Minor exaggerations during negotiations might seem harmless, but our state treats serious misrepresentations as a potential crime called false pretense. This offense hinges on a person’s intent to defraud another individual when conducting a transaction or securing property.
How does our state define false pretense?
Since 1931, Michigan’s Penal Code has prohibited false pretense under Section 750.218. It occurs when someone, intending to deceive or cheat, uses a false representation to obtain property or convince another person to sign, transfer or convey something of value. The law also covers actions that involve false weights or measures, which is intended to ensure nobody gains more property or gives away less than what was agreed.
Past, present or future misrepresentations
Earlier versions of the law focused on statements about existing or past facts. In 2004, the state added Section 750.218(11), which clarified that promises about future events also qualify as false pretense, if the person making the promise knows it to be untrue. This change closed a perceived loophole that once made prosecution more difficult.
Elements prosecutors must prove
Courts have identified four essential elements in a false pretense case. First, prosecutors must prove that there was a misstatement of an existing fact. Second, prosecutors must prove that the speaker had knowledge that the claim is false. Third, the prosecutor must prove the speaker had the intent to deceive the victim. Finally, the prosecutor must show that the victim’s reliance on the misstatement caused harm or loss. For instance, selling counterfeit jewelry as genuine would likely meet these criteria if the seller were aware of the deception and the buyer was misled into making the purchase.
Penalties and fines
Criminal penalties vary according to the amount of money or value involved. Convictions can range from a maximum of 93 days in jail and a $500 fine for property valued at less than $200 to up to 20 years’ imprisonment and a $35,000 fine for property worth $100,000 or more. Repeat offenses and convictions can escalate the penalties to the next tier too.
Beyond standard fines, the court may impose a penalty of triple the property’s value, which can far exceed the set statutory fines. In high-value cases, this triple-value fine can result in a substantially larger financial penalty than the amount stated in the statute. This creates a serious risk of financial hardship for convicted defendants.