Green’s Dictionary of Slang

paper hanger n.

also paper-layer
[paper n. (10) + pun; note Sutherland, The Professional Thief (1937), claims that this is a term used only by amateurs, never by professional thieves]

1. [20C+] (US Und.) one who habitually passes bad cheques.

2. [1940s] (US) one who distributes free passes and/or cheap tickets to failing theatrical shows [paper n. (3)].

In derivatives

paperhanging (n.)

[1920s–50s] passing bad cheques, forgery.