CRS § 18-5-207 – Purchase on Credit to Defraud – Colorado Law

CRS § 18-5-207 is the Colorado code section that defines the offense of purchase on credit to defraud. You commit this offense if you:

1. purchase any personal property on credit; and
2. afterwards, before paying for it,
3. sell, hypothecate, pledge, or dispose of it,
4. with intent to defraud the seller or vendor.

The language of § 18-5-207 reads as follows:

A person who purchases any personal property on credit and thereafter, before paying for it, sells, hypothecates, pledges, or disposes of it with intent to defraud the seller or vendor commits a class 2 misdemeanor.

Penalties for the Offense

If you are convicted of the offense of purchase on credit to defraud, you are guilty of a Class 2 misdemeanor. You are subject to the following potential penalties:

• Up to 120 days in jail; and/or
• Up to $750 in fines.

Defending Your Case

There are defenses that you can asset in connection with this charge, including:

• mistaken identity;
• no intent to defraud the seller or vendor;
• insufficient proof beyond a reasonable doubt; or
• the personal property was paid for.

Below, our Denver Colorado criminal defense lawyers discuss the following frequently asked questions about a purchase on credit to defraud for Colorado residents:

• 1. What is “intent to defraud”?
• 2. What are the penalties if I am convicted?
• 3. What defenses can I raise?

1. What is “intent to defraud”?

It is not enough that you buy personal property on credit, and sell it before paying for it.

The reason for the sale must be with the intent to defraud the seller or vendor. It must be for the reason of:

• taking money or property from another;
• committing a theft offense; or
• using trickery or deceit to make money or gain a benefit.

2. What are the penalties if I am convicted?

If you are convicted of the offense of purchase on credit to defraud, you are guilty of a Class 2 misdemeanor. You are subject to the following potential penalties:

• Up to 120 days in jail; and/or
• Up to $750. ²

3. What defenses can I raise?

There are defenses that you can raise to this criminal charge.

Mistaken Identity

You can argue that you are not the person who committed the offense, and you can argue that any identification techniques were flawed. This is especially true if you were “identified” because of online payment activity, as someone may have been impersonating you.

No Intent to Defraud the Seller or Vendor

This crime requires intent to defraud. If the actions committed never had that intent, or the prosecutor cannot prove that intent beyond a reasonable doubt, then no crime has been committed.

Insufficient Proof Beyond a Reasonable Doubt

Every criminal case must be proven beyond a reasonable doubt. It is a high burden to prove, and without the proper evidence, it cannot be shown.

Your attorney can

• poke holes in the prosecutor’s case,
• attempt to suppress evidence, and
• argue your case for you.

Personal Property Was Paid For

To be a crime under this code section, the criminal action must occur before the property is paid for. If you paid for the property before selling it or giving it away, you are not guilty of the crime.

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