Also known as: grand theft by false pretense · theft by false pretenses · false pretenses
Written by attorneys · grounded in primary & secondary sources — see below
A common-law theft offense arising when a defendant obtains title to the property of another by a knowing false statement of past or existing fact made with intent to defraud.
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Glenn Gross told Gideon Graves that a regional bank had already confirmed his fund's prior outperformance with similar bonds. Relying on the statement, Graves executed documents transferring full title to his municipal bonds into Gross's fund. Gross later sold the bonds and kept the proceeds.
Gabriel Gonzalez told Gavin Grant that a title company had already issued a clean report showing all back taxes paid. Relying on the statement, Grant executed and delivered a deed conveying the apartment building to Gonzalez. Gonzalez then mortgaged the building for cash.
Guillermo Guzman told Gino Giordano that his former employer had already assigned him all rights in a nearly identical codebase. Relying on the statement, Giordano signed documents conveying full ownership of the startup's software tool to Guzman. Guzman immediately sold the tool to another firm.
Global Dynamics told Great Lakes Steel that a foreign buyer had already executed a bill of sale and deposited the purchase price into escrow. Relying on the statement, Great Lakes Steel agreed to warehouse the diverted containers. Global Dynamics later resold the electronics and retained the proceeds.
Genesis Pharmaceuticals told Gable Construction that a completed bank report already confirmed its fund's prior market outperformance. Relying on the statement, Gable Construction signed documents transferring full title to its bond portfolio. Genesis Pharmaceuticals then liquidated the bonds.
International Society for Krishna Consciousness, Inc. told a property owner that a title company had already issued a clean report confirming all liens paid. Relying on the statement, the owner executed and delivered a deed conveying the building. The organization then encumbered the property.
False pretenses requires the victim to intend transfer of title, while larceny by trick requires only transfer of possession or custody. Courts look to the interest the victim intended to convey when deciding which offense applies.
Supporting sources
Yes. A false promise of future performance, even without present intent to perform, does not establish false pretenses at common law.
Supporting sources
The defendant must obtain title to another's property by a knowing false statement of past or existing fact made with intent to defraud, and the victim must rely on the misrepresentation in transferring title.
Supporting sources
…of ineffective assistance of counsel. Rummel v. Estelle, 498 F. Supp. 793 (WD Tex. 1980). Rummel then pleaded guilty to theft by false pretenses and was sentenced to time served under the terms of a plea-bargaining agreement. Two-Bit Lifer Finally Freed — After Pleading Guilty, Chicago Tribune, Nov. 15, 1980, p. 2, col. 3.