next charge, which carries 2 to 10 years in prison.
How Does Varghese Summersett Defend Fraud Cases?
Our defense team includes Board Certified criminal defense attorneys and former prosecutors who understand how the state builds fraud cases. We examine every document, challenge the evidence, and look for weaknesses in the prosecution’s theory. Our approach has resulted in over 1,600 dismissals and 800 charge reductions throughout Texas.
In one recent case, our attorneys defended a client facing Theft Aggregate ($30,000-$150,000) and Forgery charges. Through aggressive defense work, we secured dismissal of both cases. In another matter involving Forgery of a Financial Instrument exceeding $300,000, we negotiated deferred adjudication, allowing our client to avoid a felony conviction on their record.
*These results do not guarantee the same outcome in your case. Every case is different.
What Defenses Are Available for Fraud Charges?
Effective fraud defenses depend on the specific facts of your case. Common defense strategies include:
Lack of intent. Fraud requires proving you intended to deceive. If you made a mistake or misunderstood a situation, that’s not fraud.
Insufficient evidence. The state must prove every element of the offense beyond a reasonable doubt. Weak evidence creates opportunities for dismissal or acquittal.
False accusations. Business disputes and personal conflicts sometimes lead to false fraud allegations. We investigate the accuser’s motives and credibility.
Constitutional violations. If investigators obtained evidence through illegal searches or violated your rights, that evidence may be inadmissible.
Don’t wait to build your defense. Schedule a free consultation with our Dallas fraud lawyers today.
Frequently Asked Questions About Fraud Charges in Texas
Can I go to prison for a first-time fraud offense in Texas?
Yes. If the fraud involves more than $2,500, prosecutors will charge it as a felony. Even first-time offenders face potential prison time for felony fraud. The exact sentence depends on the dollar amount involved and your criminal history.
What’s the difference between state and federal fraud charges?
State charges are prosecuted in Texas courts under Texas law. Federal charges involve violations of federal law and are prosecuted in federal court. Fraud becomes a federal case when it crosses state lines, involves federal agencies, or uses the mail or wire systems. Federal sentences are often more severe.
How long do fraud investigations take?
Fraud investigations can take months or even years, especially in complex white-collar cases. Investigators often gather evidence quietly before making an arrest. If you learn you’re under investigation, consult an attorney immediately.
Can fraud charges be dropped or reduced?
Yes. Fraud charges can be dismissed if the evidence is insufficient or if constitutional violations occurred. Even when dismissal isn’t possible, an experienced defense attorney can often negotiate reduced charges or alternative sentencing like deferred adjudication.
Will a fraud conviction affect my professional license?
Most professional licensing boards consider fraud a crime of moral turpitude. A conviction can result in license suspension or revocation for doctors, nurses, accountants, attorneys, real estate agents, and other licensed professionals.
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Facing charges in Dallas? Get a free consultation.
Protect Your Future. Call a Dallas Fraud Lawyer Today.
Fraud charges threaten your freedom, your career, and your family’s future. The criminal defense team at Varghese Summersett includes Board Certified attorneys and former prosecutors with decades of experience protecting clients from fraud convictions. With more than 70 team members across four Texas offices, we have the resources to handle even the most complex financial crime cases.
For a free consultation, call us at 214-903-4000.
