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Forgery Prevention Tips
Procedures for Merchants
There are three (3) types of offenses when dealing with checks: Forgery, Theft by Check and Issuance of Worthless Checks. Listed below are definitions and procedures regarding each of the offenses.
Issuance of a Worthless Check:
Occurs when the account holder writes a check on an open account, but there are not enough funds to cover it. This check is returned stamped "Insufficient Funds," is a "Class C Misdemeanor" handled by the local Justice of the Peace.
Theft by Check:
Occurs when the account holder opens an account with a minimum deposit and then writes $X amount of checks against the account, or continues to write checks on a closed account. These checks are returned stamped or marked, "Account Closed or Stop Payment," etc. The level of offense is determined by the amount of the check and can be "Aggregated" if numerous checks are written. The Harris County District Attorney's Office, Check Fraud Division handles this offense.
Forgery:
Occurs when someone other than the account holder signs, endorses or presents the account holder's check (or a document purported to be the account holders check) without his/her knowledge or consent with the intent to commit fraud. The check can be stolen, altered, counterfeit against a valid account or bogus drawn against a non-existent account. This is the only one of the three offenses investigated by Law Enforcement.
In regards to the offenses listed above the "Merchant" must send a certified "Letter of Demand" allowing the account holder 10 business days to respond or make restitution. If the letter is signed for, but the account holder fails to respond, or if the letter is returned unclaimed, the merchant must take the check and returned letter (or signed receipt with a copy of the letter) to the Justice of the Peace who has jurisdiction or to the District Attorney's Office, Check Fraud Division, depending on whether it is an "Issuance of a Worthless Check" or a "Theft by Check," case.
If the account holder responds and claims the check is a forgery, the following must be provided at the time of report:
Check:
The merchant must provide the original check (if available).
Forgery Affidavit:
The account holder must provide the merchant with a signed notarized Forgery Affidavit. without an affidavit this is not classified as a forgery. Occasionally an affidavit will not be available because the check is drawn against a "Bogus" or non-existent account or company. Under these circumstances the merchant must provide the name and phone number of the person at the bank, who confirmed the account does not exist.
Witness/Complainant Information:
At time of report the merchant must provide witness information, location, date and time of offense. Additionally the merchant must provide contact numbers (day/night) for the account holder so the witness can be contacted. The witness information must include name, home address and home phone number and work address and work phone number, along with a Driver's License number etc.
Witnesses are not always available during the investigator's duty hours. Therefore it is imperative to get good contact information so that witnesses can be contacted for interviews, photo spreads etc.
Theses guidelines will work in most cases. If you have any additional questions please contact the Harris County Sheriff's Office, Burglary, Theft and Financial Crimes Unit at 713-967-5770.
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