Cybercrime and Financial Fraud in Michigan

Jul 28, 2025 | FAQs, Michigan Laws

FAQs and Laws about Cybercrime and Financial Fraud

The digital age has brought unprecedented convenience, but it has also opened new avenues for criminals to commit financial fraud and cybercrime. In Michigan, as elsewhere, individuals and businesses face increasing threats from online scams, identity theft, and other digitally-enabled financial deceptions.

Understanding these modern forms of crime is crucial, as they can lead to significant financial losses and personal distress, and perpetrators face serious legal consequences under Michigan law.

The landscape of financial crime has dramatically shifted with the widespread adoption of the internet and digital technologies. Where once fraud might have involved physical documents or face-to-face deception, it now frequently occurs through emails, fake websites, malicious software, and social media.

This evolution has led to new challenges for law enforcement and requires individuals to be more vigilant about their online security.

Michigan’s laws have adapted to address these new criminal methods, often extending existing statutes to cover digital offenses or introducing new legislation specifically targeting cybercrime.

Here are key details and factual information regarding these offenses under Michigan Compiled Laws (MCL):

Identity Theft (MCL 445.65)

This statute makes it illegal to use another person’s identifying information (like name, address, social security number, or financial account numbers) without their consent to obtain money, goods, services, or other things of value.

Penalties vary:

Misdemeanor: If the person obtains property worth less than $1,000, or a total of 10 or fewer items of identifying information, or if they commit the crime by providing false identifying information to a law enforcement officer. Up to 1 year in jail and/or a fine of up to $1,000.

Felony: If the person obtains property worth $1,000 or more, or more than 10 items of identifying information, or has a prior conviction for identity theft. Penalties can range from 5 to 15 years in prison and substantial fines, depending on the number of prior offenses or the value of property obtained.

Source: MCL 445.65

Computer Crimes (MCL 752.791 et seq.)

Michigan’s computer crimes act broadly prohibits unauthorized access, use, alteration, or destruction of computer systems, networks, programs, or data. This can include activities like hacking, distributing malware, or launching denial-of-service attacks, which are often precursors to financial fraud.

Examples relevant to financial fraud:

Unauthorized Access (MCL 752.794): Intentionally accessing a computer program, computer, computer system, or computer network without authorization. This is often the first step in online financial fraud. Penalties vary from a misdemeanor to a felony, depending on the intent and damage caused.

Using a Computer to Commit a Crime (MCL 752.797): This specific section targets individuals who use a computer to commit other specified crimes, including many types of fraud. The penalty is an additional felony conviction of up to 10 years in prison if the underlying offense is a felony, or a misdemeanor if the underlying offense is a misdemeanor.

Source: MCL 752.791 et seq.

Financial Transaction Device Crimes (MCL 750.157m et seq.)

These laws specifically target crimes involving credit cards, debit cards, and other financial transaction devices. This includes using a counterfeit device, retaining a lost or mislaid device, or using a device with intent to defraud. Many online financial frauds involve the illicit use of such devices.

Penalties: Can range from a misdemeanor to a felony, with prison sentences of up to 10 years depending on the value of the property or services obtained.

Source: MCL 750.157m et seq.

Embezzlement (MCL 750.174)

This statute covers individuals who, acting as an agent, employee, trustee, bailee, or custodian, fraudulently convert to their own use, or secrete with intent to embezzle, any money, goods, or other property entrusted to them.

Penalties vary based on value:

Less than $200: Misdemeanor, up to 93 days in jail, or a fine of up to $500 or three times the value (whichever is greater).

$200 to $1,000: Misdemeanor, up to 1 year in jail, or a fine of up to $2,000 or three times the value (whichever is greater).

$1,000 to $20,000: Felony, up to 5 years in prison, or a fine of up to $10,000 or three times the value (whichever is greater).

$20,000 to $50,000: Felony, up to 10 years in prison, or a fine of up to $15,000 or three times the value (whichever is greater).

$50,000 to $100,000: Felony, up to 15 years in prison, or a fine of up to $25,000 or three times the value (whichever is greater).

More than $100,000: Felony, up to 20 years in prison, or a fine of up to $50,000 or three times the value (whichever is greater).

Penalties can be enhanced if the victim is a vulnerable adult or a nonprofit/charitable organization, or if there are prior convictions.

Source: MCL 750.174

False Pretenses with Intent to Defraud (MCL 750.218)

This law addresses situations where a person, with intent to defraud or cheat, uses a false pretense to obtain money, personal property, or services.

Penalties are also value-dependent: The penalty structure mirrors that of embezzlement, with increasing severity based on the value of what was obtained, ranging from a misdemeanor for less than $200 to a felony with up to 20 years in prison for amounts over $100,000.

Source: MCL 750.218

Larceny by Conversion (MCL 750.362)

This offense occurs when a person, to whom money or property has been delivered, embezzles or fraudulently converts it to their own use. This is distinct from simple larceny (theft) because the initial possession of the property was lawful.

The penalties for larceny by conversion also depend on the value of the property converted and generally follow the same penalty structure as embezzlement.

Source: MCL 750.362

Farmington Hills, Oakland County Context: Law enforcement agencies in Farmington Hills, within Oakland County, actively investigate and prosecute cybercrime and financial fraud cases, often working with state and federal agencies due to the interstate nature of many digital crimes. The Oakland County Sheriff’s Office, for instance, has resources dedicated to investigating such offenses.

Source: Oakland County Sheriff’s Office – Cyber Crime Unit (indirect reference) (Specific unit information may not be on the main public site but is part of their broader investigative capabilities).

5 FAQs about Cybercrime and Financial Fraud in Michigan

Q: What is a common way people fall victim to cyber financial fraud?

A: Phishing scams are very common, where fraudsters send fake emails or messages pretending to be from legitimate organizations (like banks or government agencies) to trick people into revealing personal or financial information.

Q: If I give out my information in an online scam, am I legally responsible?

A: No, if you are a victim of a scam and your information is stolen, you are typically not legally responsible for the fraudulent transactions. However, you should report the incident to law enforcement and your financial institutions immediately to limit your liability and help with the investigation.

Q: How can I protect myself from cybercrime and financial fraud?

A: Key steps include using strong, unique passwords, enabling two-factor authentication, being cautious about clicking on suspicious links or opening attachments, regularly monitoring your bank and credit card statements, and keeping your software updated.

Q: Do Michigan laws apply if the cybercriminal is in another state or country?

A: While Michigan laws apply to crimes committed within the state, cybercrime often involves perpetrators located elsewhere. In such cases, state and federal law enforcement agencies may collaborate, and federal laws often come into play, especially if the crime crosses state or international borders.

Q: What should I do if I suspect I’ve been a victim of cyber financial fraud?

A: First, contact your bank or credit card company immediately to report unauthorized activity. Then, file a report with your local police department (e.g., Farmington Hills Police Department if you’re in Farmington Hills) and consider reporting it to federal agencies like the FBI’s Internet Crime Complaint Center (IC3).

Komorn Law

Facing charges related to cybercrime or financial fraud requires a deep understanding of complex digital evidence and Michigan’s evolving laws. Komorn Law, established in 1993, has the experience and expertise to fight your case in a court of law, from the district to federal court systems.

Attorney Michael Komorn and his team are known for their aggressive approach and mature understanding of the trial and appeals process, ensuring clients receive a robust defense. When you’re ready to hire a lawyer who hates to lose, call Komorn Law at (248) 357-2550.

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Komorn Law

Arrested? – Better Call Komorn

248-357-2550

Komorn Law
Areas of Service

We fight for our clients throughout the State of Michigan and Northern Ohio.

Here are some court contacts we frequently handle cases.

Oakland County

If you are facing any legal charges in Oakland County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Telephone Number: (248) 858-0344
Address: 1200 N Telegraph Rd, Department 404, Pontiac, MI 48341-0404
Website: Oakland County 6th Judicial Circuit Court

Macomb County

If you are facing any legal charges in Macomb County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Telephone Number: (586) 469-5150
Address: 40 N. Main Street, Mt. Clemens, MI 48043
Website: Macomb County 16th Judicial Circuit Court

Wayne County

If you are facing any legal charges in Wayne County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the Third Circuit Court (Wayne County):

Telephone Number (Civil/Family): (313) 224-5510
Telephone Number (Criminal): (313) 224-5261 or (313) 224-2503
Address (Civil/Family): 2 Woodward Avenue, Detroit, MI 48226
Address (Criminal): 1441 St. Antoine, Detroit, MI 48226
Website: https://www.3rdcc.org/

Kent County

If you are facing any legal charges in Kent County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Telephone Number: (616) 632-5220
Address: 180 Ottawa Avenue NW, Grand Rapids, MI 49503
Website: Kent County

Traverse County

If you are facing any legal charges in Traverse County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the 13th Circuit Court (which includes Traverse County):

Telephone Number: (231) 922-4701
Address: 328 Washington Street, Suite 300, Traverse City, MI 49684
Website: Traverse City 13h Circuit Court

Monroe County

If you are facing any legal charges in Monroe County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Telephone Number: (734) 240-7020
Address: 106 E First Street, Monroe, MI 48161
Website: Monroe County 38th Circuit Court

Conversion of Funds by Fraud or Embezzlement in Michigan

Jul 25, 2025 | FAQs, Michigan Laws

Conversion of Funds by Fraud in Michigan

The fraudulent conversion of funds or property, often referred to as embezzlement or obtaining money by false pretenses, is a serious criminal offense in Michigan. These crimes involve a breach of trust where an individual unlawfully takes or uses money or property that was rightfully entrusted to them, or obtains it through deceit.

Understanding these laws is crucial for both potential victims and those accused, as the penalties can be severe, ranging from significant fines to lengthy prison sentences, depending on the value of the property and other circumstances.

The background of these laws stems from the need to protect property rights and uphold trust in financial dealings. Embezzlement specifically addresses situations where a person, by virtue of their position (such as an employee, agent, or trustee), has legitimate access to money or property but then misuses or steals it for personal gain.

False pretenses, on the other hand, focus on deception as the primary means of obtaining property. These offenses are categorized under “white-collar crimes” but carry significant consequences that can severely impact an individual’s life and future opportunities.

Here are key details and factual information regarding these offenses under Michigan Compiled Laws (MCL):

Embezzlement (MCL 750.174)

Penalties vary based on value:

Less than $200: Misdemeanor, up to 93 days in jail, or a fine of up to $500 or three times the value (whichever is greater).

$200 to $1,000: Misdemeanor, up to 1 year in jail, or a fine of up to $2,000 or three times the value (whichever is greater).

$1,000 to $20,000: Felony, up to 5 years in prison, or a fine of up to $10,000 or three times the value (whichever is greater).

$20,000 to $50,000: Felony, up to 10 years in prison, or a fine of up to $15,000 or three times the value (whichever is greater).

$50,000 to $100,000: Felony, up to 15 years in prison, or a fine of up to $25,000 or three times the value (whichever is greater).

More than $100,000: Felony, up to 20 years in prison, or a fine of up to $50,000 or three times the value (whichever is greater).

Penalties can be enhanced if the victim is a vulnerable adult or a nonprofit/charitable organization, or if there are prior convictions.

Source: MCL 750.174

False Pretenses with Intent to Defraud (MCL 750.218)

This law addresses situations where a person, with intent to defraud or cheat, uses a false pretense to obtain money, personal property, or services.

Source: MCL 750.218

Larceny by Conversion (MCL 750.362)

The penalties for larceny by conversion also depend on the value of the property converted and generally follow the same penalty structure as embezzlement.

Source: MCL 750.362

Oakland County, Michigan: Farmington Hills is located in Oakland County. Local ordinances generally do not supersede state criminal statutes like those for fraud or embezzlement. Instead, local law enforcement in Oakland County will enforce the Michigan Compiled Laws regarding these offenses.

Source: Oakland County Property Fraud Information (While not directly about local ordinances, it highlights Oakland County’s involvement in protecting against fraud).

5 FAQs about Fraud or Embezzlement in Michigan

Q: What is the main difference between embezzlement and false pretenses?

A: Embezzlement involves taking money or property that was already entrusted to you due to a position of trust (like an employee handling company funds). False pretenses involve deceiving someone to get them to give you money or property.

Q: Can I go to jail for embezzling a small amount of money in Michigan?

A: Yes, even for amounts less than $200, you can face up to 93 days in jail, in addition to fines. The penalties increase significantly with the value of the embezzled property.

Q: What if I pay back the money I embezzled or obtained by fraud? Does that mean the charges will be dropped?

A: While paying restitution (paying back the money) can be a factor that might help in plea negotiations or sentencing, it does not automatically dismiss criminal charges. The prosecutor still has the discretion to pursue the case.

Q: What are the potential long-term consequences of a conviction for conversion of funds?

A: Beyond jail or prison time and fines, a conviction for these crimes results in a permanent criminal record. This can severely impact your ability to find employment, secure housing, obtain professional licenses, and even affect your reputation and future financial opportunities.

Q: Are these crimes considered felonies or misdemeanors in Michigan?

A: Both embezzlement and false pretenses can be charged as either misdemeanors or felonies in Michigan, depending primarily on the monetary value of the funds or property involved. Generally, if the value is over $1,000, it becomes a felony.