Legal Definitions - raising an instrument

Raising an instrument refers to the illegal act of fraudulently changing a financial document, particularly a negotiable instrument like a check or promissory note, to increase the monetary amount stated as being payable.

This alteration is done without the knowledge or consent of the original issuer or obligor, with the intent to deceive and gain an unauthorized financial benefit.

• Example 1: Altering a Personal Check

  Imagine Sarah receives a check for $150 from a client for freelance work. Before depositing it, she uses a pen to carefully add a zero after the "150" and modify the written amount to "One Thousand Five Hundred Dollars," intending to cash it for the higher sum. This act is raising an instrument because Sarah fraudulently altered a negotiable instrument (the check) to increase the amount she would receive.

• Example 2: Employee Fraud with a Company Check

  A dishonest accounts payable clerk at a manufacturing company is responsible for preparing checks for vendor payments. The clerk prepares a check for a legitimate supplier for $2,500. However, before the check is signed by an authorized manager and mailed, the clerk secretly changes the amount to $25,000, planning to intercept the difference through a fraudulent scheme with the vendor. This constitutes raising an instrument as the clerk illegally modified a company check to inflate the payable amount without authorization.

• Example 3: Altering a Promissory Note

  A small business owner borrows $20,000 from a private investor, signing a promissory note that clearly states the principal amount and repayment terms. A few months later, the investor, without the business owner's knowledge, alters the promissory note to show a principal amount of $200,000, hoping to demand a much larger repayment. This action is an instance of raising an instrument because the investor fraudulently modified a negotiable instrument (the promissory note) to significantly increase the debt owed by the business owner.