Business Law 101 / Miscellaneous Fraudulent Practices II

By Albert Kelley

Most of us have some experience with coin operated machines.  The fraud statute makes it illegal to use anything other than lawful coins (such as slugs) in a coin operated machine.  It is also illegal simply to manufacture slugs to be sued by yourself or others (2nd degree misdemeanor).

Fraud can also be targeted to the afterlife. It is illegal for a person to sell or attempt to sell a cemetery plot under the promise or inducement that the plot can be resold at a profit later.   The legislature does not want people buying up cemetery plots as investment vehicles (2nd degree misdemeanor).

The next area of fraud was just experienced in Miami a couple of weeks ago.  With the Superbowl drawing near, and tickets in high demand, fraudulent ticket sales began appearing. One man alone sold over a million dollars in fraudulent tickets (He was arrested in a casino in California).  Knowingly making or even merely possessing a fake ticket or modifying a real ticket to any event- sports, concert, movie, etc.- is a first-degree misdemeanor. A second conviction is a third-degree felony. If at the first arrest the person is in possession of 10 or more fake tickets, it is a third-degree felony.  

High-demand events have specific laws that apply. Occasionally, ticket sales will be restricted, especially to high demand events.  It is unlawful to buy more tickets than the maximum allowed and is deemed a violation of Florida’s Deceptive and Unfair Trade Practices Act.  When the event is sold-out or if tickets are hard to get, people holding tickets occasionally get the idea to sell their tickets at a profit. This is a bad idea.  While the law allows people to resell their tickets, they can only resell them for $1 more than the face value of the ticket. Any attempt to get more of a profit subjects the seller to a penalty of three times the amount the ticket was resold for.

The other major ticket violation is the multi-day ticket.  Let’s say a person buys a three-day pass to Disney World, but will only be in Orlando for two days.  They use the ticket for two days but then sell it to someone else for the third day. While it may make sense that this would be allowed, it is essentially theft against Disney World as they make higher profit margins on single day passes or when people fail to take advantage of the full three days.  As such, any resale of a multiday ticket that has ben used at least once is a first-degree misdemeanor. A second offense is raised to a third-degree felony.

The fraud statue also has definitions most people are not aware of.  The statute defines a “tout” as a person who uses false information to convince another person to make a wager on a horse race and asks for a reward or compensation for that information. Touting is a second degree misdemeanor. If I the process of touting, they use the name of any official of the Florida Division of Pari-mutuel Wagering, or of any official of any racetrack association, or the names of any owner, trainer, jockey, or other person licensed by the Florida Division of Pari-mutuel Wagering, as the source of any information it become a third-degree felony.  Upon conviction of touting, the violator shall be banned from all racetracks in Florida and any attempt to access a racetrack is deemed a second-degree misdemeanor. 

Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law and labor law at St. Leo University.  He is also the author of four law books: (“Basics of Business Law” “Basics of Florida’s Small Claims Court”, “Basics of Florida’s Landlord/Tenant Law” and “Basics of Starting a Florida Business” (Absolutely Amazing e-Books)). This article is being offered as a public service and is not intended to provide specific legal advice.  If you have any questions about legal issues, you should confer with a licensed Florida attorney.

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