Enrolled Copy H.B. 96
1
Fraud Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Paul A. Cutler
Senate Sponsor: Heidi Balderree
2
3
LONG TITLE
4
General Description:
5
This bill addresses the criminal offense of defrauding of creditors.
6
Highlighted Provisions:
7
This bill:
8
▸ amends the criminal offense of defrauding of creditors to increase the penalty for the
9
offense based on the value of the fraud; and
10
▸ makes technical and conforming changes.
11
Money Appropriated in this Bill:
12
None
13
Other Special Clauses:
14
None
15
Utah Code Sections Affected:
16
AMENDS:
17
76-6-511, as last amended by Laws of Utah 2023, Chapter 111
18
19
Be it enacted by the Legislature of the state of Utah:
20
Section 1. Section 76-6-511 is amended to read:
21
76-6-511 . Defrauding of creditors.
22
(1) Terms defined in Section 76-1-101.5 apply to this section.
23
(2) An actor commits defrauding of creditors if the actor:
24
(a) destroys, removes, conceals, encumbers, transfers, or otherwise deals with property
25
subject to a security interest with a purpose to:
26
(i) [ ]hinder enforcement of [that] the security interest; and
27
(ii) deprive the secured party of lawful possession of the property; or
28
(b) knowing that proceedings have been or are about to be instituted for the appointment H.B. 96 Enrolled Copy
29
of a person entitled to administer property for the benefit of creditors:
30
(i) destroys, removes, conceals, encumbers, transfers, or otherwise deals with any
31
property with a purpose to defeat or obstruct the claim of any creditor, or
32
otherwise to obstruct the operation of any law relating to administration of
33
property for the benefit of creditors; or
34
(ii) presents to any creditor or to an assignee for the benefit of creditors, orally or in
35
writing, any statement relating to the debtor's estate, knowing that a material part
36
of such statement is false.
37
(3)(a) A violation of Subsection [(2)] (2)(a) or (2)(b)(i) is:
38
(i) [ ]a class A misdemeanor[.] if the unpaid balance owed to the creditor on the
39
property at the time of the act described in Subsection (2) is less than $10,000; or
40
(ii) a third degree felony if the unpaid balance owed to the creditor on the property at
41
the time of the act described in Subsection (2) is or exceeds $10,000; or
42
(b) A violation of Subsection (2)(b)(ii) is a class A misdemeanor.
43
(4) This section [may not be construed to] does not impose criminal or civil liability on [any]
44
a law enforcement officer acting within the scope of a criminal investigation.
45
(5) The forfeiture of property under this section, including any seizure and disposition of
46
the property and any related judicial or administrative proceeding, shall be conducted in
47
accordance with Title 77, Chapter 11a, Seizure of Property and Contraband, through
48
Chapter 11c, Retention of Evidence.
49
Section 2. Effective Date.
50
This bill takes effect on May 7, 2025.
- 2 -