Title 8. Fraud and Related Crimes — Subtitle 4. Other Commercial Fraud
Statutes in effect as of October 1, 2026.
Md. Code Ann., Crim. Law § 8-401 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–401LinkCopy Citation
(a)
A partner may not with fraudulent intent:
(1)
convert or appropriate to the partner’s own use partnership money or property;
(2)
make, or cause to be made, a false entry in partnership records of a partnership transaction; or
(3)
fail to make or cause to be made an entry in partnership records to show the true state of a transaction:
(i)
relating to partnership business; or
(ii)
involving the use of partnership money or property.
(b)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 10 years or a fine not exceeding $5,000 or both.
(c)
A person who violates this section is subject to § 5-106(b) of the Courts Article.
Md. Code Ann., Crim. Law § 8-402 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–402LinkCopy Citation
(a)
With intent to defraud, an officer or agent of a corporation may not sign, or in any manner assent to, a statement to or a publication for the public or the shareholders that contains false representations of the corporation’s assets, liabilities, or affairs, to:
(1)
enhance or depress the market value of the corporation’s shares or obligations; or
(2)
commit fraud in another manner.
(b)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not less than 6 months and not exceeding 3 years or a fine not less than $1,000 and not exceeding $10,000 or both.
(c)
A person who violates this section is subject to § 5-106(b) of the Courts Article.
Md. Code Ann., Crim. Law § 8-403 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–403LinkCopy Citation
(a)
A debtor who possesses personal property that is subject to a security interest may not secrete, hypothecate, destroy, or sell the property or remove the property from the county where it was located when the security interest attached:
(1)
without the written consent of the secured party or the secured party’s assignee; and
(2)
with the intent to defraud the secured party.
(b)
(1)
A debtor who possesses personal property that is under levy pursuant to a writ of execution may not remove, secrete, hypothecate, destroy, or sell the property or remove the property from the county where it was located when the levy was made:
(i)
without the prior written consent of the judgment creditor, the judgment creditor’s lawfully authorized agent, or the judgment creditor’s assignee; and
(ii)
with intent to defraud the judgment creditor or the judgment creditor’s assignee, and defeat the lien of the judgment creditor or the judgment creditor’s assignee under the levy.
(2)
This subsection does not relieve the sheriff or other officer making the levy from responsibility to the judgment creditor for safekeeping personal property taken into possession by the sheriff or other officer making the levy.
(c)
A seller of personal property who possesses the personal property under a recorded bill of sale may not remove, secrete, hypothecate, destroy, or sell the property or remove the property from the county where it was located when sold:
(1)
without prior written consent in the contract of the buyer or the buyer’s assignee; and
(2)
with intent to defraud the buyer.
(d)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 6 months or a fine not exceeding $500 or both.
Md. Code Ann., Crim. Law § 8-404 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–404LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Compensation” includes payment based on a sale or distribution made to a person who:
(i)
is a participant in a plan or operation; or
(ii)
on making a payment, is entitled to become a participant.
(3)
“Consideration” does not include:
(i)
payment for purchase of goods or services furnished at cost for use in making sales to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme;
(ii)
time or effort spent in pursuit of sales or recruiting activities; or
(iii)
the right to receive a discount or rebate based on the purchase or acquisition of goods or services by a bona fide cooperative buying group or association.
(4)
“Promote” means to induce one or more persons to become a participant.
(5)
“Pyramid promotional scheme” means a plan or operation by which a participant gives consideration for the opportunity to receive compensation to be derived primarily from any person’s introduction of others into participation in the plan or operation rather than from the sale of goods, services, or other intangible property by the participant or others introduced into the plan or operation.
(b)
A person may not establish, operate, advertise, or promote a pyramid promotional scheme.
(c)
It is not a defense to a prosecution under this section that:
(1)
the plan or operation limits the number of persons who may participate or limits the eligibility of participants; or
(2)
on payment of anything of value by a participant, the participant obtains any other property in addition to the right to receive compensation.
(d)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both.
Md. Code Ann., Crim. Law § 8-405 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–405LinkCopy Citation
(a)
This section applies only to a person employed in any capacity in the management or navigation of a vessel on a river, canal, bay, or other waters exclusively within the State whether or not the person is a co-owner of or has an interest in any of the cargo of the vessel.
(b)
A person may not sell, give away, pledge, or in any manner dispose of the cargo of a vessel or an article or commodity on the vessel:
(1)
without the consent of the owner; and
(2)
with the intent to defraud the owner.
(c)
A person who sells the cargo of a vessel or an article or commodity on the vessel with the consent of the owner may not neglect or refuse to pay to the owner the consideration received by the person with the intent to defraud the owner.
(d)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not less than 6 months and not exceeding 1 year or a fine not less than $500 and not exceeding $1,000 or both.
Md. Code Ann., Crim. Law § 8-406 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–406LinkCopy Citation
(a)
A person, on the person’s own behalf or on behalf of another, who receives, accepts, or takes in trust from another a warehouse or elevator receipt, bill of lading, or document giving, or purporting to give, title to, or the right to possession of, goods, wares, merchandise, or other personal property, subject to a written contract expressing the terms and conditions of the trust, may not fail to fulfill in good faith the terms and conditions of the trust.
(b)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not less than 1 year and not exceeding 10 years or a fine not less than $500 and not exceeding $5,000 or both.
(c)
A person who violates this section is subject to § 5-106(b) of the Courts Article.
Md. Code Ann., Crim. Law § 8-407 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–407LinkCopy Citation
(a)
This section applies to a written contract or written lease for a leased or rented good or thing of value whether or not the contract or lease contains an option to purchase the good or thing of value if the lease:
(1)
does not exceed a period of 6 months; and
(2)
is for a good or thing with a value of $1,500 or more.
(b)
A person may not fraudulently convert to the person’s own use a good or thing of value received under a written contract or written lease entered into for the purpose of renting or leasing things for valuable consideration.
(c)
The failure to return the good or thing of value to the possession of, or account for the good or thing of value with, the person who delivered the good or thing of value at the time or in the manner described in the written contract or written lease is prima facie evidence of intent to fraudulently convert the good or thing of value.
(d)
(1)
A person may not be prosecuted under this section if within 10 days after a written demand for the return of the good or thing of value is mailed by certified United States mail, return receipt requested, to the person who received the good or thing of value at the last address known to the person who delivered the good or thing of value, the person returns the good or thing of value to the possession of, or accounts for the good or thing of value with, the person who delivered the good or thing of value.
(2)
A prosecution may not be started until 10 days after a written demand described in paragraph (1) of this subsection is mailed.
(e)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 60 days or a fine not exceeding $1,000 or both.
(f)
A person who violates this section shall restore the good or thing of value converted to the person’s own use or pay the full value to the owner or the person who delivered the good or thing of value.
(g)
(1)
A prosecution under this section does not preclude prosecution for theft under § 7–104 of this article.
(2)
If a person is convicted under § 7–104 of this article and this section for the same act or transaction, the conviction under this section shall merge for sentencing purposes into the conviction under § 7–104 of this article.
Md. Code Ann., Crim. Law § 8-408 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–408LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Direct loan agreement” means an agreement between a lender and a borrower under which the lender advances funds under a loan secured by the motor vehicle purchased by the borrower.
(3)
(i)
“Installment sale agreement” means a contract for the sale or lease of a motor vehicle, negotiated or entered into in the State, under which:
(1)
part or all of the price is payable in one or more payments after the contract is made; and
(2)
the seller takes collateral security or keeps a security interest in the motor vehicle sold.
(ii)
“Installment sale agreement” includes:
(1)
a prospective installment sale agreement;
(2)
a purchase money security agreement;
(3)
a contract for the bailment or leasing of a motor vehicle under which the bailee or lessee contracts to pay as compensation a sum that is substantially equal to or is more than the value of the motor vehicle; and
(4)
a renewal, extension, or refund agreement.
(4)
“Lease contract” means a contract for or in contemplation of a lease for the use of a motor vehicle, and the purchase of services incidental to the lease, for a term of more than 4 months.
(5)
“Lessor” means a person who leases a motor vehicle to another under a lease contract.
(6)
“Motor vehicle” means a vehicle for which an owner is required to obtain a certificate of title under Title 13 of the Transportation Article.
(7)
“Motor vehicle agreement” means a lease contract, direct loan agreement, installment sale agreement, or security agreement.
(8)
“Secured party” means a person who has a security interest in a vehicle.
(9)
“Security agreement” means a written agreement that reserves or creates a security interest.
(10)
(i)
“Security interest” means an interest in a vehicle that is reserved or created by agreement and that secures payment or performance of an obligation.
(ii)
“Security interest” includes the interest of a lessor under a lease intended as security.
(11)
(i)
“Seller” means a person who sells or leases or agrees to sell or lease a motor vehicle under an installment sale agreement.
(ii)
“Seller” includes a present holder of an installment sale agreement.
(b)
A person may not engage in an act of unlawful subleasing of a motor vehicle in which:
(1)
the motor vehicle is subject to a motor vehicle agreement the terms of which prohibit the transfer or assignment of a right or interest in the motor vehicle or under the motor vehicle agreement without consent of the lessor or secured party;
(2)
the person is not a party to the motor vehicle agreement;
(3)
the person:
(i)
transfers or assigns, or purports to transfer or assign, a right or interest in the motor vehicle or under a motor vehicle agreement to a person who is not a party to the motor vehicle agreement; or
(ii)
assists, causes, negotiates, attempts to negotiate, or arranges an actual or purported transfer of a right or interest in the motor vehicle or under a motor vehicle agreement from a person, other than the lessor or secured party, who is a party to the motor vehicle agreement;
(4)
neither the person nor the party to the motor vehicle agreement obtains written consent to the transfer or assignment from the lessor or secured party before conducting the acts described in item (3) of this subsection; and
(5)
the person receives or intends to receive a commission, compensation, or other consideration for engaging in the acts described in item (3) of this subsection.
(c)
(1)
It is not an act of unlawful subleasing of a motor vehicle under this section if the acts under subsection (b)(3) of this section are engaged in by a person who is:
(i)
a party to the motor vehicle agreement; or
(ii)
a dealer or vehicle salesman licensed under Title 15 of the Transportation Article and engaged in vehicle sales who assists, causes, or arranges a transfer or assignment under the terms of an agreement for the purchase or lease of another motor vehicle.
(2)
Paragraph (1) of this subsection does not affect the enforceability of a provision of a motor vehicle agreement by a party to the agreement.
(3)
A party to a motor vehicle agreement may not be prosecuted under this section as an accessory to the act of unlawful subleasing of the motor vehicle that is subject to the motor vehicle agreement.
(d)
A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both.
Md. Code Ann., Crim. Law § 8-409 (2026)
Title 8. Fraud and Related Crimes
Subtitle 4. Other Commercial Fraud
§ 8–409LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Closed–loop gift card” has the meaning stated in § 14–4901 of the Commercial Law Article.
(3)
(i)
“Gift card” means an open–loop gift card or a closed–loop gift card.
(ii)
“Gift card” does not include:
(1)
a credit card;
(2)
an electronic funds transfer; or
(3)
money, a check, a draft, or any other similar paper instrument.
(4)
“Open–loop gift card” has the meaning stated in § 14–4901 of the Commercial Law Article.
(b)
A person may not, with the intent to defraud another, alter or tamper with a gift card or its packaging.
(c)
A person who violates this section is guilty of the misdemeanor of gift card forgery and on conviction is subject to imprisonment not exceeding 18 months or a fine not exceeding $500 or both.