Fraud Defense Attorney Massachusetts
Charged with insurance, credit card, mortgage, welfare, or common law fraud in Massachusetts? Felony exposure, fines, restitution. Free consultation 24/7.
Over 30 Years Defending Fraud Charges in Massachusetts Courts
Fraud charges in Massachusetts cover a wide range of conduct, from a single false statement on a benefits application to multi-year insurance or mortgage schemes. Penalties range from misdemeanor exposure with restitution to up to 15 years in state prison. We defend individuals charged with fraud offenses in Essex County and throughout Eastern Massachusetts.
Call (978) 705-4537 for a free consultation available 24/7.
Call (978) 705-4537 for a free consultation available 24/7.
Understanding Your Situation
Fraud charges often arrive after a lengthy investigation by an insurer, a state agency, or law enforcement, sometimes by certified letter rather than arrest. We have defended people facing fraud charges for over 30 years in Massachusetts courts.
Call (978) 705-4537 for a free consultation.
Call (978) 705-4537 for a free consultation.
Understanding Fraud Charges in Massachusetts
If you have just received a target letter, a Department of Transitional Assistance violation notice, an insurance company subpoena, or formal charges, the first thing to understand is that "fraud" is not a single offense in Massachusetts. It is a category of related crimes, each governed by its own statute, with very different elements and very different penalties. The specific statute under which you are charged determines almost everything about the case.
Every fraud offense shares a common requirement: the Commonwealth must prove specific intent to defraud beyond a reasonable doubt. This is the central battleground in most fraud cases. Mistake, misunderstanding, good faith reliance on incorrect information, and inadvertent error are all defenses to fraud, even when the underlying facts are not in dispute. The major Massachusetts fraud charges are set out below.
Every fraud offense shares a common requirement: the Commonwealth must prove specific intent to defraud beyond a reasonable doubt. This is the central battleground in most fraud cases. Mistake, misunderstanding, good faith reliance on incorrect information, and inadvertent error are all defenses to fraud, even when the underlying facts are not in dispute. The major Massachusetts fraud charges are set out below.
Insurance Fraud
Insurance fraud is governed primarily by M.G.L. c. 266, §§ 111A and 111B. The Commonwealth must prove that the defendant, in connection with an insurance application or claim, knowingly made or presented a false or fraudulent statement, representation, or proof of loss, with the specific intent to injure, defraud, or deceive the insurer. The false statement must be material, meaning it could have influenced the insurer's decision. False statements that are inconsequential, immaterial, or made by mistake are not crimes under this statute.
Insurance fraud is a felony. A conviction carries up to 5 years in state prison, or up to 2.5 years in a jail or house of correction, and a fine of up to $10,000. Section 111B addresses motor vehicle insurance fraud specifically and applies to inflated repair appraisals, staged accidents, and false theft or comprehensive claims. Restitution to the insurer is mandatory upon conviction. The statute is broad enough to cover both first-party claims (where the defendant is the insured) and third-party situations involving repair shops, appraisers, or medical providers.
Insurance fraud is a felony. A conviction carries up to 5 years in state prison, or up to 2.5 years in a jail or house of correction, and a fine of up to $10,000. Section 111B addresses motor vehicle insurance fraud specifically and applies to inflated repair appraisals, staged accidents, and false theft or comprehensive claims. Restitution to the insurer is mandatory upon conviction. The statute is broad enough to cover both first-party claims (where the defendant is the insured) and third-party situations involving repair shops, appraisers, or medical providers.
Credit Card Fraud
Credit card fraud is governed by M.G.L. c. 266, § 37B (misuse of credit cards) and § 37C (fraudulent use to obtain money, goods, or services). Section 37B applies broadly to using a credit card knowing it was stolen, forged, revoked, or expired, or knowing the defendant lacked authorization. Section 37C applies to the actual transaction of using a fraudulent card, false embossment, or impersonating a cardholder.
Penalties depend on value. Violations involving credit card fraud of $250 or less are misdemeanors carrying up to 1 year in jail and a fine of up to $500. Violations involving more than $250 are felonies carrying up to 5 years in state prison or up to 2 years in jail. Possession of two or more credit cards belonging to others creates a statutory presumption of intent to defraud, although this presumption can be rebutted at trial. Many credit card fraud cases involve disputes over authorization between family members, business partners, or romantic partners, where the question is whether the use was permitted at the time it occurred.
Penalties depend on value. Violations involving credit card fraud of $250 or less are misdemeanors carrying up to 1 year in jail and a fine of up to $500. Violations involving more than $250 are felonies carrying up to 5 years in state prison or up to 2 years in jail. Possession of two or more credit cards belonging to others creates a statutory presumption of intent to defraud, although this presumption can be rebutted at trial. Many credit card fraud cases involve disputes over authorization between family members, business partners, or romantic partners, where the question is whether the use was permitted at the time it occurred.
Bad Check / Fraudulent Check
Writing or passing a check with intent to defraud and knowledge of insufficient funds is governed by M.G.L. c. 266, § 37, the same statute that covers larceny by check. Penalties scale to the value of the property obtained: up to 1 year in jail and a $1,500 fine for amounts of $1,200 or less, and up to 5 years in state prison or 2 years in jail with a $25,000 fine for amounts over $1,200.
Not every bounced check is a crime. The Commonwealth must prove specific intent to defraud, and the Massachusetts Supreme Judicial Court tightened the burden of proof on this element in 2017. Honest disputes, account errors, timing problems with deposits, and miscommunications about payment are not crimes. We cover this charge in detail on a separate page.
Not every bounced check is a crime. The Commonwealth must prove specific intent to defraud, and the Massachusetts Supreme Judicial Court tightened the burden of proof on this element in 2017. Honest disputes, account errors, timing problems with deposits, and miscommunications about payment are not crimes. We cover this charge in detail on a separate page.
Mortgage Fraud
Mortgage fraud under M.G.L. c. 266, § 35A criminalizes false material statements or omissions made during or in connection with the residential mortgage lending process. The statute reaches misstatements on loan applications, false income or employment representations, false appraisals, straw buyer arrangements, and similar conduct. A single violation carries up to 5 years in state prison or up to 2.5 years in the house of correction, and a fine of up to $10,000 (for a natural person) or $100,000 (for an entity).
A "pattern of residential mortgage fraud," defined as violations involving 3 or more residential properties, carries dramatically enhanced penalties: up to 15 years in state prison and a fine of up to $50,000 for individuals or $500,000 for entities. The statute also creates mitigating factors where the defendant is an employer who maintained anti-fraud policies, conducted training, and enforced compliance, all of which can reduce sentencing exposure even where a violation occurred.
A "pattern of residential mortgage fraud," defined as violations involving 3 or more residential properties, carries dramatically enhanced penalties: up to 15 years in state prison and a fine of up to $50,000 for individuals or $500,000 for entities. The statute also creates mitigating factors where the defendant is an employer who maintained anti-fraud policies, conducted training, and enforced compliance, all of which can reduce sentencing exposure even where a violation occurred.
Welfare and Public Assistance Fraud
Welfare and public assistance fraud cases in Massachusetts typically begin with a violation letter from the Department of Transitional Assistance (DTA) or the Bureau of Special Investigations rather than with arrest. Charges most commonly proceed under M.G.L. c. 18, § 5B (public assistance fraud) and M.G.L. c. 266, § 30(1) (larceny by single scheme), often charged together. Penalties depend on the value of benefits alleged to have been wrongfully obtained: cases under $1,200 are misdemeanors; cases over $1,200 are felonies with up to 5 years in state prison.
Most public assistance fraud cases turn on questions of intent and disclosure. The Commonwealth must prove the defendant knowingly misrepresented or concealed material facts (income, household composition, employment, residence) with intent to obtain benefits to which the defendant was not entitled. Confusion about reporting requirements, mid-period changes in circumstances, language barriers, mistakes in completing complex paperwork, and failure to understand the applicable rules are all bases for defense. Responding to a DTA violation letter promptly with experienced counsel is often the difference between an administrative resolution and criminal charges. For non-citizens, public assistance fraud convictions carry serious immigration consequences and require particular care.
Most public assistance fraud cases turn on questions of intent and disclosure. The Commonwealth must prove the defendant knowingly misrepresented or concealed material facts (income, household composition, employment, residence) with intent to obtain benefits to which the defendant was not entitled. Confusion about reporting requirements, mid-period changes in circumstances, language barriers, mistakes in completing complex paperwork, and failure to understand the applicable rules are all bases for defense. Responding to a DTA violation letter promptly with experienced counsel is often the difference between an administrative resolution and criminal charges. For non-citizens, public assistance fraud convictions carry serious immigration consequences and require particular care.
Common Law Fraud / Cheat
Massachusetts retains the common law offense of "gross fraud or cheat" under M.G.L. c. 266, § 76, a residual statute that covers fraudulent conduct not captured by more specific fraud statutes. The offense requires proof of a knowing false representation of material fact, made with intent to deceive, on which the alleged victim relied to the victim's detriment. Penalties are significant: up to 10 years in state prison or up to 2 years in jail and a fine of up to $400.
This catch-all statute is most often charged where the conduct does not fit neatly within insurance, credit card, mortgage, or public assistance fraud categories. It can apply to business deals, contractor disputes, sale of property, and similar civil-feeling matters that prosecutors elect to charge criminally. Whether the conduct rises to the level of criminal fraud or remains a civil contract dispute is often the central defense question.
This catch-all statute is most often charged where the conduct does not fit neatly within insurance, credit card, mortgage, or public assistance fraud categories. It can apply to business deals, contractor disputes, sale of property, and similar civil-feeling matters that prosecutors elect to charge criminally. Whether the conduct rises to the level of criminal fraud or remains a civil contract dispute is often the central defense question.
Identity Fraud
Identity fraud under M.G.L. c. 266, § 37E is a separate category of fraud offense that addresses the unauthorized use of another person's personal identifying information to obtain money, credit, goods, services, or anything of value, or to harass another. It carries up to 2.5 years in the house of correction and a fine of up to $5,000. We cover identity fraud in detail on a separate page because the elements, defenses, and case patterns are different from the fraud variants above.
Potential Consequences Under Massachusetts Law
We know you are already worried about what could happen, particularly if the alleged loss is large or if the case has been the subject of a lengthy investigation. The exact consequences depend entirely on which statute is charged, the value involved, and whether the alleged conduct was a single act or part of a pattern.
Most fraud charges are felonies. Insurance fraud, credit card fraud over $250, larger bad check cases, mortgage fraud, public assistance fraud over $1,200, and common law fraud all carry felony exposure with maximum sentences ranging from 5 to 15 years in state prison. Even the smaller misdemeanor variants carry up to 1 year in jail and significant fines. Restitution to the alleged victim, whether an insurer, a bank, a state agency, or a private party, is typically required upon conviction and can total far more than the criminal fine itself.
Beyond direct sentencing, fraud convictions are classified as crimes involving moral turpitude, with significant collateral consequences. Professional licenses in healthcare, finance, education, real estate, and government work can be suspended or revoked. Employment in any role requiring trust, financial responsibility, or background clearance becomes difficult or impossible. Non-citizens face deportation consequences for most fraud convictions, particularly where the loss exceeds $10,000 (an aggravated felony under federal immigration law). Civil follow-on litigation is common, and insurers often pursue civil recovery in addition to or instead of criminal restitution.
A charge is not a conviction. Fraud cases turn on contested questions of intent, materiality, reliance, value, and the distinction between civil dispute and criminal conduct. Each of these elements has to be proved beyond a reasonable doubt, and proof is often based on documents and witnesses that can be challenged.
Most fraud charges are felonies. Insurance fraud, credit card fraud over $250, larger bad check cases, mortgage fraud, public assistance fraud over $1,200, and common law fraud all carry felony exposure with maximum sentences ranging from 5 to 15 years in state prison. Even the smaller misdemeanor variants carry up to 1 year in jail and significant fines. Restitution to the alleged victim, whether an insurer, a bank, a state agency, or a private party, is typically required upon conviction and can total far more than the criminal fine itself.
Beyond direct sentencing, fraud convictions are classified as crimes involving moral turpitude, with significant collateral consequences. Professional licenses in healthcare, finance, education, real estate, and government work can be suspended or revoked. Employment in any role requiring trust, financial responsibility, or background clearance becomes difficult or impossible. Non-citizens face deportation consequences for most fraud convictions, particularly where the loss exceeds $10,000 (an aggravated felony under federal immigration law). Civil follow-on litigation is common, and insurers often pursue civil recovery in addition to or instead of criminal restitution.
A charge is not a conviction. Fraud cases turn on contested questions of intent, materiality, reliance, value, and the distinction between civil dispute and criminal conduct. Each of these elements has to be proved beyond a reasonable doubt, and proof is often based on documents and witnesses that can be challenged.
Possible Defenses Under Massachusetts Law
Right now this may feel hopeless, especially if the investigation has been going on for months or if you are looking at felony exposure. There are real defenses available across the entire fraud category, and the Commonwealth's burden on intent is high. Possible defenses include:
Lack of intent to defraud. Every Massachusetts fraud statute requires specific intent to defraud. Mistake, misunderstanding, good faith belief in the truth of statements, reliance on incorrect information from accountants or advisors, and inadvertent error all defeat this element.
Lack of knowledge of falsity. The Commonwealth must prove the defendant knew the relevant statement was false at the time it was made. Defendants who relied on information from others, who used standard industry forms, or who reasonably believed information accurate when conveyed often succeed on this element.
Immateriality. The false statement must have been material, meaning it could have influenced the alleged victim's decision. False statements about minor details, irrelevant facts, or matters not relied upon by the alleged victim are not material under the statute.
Civil dispute, not crime. Many fraud cases reflect contractual disputes, billing disagreements, or business deals gone bad. The line between civil dispute and criminal fraud often turns on intent and on whether the conduct was within the gray area of normal business practice. This is particularly important in common law cheat and mortgage fraud cases. Authorization. For credit card fraud, the most common defense is authorization. Family members, romantic partners, business partners, and employees often have implied or actual authority to use cards that the cardholder later disputes after a relationship ends or a dispute arises.
Procedural and reporting defenses. Public assistance and unemployment fraud cases often involve complex reporting requirements that even agency workers find difficult to apply. Confusion about what to report, when, or how can defeat the intent element entirely.
Constitutional violations. Searches, statements, and document seizures during fraud investigations must comply with the Fourth, Fifth, and Sixth Amendments. Successful suppression motions often dismantle prosecutions where the case depends on evidence developed during investigation.
Charge reduction strategies. Many fraud cases can be reduced from felony to misdemeanor, or from one fraud variant to a lesser-included offense, based on what the evidence actually supports.
Every case is different. Call (978) 705-4537 to discuss your situation and your options.
Lack of intent to defraud. Every Massachusetts fraud statute requires specific intent to defraud. Mistake, misunderstanding, good faith belief in the truth of statements, reliance on incorrect information from accountants or advisors, and inadvertent error all defeat this element.
Lack of knowledge of falsity. The Commonwealth must prove the defendant knew the relevant statement was false at the time it was made. Defendants who relied on information from others, who used standard industry forms, or who reasonably believed information accurate when conveyed often succeed on this element.
Immateriality. The false statement must have been material, meaning it could have influenced the alleged victim's decision. False statements about minor details, irrelevant facts, or matters not relied upon by the alleged victim are not material under the statute.
Civil dispute, not crime. Many fraud cases reflect contractual disputes, billing disagreements, or business deals gone bad. The line between civil dispute and criminal fraud often turns on intent and on whether the conduct was within the gray area of normal business practice. This is particularly important in common law cheat and mortgage fraud cases. Authorization. For credit card fraud, the most common defense is authorization. Family members, romantic partners, business partners, and employees often have implied or actual authority to use cards that the cardholder later disputes after a relationship ends or a dispute arises.
Procedural and reporting defenses. Public assistance and unemployment fraud cases often involve complex reporting requirements that even agency workers find difficult to apply. Confusion about what to report, when, or how can defeat the intent element entirely.
Constitutional violations. Searches, statements, and document seizures during fraud investigations must comply with the Fourth, Fifth, and Sixth Amendments. Successful suppression motions often dismantle prosecutions where the case depends on evidence developed during investigation.
Charge reduction strategies. Many fraud cases can be reduced from felony to misdemeanor, or from one fraud variant to a lesser-included offense, based on what the evidence actually supports.
Every case is different. Call (978) 705-4537 to discuss your situation and your options.
If You've Just Been Charged with Fraud
If you have just received a target letter, a violation notice, an investigative subpoena, or formal charges, take a breath. Here is what you need to do right now.
● Don't talk to investigators from any agency without a lawyer present, including the Department of Transitional Assistance, the Bureau of Special Investigations, the Insurance Fraud Bureau, or any insurance company's special investigations unit
● Don't respond to violation letters or investigative subpoenas without consulting an attorney first, even if the deadline is short
● Don't discuss your case with anyone except your attorney, including coworkers, family members, or anyone who might later be interviewed
● Don't destroy or alter documents related to the alleged fraud, even if they look bad. Spoliation of evidence creates additional charges far worse than the underlying fraud
● Preserve all relevant records including emails, text messages, financial statements, application materials, contracts, and supporting documentation
● Write down everything you remember about the relevant transactions, conversations, and disclosures while the details are fresh
● Don't post anything about your case, the alleged victim, the investigation, or your finances on social media
● Contact an experienced Massachusetts fraud defense attorney as soon as possible, ideally before responding to any agency communication
Call (978) 705-4537 for a free consultation 24/7.
Acting quickly gives your attorney the best chance to engage with investigators before formal charges issue, preserve favorable evidence, and build the strongest possible defense.
● Don't talk to investigators from any agency without a lawyer present, including the Department of Transitional Assistance, the Bureau of Special Investigations, the Insurance Fraud Bureau, or any insurance company's special investigations unit
● Don't respond to violation letters or investigative subpoenas without consulting an attorney first, even if the deadline is short
● Don't discuss your case with anyone except your attorney, including coworkers, family members, or anyone who might later be interviewed
● Don't destroy or alter documents related to the alleged fraud, even if they look bad. Spoliation of evidence creates additional charges far worse than the underlying fraud
● Preserve all relevant records including emails, text messages, financial statements, application materials, contracts, and supporting documentation
● Write down everything you remember about the relevant transactions, conversations, and disclosures while the details are fresh
● Don't post anything about your case, the alleged victim, the investigation, or your finances on social media
● Contact an experienced Massachusetts fraud defense attorney as soon as possible, ideally before responding to any agency communication
Call (978) 705-4537 for a free consultation 24/7.
Acting quickly gives your attorney the best chance to engage with investigators before formal charges issue, preserve favorable evidence, and build the strongest possible defense.
“I would absolutely recommend Ernie to anyone.”
He was more than just my lawyer. He was my guardian angel during a very scary and desperate time in my life. He walked with me every step of the way and looked out for my best interest at every twist and turn. He stayed available seven days a week and within moments of my reaching out to him. I will be indebted to him forever. I knew I was in safe hands even though my matter kept me in constant fear. He gave me the courage to keep pushing forward and spent countless hours cheerleading me through an unspeakable experience.
Diane
"Attorney Stone was excellent."
He was extremely knowledgeable and knew his way around the Diversion Program and the Court. He gave us all the information and potential results upfront. He explained the entire process to us from start to finish and he mapped out a plan of action that resulted in a favorable outcome for my child. I would recommend Attorney Stone 100 percent. Thanks to him my child has no criminal record.
Lisa
"I knew Ernie was the real deal."
I knew the moment I spoke to Ernie on the phone he was the real deal. He made us feel at ease during a very stressful time and fought for us. We won our case because of his perseverance and professionalism. He’s just a really good person who’s in your corner fighting for you. Thanks Ernie you’re the best!!!!
Cheryl
"I can't say enough about Ernie and his team. "
They helped our family navigate a very delicate and complicated legal situation. We couldn't be more pleased with the outcome. And Ernie's down-to-earth demeanor helped us feel like we were being listened to and never being talked down to. I would highly recommend Ernie, as I am certain he would do his absolute best to achieve a best-case-scenario outcome for every single one of his clients.
R. H.
"Much love and appreciation to this group"
I would recommend them to anyone. From the first call I knew this was the right choice. Ernie kept my best interests in mind when representing me with results better than expected! I can’t thank them enough. Special shout-out to Joanne who is truly the nicest person. Their whole vibe was homely like family. Much love and appreciation to this group... even the 4 legged nugget running around their office.
A. R.
"I was in good hands..."
Before working with Ernie I was very unaware of how my future would be and felt alone in my case; that all changed once I had Ernie Stone as my lawyer. Very professional, very reassuring, very caring and helpful with any questions you may have. I can definitely say that there was always a smile on their faces and made me feel welcomed and well taken care of. I had no doubt in mind that I was in good hands and that I was going to be alright.
R. J.
What to Expect When You Call
We know this call is hard to make. You may feel embarrassed, worried about your career, or unsure of what to say. That is okay. You do not need to have the right words.
● We will listen to your story and answer your questions
● We will explain the specific fraud charge and what the Commonwealth must prove
● We will discuss possible defense strategies and resolution options for your specific situation
● We will explain how an investigation might be addressed before formal charges issue
● We will explain our approach and how we can help you through this
● Everything you tell us is confidential
● There is no obligation to hire us
You do not need to have the answers. Just call, and we will take it from there. Phones answered 24/7 by a real person. Free, confidential consultation.
● We will listen to your story and answer your questions
● We will explain the specific fraud charge and what the Commonwealth must prove
● We will discuss possible defense strategies and resolution options for your specific situation
● We will explain how an investigation might be addressed before formal charges issue
● We will explain our approach and how we can help you through this
● Everything you tell us is confidential
● There is no obligation to hire us
You do not need to have the answers. Just call, and we will take it from there. Phones answered 24/7 by a real person. Free, confidential consultation.
We'll Get You Through the Storm
Fraud charges demand experienced legal representation. We can help you through this storm.
Call (978) 705-4537 for a free consultation.
Over 30 years of Massachusetts criminal defense experience. Serving Essex County and Eastern Massachusetts including Beverly, Salem, Lynn, Peabody, Gloucester, Newburyport, Lawrence, and Haverhill.
Call (978) 705-4537 for a free consultation.
Over 30 years of Massachusetts criminal defense experience. Serving Essex County and Eastern Massachusetts including Beverly, Salem, Lynn, Peabody, Gloucester, Newburyport, Lawrence, and Haverhill.
We'll Get You Through the Storm
Contact our team today for a free consultation. We are available 24/7.
