Utah Communications Fraud Defense Attorney

Salt Lake City Communications Fraud Lawyer

Perhaps one of the most bewildering laws on Utah’s books deal with Utah’s communications fraud. In fact, if the State of Utah were to pursue everybody that they could possibly pursue under this law, virtually everybody could be convicted – even private parties who sell their used cars. If you are on the other end of this law, please call us now.

This is because all the accuser has to allege is that he or she was lied to (or was merely given bad information recklessly), and that that lie cost him something of value. If a person claims that you wasted his or her time, that could be all the value the State of Utah needs to show the jury.

Because of how amazingly broad this law is, it is a good idea to keep these things in mind: 1) Never lie or omit relevant facts. 2) Always state things as your opinions, instead of "facts". 3) Have a witness. 4) Get things in writing. 5) Don’t speak unless you have to.¹

Consider this example: Jack, an honest man, is a landlord of an apartment complex, and wants more tenants because his complex is only half full. So, he figures he’ll give away one month of rent free with a signed contract for a year from any new renter. So, he makes a big sign that says "FREE RENT" and hangs it outside the complex, so everybody who drives by can see it.

Janet, sees the sign and immediately calls the police to report a case of communications fraud in Utah. The police listen carefully, and are convinced they have a criminal on their hands. So, an undercover cop calls Jack, and poses as a potential renter during a phone call. It goes like this:

Jack: "Hello."

Cop: "Hi. I was driving by and saw your sign – I want to snatch up that deal."

Jack: "Great!"

Cop: "Yeah, I’ll be by today. How much free rent do I get?"

Jack: "Well, one month."

Cop: "Great, I will move in today. This is wonderful because I only need a place for a month."

Jack: "Well, to get that deal, you need to sign a lease for a year."

Cop: "I see. So, it’s not really free."

Jack: "Well, it is if you sign a lease."

The cop is right. It is definitely NOT free. Any kindergartner knows that the word "free" means "without cost", and the fact of the matter is that there is a cost, and big one – 11 months of paid rent.

Jack can be charged with communications fraud, even though the cop was never really deceived. This is because under the Utah communications fraud law, the "victim" does not even have to fall for it! Utah communications fraud law says this: "Reliance on the part of any person is not a necessary element of the offense".

In other words, even though the cop suffered no harm at all, and knew when he called Jack that the sign was absurd, Jack can still be prosecuted under the law.

Now, the bottom line is that a case like this would typically not be charged as a crime, but it certainly could be. If you are on the other end of this law, please call us now.

The law seems to be reasonable, but if you read it carefully, it is a whopping hammer: "A person may not be convicted under this section unless the pretenses, representations, promises, or material omissions made or omitted were made or omitted intentionally, knowingly, or with a reckless disregard for the truth.

Now, didn’t Jack recklessly fail to state that the deal was only good with a signed contract for a year? Now if the rent is $900 per month, that means that Jack sought to obtain at least $9,900 from the cop. That makes this a very serious FELONY.

Let’s look at §76-10-1801 of the Utah Code that deals with Utah communications fraud again, and you can see why any person could get nailed with this law:

A violator of this law is "Any person who has devised any scheme or artifice to defraud another or to obtain from another money, property, or anything of value by means of false or fraudulent pretenses, representations, promises, or material omissions, and who communicates directly or indirectly with any person by any means for the purpose of executing or concealing the scheme or artifice is guilty of:

• (a) a class B misdemeanor when the value of the property, money, or thing obtained or sought to be obtained is less than $300;
• (b) a class A misdemeanor when the value of the property, money, or thing obtained or sought to be obtained is or exceeds $300 but is less than $1,000;
• (c) a third degree felony when the value of the property, money, or thing obtained or sought to be obtained is or exceeds $1,000 but is less than $5,000;

If you are on the other end of this law, please call us now at 801-364-6454.

The law is very vague indeed. Consider the case of Richard Mattinson. Here are the facts as I understand them:

Richard took his suffering girlfriend, Stevoni Wells, to the emergency room at the Utah Valley Regional Medical Center in Provo. Apparently, she had a very high fever from spinal meningitis. He was afraid that she could be arrested because there were warrants out for her arrest. He provided false information to the medical staff to get her admitted. All the benefit went to the girlfriend, not to him. Because they weren’t married, he was not even legally liable for her debts. A jury convicted him, and the Utah Court of Appeals upheld the conviction under the Utah communications fraud statute. He got value by having his girlfriend seen.

When the Utah Supreme Court reviewed the matter, Chief Justice Christine Durham said that many people tell lies just to be polite. "Your wife says this morning ‘does this make me look fat?’ . . . some utter calculated lies to make the day go better". She was right.

In other words, anybody can get nailed for this. There is only one reason a person lies: to get something of value. The reality is this: virtually all lying is criminal now.

I was recently in a national restaurant, and at the bottom of the receipt it said this: Remember! Kids eat free on Saturdays!

Of course that meant, "with the purchase of an adult meal". But that is not what it said. Under the Utah Communications Fraud Statute, the owners of that could be charged criminally. And the employees? Of course, they could all be viewed as co-conspirators. After all, if I showed up with a bus of poor kids, and said, "They are all here to eat free!", I would get kicked out of the place.

76-10-1801. Communications fraud – Elements – Penalties.

• (1) Any person who has devised any scheme or artifice to defraud another or to obtain from another money, property, or anything of value by means of false or fraudulent pretenses, representations, promises, or material omissions, and who communicates directly or indirectly with any person by any means for the purpose of executing or concealing the scheme or artifice is guilty of:
• (a) a class B misdemeanor when the value of the property, money, or thing obtained or sought to be obtained is less than $300;
• (b) a class A misdemeanor when the value of the property, money, or thing obtained or sought to be obtained is or exceeds $300 but is less than $1,000;
• (c) a third degree felony when the value of the property, money, or thing obtained or sought to be obtained is or exceeds $1,000 but is less than $5,000;
• (d) a second degree felony when the value of the property, money, or thing obtained or sought to be obtained is or exceeds $5,000; and
• (e) a second degree felony when the object or purpose of the scheme or artifice to defraud is the obtaining of sensitive personal identifying information, regardless of the value.
• (2) The determination of the degree of any offense under Subsection (1) shall be measured by the total value of all property, money, or things obtained or sought to be obtained by the scheme or artifice described in Subsection (1) except as provided in Subsection (1)(e).
• (3) Reliance on the part of any person is not a necessary element of the offense described in Subsection (1).
• (4) An intent on the part of the perpetrator of any offense described in Subsection (1) to permanently deprive any person of property, money, or thing of value is not a necessary element of the offense.
• (5) Each separate communication made for the purpose of executing or concealing a scheme or artifice described in Subsection (1) is a separate act and offense of communication fraud.
• (6)
• (a) To communicate as described in Subsection (1) means to:
• (i) bestow, convey, make known, recount, or impart;
• (ii) give by way of information;
• (iii) talk over; or
• (iv) transmit information.
• (b) Means of communication include use of the mail, telephone, telegraph, radio, television, newspaper, computer, and spoken and written communication.
• (7) A person may not be convicted under this section unless the pretenses, representations, promises, or material omissions made or omitted were made or omitted intentionally, knowingly, or with a reckless disregard for the truth.
• (8) As used in this section, "sensitive personal identifying information" means information regarding an individual’s:
• (a) Social Security number;
• (b) driver’s license number or other government issued identification number;
• (c) financial account number or credit or debit card number;
• (d) password or personal identification number or other identification required to gain access to a financial account or a secure website;
• (e) automated or electronic signature;
• (f) unique biometric data; or
• (g) any other information that can be used to gain access to an individual’s financial accounts or to obtain goods or services.

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¹In other words, be perfect, which reminds me of Mathew 5:48. And isn’t God the only One that is Perfect?