Opinion ID: 2066060
Heading Depth: 3
Heading Rank: 5

Heading: Negotiating a Worthless Instrument (Count X)

Text: [¶ 29] A person negotiates a worthless instrument when he intentionally issues or negotiates a negotiable instrument knowing that it will not be honored by the marker or drawee. 17-A M.R.S. § 708(1)(A); see also State v. Murray, 604 A.2d 903, 904 (Me.1992). When, as here, the value of the instrument is between $1000 and $10,000, negotiating that instrument is a Class C crime. 17-A M.R.S. § 708(1)(B)(2). [¶ 30] Schmidt's conviction for negotiating a worthless instrument in Count X stems from the State's allegations that Schmidt issued twenty checks totaling $4733.73 from the Foundation checking account, knowing that there were insufficient funds in the account to cover those amounts. In challenging the evidence supporting these elements, Schmidt primarily relies on 17-A M.R.S. § 708(2)(B) (2007). Section 708(2)(B) provides: 2. Proof of the following gives rise to a permissible inference under the Maine Rules of Evidence, Rule 303 that the person issuing or negotiating the instrument knew that it would not be honored: . . . B. Payment was refused by the drawee for lack of funds upon presentment made within the time frame specified in Title 11, section 3-1304, and the drawer failed to honor the drawer's contract within 5 days after actual receipt of a notice of dishonor, as defined in Title 11, section 3-1503, provided that this time limit is tolled during one subsequent representment of the negotiable instrument. 17-A M.R.S. § 708(2)(B). The State established that Schmidt wrote numerous checks to various subcontractors totaling between $1000 and $10,000 that were dishonored by the bank for insufficient funds. Although Schmidt contends that eighteen of the nineteen dishonored checks were paid within five days of notice that they were dishonored, there is more than ample evidence supporting a finding that they were not. Schmidt's knowledge that the checks would be returned can be inferred from his course of dealing over the span of months in which he wrote multiple checks on insufficient funds to multiple victims, all the while explaining the problem with various unsubstantiated excuses. Whether Schmidt later paid some of the amounts owed is a matter of restitution, and does not constitute a defense to the charge. The entry is: Judgment of conviction as to Counts I, VIII, IX and X is affirmed. Judgment of conviction as to Counts II through VII is vacated. Remanded to the Superior Court for resentencing.