Upon receiving a postdated check, the recipient (such as a merchant or wholesaler) will provide the goods or services. In such cases, the defendant’s admission, if believed, would provide the required proof of the defendant’s criminal intent to defraud the victim with a postdated check.
But, what if the recipient attempts to cash the postdated check at the future date, but the check bounces? A person writing a postdated check may violate the law if the check is returned by the bank to the recipient because the maker’s account does not have the funds on deposit necessary to cover the check. What about cases involving postdated checks where direct evidence of the defendant’s knowledge or intent to defraud does not exist?
A Class 6 felony carries also carries a minimum of a year and a maximum of 18 months in prison and a fine.
Although worthless check laws can vary somewhat from one state to another, all states make it illegal for a person to write a worthless check with the intent to defraud a person or business of goods or services. Typical worthless check laws are written so that the criminal intent requirement necessary for a conviction is satisfied if the prosecutor proves the existence of one or more conditions or facts specified by the statute. Punishment for committing check fraud, including fraud committed with a postdated check, can vary from state to state, but the laws typically authorize fines, probation, and even imprisonment.
The maker of the postdated check must have the intent to defraud at the time of writing the postdated check. For example, under Georgia’s deposit account fraud statute, the defendant is presumed to have written the check with the knowledge it would bounce if: The fact that a postdated check is not honored because of insufficient funds does not, by itself, establish that the maker of the check committed a crime; the prosecutor must prove that the defendant had the intent to defraud at the time of writing the worthless check. A defendant also will have to make restitution to the victim for goods or services received with the bad check.
Additionally, the only time a bank can be held liable for processing a postdated check before the indicated date is if that notice is still valid.
In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees.