Fraud Charges in New Jersey

What Is Fraud Under New Jersey Law?

Fraud in New Jersey is intentionally deceiving another person, business, or government program in order to obtain money, property, services, or another benefit. It is not a single offense but a family of crimes that all share that one element of deception. The state charges these offenses under the New Jersey Code of Criminal Justice (Title 2C) — for example, theft by deception (N.J.S.A. 2C:20-4), credit card fraud (2C:21-6), identity theft (2C:21-17), forgery (2C:21-1), and insurance fraud (2C:21-4.6).

New Jersey does not use the word “felony.” Instead, the most serious fraud offenses are indictable crimes, graded from the second degree (most serious in this area) down to the fourth degree, and prosecuted in the Superior Court, Law Division — Criminal Part. Lower-level conduct is charged as a disorderly persons offense and heard in municipal court. The degree usually turns on how much money or benefit was involved, or how many victims there were — and it drives everything about the potential penalties. In most fraud cases the state has roughly five years to bring an indictable charge under the criminal statute of limitations.

What Is the Difference Between Fraud and White Collar Crime?

The two terms overlap, but they are not the same thing. Fraud describes the specific act of deception used to obtain a benefit — a false insurance claim, a forged check, a stolen identity. White collar crime is a broader, informal category for non-violent, financially motivated offenses typically committed in a business or professional setting. Fraud is almost always a white collar crime, but white collar crime also includes offenses that are not strictly fraud, such as bribery, embezzlement, money laundering (N.J.S.A. 2C:21-25 and 2C:21-27), and certain regulatory violations.

• Fraud — the act of deception itself, such as a false claim, a forged check, or a stolen identity.
• White collar crime — the wider category of non-violent, financially motivated offenses, which also covers bribery, embezzlement, and money laundering.

In practical terms, the label matters less than the statute you are actually charged under, because that statute — not the category — determines the degree, the penalties, and the defenses available. You can learn more on our white collar crimes page. With that distinction in mind, here are the specific fraud charges New Jersey prosecutes most often.

Common Fraud Charges in New Jersey

Most New Jersey fraud prosecutions fall into three broad groups. The charges below are the ones we see most often; several have their own dedicated pages with additional detail.

Financial Fraud

These charges involve deception aimed directly at money, property, or credit.

• Theft by deception (2C:20-4) — obtaining someone’s property by creating or reinforcing a false impression. It is graded like other theft offenses, by the dollar amount involved. See our overview of theft charges in New Jersey and the related offense of theft of services.
• Credit card fraud (2C:21-6) — using a forged, revoked, or stolen card, or making false statements to obtain a card. Read more on our credit card fraud page and our article on the penalties for credit card theft.
• Forgery (2C:21-1) — making, altering, or using a false writing, such as a forged check, contract, or government document.
• Bad checks (2C:21-5) — issuing a check knowing it will not be honored.
• Identity theft (2C:21-17) — using another person’s identifying information to obtain a benefit. See our identity theft page.

Insurance & Benefits Fraud

These charges involve false statements made to an insurer or a government benefits program.

• Insurance fraud (2C:21-4.6) — knowingly submitting false or misleading information on a claim or application. This includes auto, homeowner, disability, and life insurance. Our article explains what insurance fraud is and who investigates it.
• Health care claims fraud (2C:21-4.3) — billing for services not provided, upcoding, or kickbacks, including Medicare and Medicaid fraud. See our health care & insurance fraud page.
• Unemployment fraud — collecting unemployment benefits through false statements or unreported income. See our unemployment fraud page.
• Public benefits / Medicaid fraud — obtaining public assistance benefits a person is not entitled to receive.

Digital & Business Fraud

These charges involve computers, electronic communications, or business dealings.

• Computer criminal activity / computer fraud (2C:20-25) — unauthorized access to data or systems to defraud or obtain property. See our computer fraud page.
• Consumer fraud — deceptive business practices in the sale of goods or services. See our consumer fraud page.
• Mortgage & loan fraud — misrepresenting income, employment, or property value to obtain financing. Read what you should know about mortgage fraud charges.
• Wire and mail fraud — using interstate communications or the mail to carry out a scheme. Because these cross state lines, they are frequently charged federally (see below).

How Fraud Charges Are Graded — Degrees and Penalties

Whatever the specific charge, what a person actually faces comes down to one thing: the degree. New Jersey grades most fraud and theft offenses by degree, and the degree sets the potential prison exposure and maximum fine. Actual sentences depend on the facts, the defendant’s record, and how the case is resolved — and for third- and fourth-degree offenses, first-time offenders often benefit from a statutory presumption against state prison. For a fuller breakdown, see our guide to New Jersey sentencing and criminal penalties.

Large-scale schemes can be charged even more seriously — for example, money laundering of $500,000 or more is a first-degree crime carrying 10 to 20 years. Money laundering is prohibited under N.J.S.A. 2C:21-25, with grading and penalties governed by N.J.S.A. 2C:21-27.

How the dollar amount sets the degree (theft by deception)

Identity theft is graded by benefit or number of victims

Restitution, Fines, and Asset Forfeiture

In a fraud case, the sentence is only part of the financial picture. Courts routinely order restitution — repayment to the victim for the actual loss — on top of any fine, and restitution can be ordered even when there is no prison term. In insurance and health care fraud cases, statutes may also authorize penalties or repayment measured as a multiple of the amount claimed.

Prosecutors may also pursue civil asset forfeiture of money or property allegedly connected to the fraud, and a conviction can trigger collateral consequences such as loss of a professional license, exclusion from government programs, and immigration effects for non-citizens. Because these financial and licensing consequences can dwarf the criminal penalty, they should be factored into strategy from the start.

State vs. Federal Prosecution

Most fraud cases in New Jersey are prosecuted in state court by the county prosecutor or the state Attorney General under Title 2C. A case can instead be charged federally when the alleged conduct reaches across state lines or touches a federal interest — for example, schemes that use interstate wire transfers or electronic communications (wire fraud), the U.S. mail (mail fraud), the banking system (bank fraud), or that target federal programs such as Medicare, the SBA, or the IRS. Federal agencies like the FBI, Postal Inspection Service, or Secret Service typically investigate those matters.

The practical differences matter: federal cases follow different procedures and sentencing rules. But it is important to keep perspective — the large majority of New Jersey fraud charges stay in state court, and that is where this page focuses. If you have reason to think a federal agency is involved, our article on the signs of a federal investigation explains what to watch for. Either way, the first step is the same: get advice before you speak with investigators.

How Prosecutors Build a Fraud Case

Fraud cases are built on documents and data far more than on eyewitnesses. Expect the state to rely on bank and credit records, contracts and applications, emails and text messages, accounting records, surveillance or point-of-sale footage, and the reports of investigators or forensic accountants. In Bergen County, these cases are typically investigated and prosecuted by the Bergen County Prosecutor’s Office; in insurance matters, the case often begins with a referral to a Special Investigations Unit or the state Office of the Insurance Fraud Prosecutor.

The single element the state must prove — and the one most often contested — is intent to deceive. A mistake, a good-faith dispute, or a transaction that simply went bad is not fraud. Careful review of how the records were gathered, what they actually show, and whether the required intent can be proven is where much of the defense work happens.

Possible Defenses to Fraud Charges

The right defense depends entirely on the facts, but common issues in New Jersey fraud cases include:

• No intent to deceive — the alleged loss resulted from a mistake, negligence, or a genuine business dispute rather than a knowing scheme.
• Mistaken identity or unauthorized use — particularly in credit card and identity-theft cases, that someone else made the transactions.
• Lack of knowledge — the defendant did not know a document or statement was false.
• Insufficient or unreliable evidence — the records do not actually establish the elements of the offense.
• Unlawful search or improper questioning — evidence obtained in violation of your rights may be challenged. Entrapment may apply in limited situations.
• Valuation and grading disputes — challenging the amount involved can lower the degree and the exposure.

What Happens After a Fraud Arrest in Bergen County

Indictable fraud charges in Bergen County are handled at the Bergen County Superior Court in Hackensack. After an arrest or a summons, the case generally moves through a first appearance and pretrial release decision, an early review in Central Judicial Processing (CJP) court, possible presentation to a grand jury for indictment, pretrial conferences and motions, and then either a negotiated resolution or trial. Disorderly persons matters are handled in the municipal court for the town where the charge arose.

Two things make the earliest stage critical in fraud cases. First, these investigations often run for weeks or months before charges are filed, which means there is frequently a window to be heard before a decision is final. Second, fraud cases turn on statements and documents — so what you say to an investigator, and what you hand over, can shape the entire case. Keep in mind that giving false information to investigators can itself become a separate charge. It is worth talking to a lawyer before you speak or produce anything.

First-Offender Options: PTI, Diversion, and Expungement

Many people charged with fraud in New Jersey have no prior record, and the law provides paths that can avoid a conviction altogether. Pretrial Intervention (PTI) is a diversion program — administered through the Superior Court’s Criminal Division, including in Bergen County — generally available to first-time offenders charged with third- and fourth-degree crimes; successful completion results in dismissal of the charges. For lower-level matters, a conditional dismissal may be available in municipal court. Restitution is often a condition of these programs.

Even after a conviction, a later expungement may remove the record from public view once the waiting period is met, including under New Jersey’s Clean Slate law. See our guide to Clean Slate expungements and our article on whether first-time offenders go to jail in New Jersey. Eligibility depends on the specific charge and history, so it is worth confirming your options early.

Fraud Charges in Bergen County and Hackensack

The Law Offices of Ron Bar-Nadav is based in Hackensack, the Bergen County seat and the home of the Bergen County Superior Court — where the county’s indictable fraud cases are heard. From that office, Ron represents people charged throughout Bergen County and the surrounding northern New Jersey area, including in the municipal courts that handle lower-level fraud and theft matters.

Being local to the courthouse means being familiar with how Bergen County handles these cases day to day. If you have been charged with, or contacted about, a fraud matter in the area, Ron offers a free consultation to review the allegations and explain your options. Call (201) 525-1555 or request a consultation online.

Related Charges & Practice Areas

Fraud charges often overlap with, or arrive alongside, other offenses.

Frequently Asked Questions