ARS - Arizona Revised Statutes

The following excerpts are taken from Arizona statutes that relate to fraud and are separated into three groups: General, Agent, and Appraiser. These laws and definitions are applicable to all real estate professionals in the State of Arizona.

General
13-204. Effect of ignorance or mistake upon criminal liability
B. Ignorance or mistake as to a matter of law does not relieve a person of criminal responsibility.

13-301. Definition
In this title, unless the context otherwise requires, "accomplice" means a person, other than a peace officer acting in his official capacity within the scope of his authority and in the line of duty, who with the intent to promote or facilitate the commission of an offense:

1. Solicits or commands another person to commit the offense; or
2. Aids, counsels, agrees to aid or attempts to aid another person in planning or committing the offense.
3.Provides means or opportunity to another person to commit the offense.

"Fiduciary" means a trustee, guardian, executor, administrator, receiver or any other person carrying on functions of trust on behalf of another person, corporation or organization.

"Financial institution" means a bank, insurance company, credit union, savings and loan association, investment trust or other organization held out to the public as a place of deposit for funds or medium of savings or collective investment.

"Material" means that which could have affected the course or outcome of any proceeding or transaction. Whether a statement is material in any given factual situation is a question of law.

"Statement" means any representation of fact and includes a representation of opinion, belief or other state of mind where the representation clearly relates to state of mind apart from or in addition to any facts which are the subject of the representation.

"Sworn statement" means any statement knowingly given under oath or affirmation attesting to the truth of what is stated, including a notarized statement whether or not given in connection with an official proceeding.

"Control" or "exercise control" means to act so as to exclude others from using their property except on the defendant's own terms.

"Deprive" means to withhold the property interest of another either permanently or for so long a time period that a substantial portion of its economic value or usefulness or enjoyment is lost, to withhold with the intent to restore it only upon payment of any reward or other compensation or to transfer or dispose of it so that it is unlikely to be recovered.

"Material misrepresentation" means a pretense, promise, representation or statement of present, past or future fact that is fraudulent and that, when used or communicated, is instrumental in causing the wrongful control or transfer of property or services. The pretense may be verbal or it may be a physical act.

 
13-303. Criminal liability based upon conduct of another
A. person is criminally accountable for the conduct of another if:

1. The person is made accountable for such conduct by the statute defining the offense; or [real estate agents are accountable under statute]
2. The person is an accomplice of such other person in the commission of an offense.

B. If causing a particular result is an element of an offense, a person who acts with the kind of culpability with respect to the result that is sufficient for the commission of the offense is guilty of that offense if:

1. The person solicits or commands another person to engage in the conduct causing such result; or
2. The person aids, counsels, agrees to aid or attempts to aid another person in planning or engaging in the conduct causing such result.

 
ARS; Chapter 22 Fraud
 

13-2202. Deceptive business practices; classification
A. A person commits deceptive business practices if in the course of engaging in a business, occupation or profession such person recklessly:
B. Sells, offers or exposes for sale mislabeled goods or services.
C. Deceptive business practices is a class 1 misdemeanor.

 
13-2204. Defrauding secured creditors; definition; classification
A. A person commits defrauding secured creditors if the person knowingly destroys, removes, conceals, encumbers, converts, sells, obtains, transfers, controls or otherwise deals with property subject to a security interest with the intent to hinder or prevent the enforcement of that interest. (This would be applicable to Mortgage elimination and foreclosure "Rescue" scams)
C. Defrauding secured creditors is a class 6 felony.

 
13-2310. Fraudulent schemes and artifices; classification; definition
A. Any person who, pursuant to a scheme or artifice to defraud, knowingly obtains any benefit by means of false or fraudulent pretenses, representations, promises or material omissions is guilty of a class 2 felony.
B. Reliance on the part of any person shall not be a necessary element of the offense described in subsection A of this section.
C. A person who is convicted of a violation of this section that involved a benefit with a value of one hundred thousand dollars or more is not eligible for suspension of sentence, probation, pardon or release from confinement on any basis except pursuant to section 31-233, subsection A or B until the sentence imposed by the court has been served, the person is eligible for release pursuant to section 41-1604.07 or the sentence is commuted.
D. As used in this section, "scheme or artifice to defraud" includes a scheme or artifice to deprive a person of the intangible right of honest services.

 
13-2311. Fraudulent schemes and practices; wilful concealment; classification
A. ........., any person who, pursuant to a scheme or artifice to defraud or deceive, knowingly falsifies, conceals or covers up a material fact by any trick, scheme or device or makes or uses any false writing or document knowing such writing or document contains any false, fictitious or fraudulent statement or entry is guilty of a class 5 felony.

 
Perjury
Applicable to agents, appraisers, mortgage brokers, escrow agents, account executives, buyers or sellers

13-2702. Perjury; classification
A. A person commits perjury by making either:

A false sworn statement in regard to a material issue, believing it to be false.
A false unsworn declaration, certificate, verification or statement in regard to a material issue that the person subscribes as true under penalty of perjury, believing it to be false. Perjury is a class 4 felony.
 

Agent
32-2153. Grounds for denial, suspension or revocation of licenses; letters of concern; provisional license; retention of jurisdiction by commissioner; definitions
A. The commissioner may suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license issued under the provisions of this chapter if it appears that the holder or applicant, within five years immediately preceding, in the performance of or attempt to perform any acts authorized by the license or by this chapter, has:

Pursued a course of misrepresentation or made false promises, either directly or through others, whether acting in the role of a licensee or a principal in a transaction.

Acted for more than one party in a transaction without the knowledge or consent of all parties to the transaction.

Disregarded or violated any of the provisions of this chapter or any rules adopted by the commissioner.

Knowingly authorized, directed, connived at or aided in the publication, advertisement, distribution or circulation of any material false or misleading statement or representation concerning the licensee's business or any land, cemetery property, subdivision or membership campground or camping contract offered for sale in this or any other state.

Demonstrated negligence in performing any act for which a license is required.

Made any substantial misrepresentation.

Made any false promises of a character likely to influence, persuade or induce.

Been guilty of any conduct, whether of the same or a different character than specified in this section, which constitutes fraud or dishonest dealings.

Engaged in the business of a real estate, cemetery or membership camping broker or real estate, cemetery or membership camping salesperson without holding a license as prescribed in this chapter.

Not shown that the holder or applicant is a person of honesty, truthfulness and good character.

Demonstrated incompetence to perform any duty or requirement of a licensee under or arising from this chapter. For the purposes of this paragraph, "incompetence" means a lack of basic knowledge or skill appropriate to the type of license the person holds or a failure to appreciate the probable consequences of the licensee's action or inaction.

Violated any federal or state law, regulation or rule that relates to real estate or securities or that involves forgery, theft, extortion, fraud, substantial misrepresentation, dishonest dealings or violence against another person or failure to deal fairly with any party to a transaction that materially and adversely affected the transaction. This paragraph applies equally to violations of which the licensee was convicted in any lawful federal or state tribunal and to any admissions made in any settlement agreement by the licensee to violations.
 

32-2161. False statements or publications concerning land, subdivision or membership camping contract for sale or lease; classification; definition
A. Every person who knowingly authorizes or directs any publication or any false statement or representation concerning any land, subdivision or membership camping contract offered for sale or lease, and every person who, with knowledge that any advertisement, pamphlet, prospectus, or letter concerning the land, subdivision or membership camping contract contains any written statement that is false or fraudulent, issues, circulates, publishes or distributes it or causes it to be issued, circulated, published or distributed, or who in any respect knowingly violates or fails to comply with any order, permit, decision, demand or requirement of the commissioner under the provisions of this chapter, is guilty of a class 6 felony and, if a licensee, shall be tried before the commissioner for suspension or revocation of his license.
B. For purposes of this section, "knowingly" or "with knowledge" includes, but is not limited to, engaging in any conduct prohibited in subsection A if such person knew or should have known of the falsity of any statement or representation.

 
Appraisers
32-3601. Definitions; In this chapter, unless the context otherwise requires:
"Appraisal" or "real estate appraisal" means a statement independently and impartially prepared by an individual setting forth an opinion as to the market value of real property as of a specific date and supported by the presentation and analysis of relevant market information.

"Appraisal assignment" means an engagement for which a real estate appraiser is employed or retained to act, or would be perceived by third parties or the public in acting, as a disinterested third party in rendering an unbiased analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in or aspects of identified real estate.

"Appraisal report" means any communication, written or oral, of an appraisal.

 
32-3631. Disciplinary proceedings
A. The rights of an applicant or holder under a license or certificate as a state licensed or state certified appraiser may be revoked or suspended or the holder of the license or certificate may otherwise be disciplined in accordance with this chapter on any of the grounds set forth in this section. ........ for any of the following acts or omissions:

B. An act or omission involving dishonesty, fraud or misrepresentation with the intent to substantially benefit the license or certificate holder or another person or with the intent to substantially injure another person.

C. Violation of any of the standards of the development or communication of appraisals as provided in this chapter.

D. Negligence or incompetence in developing an appraisal, in preparing an appraisal report or in communicating an appraisal.

E. Accepting an appraisal assignment if the employment itself is contingent on the appraiser reporting a predetermined estimate, analysis or opinion or if the fee to be paid is contingent on the opinion, conclusion or valuation reached or on the consequences resulting from the appraisal assignment.

 
32-3633. Undue influence; classification
A person who induces or influences the actions of an appraiser for purposes of securing an appraisal that is grossly misleading, or fraudulent, is guilty of a class 6 felony.

 
32-3635. Standards of practice
A. A state licensed or state certified appraiser shall comply with the standards of professional appraisal practice adopted by the board.
B. An appraisal or appraisal report shall not be issued by a real estate appraiser unless it meets the appraisal standards established by this chapter and rules adopted pursuant to this chapter
C. All federally related appraisals shall be in writing.
 

32-3639. Damages; injunctive relief
If the board has a reasonable basis to believe, after investigation, that any person is violating any provision of this chapter, the board may bring an action in superior court for appropriate injunctive or other equitable relief, damages sustained and taxable costs and reasonable attorney fees.