ARS 13-2206: Fraud in insolvency

What the State Must Prove Under § 13-2206

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:

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.

The State must prove every element of the paragraph it actually charged, beyond a reasonable doubt. Which paragraph appears on the complaint decides what the case is about, and it is the first thing to check.

Penalties for a § 13-2206 Conviction

Felony ranges are set by A.R.S. § 13-702(D) and apply to a first felony conviction that is not dangerous and not repetitive. A dangerous offense (§ 13-704), a repetitive offense (§ 13-703) or a dangerous crime against children (§ 13-705) carries a longer range, and some carry mandatory prison with no probation. Misdemeanor maximums come from §§ 13-707 and 13-802; surcharges are added on top of every fine.

Full Text of A.R.S. § 13-2206

Source: Arizona Revised Statutes § 13-2206, Arizona Legislative Council revision of 09/19/25. Read the official text on azleg.gov. Statutes change; verify the current version before relying on it.

Related Statutes in Chapter 22 — Business And Commercial Frauds

• A.R.S. § 13-2205 — Defrauding judgment creditors
• A.R.S. § 13-2207 — Receiving deposits in an insolvent financial institution
• A.R.S. § 13-2204 — Defrauding secured creditors
• A.R.S. § 13-2208 — Usury
• A.R.S. § 13-2203 — False advertising
• A.R.S. § 13-2202 — Deceptive business practices

How Tamou Law Group Defends § 13-2206 Cases

A § 13-2206 case is decided by the paragraph the State charged, not by the statute as a whole. We start with the charging document and the disclosure, identify which subsection the prosecutor has to prove, and test whether the evidence actually reaches every element of it. Where the class turns on a fact such as value, an alleged injury, a prior conviction or the identity of the person involved, that fact is frequently the difference between a class 6 felony and something far less serious, and it is where these cases are won.

We handle fraud in insolvency cases across Maricopa County and statewide, from our Scottsdale and Phoenix offices. Call 623-321-4699 any time, or read the statute in full above before you speak to anyone about the case.