Q: Am I liable for a fake check transaction sent to me unknowingly in California related to my cousin's business?

A: Dear Los Angeles Resident,

Based on the details you’ve shared, it appears unlikely that you would face criminal liability for the $3,000 payment you received and sent to your cousin. California Penal Code Section 476 and Section 475 establish that liability for forgery or handling forged checks requires both intent to defraud and knowledge that the check was fraudulent. In your case, you had no awareness of the $8,000 fake check’s nature when you received the funds, nor did you intend to deceive anyone. This aligns with precedents like People v. Walker (15 Cal. App. 400), where guilt hinged on the defendant’s clear knowledge and fraudulent intent—elements absent here.

The lack of a written agreement and the murky details surrounding the sender, who used a cryptocurrency app to coordinate with your cousin abroad, do not automatically impose liability on you. Criminal responsibility under these statutes focuses on intent and awareness, not merely the absence of formal documentation. That said, the complexity of tracing the transaction could complicate any civil disputes, such as the sender’s accusation that you owe the missing funds. Civil liability would require proof that you knowingly participated in the fraud, which does not seem supported by your account.

A: You didn’t knowingly commit fraud, and that matters a lot. If you received money and passed it along thinking it was legitimate, then you were an unknowing middleman. Under California law, intent plays a big role in liability for fraud, and without proof you were aware the check was fake, you’re not automatically responsible for the sender’s loss.

However, banks can still try to recover the funds from whoever deposited or received money tied to a bad check. Since you forwarded the money, the bank or the original sender might try to argue that you’re financially responsible. But if you can show you had no knowledge of the scam and acted in good faith, you have a strong defense.

The situation gets complicated because there’s no written agreement and the payment was tied to your cousin’s business dealings. You may be asked to cooperate with an investigation, especially if cryptocurrency and cross-border communication are involved. It’s smart to gather any proof you have of your innocence—texts, transaction records, or anything that shows your role was just to forward the payment.