Arizona Fraud Laws
Fraud charges in Arizona encompass a wide range of deceptive conduct designed to obtain money, property, or other benefits. The most serious fraud statute—Fraudulent Schemes and Artifices (ARS § 13-2310)—is a Class 2 Felony regardless of the amount involved, carrying potential prison sentences up to 12.5 years. Arizona also prosecutes identity theft, credit card fraud, check fraud, and numerous other fraud-related offenses, each with specific elements and penalties.
Attorney Josh represents clients throughout Arizona facing fraud allegations.
Fraudulent Schemes and Artifices (ARS § 13-2310)
Arizona’s primary fraud statute makes it illegal to:
“Pursuant to a scheme or artifice to defraud, knowingly obtain any benefit by means of false or fraudulent pretenses, representations, promises or material omissions.”
Key Elements
- Scheme or artifice to defraud — A plan or pattern of deceptive conduct
- Knowingly — Aware of the deceptive nature
- Obtain benefit — Money, property, services, or other advantage
- False or fraudulent — Misrepresentation, false promise, or material omission
Classification and Penalties
Class 2 Felony — Regardless of amount
| Sentence (First Offense) | Range |
| Mitigated | 3 years |
| Presumptive | 5 years |
| Aggravated | 12.5 years |
This is one of Arizona’s most serious property crimes—felony classification doesn’t depend on dollar amount.
Identity Theft (ARS § 13-2008)
Taking or using another person’s personal identifying information without consent, with intent to obtain or use for any unlawful purpose.
Personal Identifying Information Includes
- Social Security numbers
- Driver’s license numbers
- Bank account numbers
- Credit card numbers
- Dates of birth
- Biometric data
- Digital signatures
Classifications
| Number of Victims | Classification |
| 1-4 victims | Class 4 Felony |
| 5+ victims | Class 3 Felony |
| Victims 65+ or disabled | Class 3 Felony |
Penalties
Class 4 Felony: 1.5 – 3.75 years (first offense)
Class 3 Felony: 2.5 – 8.75 years (first offense)
Credit Card Fraud (ARS § 13-2105)
Fraudulent Use of Credit Card
Using a credit card obtained or retained in violation of law, or using a card the person knows is forged, expired, or revoked.
Classification: Class 5 Felony (6 months – 2.5 years)
Possession of Machinery for Credit Card Crimes (ARS § 13-2109)
Possessing equipment designed to encode or produce credit cards with intent to defraud.
Classification: Class 5 Felony
Receipt of Proceeds from Credit Card Fraud (ARS § 13-2108)
Receiving money or property obtained through credit card fraud knowing it was fraudulently obtained.
| Value | Classification |
| Under $1,000 | Class 1 Misdemeanor |
| $1,000+ | Class 6 Felony |
Check Fraud
Issuing Bad Check (ARS § 13-1807)
Issuing a check knowing there are insufficient funds.
| Amount | Classification |
| Under $100 | Class 1 Misdemeanor |
| $100 – $999 | Class 6 Felony |
| $1,000 – $2,499 | Class 5 Felony |
| $2,500+ | Class 4 Felony |
Elements
- Issued check for payment of money
- Knew at time of issuance funds were insufficient
- Intent to defraud
Presumption of Knowledge
Knowledge of insufficient funds is presumed if:
- Issuer had no account with the bank
- Payment was refused for insufficient funds AND issuer failed to pay within 12 days of notice
Insurance Fraud (ARS § 20-463)
Making false statements or concealing information in connection with insurance claims or applications.
Types of Insurance Fraud
- False claims for losses that didn’t occur
- Inflated claims
- Staged accidents
- False information on applications
- Healthcare billing fraud
Classification: Class 5 Felony (6 months – 2.5 years)
Securities Fraud (ARS § 44-1991)
Making false statements or omitting material facts in connection with securities sales.
Prohibited Conduct
- False statements about securities
- Omitting material information
- Ponzi schemes
- Investment fraud
Classification: Class 3 Felony (2.5 – 8.75 years)
Computer Fraud (ARS § 13-2316)
Using computer systems to commit fraud or theft.
Covered Conduct
- Accessing computers to commit fraud
- Altering data to commit fraud
- Unauthorized access to obtain information for fraud
Classification: Varies from Class 3 Misdemeanor to Class 3 Felony depending on conduct and amount
Theft by Extortion (ARS § 13-1804)
Obtaining property through threats.
Types of Threats
- Physical injury
- Property damage
- Exposing secrets
- Accusing of crime
- Taking or withholding official action
Classification: Class 4 Felony (1.5 – 3.75 years)
Common Fraud Scenarios
Business Fraud
- Partner disputes involving misappropriation
- Contract fraud
- Billing schemes
- Vendor fraud
Real Estate Fraud
- Mortgage fraud
- Title fraud
- Rental scams
- Investment property fraud
Healthcare Fraud
- False billing
- Unnecessary services
- AHCCCS (Arizona Medicaid) fraud
- Prescription fraud
Employment Fraud
- Embezzlement
- Expense reimbursement fraud
- Payroll fraud
- Time theft schemes
Consumer Fraud
- Advance fee schemes
- Contractor fraud
- Investment scams
- Romance scams
Defense Strategies
Lack of Intent to Defraud
Fraud requires knowing deception with intent to defraud:
- Good faith belief statements were true
- No intent to deceive
- Mistake of fact
No Material Misrepresentation
The statement must be material—significant enough to influence the victim’s decision:
- Statement was accurate
- Omission wasn’t material
- Victim wasn’t actually deceived
Authorization
For identity theft and credit card fraud:
- Had permission to use account
- Reasonable belief of authorization
- Acting within scope of authority
Insufficient Evidence
Fraud cases often rely on circumstantial evidence:
- No direct evidence of knowledge
- Alternative explanations exist
- Witness credibility issues
Statute of Limitations
For most felony fraud: 7 years from commission or discovery.
Collateral Consequences
Professional Licensing
Fraud convictions typically result in denial or revocation of:
- Real estate licenses
- Financial/accounting licenses
- Healthcare licenses
- Insurance licenses
- Legal licenses
Employment
Fraud is a “crime of dishonesty” affecting:
- Any position involving trust
- Financial responsibility positions
- Government employment
- Bonded positions
Immigration
Fraud is generally a crime involving moral turpitude (CIMT) with serious immigration consequences:
- Deportation
- Inadmissibility
- Denial of naturalization
Civil Liability
Criminal prosecution doesn’t prevent:
- Civil lawsuits by victims
- Restitution orders
- Asset seizure and forfeiture
Frequently Asked Questions
Is fraud always a felony in Arizona?
Most fraud offenses are felonies. Fraudulent Schemes (ARS § 13-2310) is always a Class 2 Felony regardless of amount. Some bad check offenses under $100 are misdemeanors.
What makes fraud different from theft?
Fraud involves deception—obtaining property through false pretenses. Theft involves taking property without deception. Many cases involve elements of both.
Can I be charged with both state and federal fraud?
Yes. Many fraud schemes involve federal jurisdiction through mail, wire communications, or federally regulated institutions. Federal charges carry separate penalties.
What if I intended to pay the money back?
Intent to repay may be relevant but doesn’t necessarily negate fraud charges. The question is whether you intended to deceive at the time of the transaction.
How long can prosecutors wait to charge fraud?
The statute of limitations for most felony fraud is 7 years from when the offense was committed or discovered.
Can fraud charges be dismissed?
Yes. If the prosecution cannot prove knowing deception or intent to defraud beyond reasonable doubt, charges may be dismissed or reduced.
Will fraud affect my professional license?
Almost certainly. Fraud is a crime of dishonesty that typically results in denial or revocation of professional licenses in regulated fields.
Fraud Defense Throughout Arizona
Fraud charges threaten your freedom, career, and financial future. Attorney Josh represents clients facing fraud allegations throughout Arizona.
Phoenix Office:
2601 N 3rd Street, Suite 301
Phoenix, AZ 85004
Scottsdale Office:
6991 East Camelback Rd, Suite D-300
Scottsdale, AZ 85251
Call (480) 386-1824 for a free consultation.