A. A person commits fraud in insolvency if, when proceedings have been or are about to be instituted for the appointment of a trustee, receiver or other person entitled to administer property for the benefit of creditors or when any other assignment, composition or liquidation for the benefit of creditors has been or is about to be made, such person:

Terms Used In Arizona Laws 13-2206

  • Benefit: means anything of value or advantage, present or prospective. See Arizona Laws 13-105
  • Felony: means an offense for which a sentence to a term of imprisonment in the custody of the state department of corrections is authorized by any law of this state. See Arizona Laws 13-105
  • Fraud: Intentional deception resulting in injury to another.
  • Knowingly: means , with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or believes that the person's conduct is of that nature or that the circumstance exists. See Arizona Laws 13-105
  • Person: means a human being and, as the context requires, an enterprise, a public or private corporation, an unincorporated association, a partnership, a firm, a society, a government, a governmental authority or an individual or entity capable of holding a legal or beneficial interest in property. See Arizona Laws 13-105
  • Property: means anything of value, tangible or intangible. See Arizona Laws 13-105
  • Trustee: A person or institution holding and administering property in trust.
  • Writing: includes printing. See Arizona Laws 1-215

1. Destroys, removes, conceals, encumbers, transfers or otherwise harms or reduces the value of the property with intent to defeat or obstruct the operation of any law relating to the administration of property for the benefit of creditors; or

2. Knowingly falsifies any writing or record relating to the property; or

3. Knowingly misrepresents or refuses to disclose to a receiver or other person entitled to administer property for the benefit of creditors the existence, amount or location of the property or any other information which he could be legally required to furnish to such administration; or

4. Obtains any substantial part of or interest in the debtor’s estate with intent to defraud any creditor.

B. Fraud in insolvency is a class 6 felony.