Under Texas law, tricking a bank into signing off on a multimillion-dollar loan by lying about who you are is treated first as securing the execution of a document by deception under Penal Code Section 32.46, and only then as ordinary theft, because the crime is completed the moment the lender is deceived into executing the loan papers. Federal prosecutors in California say former television producer Mary Carole McDonnell, 73, did exactly that: she allegedly posed as an heiress to the McDonnell aircraft family with access to an $80 million secret trust, and used that false identity to obtain about $14.7 million from Banc of California and millions more from other institutions, for a total of nearly $30 million between July 2017 and May 2018. McDonnell, once the CEO of true-crime production company Bellum Entertainment, was indicted in 2018, has never been arrested, and was recently added to the FBI's most-wanted list, with investigators believing she is in Dubai. The case is a useful lens on how a Frisco or Collin County court would treat the same conduct, and what happens under Texas law when a defendant flees. All charges are allegations, and McDonnell is presumed innocent.
What Is the Fake Heiress Bank Fraud Case?
It is a federal fraud case built on a false identity. According to the FBI and the Los Angeles Times, McDonnell allegedly claimed to be an heir to the family behind McDonnell Douglas, the aerospace giant, and said she would soon have access to an $80 million trust. Prosecutors say she used those claims to convince banks in Los Angeles and Orange counties to lend her money her company could not otherwise obtain, including roughly $14.7 million from Banc of California, and that she defrauded other institutions in a similar way for a combined loss of nearly $30 million. A federal grand jury indicted her in 2018 on charges of bank fraud and aggravated identity theft, and an arrest warrant issued on December 12, 2018 in the U.S. District Court for the Central District of California. She never surrendered, and the FBI is now asking the public for help locating her.
Is Lying About Your Identity to Get a Loan a Crime in Texas?
Yes. In Texas, the core offense is securing execution of a document by deception under Penal Code Section 32.46. That statute makes it a crime to, by deception, cause another person to sign or execute a document affecting their property, service, or pecuniary interest, which squarely covers loan agreements and promissory notes signed by a lender in reliance on false statements. The offense is graded by the value involved, and at more than $300,000 it is a first-degree felony carrying five to 99 years or life. Because a loan is a document with real financial consequences, a lie that induces the bank to execute it can be prosecuted under Section 32.46 even before any money is spent, which is what makes this statute the natural centerpiece for a fake-identity lending scheme rather than a simple theft charge.
How Does Texas Treat the Money That Was Taken?
The funds obtained are analyzed as theft under Penal Code Section 31.03, specifically theft by deception, which occurs when a person unlawfully appropriates property, including money, by creating a false impression of fact. Claiming to be a wealthy heiress with an $80 million trust in order to draw down loan proceeds fits that definition, with the banks as the victims. Texas grades theft by dollar value, and losses in the tens of millions sit at the very top of the ladder as a first-degree felony. Where a scheme unfolds over many months and multiple transactions, as alleged here from July 2017 through May 2018, Section 31.09 allows prosecutors to aggregate the separate amounts obtained under one continuing course of conduct into a single high-value charge, rather than filing many smaller counts.
What Happens Under Texas Law When a Defendant Flees?
Fleeing creates a separate, stackable offense. Under Penal Code Section 38.10, a person who is released from custody on condition that they appear, and then intentionally fails to appear, commits bail jumping and failure to appear. When the underlying charge is a felony, that failure to appear is itself a third-degree felony, punishable by two to 10 years, on top of the original fraud counts. Flight can also be used against a defendant as evidence of consciousness of guilt at trial, and it typically leads a court to forfeit any bond and issue a warrant that never expires. Leaving the country does not end the case; charges remain pending, the statute of limitations is generally tolled while a defendant is absent or a fugitive, and extradition or a later arrest can bring the person back to face both the fraud charges and the failure-to-appear charge.
How Would a Texas Court Handle a Case Like This?
A Collin County court would likely see layered charges: a first-degree count under Section 32.46 for inducing the lenders to execute loan documents by deception, a first-degree theft count under Section 31.03 aggregated under Section 31.09 for the funds obtained, and, if the defendant absconded after posting bond, a separate felony under Section 38.10. Prosecutors would rely on the fabricated heiress claims, the loan applications, and the banks' reliance on those representations to prove both the deception and the intent. The defense would test whether the lenders actually relied on the false statements, whether the loss amounts are provable to the dollar, and whether the client knowingly made the misrepresentations or was relying on advice or documents supplied by others. Sentencing would weigh the aggregated loss, the sophistication and duration of the scheme, and any flight, and deferred adjudication is difficult to obtain in a high-dollar, long-running fraud, especially where a defendant has already failed to appear.
How L&L Law Group Can Help
Fraud and financial-identity charges can escalate quickly into first-degree felonies once the dollar amounts climb, and an added failure-to-appear charge can turn a difficult case into a much harder one. L & L Law Group, PLLC helps clients in Frisco and across the Dallas-Fort Worth area understand whether a Section 32.46 document-by-deception charge and a Section 31.03 theft charge truly fit their facts, challenge how reliance and loss are proven, address outstanding warrants and bond issues, and pursue the leading available resolution. If you or a family member is under investigation or has been charged with bank fraud, theft, identity fraud, or failure to appear in Collin, Denton, or Dallas County, contact L & L Law Group, PLLC at (972) 370-5060 to discuss your options.
Frequently asked questions
What is securing execution of a document by deception in Texas? Under Penal Code Section 32.46, it is a crime to use deception to cause someone to sign or execute a document that affects their property or financial interest, such as a loan agreement. The offense is graded by the value involved and reaches a first-degree felony at more than $300,000.
Can old fraud charges still be prosecuted years later? Yes. Charges remain pending until resolved, and in Texas the statute of limitations is generally tolled, or paused, while a defendant is absent from the state or a fugitive. A warrant issued years ago does not expire, and a later arrest or extradition can revive an active prosecution.
Is failing to appear in court a separate crime? Yes. Under Penal Code Section 38.10, intentionally failing to appear after being released on bond is a distinct offense. When the underlying charge is a felony, the failure to appear is a third-degree felony that can be punished on top of the original charges.
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