When you’re facing fraud charges in Texas, it can feel like your whole world is crumbling. Whether it’s a misunderstanding at work or a more complex situation, fraud allegations can threaten your freedom, career, and reputation.

In this guide, we’ll break down the different types of fraud as defined by the Texas penal code. We’ll also help you understand when it’s time to reach out to a lawyer.

How Texas Law Defines Fraud

The Texas Penal Code Title 7, Chapter 32 takes a comprehensive approach to fraud, seeing it as a form of deception intended to obtain property, services, or benefits unlawfully.

“At the heart of it is typically an accusation of theft,” says Graham Norris, founder of Norris Legal Group.

This theft can take many forms, from straightforward deception to complex schemes involving multiple transactions.

The key elements that prosecutors must typically prove in a fraud case include:

• Intent to deceive or harm another person
• Making false or misleading statements
• Obtaining property, money, or services through deception
• Causing financial loss to another party

Employee and Workplace Fraud

Workplace fraud often comes from situations where personal and business finances become intertwined. Common scenarios include:

1. Financial Mismanagement
   • “Mixing of personal money and business money,” as Graham describes
   • Using company accounts as a “safety valve” for personal expenses
   • Unauthorized “borrowing” with intentions to repay
2. Position-Based Fraud
   • Diverting company funds
   • Unauthorized access to financial accounts
   • Misuse of company credit cards
   • Taking unauthorized loans from business accounts
3. Documentation Fraud
   • Falsifying expense reports
   • Altering financial records
   • Creating fake invoices
   • Manipulating time sheets

Healthcare and Insurance Fraud

One of the most complex areas of fraud involves healthcare schemes. These typically include:

1. Medicaid/Medicare Fraud
   • Filing false claims
   • Billing for services not rendered
   • Patient kickback schemes
   • Double billing
2. Insurance Schemes
   • Filing false claims
   • Inflating legitimate claims
   • Billing for phantom services
   • Premium fraud

Graham once dealt with such a case involving a kickback scheme for Medicaid claims. “They were prospecting patients who would then make claims on Medicaid … that they could then bill for on the insurance side,” he says. “The patients would receive a small kickback, and the healthcare providers were getting rich.”

Other Types of Fraud in Texas

There are many other types of fraud outlined in the Texas penal code. Here are a few other prominent examples.

Forgery

Forgery involves altering, making, or completing any writing to:

• Make it appear to be the act of another
• Change the timing or sequence of documents
• Create fake copies of non-existent originals

Common targets include wills, deeds, checks, credit cards, and commercial instruments.

Credit and Debit Card Abuse

This increasingly common type of fraud includes:

• Using cards without the owner’s consent
• Using expired or revoked cards
• Creating or using fictitious cards
• Receiving benefits from fraudulent card use

Deceptive Business Practices

Texas law specifically identifies several business-related frauds:

• Using false weights or measures
• Selling adulterated or mislabeled products
• False advertising
• Deceptive pricing
• Misrepresenting products or services

Commercial Bribery and Fiduciary Fraud

This involves:

• Fiduciaries accepting benefits without consent
• Influencing business decisions through unauthorized benefits
• Professional advisors compromising their duties

When Texas Fraud Becomes a Federal Case

Graham says that two key factors typically elevate a fraud case to federal jurisdiction:

• Interstate operations: When the scheme crosses state lines, the federal government often gets involved.
• Value threshold: “If the dollar amount is over half a million dollars or more, it’s more likely the federal government would pursue a charge, especially if it’s over state lines,” Graham notes.

While federal authorities can prosecute smaller cases, Graham says they typically focus on larger-scale operations.

Building an Effective Defense for Fraud in Texas

When facing fraud charges in Texas, your immediate actions can significantly impact your case’s outcome. Building a strong defense requires quick, strategic action and careful attention to documentation and legal rights.

• Secure Legal Representation Immediately: Do not speak to investigators, employers, or colleagues about your case before consulting an attorney. Early statements, even well-intentioned explanations, can be used against you later in court. Remember that investigators may seem friendly, but their job is to build a case.
• Preserve All Documentation: Secure all bank statements, emails, text messages, business documents, authorization records, and receipts. Don’t delete anything, even if you think it might be harmful – deletion could lead to additional charges.
• Establish Your Timeline: Work with your attorney to create a detailed chronology of events, including when activities began, key transaction dates, when concerns were first raised, and any relevant meetings or conversations. This timeline often reveals critical defense opportunities your attorney can leverage.
• Address Red Flags Proactively: If you’re aware of unaccounted funds, unclear money sources, or mixed personal/business finances, bring these issues to your attorney’s attention immediately. “If you’ve got any questions about whether business practices are legal, you need to consult with an attorney,” Graham notes.
• Consider Expert Assistance: Complex fraud cases often require forensic accountants or financial analysts to review records and help build your defense. Your attorney can coordinate with these experts to challenge prosecution evidence and support your case.
• Explore Resolution Options: Your attorney can pursue various strategies, from case dismissal to negotiated pleas, based on your specific situation. Early intervention often provides more options for favorable resolution, including potential alternatives to criminal prosecution.

Why Choose Norris Legal Group

At Norris Legal Group, we understand that fraud cases require a delicate balance of aggressive defense and strategic planning. Our approach includes:

1. Experienced Representation
   • Deep understanding of Texas fraud statutes
   • Experience in both state and federal courts
   • Track record of successful resolutions
2. Comprehensive Defense Strategy
   • Thorough case evaluation
   • Evidence preservation and analysis
   • Strategic negotiation with prosecutors
   • Protection of your rights and interests

If you’re facing fraud charges in Texas, don’t wait to get help. Contact Norris Legal Group today for a confidential consultation. Remember, early intervention can make a crucial difference in the outcome of your case.