Fraud and theft are broad terms that encompass various crimes defined as a false representation of material fact, either via conduct or words, intended to lead to financial or personal gain. Given the wide range of these crimes, the consequences and penalties for every form vary significantly. Some crimes are prosecuted in state courts, while others are charged in federal courts. Consequently, you should not take your charges lightly; hiring a seasoned criminal defense attorney is advisable. The lawyer can work aggressively to protect your freedom, life, future, and life and ensure you obtain the most favorable case outcome.

California Fraud Laws

Fraud laws make it an offense to use deceit or deception to engage in conduct that leads to undeserved or unfair benefits for yourself and results in loss or harm to somebody else.

Fraud crimes carry severe penalties. Most offenses are California felonies that could subject you to hefty fines and years in prison. Although many fraud laws have their penalties, prosecutors charge some under theft Penal Code Sections.

Please note that the prosecution does not automatically charge every fraud crime as a felony. Some crimes are wobblers, and prosecutors can charge them as a felony or misdemeanor, depending on your criminal history and case facts.

Some fraud crimes are also federal crimes, and you could be prosecuted in federal and state courts.

Three common legal strategies you can use to fight your criminal charges include the following:

  • You did not intend to defraud.
  • You are a victim of mistaken identity.
  • Police misconduct like illegal search or entrapment.

Common types of fraud crimes include the following:

Welfare Fraud

Welfare and Institutions Code 10980 addresses two types of welfare fraud: internal fraud and recipient fraud.

Recipient fraud is more common than internal fraud. It involves submitting incomplete or incorrect information to obtain benefits like Medi-Cal and food stamps, to which you are illegitimately entitled.

On the other hand, internal welfare fraud is when a government employee assigns or distributes benefits to disqualified recipients.

Here are the penalties for different crimes under WIC 10980:

  • Statements — If you are found guilty of making misleading or false statements to acquire benefits, the prosecutor will charge you with a misdemeanor. It carries a $500 fine and six (6) months in county jail.
  • Filing a fraudulent application —The criminal activity is a wobbler. A felony attracts three (3) years in jail and five thousand dollars in fines. On the other hand, a misdemeanor carries a year in county jail and a fine of one thousand dollars.
  • Retaining or acquiring benefits — The crime is a misdemeanor if you retained or acquired fraudulent benefits under $950. In this case, you will spend six months in jail and pay a five-hundred-dollar fine. Nevertheless, the crime becomes a felony if the aid exceeds $950. The California felony attracts three years in jail and a fine that does not exceed five thousand dollars.

Check Fraud

Check fraud occurs when you violate California Penal Code Section 476 PC.

For a conviction, the prosecution must verify the following:

  • You had in your possession or made, used, or tried to use or pass a fictitious, counterfeit, or modified bill for the payment of money, asset, or check.
  • You had knowledge that the document was fake or altered.
  • You committed the criminal act with the motive of defrauding.

If you are facing prosecution for possessing a fake check, the prosecutor should demonstrate that when you had the false check, you planned to use it as genuine.

A fake or fictitious check includes the following:

  • A check endorsed by non-existent individuals.
  • A check drawn from a non-existing bank.

The following questions can arise under Penal Code 476 PC on the definition of:

  • Planning to defraud — The District Attorney should verify that the defendant acted with a motive to defraud before their conviction. The accused intend to defraud if they plan to deceive or trick somebody else. However, the court could find the accused guilty even if no one was defrauded; what matters is the existence of fraudulent intent.
  • Pass, use, and modify— You use or pass a document when you submit it as authentic or genuine. The representation can be by conduct or words. You modify a document when you add, change, or erase content.

A violation of this Penal Code is a violation of California's forgery law. It is a wobbler.

A misdemeanor carries a year in jail and one thousand dollars in fines. On the other hand, if convicted of a felony, you will spend three years in jail and pay a ten-thousand-dollar fine.

The court can require you to pay the victim's restitution.

A PC 476 violation can have adverse immigration repercussions, making an immigrant be marked inadmissible or deported.

Securities Fraud

You cannot commit securities fraud unless you are involved with securities.

A security is a business arrangement under which you obtain an ownership stake in a business organization or an entitlement to debt repayment. These securities include the following:

  • Stocks in a firm.
  • A limited partner’s interest in a limited partnership.
  • A certificate indicating that the holder has interests in profit-sharing arrangements.

You can face criminal liability for engaging in any of the following activities:

  • Selling an unqualified security.
  • Selling a security that does not adhere to qualification terms.
  • Engaging in misleading conduct in the sale or purchase of securities.
  • Insider trading.
  • Misleading or false statements in the sale of securities.

Security fraud is a wobbler.

Suppose you deliberately offer to sell or sell securities without abiding by the qualification requirements if you sell securities in a manner that breaks qualification terms. In that case, you will pay a one-million-dollar fine and spend three (3) years in jail.

If you manipulate the market, engage in insider trading, or make misleading or false statements in securities transactions, you could face the following potential penalties:

  • Five years in jail.
  • A fine of ten million dollars.

Securities fraud is also a federal offense. The Securities and Exchange Commission first investigates the cases. Then, the Department of Justice (DOJ) will get involved once the SEC files the criminal charges.

This crime's federal penalties and consequences are more severe than those under California laws. A violation can result in 20 years in federal prison.

False Impersonation

PC 529 is the California statute that bans false personation or impersonation, which involves using another person’s identity, likeness, or name for illegal purposes.

Before convicting you, the prosecution must prove the following elements of the crime:

  • You falsely impersonated another individual in your private or public capacity.
  • You engaged in an additional act that created benefits to you or liability to the victim.

The additional act should be something beyond you:

  • Submitting proof that claims to verify you are another person.
  • Identifying yourself as somebody else.

This fraud crime is a California wobbler. A misdemeanor is punishable by a one-year jail sentence, summary probation, and a fine that does not exceed ten thousand dollars. On the other hand, a felony attracts three (3) years in jail, a fine not exceeding $10,000, and formal probation.

A PC 529 conviction does not have adverse immigration repercussions. However, it is advisable to seek legal representation as an immigrant; the California criminal judicial process is complicated.

Mail Fraud

Law enforcement authorities charge mail fraud (postal fraud) if they believe you use a private mail carrier or a U.S. post office to receive or send materials associated with a scheme to engage in fraud.

To be convicted under this statute, the lie or misrepresentation should be related to something material (essential). Also, the misrepresentation should be tailored to deceive a person of ordinary prudence (a person with a reasonable extent of common sense).

Mail fraud is a federal offense whose criminal penalties include spending time in federal prison. It carries fines and twenty years in prison. However, the court could enhance the incarceration duration to 30 years in federal prison if it involves a financial institution or a federal disaster.

An Overview of Theft Crimes

The legal definition of theft in California is unlawfully taking possession of another person’s property without their consent or permission,  intending to deprive them of their ownership.

Theft by false pretense involves acquiring somebody else’s assets using deception or false representation. You engage in theft through embezzlement if you legally possess someone’s asset but convert it for unlawful use.

There are various types of theft offenses, including the following:

Petty Theft, Under California Penal Code 484(a) and 488

It involves illegally taking possession of property valued at $950 or below.

Please note that theft involving multiple items counts as a single theft charge if:

  • The items are deprived of from one alleged victim.
  • The conduct was part of one impulse, plan, or intent.

In this case, the value of the asset you stole will be the combined worth of all the properties.

The D.A. prosecutes petty theft as a California misdemeanor upon conviction, and the crime is punishable by the following maximum penalties:

  • One thousand dollar fines.
  • A six-month county jail sentence.

Sometimes, the judge can award you with summary probation instead of incarceration.

Grand Theft, California Code 487

Grand theft occurs when the value of the stolen property exceeds $950.

Please note that if you have a previous conviction for a serious felony or a sex crime that requires sex offender registration, then the prosecutor would charge you with grand theft for stealing the items below, even if their worth is below $950:

  • A motor vehicle.
  • Animals like pigs, sheep, or horses.
  • A gun.
  • Any asset that you took off its owner’s person.

Prosecutors could file grand theft as a California misdemeanor or felony, depending on the case facts, including the stolen property’s value and the circumstances of the theft.

A felony is punishable by one-year probation in jail or up to three (3) years in jail unless the stolen good was a firearm. You will spend a year in jail if you are sentenced for a misdemeanor.

California Shoplifting

In Golden State, the legal definition of shoplifting per PC 459.5 is entering into a commercial premise to engage in larceny while the enterprise is operational during regular business hours, and the property value taken or you intend to take does not exceed $950. Any other entry into a commercial premises with the motive to engage in larceny is burglary.

The prosecution team should verify the following facts beyond a reasonable doubt:

  • You entered a commercial premises open to the public.
  • The crime happened during regular working hours.
  • You had the motive to steal an item or items worth $950.

Please note that you do not have to leave the store with the item to be found guilty of shoplifting.

California Shoplifting Penalties

The District Attorney could prosecute shoplifting as a California misdemeanor or felony, depending on whether you have a past conviction for any of the following offenses:

  1. A sex offense on a child below 14 years.
  2. A sex crime that requires sex offender registration.
  3. Murder, attempted murder, or solicitation per California PC 187.
  4. Gross vehicular manslaughter.
  5. Any severe or violent California felony involving life imprisonment or the death penalty.
  6. Any sex offense committed using threats, violence, or force.

Upon conviction for a shoplifting misdemeanor, the punishment is:

  1. A prison term of 6-months in a county jail.
  2. A fine not exceeding $1,000.

However, a felony conviction for shoplifting is punishable by:

  1. A prison sentence of 3 (three) years in a California state prison.
  2. A fine not exceeding $10,000.

Burglary Law (PC 469)

Burglary in California is entering a commercial or residential building intending to engage in petit larceny, grand larceny, or any other felony. The offense is complete after you enter the structure with criminal intent, even if you do not accomplish your intended crime.

It can either be first-degree or second-degree. First-degree burglary happens when you enter an inhabited dwelling, floating home, trailer, or house. All other burglaries, including barn or shop burglaries, are second-degree burglaries.

First-degree burglary is a felony, punishable by:

  • Felony probation.
  • A fine of $10,000.
  • Six years in state prison.

The judge can also enhance your sentence if the alleged victim is over 65, lives with disabilities, or is under 14.

It is also a strike.

Commercial burglary is a wobbler. A felony carries felony probation, three years in jail, and ten thousand dollars in fines. On the contrary, a misdemeanor attracts summary probation, a one-thousand-dollar fine, and a year in jail. 

Robbery Under PC 211

PC 211 defines robbery as applying threats or force to take an asset from somebody else’s immediate presence and against the victim’s will.

The law defines immediate presence as the property being within the victim’s physical control.

The defendant takes another person’s property when they gain possession and moves it, even if the distance is insignificant.

The penalties you face for robbery depend on whether you committed a second-degree or first-degree robbery.

You commit a first-degree robbery if one of the statements below is accurate:

  • The alleged victim is a passenger or motorist of a streetcar, subway, trackless trolley, cable car, bus, or taxi.
  • The crime occurred in an inhabited trailer, home, or boat.
  • The robbery happened after or while the victim was using an ATM.

The crime is a felony, punishable by six years in state prison, felony probation, and a ten-thousand-dollar fine.

Second-degree robbery is any robbery that does not satisfy the definition of first-degree robbery. The crime is also a felony. It is punishable by:

  • Five years in California state prison.
  • A fine of ten thousand dollars.
  • Felony probation.

Receiving Stolen Property

Unlike most theft crimes, PC 496 does not pay attention to individuals who steal or take somebody else’s assets. Instead, this statute prohibits receiving stolen property knowingly.

The prosecution should establish the following facts about the crime before your conviction:

  • You received, purchased, aided in selling, sold, hid, or withheld a stolen property.
  • When you acted so, you were aware that somebody else acquired the good through extortion or stole it.

Prosecutors charge a Penal Code 496 violation as a misdemeanor if the property's value does not exceed $950, regardless of whether the crime was a first-time offense or not. It attracts the following potential penalties:

  • Summary probation.
  • A fine of one thousand dollars.
  • A year in jail.

If you are convicted of a California felony, you will face felony probation, a three-year jail sentence, and a fine not exceeding $10,000.

Please note that the victim could qualify for three times the damages suffered, along with attorney fees.

Contact a Competent Criminal Defense Lawyer Near Me

People you interact with daily may view you differently when the prosecution charges you with fraud or theft. Your loved ones might wonder what other illegal conduct you have engaged in, while your employer might investigate your work performance and fire you with little or no explanation. On top of that, you risk spending time incarcerated and paying heavy fines. Fortunately, you can prevent this by hiring Los Angeles Criminal Lawyer.

Do not wait a moment in uncertainty. Please contact us at 310-502-1314 to book your initial case consultation. We can conduct a no-obligation case review to identify the gaps in the prosecutor’s evidence and develop the most effective legal defense.