THE MICHIGAN PENAL CODE (EXCERPT) Act 328 of 1931
750.157w Fraudulent use of financial transaction device to withdraw or transfer funds in violation of contractual limitations. Sec. 157w.
(1) A person who knowingly and with intent to defraud uses a financial transaction device to withdraw or transfer funds from a deposit account in violation of the contractual limitations imposed on the amount or frequency of withdrawals or transfers or in an amount exceeding the funds then on deposit in the account is guilty of a crime as follows: (a) A misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00 or 3 times the amount of funds withdrawn or transferred, whichever is greater, or both imprisonment and a fine, if the amount of the funds withdrawn or transferred is less than $200.00. (b) A misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $2,000.00 or 3 times the amount of funds withdrawn or transferred, whichever is greater, or both imprisonment and a fine, if any of the following apply: (i) The amount of the funds withdrawn or transferred is $200.00 or more but less than $1,000.00. (ii) The person violates subdivision (a) and has 1 or more prior convictions for committing or attempting to commit an offense under this section or a local ordinance substantially corresponding to this section. (c) A felony punishable by imprisonment for not more than 5 years or a fine of not more than $10,000.00 or 3 times the amount of funds withdrawn or transferred, whichever is greater, or both imprisonment and a fine, if any of the following apply: (i) The amount of the funds withdrawn or transferred is $1,000.00 or more but less than $20,000.00. (ii) The person violates subdivision (b)(i) and has 1 or more prior convictions for committing or attempting to commit an offense under this section. For purposes of this subparagraph, however, a prior conviction does not include a conviction for a violation or attempted violation of subdivision (a) or (b)(ii). (d) A felony punishable by imprisonment for not more than 10 years or a fine of not more than $15,000.00 or 3 times the amount of funds withdrawn or transferred, whichever is greater, or both imprisonment and a fine, if any of the following apply: (i) The amount of funds withdrawn or transferred is $20,000.00 or more. (ii) The person violates subdivision (c)(i) and has 2 or more prior convictions for committing or attempting to commit an offense under this section. For purposes of this subparagraph, however, a prior conviction does not include a conviction for a violation or attempted violation of subdivision (a) or (b)(ii). (2) The amounts of funds withdrawn or transferred in separate incidents pursuant to a scheme or course of conduct within any 12-month period may be aggregated to determine the total amount of funds withdrawn or transferred. (3) If the prosecuting attorney intends to seek an enhanced sentence based upon the defendant having 1 or more prior convictions, the prosecuting attorney shall include on the complaint and information a statement listing the prior conviction or convictions. The existence of the defendant's prior conviction or convictions shall be determined by the court, without a jury, at sentencing or at a separate hearing for that purpose before sentencing. The existence of a prior conviction may be established by any evidence relevant for that purpose, including, but not limited to, 1 or more of the following: (a) A copy of the judgment of conviction. (b) A transcript of a prior trial, plea-taking, or sentencing. (c) Information contained in a presentence report. (d) The defendant's statement. (4) If the sentence for a conviction under this section is enhanced by 1 or more prior convictions, those prior convictions shall not be used to further enhance the sentence for the conviction pursuant to section 10, 11, or 12 of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.10, 769.11, and 769.12.
History: Add. 1987, Act 276, Eff. Mar. 30, 1988 ;-- Am. 1998, Act 312, Eff. Jan. 1, 1999
Simplified Explanation of Michigan Penal Code Section 750.157w
This section of the Michigan Penal Code addresses the fraudulent use of a financial transaction device, like a debit card, to make withdrawals or transfers from an account that violate the terms of that account. Here's a simpler explanation:
If you knowingly and with the intention of committing fraud:
- Use a financial transaction device (like a debit card),
- To withdraw or transfer money from a deposit account (like a bank account),
- In a way that breaks the rules set by the bank regarding how much or how often you can take out or move money, or if you take out more money than is actually in the account,
Then you are committing a crime. The severity of the punishment depends on how much money you took out or moved:
a) If it's less than $200, it's a misdemeanor, punishable by up to 93 days in jail, a fine up to $500 or three times the amount withdrawn or transferred (whichever is larger), or both.
b) If it's between $200 and $1,000, or you've done this before, it's also a misdemeanor but punishable by up to a year in jail, a fine of up to $2,000 or three times the amount withdrawn or transferred (whichever is larger), or both.
c) If it's between $1,000 and $20,000, or you've done this more than once, it's a felony. You could face up to 5 years in jail, a fine of up to $10,000 or three times the amount withdrawn or transferred (whichever is larger), or both.
d) If it's $20,000 or more, or you've done this multiple times, the felony punishment increases to up to 10 years in jail, a fine of up to $15,000 or three times the amount withdrawn or transferred (whichever is larger), or both.
If you've committed this crime more than once in a 12-month period, the amounts can be added together to determine the total amount. If you have prior convictions, they could be used to increase the punishment for this crime, but they must be disclosed by the prosecuting attorney and determined by the court. Prior convictions cannot be used to further increase the sentence for the crime.