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Searching 2019-2020 Session

The Vermont Statutes Online

 

Title 13: Crimes and Criminal Procedure

Chapter 047: FRAUDS

  • § 2001. False personation

    A person who falsely personates or represents another, and in such assumed character receives money or other property intended to be delivered to the party so personated, with intent to convert the same to the person's own use, shall be imprisoned not more than 10 years or fined not more than $2,000.00, or both. (Amended 1971, No. 199 (Adj. Sess.), § 15; 2005, No. 156 (Adj. Sess.), § 1.)

  • § 2002. False pretenses or tokens

    A person who designedly by false pretenses or by privy or false token and with intent to defraud, obtains from another person money or other property, or a release or discharge of a debt or obligation, or the signature of a person to a written instrument, the false making whereof would be punishable as forgery, shall be imprisoned not more than 10 years or fined not more than $2,000.00, or both, if the money or property so obtained exceeds $900.00 in value. A person who violates this section shall be imprisoned for not more than one year or fined not more than $1,000.00, or both, if the money or property obtained in violation of this section is valued at $900.00 or less. (Amended 1971, No. 199 (Adj. Sess.), § 15; 1981, No. 223 (Adj. Sess.), § 23; 2005, No. 156 (Adj. Sess.), § 2.)

  • § 2003. False tokens described

    The use of a matured check, or other order for the payment of money, as a means of obtaining from another person money or other property, or a release or discharge of a debt or obligation, or the signature of a person to a written instrument the false making whereof would be punishable as forgery, such as is specified in section 2002 of this title, by a person who knows that the drawer thereof is not entitled to draw for the sum specified therein upon the drawee, is the use of a false token within the meaning of section 2002 of this title, although representation is not made in respect thereto.

  • § 2004. Repealed. 1973, No. 249 (Adj. Sess.), § 111, eff. April 9, 1974.

  • § 2005. False advertising

    A person, firm, corporation, or association, or an agent or employee thereof, who, with intent to sell courses of instruction or to dispose of merchandise, real estate, securities, or service or to induce the public to enter into any obligations relating thereto, shall knowingly make, publish, circulate, or place before the public on radio or television or in a newspaper, magazine, or other publication or in form of a book, notice, circular, pamphlet, letter, handbill, poster, bill, sign, placard, card, label, or tag, or through an electronic communication, an advertisement, or statement regarding educational advantages, merchandise, real estate, securities or service, which advertisement or statement shall contain anything untrue, deceptive, or misleading, shall be fined not more than $1,000.00. (Amended 1967, No. 20, eff. March 3, 1967; 1999, No. 124 (Adj. Sess.), § 5.)

  • § 2006. False statement as to financial ability

    A person shall not knowingly make to a person, company, or corporation, or to a commercial agency, a false statement in writing signed by himself, herself, or by his or her direction, with intent that it shall be relied upon, respecting his or her financial condition, or the financial ability to pay of himself, herself, or other person, company, or corporation in which he or she is financially interested or by which he or she is employed as manager, secretary, or superintendent, for the purpose of procuring in any form the delivery of personal property, the payment of cash, the making of a loan or credit, the extension of a credit, the discount of an account receivable, or the making, acceptance, discount, sale, or indorsement of a bill of exchange or promissory note, for the benefit of himself, herself, or such other person, company, or corporation.

  • § 2007. Receiving value upon false statement

    Knowing that a false statement in writing has been made respecting the financial condition or means or ability to pay of himself, herself, or other person in whom he or she is financially interested or for whom he or she is acting, a person shall not procure, upon the faith thereof, for the benefit of himself, herself, or such other person, any of the things of benefit specified in section 2006 of this title.

  • § 2008. False statement as to present validity of prior statement

    Knowing that a statement in writing has been made respecting the financial condition or means or ability to pay of himself, herself, or other person in whom he or she is financially interested or for whom he or she is acting, a person shall not falsely represent on a later day, in writing, that such statement would be true if made on such later day, and thereby procure for the benefit of himself, herself, or such other person any of the things of benefit specified in section 2006 of this title.

  • § 2009. Penalties

    A person who violates a provision of sections 2006-2008 of this title shall be imprisoned not more than one year or fined not more than $1,000.00, or both.

  • § 2010. Repealed. 1967, No. 202, § 6, eff. April 17, 1967.

  • § 2011. Fraudulent use of badges

    A person not entitled by the rules and regulations of the departments of the Grand Army of the Republic, the American Legion, Veterans of Foreign Wars of the United States, Sons of Veterans, Woman's Relief Corps, Ladies of the Grand Army of the Republic, Woman's Auxiliary of the American Legion, or of any patriotic, secret, or charitable society, who willfully wears a badge, button, or insignia of any such society or uses the same for any fraudulent purpose within the State, shall be imprisoned not more than 30 days or fined not more than $50.00, or both.

  • § 2012. Misrepresenting livestock

    (a) A person shall not make false or fraudulent representations for the purpose of obtaining a certificate of registration of an animal in a herd register or other register of a club, association, society, company, or corporation.

    (b) A person shall not make false or fraudulent representations for the purpose of transfer of such certificate of registration.

    (c) A person shall not fraudulently represent that an animal is a registered animal, or has been registered, with the intent that such representation shall be relied upon by another.

    (d)(1) A "person" under this section is a person as defined in 1 V.S.A. § 128.

    (2) A "registered animal" is an animal duly registered as a purebred in the official herd book or similar register of any recognized purebred registry association organized for the purpose of registering a particular breed of animals whose lineage has been established by registry records.

    (3) An animal has been "registered" when it qualifies as a registered animal as defined in subdivision (2) of this subsection.

    (e) A person who violates a provision of subsection (a), (b), or (c) of this section shall be fined not more than $300.00 and shall be liable civilly for damages. (Amended 1963, No. 81.)

  • § 2013. Painting or disguising horses

    A person who knowingly and designedly for the purpose of competing for a purse or premium offered by an agricultural society, corporation, or association within the State, enters or drives a horse or horse kind painted or disguised, or who for such purpose falsely and fraudulently represents a horse to be another from what it really is, or who for such purpose knowingly or designedly enters or drives a horse or horse kind in a class in which it is not entitled to be entered under the rules of such society, corporation, or association, shall be imprisoned not more than six months or fined not more than $500.00, or both. (Amended 1981, No. 223 (Adj. Sess.), § 23.)

  • § 2014. Transferring chattel without notice of lien

    A person who sells or disposes of personal property, or causes the same to be sold or disposed of by another, upon which there is a lien created by a previous attachment or conditional sale, or upon which he or she has previously given a bill of sale, without giving notice to the purchaser of such lien or bill of sale, with intent to defraud, shall be imprisoned not more than one year or fined not more than $200.00, or both. (Amended 1971, No. 199 (Adj. Sess.), § 15; 1981, No. 223 (Adj. Sess.), § 23.)

  • § 2015. Transferring realty without notice of encumbrance

    A person who knowingly and with intent to defraud sells, mortgages, or bonds real estate upon which there is an existing encumbrance, and receives a portion of the consideration of such sale or conveyance, without notifying the person taking such title or lien of such prior encumbrance, and embodying a description thereof in such subsequent conveyance, shall be imprisoned not more than three years or fined not more than $1,000.00, or both. (Amended 1971, No. 199 (Adj. Sess.), § 15.)

  • § 2016. Signing or issuing false certificates of stock

    A president or other officer or agent of a bank, railroad, manufacturing, or other corporation who willfully and designedly signs, with intent that it shall be issued or used, or causes to be issued or used, a false certificate or evidence of the ownership or transfer of shares of stock in such corporation, or a certificate or evidence of such ownership or transfer, that such officer has no authority to make or issue, shall be imprisoned not more than 10 years nor less than one year and fined not more than $1,000.00, or both. (Amended 1971, No. 199 (Adj. Sess.), § 15; 1981, No. 223 (Adj. Sess.), § 23.)

  • § 2017. Repealed. 1979, No. 152 (Adj. Sess.).

  • § 2018. Fraudulent use of slugs and tokens

    A person who operates or causes to be operated, or attempts to operate or to cause to be operated, any automatic vending machine, slot machine, turnstile, coin-box telephone, or other receptacle designed to receive lawful coin of the United States in connection with the sale, use, or enjoyment of property, transportation, or other service, by means of a slug or any false, counterfeited, mutilated, or sweated coin or by any means, method, trick, or device whatsoever not lawfully authorized by the owner, lessee, or licensee of such machine, turnstile, coin-box telephone, or receptacle; or one who takes, obtains, or receives from or in connection with any automatic vending machine, slot machine, turnstile, coin-box telephone, or other receptacle designed to receive lawful coin of the United States in connection with the sale, use, or enjoyment of property or service, any goods, wares, merchandise, transportation, gas, electric current, article of value, or the use or enjoyment of any transportation or any telephone or telegraph facilities or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to such machine, turnstile, coin-box telephone, or other receptacle lawful coin to the amount required therefor by the owner, lessee, or licensee of such machine, turnstile, coin-box telephone, or receptacle, shall be fined not more than $100.00 or be imprisoned for not more than 30 days, or both. (Amended 1971, No. 199 (Adj. Sess.), § 15.)

  • § 2019. Manufacture and sale of devices for cheating

    A person who manufactures for sale, advertises for sale, sells, offers for sale, or gives away any slug, device, or substance whatsoever, designed or calculated to be placed or deposited in any automatic vending machine, slot machine, turnstile, coin-box telephone, or other such receptacle, depository or contrivance, designed to receive lawful coin of the United States in connection with the sale, use, or enjoyment of property or service, with the intent or having cause to believe that such slug, device, or substance shall or will be used to cheat or defraud the person entitled to the contents of any such machine, turnstile, coin-box telephone, or other such receptacle, depository, or contrivance, shall be fined not more than $500.00 or be imprisoned for not more than one year, or both. (Amended 1971, No. 199 (Adj. Sess.), § 15.)

  • § 2020. Repealed. 1959, No. 262, § 37, eff. June 11, 1959.

  • § 2021. Telecommunications fraud and facilitation of telecommunications fraud

    (a) Definitions. As used in this section:

    (1) "Telecommunications device" means any type of instrument, device, machine, or equipment that is capable of transmitting or receiving interactive two-way electromagnetic communication, including voice, image, data, and information, or any part of such instrument, device, machine, or equipment, or any computer circuit, computer chip, electronic mechanism, or other component that is capable of facilitating the transmission or reception of any interactive two-way electromagnetic communication.

    (2) "Telecommunications service" shall be the service provided by a telecommunications service provider as defined in subdivision (3) of this section.

    (3) "Telecommunications service provider" means a person providing telecommunications service, companies operating a cable television system as defined in 30 V.S.A. § 501(2), and companies operating a satellite system.

    (4) "Unlawful telecommunications device" means a telecommunications device, identification code, or computer code that, alone or in conjunction with any other item, is used or is intended to be used to commit telecommunications fraud or facilitation of telecommunications fraud.

    (5) "Traffic" means to sell, buy, receive, distribute, exchange, offer, advertise, transfer, or dispose of an unlawful telecommunications device, related equipment, or plans or instructions for manufacturing or using such devices.

    (6) "Electronic serial number reader" means a device that is capable of acquiring or facilitating the acquisition of an electronic serial number, mobile identification number, personal identification number, or any code or encoded or encrypted transmission useful in originating, facilitating, or transmitting telecommunications service without the consent of the telecommunications service provider.

    (b) Telecommunications fraud. A person with intent to defraud commits the crime of telecommunications fraud by:

    (1) charging telecommunications service to an existing telephone number, calling or credit card number, account number, or other identifying subscriber number; or

    (2) charging telecommunications service to a false, inactive, counterfeit, or stolen telephone number, calling or credit card number, account number, or other identifying subscriber number; or

    (3) obtaining telecommunications service using a false, altered, or stolen identification; or

    (4) obtaining or attempting to obtain telecommunications service by the use of an unlawful telecommunications device.

    (c) Penalties. A person who is convicted of telecommunications fraud shall:

    (1) if the benefit has a value of less than $500.00, be imprisoned not more than two years or fined not more than $5,000.00, or both; or

    (2) if the benefit is $500.00 or more in value, be imprisoned not more than five years or fined not more than $10,000.00, or both.

    (d) Amounts involved in a violation of subsection (b) of this section under one course of conduct may be aggregated in determining the charge or the penalty for the offense.

    (e) A person commits the crime of facilitation of telecommunications fraud who knowingly:

    (1) possesses with intent to defraud, manufactures, or traffics in an unlawful telecommunications device or modifies, programs, or reprograms a telecommunications device designed, adapted, or that can be used:

    (A) to commit a theft of telecommunications service; or

    (B) to conceal with intent to defraud or to assist another to conceal with intent to defraud from any telecommunications service provider or governmental authority the existence or place of origin or destination of any telecommunications service; or

    (2) manufactures or traffics in:

    (A) plans or instructions for manufacturing or using an unlawful telecommunications device, except where the person manufactures or traffics in plans or instructions that are used for bona fide educational purposes exclusively; or

    (B) material, data, computer facilities, computer software, computer hardware, reader, or other equipment knowing that the purchaser or a third person intends to use the material for the manufacture of an unlawful telecommunications device.

    (f) Penalties. A person convicted of facilitation of telecommunications fraud shall:

    (1) for a first offense, be imprisoned for not more than two years or fined not more than $5,000.00, or both; or

    (2) for a second or subsequent offense, be imprisoned not more than five years or fined not more than $20,000.00, or both.

    (g) Civil action. A person damaged as a result of a violation of this section may bring a civil action against the violator for damages and such other relief as the court deems appropriate. (1961, No. 86, §§ 1, 2; amended 1999, No. 35, § 2.)

  • § 2022. Bad checks

    A person who issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee, shall be imprisoned for not more than one year or fined not more than $1,000.00, or both. The court shall order restitution in the amount of the check or order, together with a service charge not to exceed $5.00, if it is established that the defendant has the ability to pay. For the purposes of this section, it may be inferred that the issuer knew that the check or order, other than a post-dated check or order, would not be paid if:

    (1) the issuer had no account with the drawee at the time the check or order was issued; or

    (2) the issuer had insufficient funds with the drawee at the time the check or order was issued or presented for payment, and

    (A) the check or order was presented to the drawee for payment not more than 30 days after the date of issuance; and

    (B) payment was refused by the drawee for reasons other than seizure or attachment of the issuer's funds by order of a court or authorized governmental agency; and

    (C) the issuer or a person acting in his or her behalf failed to make full satisfaction of the amount of the check or order within 10 days after receiving notice of its dishonor by the drawee. (Added 1971, No. 254 (Adj. Sess.), § 3, eff. April 11, 1972; amended 1981, No. 232 (Adj. Sess.), § 1, eff. May 6, 1982.)

  • § 2023. Simulating objects of antiquity or rarity

    A person who, with the purpose of defrauding anyone or with the knowledge that he or she is facilitating a fraud to be perpetrated by anyone, makes or alters any object so that it appears to have value because of antiquity, rarity, source, or authorship that it does not possess shall be imprisoned for not more than one year or fined not more than $1,000.00, or both. (Added 1975, No. 109, § 3.)

  • § 2024. Workers' compensation fraud; criminal penalties

    Any person, including an employee, employer, medical case manager, health care provider, vocational rehabilitation provider, or workers' compensation insurance carrier, who knowingly and with intent to defraud makes a false statement or representation for the purpose of obtaining, affecting, or denying any benefit or payment under the provisions of 21 V.S.A. chapter 9 or the provisions of 8 V.S.A. Part 3, relating to insurance, either for herself or himself or for any other person, shall forfeit all benefits or payments obtained as a result of the false statement or representation and all or a portion of any right to compensation under the provisions of 21 V.S.A. chapter 9 as determined by the Commissioner and:

    (1) for fraud involving $10,000.00 or more, be fined not more than $100,000.00 or imprisoned not more than three years, or both; and

    (2) for fraud involving less than $10,000.00, be fined not more than $10,000.00 or imprisoned not more than two years, or both. (Added 1993, No. 225 (Adj. Sess.), § 23; amended 2003, No. 132 (Adj. Sess.), § 16, eff. May 26, 2004; 2009, No. 142 (Adj. Sess.), § 2.)

  • § 2025. Employers without workers' compensation insurance; criminal sanction

    Any employer who fails to comply with the provisions of 21 V.S.A. § 687 shall be fined not more than $2,500.00 or imprisoned for up to one year, or both. For the purposes of this section, the term employer includes the owner or operator of a business, the officers of a corporation, and the partners in a partnership. (Added 1997, No. 19, § 10.)

  • § 2026. Installation of object in lieu of air bag

    (a) No person shall knowingly install or reinstall or knowingly cause to be installed or reinstalled:

    (1) an object in lieu of a vehicle air bag that was designed in accordance with the federal safety regulation for the make, model, and year of a vehicle; or

    (2) an inoperable vehicle air bag, knowing the air bag is inoperable.

    (b) A person who violates subsection (a) of this section shall be imprisoned for not more than three years or fined not more than $10,000.00, or both.

    (c) A person who violates subsection (a) of this section, and serious bodily injury as defined in section 1021 of this title or death results, shall be imprisoned for not more than 15 years or fined not more than $10,000.00, or both. (Added 2001, No. 122 (Adj. Sess.), § 1.)

  • § 2027. Sale or trade of motor vehicle with an inoperable air bag

    (a) Any person selling or trading a motor vehicle who has actual knowledge that the motor vehicle's air bag is inoperable shall notify the buyer or the person acquiring the trade, in writing, that the air bag is inoperable.

    (b) A person who violates subsection (a) of this section shall be subject to a fine of not more than $3,000.00. (Added 2001, No. 122 (Adj. Sess.), § 2.)

  • § 2028. Fraudulent violations of joint fiduciary accounts

    (a) No person shall intentionally violate 8 V.S.A. § 14212(b) or (e) while acting as a fiduciary on a joint fiduciary account.

    (b) A person who violates this section, or misappropriates funds of $500.00 or less in violation of this section, shall be imprisoned not more than two years or fined not more than $10,000.00, or both.

    (c) A person who misappropriates funds of more than $500.00 in violation of this section, or who is convicted of a second or subsequent violation of this section, shall be imprisoned not more than 10 years or fined not more than $10,000.00, or both. (Added 2001, No. 115 (Adj. Sess.), § 4, eff. May 28, 2002.)

  • § 2029. Home improvement fraud

    (a) As used in this section, "home improvement" includes the fixing, replacing, remodeling, removing, renovation, alteration, conversion, improvement, demolition, or rehabilitation of or addition to any building or land, or any portion thereof, that is used or designed to be used as a residence or dwelling unit. Home improvement shall include the construction, replacement, installation, paving, or improvement of driveways, roofs, and sidewalks, and the limbing, pruning, and removal of trees or shrubbery and other improvements to structures or upon land that is adjacent to a dwelling house.

    (b) A person commits the offense of home improvement fraud when he or she enters into a contract or agreement, written or oral, for $500.00 or more, with an owner for home improvement, or into several contracts or agreements for $2,500.00 or more in the aggregate, with more than one owner for home improvement, and he or she knowingly:

    (1)(A) fails to perform the contract or agreement, in whole or in part; and

    (B) when the owner requests performance or a refund of payment made, the person fails to either:

    (i) refund the payment; or

    (ii) make and comply with a definite plan for completion of the work that is agreed to by the owner;

    (2) misrepresents a material fact relating to the terms of the contract or agreement or to the condition of any portion of the property involved;

    (3) uses or employs any unfair or deceptive act or practice in order to induce, encourage, or solicit such person to enter into any contract or agreement or to modify the terms of the original contract or agreement; or

    (4) when there is a declared state of emergency, charges for goods or services related to the emergency a price that exceeds two times the average price for the goods or services and the increase is not attributable to the additional costs incurred in connection with providing those goods or services.

    (c) Whenever a person is convicted of home improvement fraud or of fraudulent acts related to home improvement:

    (1) the person shall notify the Office of Attorney General;

    (2) the court shall notify the Office of the Attorney General; and

    (3) the Office of Attorney General shall place the person's name on the Home Improvement Fraud Registry.

    (d)(1) A person who violates subsection (b) of this section shall be imprisoned not more than two years or fined not more than $1,000.00, or both, if the loss to a single consumer is less than $1,000.00.

    (2) A person who is convicted of a second or subsequent violation of subdivision (1) of this subsection shall be imprisoned not more than three years or fined not more than $5,000.00, or both.

    (3) A person who violates subsection (b) of this section shall be imprisoned not more than three years or fined not more than $5,000.00, or both, if:

    (A) the loss to a single consumer is $1,000.00 or more; or

    (B) the loss to more than one consumer is $2,500.00 or more in the aggregate.

    (4) A person who is convicted of a second or subsequent violation of subdivision (3) of this subsection shall be imprisoned not more than five years or fined not more than $10,000.00, or both.

    (5) A person who violates subsection (c) or (e) of this section shall be imprisoned for not more than two years or fined not more than $1,000.00, or both.

    (e) A person who is sentenced pursuant to subdivision (d)(2), (3), or (4) of this section, or convicted of fraudulent acts related to home improvement, may engage in home improvement activities for compensation only if:

    (1) the work is for a company or individual engaged in home improvement activities, and the person first notifies the company or individual of the conviction and notifies the Office of Attorney General of the person's current address and telephone number; the name, address, and telephone number of the company or individual for whom the person is going to work; and the date on which the person will start working for the company or individual; or

    (2) the person notifies the Office of Attorney General of the intent to engage in home improvement activities, and that the person has filed a surety bond or an irrevocable letter of credit with the Office in an amount of not less than $50,000.00, and pays on a regular basis all fees associated with maintaining such bond or letter of credit.

    (f) The Office of Attorney General shall release the letter of credit at such time when:

    (1) any claims against the person relating to home improvement fraud have been paid;

    (2) there are no pending actions or claims against the person for home improvement fraud; and

    (3) the person has not been engaged in home improvement activities for at least six years and has signed an affidavit so attesting.

    (g) [Reserved.]

    (h) [Repealed.]  (Added 2003, No. 51, § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2007, No. 211 (Adj. Sess.), § 1; 2015, No. 13, § 1, eff. May 1, 2015.)

  • § 2030. Identity theft

    (a) No person shall obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person with intent to use the information to commit a misdemeanor or a felony.

    (b) No person shall knowingly or recklessly obtain, produce, possess, use, sell, give, or transfer personal identifying information belonging or pertaining to another person without the consent of the other person and knowingly or recklessly facilitating the use of the information by a third person to commit a misdemeanor or a felony.

    (c) For the purposes of this section, "personal identifying information" includes name, address, birth date, Social Security number, motor vehicle personal identification number, telephone number, financial services account number, savings account number, checking account number, credit card number, debit card number, picture, identification document or false identification document, electronic identification number, educational record, health care record, financial record, credit record, employment record, e-mail address, computer system password, or mother's maiden name, or similar personal number, record, or information.

    (d) This section shall not apply when a person obtains the personal identifying information belonging or pertaining to another person to misrepresent the person's age for the sole purpose of obtaining alcoholic beverages, tobacco, or another privilege denied based on age.

    (e) It shall be an affirmative defense to an action brought pursuant to this section, to be proven by a preponderance of the evidence, that the person had the consent of the person to whom the personal identifying information relates or pertains.

    (f) A person who violates this section shall be imprisoned for not more than three years or fined not more $5,000.00, or both. A person who is convicted of a second or subsequent violation of this section involving a separate scheme shall be imprisoned for not more than 10 years or fined not more than $10,000.00, or both. (Added 2003, No. 155 (Adj. Sess.), § 4, eff. June 8, 2004.)

  • § 2031. Insurance fraud

    (a) Definitions. As used in this section:

    (1) "Conceal" means to take affirmative action intended to prevent others from discovering information. Mere failure to disclose information does not constitute concealment.

    (2) "Insurance policy" has the same meaning as in 8 V.S.A. § 4722(3) and includes a workers' compensation policy issued pursuant to 21 V.S.A. chapter 9.

    (3) "Insurer" has the same meaning as in 8 V.S.A. § 4901(2) and includes a workers' compensation insurer pursuant to 21 V.S.A. chapter 9.

    (b) Fraudulent insurance act. No person shall, with intent to defraud:

    (1) present or cause to be presented a claim for payment or benefit, pursuant to any insurance policy, that contains false representations as to any material fact or which conceals a material fact; or

    (2) present or cause to be presented any information that contains false representations as to any material fact or that conceals a material fact concerning the solicitation for sale of any insurance policy or purported insurance policy, an application for certificate of authority, or the financial condition of any insurer.

    (c) Penalties. A person who violates subsection (b) of this section shall:

    (1) if the benefit wrongfully obtained or the loss suffered by any person as a result of the violation has a value of less than $900.00, be imprisoned for not more than six months or fined not more than $5,000.00, or both; or

    (2) if the benefit wrongfully obtained or the loss suffered by any person as a result of the violation has a value of more than $900.00, be imprisoned for not more than five years or fined not more than $10,000.00, or both; or

    (3) for a second or subsequent offense, regardless of the value of the benefit wrongfully obtained, be imprisoned not more than five years or fined not more than $20,000.00, or both.

    (d) Administrative action. Upon the conviction of a practitioner for a violation of subsection (b) of this section, the prosecutor shall inform the appropriate licensing authority. Any victim may notify the appropriate licensing authorities in this State and any other jurisdiction in which the practitioner is licensed of the conviction.

    (e) This section shall not be construed to limit or restrict prosecution under any other applicable law.

    (f) Immunity. No insurer or insurance professional acting in good faith and furnishing or disclosing information to the appropriate law enforcement official shall be subject to civil liability for libel, slander, or any other cause of action arising from the furnishing or disclosing of such information, except if the information is furnished solely to obtain an advantage in connection with a claim that will be, is being, or has been filed.

    (g) The public policy of this State is that the standards of this section shall not apply or be introduced into evidence in any civil or administrative proceeding, whether to argue public policy, materiality, or for any other purpose. (Added 2005, No. 179 (Adj. Sess.), § 1, eff. July 1, 2006; amended 2007, No. 208 (Adj. Sess.), § 4.)

  • § 2032. Sales suppression devices

    (a) As used in this section:

    (1) "Automated sales suppression device," also known as a "zapper," means a software program, carried on a memory stick or removable compact disc, accessed through an Internet link, or accessed through any other means, that falsifies transaction data, transaction reports, or any other electronic records of electronic cash registers and other point-of-sale systems.

    (2) "Electronic cash register" means a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.

    (3) "Phantom-ware" means a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that:

    (A) can be used to create a virtual second till; or

    (B) may eliminate or manipulate transaction records.

    (4) "Transaction data" include items purchased by a customer, the price for each item, a taxability determination for each item, a segregated tax amount for each of the taxed items, the amount of cash or credit tendered, the net amount returned to the customer in change, the date and time of the purchase, the name, address, and identification number of the vendor, and the receipt or invoice number of the transaction.

    (5) "Transaction reports" means a report documenting, but not limited to, the sales, taxes collected, media totals, and discount voids at an electronic cash register that is printed on cash register tape at the end of a day or shift, or a report documenting every action at an electronic cash register that is stored electronically.

    (b)(1) A person shall not knowingly sell, purchase, install, transfer, or possess an automated sales suppression device or phantom-ware.

    (2) A person who violates subdivision (1) of this subsection shall be imprisoned for not less than one year and not more than five years and fined not more than $100,000.00, or both.

    (c) A person who violates subdivision (b)(1) of this section shall be liable to the State for:

    (1) all taxes, interest, and penalties due as the result of the person's use of an automated sales suppression device or phantom-ware; and

    (2) all profits associated with the person's sale of an automated sales suppression device or phantom-ware.

    (d) An automated sales suppression device or phantom-ware and any device containing such device or software shall be deemed contraband and shall be subject to seizure by the Commissioner of Taxes or by a law enforcement officer when directed to do so by the Commissioner of Taxes. (Added 2013, No. 13, § 1, eff. April 25, 2013.)