Common Types Of Fraud Charges In Texas
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Texas Bar verified. Reggie London (Texas Bar No. 24043514) and Njeri London (Texas Bar No. 24043266) are the co-founding partners of L and L Law Group, PLLC — based at 5899 Preston Rd, Suite 101 in Frisco, Texas (Collin County), with many 5-star Google reviews, and available 24/7 for criminal defense consultations.
Bottom line up front: Texas theft is value-tiered (Class C under
00, up to 1st-degree felony over $300,000) under Penal Code § 31.03. Aggregation under § 31.09 combines multiple thefts; effective-consent and honest-mistake defenses apply. Pretrial diversion is available in many first-offense cases.Texas legal context
- For the canonical L and L Law Group reference framework on Texas criminal procedure, see the defense process Guidebook covering investigation, arrest, bond, trial, sentencing, appeals, and record-clearing.
- Texas statute of limitations under CCP Article 12.01 varies by offense. Most misdemeanors carry a 2-year limit; most felonies a 3-year limit; many sexual offenses against children have no limitation. SOL analysis applies to every common types of fraud charges in texas case touching older conduct.
- Texas criminal cases involving common types of fraud charges in texas require careful analysis of the specific facts, the controlling Texas Penal Code or Code of Criminal Procedure section, and the county prosecution practices. At L and L Law Group, our analysis begins with the indictment or information and walks back through the investigation.
- In Collin, Dallas, Denton, and Tarrant counties, prosecutorial discretion shapes how cases like common types of fraud charges in texas resolve. The first 30 days after arrest are critical — that is when pretrial diversion, bond conditions, and informal disposition are most flexible.
- Constitutional defenses applicable to common types of fraud charges in texas include the Fourth Amendment (search and seizure), Fifth Amendment (self-incrimination), and Sixth Amendment (right to counsel and confrontation). The Texas Constitution Article I provides parallel — and sometimes broader — protections.
Authored by L and L Law Group, PLLC. (972) 370-5060. info@landllawgroup.com.
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In Texas, fraud is a serious offense that carries severe legal penalties. The many kinds of fraud charges in Texas and the related punishments are essential for anyone who wishes to comprehend the legal risks of fraudulent behavior. This blog will discuss the most typical forms of fraud charges in Texas, their punishments, and how state law handles them.
What Is Fraud?
According to the law in Texas, fraud occurs when any person intentionally deceives for personal gain or to cause them harm. Depending on the nature of the act and the damage caused, injury sustained, or the amount of money involved in the transaction. Also, the law will determine whether the act is a felony or a misdemeanor, that is, to set the appropriate punishment. There are several types of fraud, ranging from direct theft of money to the misrepresentation of information for personal gain. Texas views fraud as a serious criminal law violation if convicted, the defendant has to face severe penalties.
Common Types Of Fraud Charges In Texas
Texas law defines a few types of fraud, each with its sanction. Some of the charges individuals commonly face in the state of Texas are as follows:
1. Credit Card Fraud
One of the most commonly alleged crimes in Texas is credit card fraud. In its very simple essence, this means unauthorized use of credit cards or credit card information. Credit card fraud could involve stealing a credit card, using stolen account numbers to purchase items, or using forged credit cards. This fraud can be committed in person or online.
On the state level, credit card fraud is mainly recognized as a state jail felony and may entail penalties such as forced confinement and crippling fines. The severity of the charge can even be escalated if the amount of money involved is too large.
Penalties for Credit Card Fraud:
- State Jail Felony: 2 years max in jail and potential fines of $10,000.
- Third Degree Felony (for larger amounts): 2 to 10 years in state prison, with up to $10,000 fines.
2. Insurance Fraud
Insurance fraud occurs when a person cheats an insurance company to get benefits they do not deserve.This may include exaggerating the value of losses, staging accidents, or presenting false allegations for medical treatment. Insurance fraud is a serious crime, and Texas takes these crimes seriously, especially when involving large amounts or multiple victims.
Texas State Insurance fraud is classified as a third-degree felony, but the crime can be upgraded to a second-degree felony when the scam amount is sufficient.
Penalty for insurance fraud:
- Third degree Felony: Fine of 2 to 10 years and up to $ 10,000 in prison.
- Second degree Felony: 2 to 20 years in prison and a fine of $ 10,000.
3. Mortgage Fraud
Mortgage fraud happens when a hostage-loan applicant makes a mistake or gives false or misleading information to a lender so as to secure loan approvals for hosting. This may include providing income information errors, increasing property values or using false documents.Mortgage fraud is a serious crime, as it can affect the housing market and lead to significant financial damage to both lenders and borrowers.
In Texas, hostage fraud is typically classified as a second-degree felony, which means it can result in long-term prison and a significant fine.
Penalty for mortgage fraud:
- Second degree felony: 2 to 20 years in prison and a fine of $ 10,000.
4. Tax Fraud
Tax fraud involves deliberately reducing revenues or tax returns to reduce tax liability. This may include a lack of reporting of income, claims of false cuts, or providing misleading information to the tax authorities. Tax fraud is taken very seriously by both the state and the federal government, and it can give rise to both state and federal punishment.
In Texas, tax fraud is usually classified as a third-degree felony, but if fraud is big or involves federal tax issues, the penalty may be even more serious.
Penalty for tax fraud:
- Third degree felony: Fine of 2 to 10 years and $ 10,000 in prison.
- Federal tax fraud: Prison up to 5 years and a sufficient fine.
5. Wire Fraud
Wire frauds occur over electronic communications such as e-mails, phone calls, or the Internet are used to consummate a fraudulent scheme.This may include people who use misleading or digital funds online, so they can steal money or personal information. Wire fraud is usually charged as a third-degree felony in Texas, but if the scam is widespread or affects many people, the charges can be upgraded.
Criminal penalty for wire fraud:
- Third-degree Felony: Fine of 2 to 10 years and $ 10,000 in prison.
- Second-degree Felony (for large fraudulent schemes): Fines up to 2 to 20 years in prison and a fine of $ 10,000.
6. Securities Fraud
Securities fraud involves using investors by the stock market for misleading or financial gain. This may include insider trading, providing false or misleading information to investors, or manipulating stock prices.Securities fraud is regulated by both state and federal agencies and can lead to both civil and criminal offenses.
In Texas, securities fraud is usually classified as a second-degree felony, but if the scam is particularly large or harmful, it can be increased to the first-degree felony.
Penalty for Securities fraud:
- Second-degree felony: 2 to 20 years in prison, and a fine of $ 10,000.
- First-degree felony (for mass fraud): Fines up to 5 to 99 years in prison and a fine of up to $ 10,000.
Penalties For Fraud Charges In Texas
Penalty for fraud in Texas depends on the severity of the offense, the amount of money, and the specific type of scam. Generally, fraud crimes are classified either as misdemeanor or felony, and can vary from punishment to prison sentences.
- Misdemeanor fraud: If the amount of money involved is small, fraud can be classified as a misdemeanor. This can lead to fines and up to one year in prison.
- Felony fraud: Felony fraud is very severe and can result in several years in prison, heavy fines, and other legal consequences over the years. The severity of the claim of felony depends on the amount of money stolen or misrepresented.
Defenses Against Fraud Charges
If you are facing allegations of fraud in Texas, there are many defenses that you can use to protect yourself. Some common rescues include:
- Lack of intentions: Fraud requires intentions to cheat. If you were not going to cheat or cheat someone, you may be able to defend yourself by showing that your actions were not conscious.
- Mistaken Identity: Sometimes people are falsely accused of fraud. If you can prove that you were accused incorrectly, it may be a legitimate defense.
- Innocent Mistake: If fraud was the result of a simple mistake or misunderstanding, it may be possible to claim that you did not work with criminal intentions.
Conclusion
In Texas, allegations of fraud carry severe punishment, from severe fines to long prison sentences. Understanding what types of fraud and legal consequences can help you work through the complex legal system if you ever face claims. If you are facing allegations of fraud, it is important to find a lawyer. In cases of fraud, contact L&L Law Group for legal advice and representation in fraud cases.
Key Legal Terms
- Theft Value Tiers
- Texas Penal Code § 31.03 classification by value: under 00 Class C;00-$750 Class B; $750-$2,500 Class A; $2,500-$30,000 state jail felony; $30,000-50,000 3rd-degree;50,000-$300,000 2nd-degree; $300,000+ 1st-degree.
- Aggregation
- Texas Penal Code § 31.09 allows the State to combine multiple thefts pursuant to one "scheme or continuing course of conduct" into a single charge at aggregated value. Defending aggregation often breaks the alleged scheme into separate sub-felony incidents.
- Effective Consent
- Defense to Texas theft under Penal Code § 31.03(b)(1). Property taken with the owner's effective consent is not theft. Consent is "effective" unless induced by deception, coercion, or by one not lawfully empowered to give it (§ 31.01(3)).
Our ExperienceIn our practice defending Texas criminal cases, we have represented clients in Collin, Dallas, Denton, and Tarrant County criminal courts on the full Texas Penal Code and Health & Safety Code spectrum. Reggie's prosecutor background in Dallas County means we know the State's evidentiary playbook; Njeri's trial-trained motion practice anchors the suppression-driven defense work.
Frequently Asked Questions
How is the value of stolen property determined in Texas?
The State must prove fair market value at the time and place of the offense, beyond a reasonable doubt, under Penal Code § 31.08. Appraisal challenges, depreciation, and receipts for actual sale price are routine defense issues. Value tiers govern the offense classification under § 31.03(e).What is aggregation in Texas theft cases?
Penal Code § 31.09 allows the State to combine multiple thefts pursuant to one "scheme or continuing course of conduct" into a single charge at the aggregated value. Defending against aggregation often means breaking the alleged scheme into separate incidents that fall below the felony threshold.What is identity theft in Texas?
Penal Code § 32.51 (Fraudulent Use or Possession of Identifying Information) penalizes possession or use of another person's identifying information with intent to harm or defraud. 5 items: state jail felony. 10 items: 3rd-degree. 50 items: 2nd-degree. 50+ items or elderly victim: 1st-degree felony.Can a shoplifting charge be dismissed in Texas?
Yes, in many cases. First-offense shoplifting (Class B or C misdemeanor) qualifies for pretrial diversion in Collin, Dallas, Denton, and Tarrant counties. Successful completion results in dismissal — and dismissal qualifies for expunction under CCP Chapter 55, removing the arrest from the record entirely.What is the punishment for credit card abuse in Texas?
Penal Code § 32.31 makes credit/debit card abuse a state jail felony (180 days to 2 years state jail). The offense escalates to a 3rd-degree felony if the victim is elderly (65+) or if the defendant has a prior credit-card-abuse conviction. Restitution under CCP § 42.037 typically attaches.References & Authoritative Sources
Last reviewed: 2026-05-13 by Njeri London and Reggie London, co-founding partners, L and L Law Group, PLLC. This content is reviewed for accuracy at least every 12 months and when statutory or case-law changes occur.Attorney Advertising Disclosure. This content is for general informational purposes only and is not legal advice. Reading this content or contacting L and L Law Group, PLLC through this website does not create an attorney-client relationship. Prior results do not guarantee a similar outcome. Past performance is not a guarantee of future results.About the Authors
Njeri LondonCo-Founding PartnerTexas Bar No. 24043266. Admitted: TXND, TXED, 5th Circuit. Thurgood Marshall School of Law. Focus: Fourth Amendment motion practice, drug-crime defense, federal cases. Verify on Texas BarRead full bio →
Reggie LondonCo-Founding PartnerTexas Bar No. 24043514. Former Dallas County Assistant District Attorney. Extensive felony trial experience including DWI dockets. Verify on Texas BarRead full bio →Charged with a crime in Texas? Talk to L and L Law Group.
Co-founding partners Reggie London (Texas Bar No. 24043514) and Njeri London (Texas Bar No. 24043266) personally handle every case. Free consultation. Frisco, Texas.
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