KRS § 514.040 — KY Code / Title L / Chapter 514 / Section 514.040
514.040 Theft by deception
Status: in_force

514.040 Theft by deception.

(1) A person is guilty of theft by deception when the person obtains property or services

of another by deception with intent to deprive the person thereof. A person deceives

when the person intentionally:

(a) Creates or reinforces a false impression, including false impressions as to law,

value, intention, or other state of mind;

(b) Prevents another from acquiring information which would affect judgment of

a transaction;

(c) Fails to correct a false impression which the deceiver previously created or

reinforced or which the deceiver knows to be influencing another to whom the

person stands in a fiduciary or confidential relationship;

(d) Fails to disclose a known lien, adverse claim, or other legal impediment to the

enjoyment of property which the person transfers or encumbers in

consideration for the property obtained, whether the impediment is or is not

valid or is or is not a matter of official record; or

(e) Issues or passes a check or similar sight order for the payment of money,

knowing that it will not be honored by the drawee.

(2) The term "deceive" does not, however, include falsity as to matters having no

pecuniary significance or puffing by statements unlikely to deceive ordinary persons

in the group addressed.

(3) Deception as to a person's intention to perform a promise shall not be inferred from

the fact alone that he or she did not subsequently perform the promise.

(4) For purposes of subsection (1) of this section, a maker of a check or similar sight

order for the payment of money is presumed to know that the check or order, other

than a postdated check or order, would not be paid, if:

(a) The maker had no account with the drawee at the time the check or order was

issued; or

(b) Payment was refused by the drawee for lack of funds, upon presentation

within thirty (30) days after issue, and the maker failed to make good within

ten (10) days after receiving notice of that refusal. Notice of the refusal may

include a citation to this section and a description of this section's criminal

penalties and shall be deemed properly addressed when mailed to the address

printed or written on the check or sight order or provided by the drawer or

maker upon issuance of the check or sight order. The notice, if mailed, shall

be deemed received by the addressee seven (7) days after it is placed in the

United States mail. The notice may be sent by first-class mail if supported by

an affidavit of service setting out the contents of the notice, the address to

which the notice was mailed, that correct postage was applied, and the date

the notice was placed in the United States mail. A maker makes good on a

check or similar sight order for the payment of money by paying to the holder

the face amount of the instrument, together with any merchant's posted bad

check handling fee not to exceed fifty dollars ($50) and any fee imposed

pursuant to subsection (5) of this section.

(5) If a county attorney issues notice to a maker that a drawee has refused to honor an

instrument due to a lack of funds as described in subsection (4)(b) of this section,

the county attorney may charge a fee to the maker of fifty dollars ($50), if the

instrument is paid. Money paid to the county attorney pursuant to this section shall

be used only for payment of county attorney office operating expenses.

(6) A person is guilty of theft by deception when the person issues a check or similar

sight order in payment of all or any part of any tax payable to the Commonwealth

knowing that it will not be honored by the drawee.

(7) A person is guilty of theft by deception when the person issues a check or similar

sight order in payment of all or any part of a child support obligation knowing that it

will not be honored by the drawee.

(8) Theft by deception is a Class B misdemeanor unless:

(a) The value of the property, service, or the amount of the check or sight order

referred to in subsection (6) or (7) of this section is five hundred dollars

($500) or more but less than one thousand dollars ($1,000), in which case it is

a Class A misdemeanor;

(b) The value of the property, service, or the amount of the check or sight order

referred to in subsection (6) or (7) of this section is one thousand dollars

($1,000) or more but less than ten thousand dollars ($10,000), in which case it

is a Class D felony;

(c) A person has three (3) or more convictions under paragraph (a) of this

subsection within the last five (5) years, in which case it is a Class D felony.

The five (5) year period shall be measured from the dates on which the

offenses occurred for which the judgments of convictions were entered;

(d) The value of the property, service, or the amount of the check or sight order

referred to in subsection (6) or (7) of this section is ten thousand dollars

($10,000) or more, in which case it is a Class C felony: or

(e) The offense occurs during a declared emergency as defined by KRS 39A.020

arising from a natural or man-made disaster, within the area covered by the

emergency declaration, and within the area impacted by the disaster, in which

case the person shall be charged one (1) level higher than the level otherwise

specified in this subsection.

(9) If any person commits two (2) or more separate offenses of theft by deception

within ninety (90) days, the offenses may be combined and treated as a single

offense, and the value of the property in each offense may be aggregated for the

purpose of determining the appropriate charge.