Worthless/Fraudulent Check and Prosecution Guide

Revised: 04/2019

Dear Dodge County Merchants and Residents:

As consumers and taxpayers, we all pay higher prices because of the losses associated with people issuing fraudulent checks. Law enforcement spends significant resources investigating and prosecuting people who issue fraudulent checks.

In response to concerns regarding worthless and/or fraudulent checks, the Dodge County Sheriff’s Office has implemented a process for these types of investigations and prosecution.

The main goals of this process are as follows:● Increase accountability of people who issue worthless or fraudulent checks● Educate and assist Dodge County merchants and residents in reducing the number of worthless

and/or fraudulent check cases● Reduce the costs to law enforcement associated with investigating and prosecuting worthless and/

or fraudulent check cases

Sheriff Scott RoseDodge County Sheriff's Office22 East 6th St. Dept #201 Mantorville, MN 55955

Worthless/Fraudulent Checks that will not be investigated or prosecuted:

Promissory notes and/or arrangement to hold the check for deposit or credit extensions

Second party checks

Checks that are currently in collections by a collection agency or attorney (law firm)

WHEN TO CONTACT THE DODGE COUNTY SHERIFF’S OFFICE

Call the Sheriff’s Office to report when checks are received in Dodge County, outside the City limits of Kasson or West Concord, MN when the checks are;

• Counterfeit check(s)• Altered checks• Forged checks of any amount• From a Checking account opened using fraudulent information• Stolen checks

When you are a victim of the above crimes, call the county sheriff’s office and/or your local police department. You must report these crimes within 5 business days after you know the check is fraudulent.

Dodge County Sheriff’s Office Phone number: #507-635-6200 Fax number: #507-635-6225

Always make an appointment prior to a visit.

Checks that are received within the City limits of Kasson must be reported to the Kasson Police

Department at #507-634-3881; or if within the City limits of West Concord, must be reported to the West Concord Police Department at #507-527-2469.

SIGNAGE

The following signage is required by Minnesota law to allow merchants to enforce collection of service charges and civil penalties. This must be posted where your customers can see the service charge at the time the check is accepted by the merchant. Copy as needed.

IT’S AGAINST THE LAW TO WRITE A BAD CHECK IN MINNESOTA

Checks returned to us for nonpayment are subject to a service charge of

$30 Additional civil penalty may be imposed

on checks returned for nonpayment after 30 days.

MN Statute 604.113 Minnesota Retail Merchants Association

CHECK ACCEPTANCE PROCEDURES

.

1. Record or circle the identification number (DL # D-123-123-123-123)2. Have employee initial upper left corner3. Record home or work telephone number4. Record date of birth (i.e. DOB 1/29/72)5. Make sure photo on identification card matches customer6. Make sure the identification card matches name and address on the check

If time permits, write down good address as indicated by customer7. Check the signatures on the identification card and match this signature to the signature on

the check (endorsement line). If these signatures do not match, acceptance should bedeclined.

7

C-123-123-123-

14

5

If license # is not on check write it down

6

2

3

Listed below are the guidelines for processing the various types of worthless/fraudulent check cases. Please use the appropriate procedure for each type of worthless/fraudulent check case presented for prosecution.

We will require that a state ID card or driver’s license be used for identification, no exceptions. You must also provide surveillance video of the transaction, if any exists. It is your responsibility to prevent fraudulent checks. This is easily done by asking for photo ID; if they say they lost it or it’s at home, don’t accept the check!!!

ACCOUNT CLOSED CHECKS:

1. Make sure that the person accepting the check writes the driver’s license number or state ID card number on the check at the time it is accepted for payment. This is to ensure that proper identification is made by comparing both the photograph and the signature on the license or state ID card with the person writing the check. Pre-printed driver’s license numbers are not sufficient, and have sometimes been intentionally misprinted.

2. The person accepting the check must initial the check or write down their employee numbers in order to identify the employee who accepted the check.

3. If the check is returned “Account Closed,” complete a Notice of Dishonor form (page 9), and make a copy of it. One copy of the form should be kept with your records, and the original along with a copy of the MN Statutes pertaining to worthless checks (pages 10-11) should be sent to the person who wrote the check.

4. Mail the original Notice of Dishonor form & a copy of the MN Statutes to the current address, or the address on the check. It is required that the Notice of Dishonor be sent by certified mail. A copy of the Mailing Certificate (receipt for certified mail and the green card) should be made prior to the notice being sent. This copy will need to be forwarded to our Office should you not receive payment on the check.

5. If within five (5) business days you have not received payment for the check, a Worthless Check Report form (pages 12-13) and a Worthless Check Acceptance form (pages 14-15) filled out by the person who received the check, should be completed. These forms, along with a copy of the front and back of the "account closed check", a copy of the "Notice of Dishonor" that you retained in Step 3, and the copy of the "proof of mailing" that you retained in Step 4 should be mailed or brought to the Dodge County Sheriff's Office in Mantorville, MN.

6. Under no circumstances should you return the original check to the owner if they should pay what is owed. Give them a receipt for money received, and tell them to present the receipt in court.

7. Please be aware that out-of-state banks are not required to respond to our requests for information. If an out-of-state bank refuses to provide us with the necessary records, we will not be able to proceed with our investigation.

PLEASE NOTE -- We will not proceed with any investigation if: The check does not have the driver’s license or state ID number of the person writing the check hand-written on the check.

The check is more than four (4) months old.

The check case is not accompanied by the required copies of:

a. The front and back of the check.b. The copy of the “Notice of Dishonor.”

c. The copy of the proof of mailing (copies of both the green card and of thereceipt for certified mail).

d. The check acceptance form (pages 14-15) which is completed andsigned by employee accepting check.

NSF CHECKS:

NSF checks will only be accepted for referral to the Dodge County Attorney’s Office if a number of checks written by the same person have been returned as NSF. The number of checks required is determined on a case by case basis by such factors as the amount of the checks involved and the time span between the checks. This provision is necessary to prove the prior intent required for prosecution of this offense.

The same procedure is used for NSF checks as account closed checks if criteria for referral is met. Please do not forward NSF checks to our agency without first establishing whether they can be referred for prosecution.

ANY CHECK, REGARDLESS IF IT MEETS THE REQUIREMENTS FOR REFERRAL FOR PROSECUTION, MAY STILL BE PURSUED IN CIVIL COURT. Please contact the Dodge County Court Services for more information at #507-635-6260, or you can also visit: http://www.mncourts.gov/Find-Courts/Dodge.aspx.

STOP PAYMENT CHECKS:

Stop payment and post-dated checks are usually civil in nature. If you have a civil Court question regarding a stop payment or post-dated check, you can call the Dodge County Court Services at #507-635-6260 or visit: http://www.mncourts.gov/Find-Courts/Dodge.aspx.

FORGERIES:

All check forgeries should be reported. To report a forged check, call 507-635-6200. A deputy will complete a report for you. Bring or gather as much information as you can, such as description of suspect, license number of vehicle, etc. before you call. Employee accepting check should fill out pages 12-15 and write as much as they can remember about the suspect.

As was mentioned earlier in these instructions, it is your responsibility to identify the person writing the check. Investigative follow-up will be determined by the information provided.

If you would instruct your employees that the reason we are requesting driver’s license or state ID numbers handwritten across the check is to identify the person, both by photo and signature on the driver’s license. If this procedure is followed, forgeries will be deterred. Driver’s license numbers and state ID card numbers printed on the checks by the computer at the register will not be accepted under any circumstances.

THIS MAY BE AN INCONVENIENCE FOR YOU; HOWEVER, THE “BAD GUYS” ARE GETTING RICH OFF THIS INCONVENIENCE. ASK FOR IDENTIFICATION AND DETER FORGERIESS!!!

CITIZEN’S CONTACT LOG:

When you attempt to contact the suspect, identify who you are talking with, such as asking for a date of birth. The conversation(s) is to be logged (page 16). If the phone is disconnected, make note of it. This information will be used to make your case stronger!

Thank you for assistance in helping to reduce fraudulent checks.

Captain Jeffrey Brumfield Investigations, Badge #3120Dodge County Sheriff’s Office

NOTICE OF DISHONOR

DEMAND FOR PAYMENT OF DISHONORED CHECK

The demand is hereby made for the payment of the check indicated below. Minnesota law requires you to make payment in full

within five (5) business days after receiving this Demand Letter. If this check is not paid in full within five (5) business days of this

notice, your bank is authorized by law, and will be requested, to release to us information relating to your account in preparation for

referral to the matter to the appropriate prosecution. Minnesota Statute 609.535 permits criminal prosecution for the issuance of

worthless checks, and is classified as a misdemeanor which carries a maximum penalty of $1,000.00 and/or 90 days in jail; or a

Gross Misdemeanor, which carries a maximum penalty of $3,000.00 and/or one (1) year in jail. Minnesota Statute 604.113 creates

civil liability for the issuance of a worthless check, and permits the holder of the check to recover the amount of the check, a service

charge, plus a civil penalty of $100.00 or the value of the check (whichever is greater), interest on the face amount of the check from

the date of dishonor, and reasonable attorney fees if the aggregate amount of the dishonored checks within a six-month period is

over $1,250.00.

Date:

Name:

Address:

City: State: Zip:

You are hereby notified that a check dated , 20 drawn on the

bank of

in the amount of $ bearing the signature of

has been returned unpaid with the notation that payment has been refused because of

.

Remit to:

Address:

City: State: Zip:

Signature:

Title:

604.113 ISSUANCE OF WORTHLESS CHECK.

Subdivision 1. Definitions. (a) The definitions provided in this subdivision apply to this section.

(b) "Check" means a check, draft, order of withdrawal, or similar negotiable or nonnegotiable instrument.

(c) "Credit" means an arrangement or understanding with the drawee for the payment of the check.

(d) "Dishonor" has the meaning given in section 336.3-502, but does not include dishonor due to a stoppayment order requested by an issuer who has a good faith defense to payment on the check. "Dishonor"does include a stop payment order requested by an issuer if the account did not have sufficient funds forpayment of the check at the time of presentment, except for stop payment orders on a check found to bestolen.

(e) "Payee" or "holder" includes an agent of the payee or holder.

Subd. 2. Acts constituting. Whoever issues any check that is dishonored is liable for the followingpenalties:

(a) A service charge, not to exceed $30, may be imposed immediately on any dishonored check by thepayee or holder of the check, regardless of mailing a notice of dishonor, if notice of the service charge wasconspicuously displayed on the premises when the check was issued. If a law enforcement agency obtainspayment of a dishonored check on behalf of the payee or holder, up to the entire amount of the service chargemay be retained by the law enforcement agency for its expenses. Only one service charge may be imposedunder this paragraph for each dishonored check. The displayed notice must also include a provision notifyingthe issuer of the check that civil penalties may be imposed for nonpayment.

(b) If the amount of the dishonored check is not paid within 30 days after the payee or holder has mailednotice of dishonor pursuant to section 609.535 and a description of the penalties contained in this subdivision,whoever issued the dishonored check is liable to the payee or holder of the check for:

(1) the amount of the check, the service charge as provided in paragraph (a), plus a civil penalty of upto $100 or the value of the check, whichever is greater. In determining the amount of the penalty, the courtshall consider the amount of the check and the reason for nonpayment. The civil penalty may not be imposeduntil 30 days following the mailing of the notice of dishonor. A payee or holder of the check may make awritten demand for payment of the civil liability by sending a copy of this section and a description of theliability contained in this section to the issuer's last known address. Notice as provided in paragraph (a) mustalso include notification that additional civil penalties will be imposed for dishonored checks for nonpaymentafter 30 days;

(2) interest at the rate payable on judgments pursuant to section 549.09 on the face amount of the checkfrom the date of dishonor; and

(3) reasonable attorney fees if the aggregate amount of dishonored checks issued by the issuer to allpayees within a six-month period is over $1,250.

(c) This subdivision prevails over any provision of law limiting, prohibiting, or otherwise regulatingservice charges authorized by this subdivision, but does not nullify charges for dishonored checks, whichdo not exceed the charges in paragraph (a) or terms or conditions for imposing the charges which have beenagreed to by the parties in an express contract.

(d) A sight draft may not be used as a means of collecting the civil penalties provided in this sectionwithout prior consent of the issuer.

604.113MINNESOTA STATUTES 2018

(e) The issuer of a dishonored check is not liable for the penalties described in paragraph (b) if a pretrialdiversion program under section 628.69 has been established in the jurisdiction where the dishonored checkwas issued, the issuer was accepted into the program, and the issuer successfully completes the program.

Subd. 3. Notice of dishonor required. Notice of nonpayment or dishonor that includes a citation to thissection and section 609.535, and a description of the penalties contained in these sections, shall be sent bythe payee or holder of the check to the drawer by certified mail, return receipt requested, or by regular mail,supported by an affidavit of service by mailing, to the address printed or written on the check.

The issuance of a check with an address printed or written on it is a representation by the drawer thatthe address is the correct address for receipt of mail concerning the check. Failure of the drawer to receivea regular or certified mail notice sent to that address is not a defense to liability under this section, if thedrawer has had actual notice for 30 days that the check has been dishonored.

An affidavit of service by mailing shall be retained by the payee or holder of the check.

Subd. 4. Proof of identity. The check is prima facie evidence of the identity of the issuer if the personreceiving the check:

(a) records the following information about the issuer on the check, unless it is printed on the face ofthe check:

(1) name;

(2) home or work address;

(3) home or work telephone number; and

(4) identification number issued pursuant to section 171.07;

(b) compares the issuer's physical appearance, signature, and the personal information recorded on thecheck with the issuer's identification card issued pursuant to section 171.07; and

(c) initials the check to indicate compliance with these requirements.

Subd. 5. Defenses. Any defense otherwise available to the issuer also applies to liability under thissection.

History: 1983 c 225 s 6; 1984 c 576 s 26; 1985 c 140 s 1,2; 1991 c 256 s 8,9; 1992 c 565 s 113; 1996c 414 art 1 s 41; 1997 c 157 s 65,66; 1999 c 218 s 1; 2001 c 204 s 1; 2004 c 174 s 3

MINNESOTA STATUTES 2018604.113

S HERI F

U S E

O N L Y

ICR:

Dodge County Sheriff's Office DATE: TIME:

INVESTIGATOR:

DATE:

WORTHLESS CHECK

REPORT

Reason check is fraudulent:

CITATION #:

DISPOSITION:

[ ] OPEN/Active

[ ] OPEN/Inactive

[ ] CLOSED/Charged

[ ] CLOSED/Arrested

[ ] CLOSED/Unfounded

[ ] Account Closed

[ ] Non-Sufficient Funds

[ ] Other - Worthless Check

V I C T I

M

I N F O R M A T I O N

BUSINESS (if applicable)

Name:

Address: Phone:

COMPLAINANT Last, First Middle Name:

Residence: Phone:

Business: Phone:

CHECK ACCEPTED BY Last, First Middle

Name:

Residence: Phone:

Business: Phone:

NOTICE OF DISHONOR SENT BY

Last, First Middle

Name:

Residence: Phone:

Business: Phone:

F

S U S P E C T

C H E C K

I N F O R M A T I O N

Signature on Check:

Address on Check:

Name of Bank:

Address of Bank:

Check made Payable to:

Check Number: Amount of

Check: $

Date of Check:

Account Number: Date Check was Accepted:

Driver’s License or State ID Card Number: Value of Merchandise: $

Value of Services: $ Cash Given: $

Has any payment been made on this check?

[ ] YES

[ ] NO

Has any agreement been made concerning collection of the check amount?

[ ] YES

[ ] NO

Was this check post-dated?

[ ] YES

[ ] NO

Was the merchandise, service or cash given at the time the check was issued?

[ ] YES [ ] NO

Is a copy of the front and back of the check attached?

[ ] YES [ ] NO

Is a copy of the notice of non-payment or dishonor attached?

[ ] YES [ ] NO

Is a copy of proof of mailing or certified receipt attached?

[ ] YES [ ] NO

Is a copy of the items purchased receipt attached?

[ ] YES [ ] NO

Is a copy of citizens contact log attached?

[ ] YES [ ] NO

I certify that the above information is true and accurate:

Signature: Date:

, 20 ____

HOW:

What did the person passing the check obtain in exchange for the check:

(a) Credit for a bill? YES NO

(b) Services? YES NO

(c) Cash? Amount: $ YES NO

(d) Merchandise? YES NO

YES NO

YES NO

NO YES

Has the person passing the check been contacted? YES NO Has a "Citizen's Contact Log" been completed & included? YES NO

If no, why? __________________________________________________________________________________________________________

Has the person attempted to make restitution? YES NO

If so, detail

NO

NO

Have you successfully served a "Notice of Dishonor" to the person? YES

YES NO or *Personal Service: YES*Certified Return Receipt/Restricted Mail:

If not served, why?

YES NO

YES NO

PLEASE CIRCLE THE PROPER RESPONSE:

Do you recall the transaction and/or what was purchased?

Was the person passing the check known to you?

Can the person who accepted the check identify the person passing it? YES NO

Describe:

Is there surveillance footage of this transaction and/or signature?

Was the check postdated and/or did the person ask you to hold the check to a future date?

Did you see the person write the check and/or endorse the check At the time it was accepted?

Did you initial, mark or write on the check at the time you accepted it? If so, describe:

Detail what steps you or other employees have taken to contact the person who passed the check, and/or Recover your loss:

YES NO

ACCOUNT CLOSED, NSF, WORTHLESS CHECK ACCEPTANCE FORM (To be completed by employee accepting check.)

Do you feel that you have exhausted your ability to collect this check?

Do you feel that the person intended to defraud you when s/he passed the

YES NO

check? YES NO

Have you retained an attorney or turned this matter over to a collection agency in an attempt to collect the check? YES NO

If yes, whom?

NOTE:Please indicate below anything that you feel would help in locating and/or prosecuting this person. The decision whether or not to prosecute this person will be made by a representative of the Dodge County Attorney’s Office, who will take into account numerous factors, including what evidence exists of intent of fraud, and the availability of necessary bank records. Criminal prosecution does not guarantee restitution as prosecution is designed to punish not to collect debts. If you agree to have this person prosecuted, you will not be able to drop the charge if s/he offers to pay the check. If a criminal case cannot be proven, the check will be returned to you upon request.

I hereby understand and agree to all of the information contained in this document and that it is to be used by, and disseminated among all Law Enforcement Agencies, the Office of the County Attorney and the Court. I also understand and agree that this check is being submitted for criminal prosecution and that if criminal prosecution is instituted, it may be necessary for those persons having knowledge of the facts to appear and testify in court.

I hereby certify that no one has accepted full or partial restitution for this particular check as of this date, and I further agree not to accept restitution without notifying the Dodge County Sheriff's Office.

I hereby certify that I have read and understand the directions for this form, and that all of the facts herein are to the best of my knowledge, true, accurate, and complete.

Signature of person making report:

Printed name of person making report:

Date: _____________________

By signing this report, I certify the above information is true. In the event I have been found to have knowingly falsified this report, or omitted pertinent information, I realize I will be subject to criminal prosecution.

Dodge County Sheriff's Office

CITIZENS CONTACT LOG

Please keep ongoing log of contact with suspect as you attempt to collect on check. Important to identify subject each time contact is made - such as asking for D.O.B.

NAME DATE REC'D FROM BANK

ADDRESS DATE PAYMENT MADE

REASON RET

CITY CHECKER NAME

STATE/ZIP BANK NAME

BANK PHONE #

PHONE (W) ACCOUNT #

PHONE (H) CHECK # AMOUNT $

D.O.B. CHECK # AMOUNT $

I.D. USED CHECK # AMOUNT $ AMT DUE W/FEE $

DATE TIME ACTION TAKEN RESPONSE INITIAL