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New York Consolidated Laws

N.Y. Penal Law § 190.40 (2026)

Criminal usury in the second degree

✓ current as of May 2026
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§ 190.40 Criminal usury in the second degree.
  A person is guilty of criminal usury in the second degree when, not
being authorized or permitted by law to do so, he knowingly charges,
takes or receives any money or other property as interest on the loan or
forebearance of any money or other property, at a rate exceeding
twenty-five per centum per annum or the equivalent rate for a longer or
shorter period.
  Criminal usury in the second degree is a class E felony.
Notes of Decisions
Cited in 183 cases (54 in the last 5 years), 1972–2026 · leading case: United States v. Moseley, 980 F.3d 9 (2d Cir. 2020).
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United States v. Moseley, 980 F.3d 9 (2d Cir. 2020). · cites it 3× “N.Y. Penal Law § 190.40 . Therefore, as part of a strategy to avoid such caps, in his early years of operation Moseley incorporated entities in Nevada, and, after 2006, offshore, in Nevis and New Zealand.”
Paycation Travel, Inc. v. Global Merch. Cash, Inc., 2021 NY Slip Op 01782 (N.Y. App. Div. 2021). · cites it 6× “The order, insofar as appealed from, denied that branch of the defendant's motion which was for summary judgment dismissing so much of the first cause of action as alleged criminal usury in violation of Penal Law § 190.40. ORDERED that the order is reversed insofar as appealed…”
Adar Bays, LLC v. GeneSYS ID, Inc., 28 F.4th 379 (2d Cir. 2022). · cites it 6× “The district court held that the Note’s interest rate did not violate the New York State criminal usury law, N.Y. Penal Law § 190.40 . On June 11, 2020, we certified two questions to the New York Court of Appeals: (1) whether a stock conversion option that permits a lender, in…”
United States v. Bonanno Organized Crime Fam. of La Cosa Nostra, 683 F. Supp. 1411 (E.D.N.Y 1988). · cites it 4× “42, and in 1982 pleaded guilty to criminal usury in the second degree, a violation of N.Y.Penal L. § 190.40. The indictment and certificate of disposition recording Embarrato’s guilty plea, submitted as Exhibit D to the Amended Complaint, reveal little of the facts underlying…”
Consum. Fin. Prot. Bureau v. RD Legal Funding, LLC, 332 F. Supp. 3d 729 (S.D. Ill. 2018). · cites it 2× “Banking Law § 14 -a, and N.Y. Penal Law §§ 190.40 and 190.42, respectively (Compl.”
Funding Grp., Inc. v. Water Chef, Inc., 19 Misc. 3d 483 (N.Y. Sup. Ct. 2008). · cites it 8× “” Defendant next argues that the letter agreement is criminally usurious and void ah initio as a matter of law because the transaction calls for the payment of interest at an annual rate which is in excess of the criminal usury rate of 25% under Penal Law § 190.40. Specifically,…”
LG Funding, LLC v. United Senior Props. of Olathe, LLC, 2020 NY Slip Op 1607 (N.Y. App. Div. 2020). “Since the plaintiff failed to demonstrate the absence of triable issues of fact as to whether the transaction constitutes a criminally usurious loan, we agree with the Supreme Court's determination denying that branch of the plaintiff's motion which was for summary judgment on…”
Abir v. Malky, Inc., 59 A.D.3d 646 (N.Y. App. Div. 2009). · cites it 2× “A transaction is usurious under civil law when it imposes an annual interest rate exceeding 16% (see General Obligations Law § 5-501 [1]; Banking Law § 14-a [1]), and is usurious under criminal law when it imposes an annual interest rate exceeding 25% (see Penal Law §§ 190.40,…”
Fast Trak Inv. Co. v. Richard Sax, 962 F.3d 455 (9th Cir. 2020). · cites it 2× “’” Practice Commentary to N.Y. Penal Law § 190.40 (McKinney). The criminal usury statute provides for a higher statutory rate of 25% simple interest annually.”
Cole v. Stephen Einstein & Assocs., P.C., 365 F. Supp. 3d 319 (W.D.N.Y. 2019). · cites it 2× “Plaintiff's attempts to distinguish the instances where an entity "charges, takes or receives" money as interest, see N.Y. Penal Law § 190.40 , are unpersuasive.”
First Nat'l Bank v. Mountain Food Enter., Inc., 159 A.D.2d 900 (N.Y. App. Div. 1990). · cites it 2× “…Obligations Law § 5-501 [1]; Banking Law § 14-a [1]) and 25% for a corporation (General Obligations Law § 5-521; Penal Law § 190.40). Where the interest rate charged does not violate the criminal usury statute (Penal Law § 190.40), neither a corporation nor the individual…”
Merch. Funding Servs., LLC v. Volunteer Pharmacy Inc., 55 Misc. 3d 316 (N.Y. Sup. Ct. 2016). · cites it 3× “” Here, defendants contend that the agreement is criminally usurious and void ab initio as a matter of law, because it contemplates payment by the corporate defendant of interest at the annual rate of 167%, a rate that exceeds the legal rate of interest of 25% for a corporation…”
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