Persons involved in knowingly filing a misleading or fraudulent record with financial institutions or any of Arizona’s 15 county recorders could be subject to felony prosecution starting later this year, thanks to legislation sponsored by Rep. Lupe Diaz (R-Benson).
On Friday, Gov. Doug Ducey signed House Bill 2645 to combat the growing problem of fraud caused by persons submitting or recording false documents or misleading statements related to Uniform Commercial Code transactions. The bill raises the criminal liability for such offenses from a Class 1 misdemeanor to a Class 3 felony.
The UCC covers a variety of transactions such as loans or financing agreements in which an asset -such as real estate, a vehicle, or other property- is used as collateral. Victims of fraudulent records or false statements often face devastating financial losses and can be overwhelmed by the legal process to reclaim property or safeguard their personal data, according to Diaz.
“Crimes such as home title and identity theft are increasingly occurring in Arizona and across the country,” said Diaz, adding that the new law “will help prosecutors to hold criminals accountable and pursue justice for victims.”
Diaz’s bill also substantially increases the civil penalty (from $25 to $1,000) a notary public must pay for failure to notify the Arizona Secretary of State upon the loss, theft, or compromise of an official journal or stamping device. In addition, HB2645 requires a court to notify the Secretary of State and the appropriate county attorney of any action in which it is determined a notary public did not comply with requirements.
HB2645 is the first bill sponsored by Diaz to be signed into law since he was appointed late last year to serve out the remainder of Rep. Becky Nutt’s term for LD14, which currently covers Cochise and Greenlee counties, southern Graham County, and a portion of Pima County.
