Unlawful acts - definition.

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(1) It is unlawful and a violation of this part 2 for a person to:

  1. Make fraudulent charges or returns for the handling, sale, or storage or for the rendering of any service in connection with the handling, sale, or storage of any commodities. Violation of this subsection (1)(a) is a class 6 felony.

  2. Willfully fail or refuse to render a true account of sales or storage or to make asettlement on sales or storage or to pay for commodities received on the date and in the manner specified in the contract with the owner or, if no date is specified in the contract or on delivery, within thirty days after the date of delivery or the date on which the person took possession of the commodities. Violation of this subsection (1)(b) is a class 6 felony.

  3. Intentionally make false or misleading statements as to the market conditions forcommodities or false or misleading statements as to the condition, quality, or quantity of commodities received, handled, sold, or stored. Violation of this subsection (1)(c) is a class 6 felony.

  4. Engage in fictitious sales, in collusion, or in unfair practices to defraud the owners.Violation of this subsection (1)(d) is a class 6 felony.

  5. Act as a commodity handler without having obtained a license or act as a commodityhandler without having filed a surety bond or irrevocable letter of credit, as provided in this part 2. Violation of this subsection (1)(e) is a class 6 felony.

  6. Willfully convert to the person's own use or benefit the commodities of another. Violation of this subsection (1)(f) is theft, as defined in section 18-4-401.

  7. Commit fraud or deception in the procurement or attempted procurement of a license. Violation of this subsection (1)(g) is a class 1 misdemeanor.

  8. Fail to comply with any lawful order of the commissioner concerning the administration of this part 2. Violation of this subsection (1)(h) is a class 1 misdemeanor.

  9. Interfere with or hinder an authorized representative of the department while performing the person's duties under this part 2. Violation of this subsection (1)(i) is a class 1 misdemeanor.

  10. Willfully alter or destroy any negotiable warehouse receipt or the record of the negotiable warehouse receipt; issue a negotiable warehouse receipt without preserving a record of the negotiable warehouse receipt; issue a negotiable warehouse receipt when the commodity described is not in the building certified in the receipt; with intent to defraud, issue a second or other negotiable warehouse receipt for any commodity for which, or for any part of which, a valid negotiable warehouse receipt is already outstanding and in force; or, while a valid negotiable warehouse receipt is outstanding and in force, sell, pledge, mortgage, encumber, or transfer a commodity in violation of this part 2 or section 35-36-104 or permit the same to be done without the written consent of the holder of the negotiable warehouse receipt or receive the property or help to dispose of the property. Violation of this subsection (1)(j) is a class 6 felony.

  11. Sell commodities for less than the current market price to a person with whom theperson has any financial connection, directly or indirectly, either as an owner of the corporate stock of a corporation, as a copartner, or in any other capacity, or sell any commodities out of the purchase price of which the commodity handler or small-volume commodity handler, directly or indirectly, retains any portion of the purchase price other than the commission allowed and reported pursuant to section 35-36-310. Violation of this subsection (1)(k) constitutes theft, as defined in section 18-4-401.

  12. Act as a commodity handler or small-volume commodity handler and, with intent todefraud, make, draw, utter, or deliver any check, draft, or order for the payment of money upon a bank or other depository to the owner for the purchase price of any commodities or any part of the purchase price upon obtaining possession or control of the commodities, when, at the time of the making, drawing, uttering, or delivery, the maker or drawer has insufficient funds in or credit with the bank or other depository for the payment of the check, draft, or order in full upon its presentation. The making, drawing, uttering, or delivery of the check, draft, or order is prima facie evidence of an intent to defraud. "Credit", as used in this subsection (1)(l), means an arrangement or understanding with the bank or depository for the payment of the check, draft, or order. Violation of this subsection (1)(l) is fraud by check, as defined in section 18-5-205.

Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 739, § 2, effective June 29.

Editor's note: This section is similar to former § 35-36-123 as it existed prior to 2020.


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