Louisiana HB 375 (Act 188) Combating Check Fraud and Money Mules

About the Legislation:

HB 375 (Act 188) by Rep. Wayne McMahen is LBA legislation that combats organized check fraud activity and other financial crimes. The perpetrators of such organized check fraud are commonly referred to as “money mules.” Money mules are individuals who are recruited or hired to cash or deposit fraudulent checks and then withdraw cash or transfer funds from the account before the bank discovers that the check was fraudulent. The Act mandates prison time for repeat offenders of two criminal offenses applicable to the conduct of money mules – bank fraud (R.S. 14:71.1) and wire fraud, referred to as illegal transmission of monetary funds, (R.S. 14:70.8). Both statutes now impose jail time and increase fines for a second or subsequent conviction. Code of Evidence Art. 404 was also amended to provide that in any prosecution for a violation of the bank fraud or monetary instrument abuse criminal statutes, the prosecution may enter as evidence of warnings and prior fraud activity to demonstrate the perpetrator's intent to deceive or defraud.

Read the Legislation

State Association Contact

David Boneno, General Counsel

Joe Gendron, Director of Government Relations