Under California law, fraud is a misrepresentation of facts by a person or institution, resulting in unnecessary financial gain and loss to a victim. Mostly, the motive for fraudulent activities is for financial gain or to escape criminal responsibility. Fraud crimes are not violent but involve deceit and breach of trust that makes them serious.

There are several fraud crimes defined under California law, each with different circumstances. A conviction for a fraud crime attracts serious penalties in lengthy prison sentences and hefty fines. Sometimes, you may be punished both by the State and Federal government when the scope of your actions goes beyond the borders. In addition to the legal penalties, a conviction for a fraud crime could affect your ability to obtain a professional license and your immigration status.

If you face an arrest and charges for a fraud crime, seeking legal guidance is a significant step in your journey to fight the charges. At California Criminal Lawyer Group, we offer legal advice for all our clients facing fraud charges throughout Fresno, CA, to ensure the best outcome in your case.

Financial Fraud Offenses

Financial fraud is a form of theft that occurs when one uses property or money belonging to another person illegally to gain financial gain. The degree of deceit is a component that differentiates financial fraud from other heft crimes. Common crimes that involve financial fraud are:

Credit Card Fraud

CPC 484 makes it a crime to use a credit card or credit card information to deceive another person to gain undeserved benefits. Credit card fraud covers a wide range of activities that could include:

  • Fraudulent transfer or possession of a credit card. If you sell a pass or give a credit card to another person without the owner’s consent, you could be charged with credit card fraud.
  • Counterfeiting of credit cards. A counterfeit credit card is a document that is altered with an intent to commit fraud. Fraudulent changing of credit cards information will attract criminal charges under CPC 484i.
  • Fraudulent transactions. This involves using an altered credit card, allowing you to gain the goods or products without spending the money.
  • Publishing credit card information. It is a crime to publish or communicate any information from another person’s credit card in California.

Credit card fraud is a wobbler. The crime may be charged as a felony when the loss suffered by the victim is substantial. A conviction for the felony is punishable by a jail sentence of up to three years and a $10,000 fine. On the other hand, a misdemeanor will attract a one-year jail sentence and a one thousand dollar fine.

If the crime took place on government property, you could be charged with federal credit card fraud. If you face a conviction for federal credit card fraud, you will be sentenced to twenty years in federal prison.

Check Fraud

Due to the increased availability of affordable and sophisticated technology, check fraud has been on the rise. You commit a crime of check fraud by signing a check using another person’s name without their consent. Check fraud involves both fake and genuine documents. This is because a genuine check can become a force when a person signs a false name.

Before you face a conviction for this crime, the prosecution has the burden to prove that you possessed, used, or tried to use a false check for money or property payment. Also, it should be clear that the check was falsified with fraudulent intent. Thus, you can face charged for check fraud even when you were not involved in altering the document. First, however, the prosecutor must establish your knowledge of the false nature of the check.

 Check fraud is treated as an act of forgery. Therefore, the prosecutor has the discretion to treat is a felony or a misdemeanor. Felony check fraud attracts a three-year jail sentence. Additionally, the court may require that you serve three-year formal probation. A misdemeanor conviction for this crime is punishable by a twelve-month jail sentence.

Securities Fraud

Securities refer to a business arrangement where you acquire a certain percentage of ownership in a business. Securities fraud is a crime that involves misleading other individuals or investors to invest in a worthless or non-existent company. Some of the securities protected by California law include:

  • Company stocks.
  • A profit-sharing agreement.
  • A partners interest in a limited liability company.
  • A certificate indicating that a company owes you money.

Section 25400 of the California Corporations Code prohibits sealers from providing misleading information while attempting to sell securities. If you are found guilty of securities fraud, the State may sentence you to a five-year prison sentence and up to $10,000,000 in fines.

Real Estate and Mortgage Fraud Crimes

California law seeks to punish any act of false misrepresentation made in connection to real estate. Some of the commonly prosecuted mortgage and real estate fraud crimes in California include:

  1. Forging Deeds. CPC 115 prohibits the act of registering, filing, or recording a false or forged document in any public office within the State. This could mean a transfer of home or property ownership without the owner’s consent. The crime of forging deeds is charged as a felony whose punishment includes a jail sentence of up to three years and a fine not exceeding $10,000.
  2. Predatory Lending. Predatory lending is a crime that occurs when a lender manages a loan transaction with the intent to obtain maximum benefit and without considering the other party. Most fraudulent schemes target marketing to households based on discriminatory and illegal practices. Since the lender takes more money than the borrower, predatory lending is often charged as grand theft.
  3. Illegal Property Flipping. Flipping a home means that a home is purchased at a low price, remodeled then sold at a higher price. However, making a false appraisal with an intent to increase the property’s value is a crime. Although the law does not illustrate the illegal flipping practices, this crime is likely to be treated as grand theft and a felony conviction.

Crimes Involving Insurance Fraud

Insurance fraud involves wrongfully receiving payments and benefits from an insurance company. Common forms of insurance fraud include:

Auto Insurance Fraud

You commit a crime of vehicle insurance fraud when you knowingly make a false insurance claim or deceive the insurance provider into seeking undeserved benefits. Several forms of auto insurance fraud could attract criminal charges:

  • Fraudulent claims. This involves claiming theft or damage to a vehicle with the knowledge that the claim is false.
  • Abandoning or damaging a vehicle. If you destroy or abandon a motor vehicle intending to claim insurance benefits will attract insurance fraud charges.
  • Multiple claims. You violate vehicle insurance fraud laws when you present multiple claims on the same loss.
  • False statements. You can face charges for insurance fraud if you present a written or oral statement opposing a claim.

The penalties you face after a conviction for insurance fraud vary depending on the form of insurance fraud you committed. In most cases, insurance fraud is charged as a felony that attracts a jail sentence of up to five years and a $50,000 fine. When charged as a misdemeanor, insurance fraud is punishable by a one-year jail sentence and a fine not exceeding $10,000.

Workers Compensation Fraud

In California, workers’ compensation fraud occurs when you provide false information to obtain compensation benefits illegally. Workers compensation is an insurance policy that employers must pay a worker who suffers an injury while on the job. The insurance companies may pay for:

  • Medical care.
  • Permanent disability.
  • Temporary disability.
  • Death benefits.

Before you face a conviction for workers’ compensation fraud, the prosecution must prove that you made or presented a fraudulent statement or material with an intent to commit fraud. For this statute, a fraudulent statement is any statement that is false or contains material intended for fraud. Workers’ compensation fraud is a wobbler. When charged as a felony, the crimes are punishable by a jail sentence of two to five years and a $50,000 fine. 

On the other hand, a misdemeanor conviction will attract a one-year jail sentence and a fine not exceeding $10,000. So if you or your loved one faces charges for insurance fraud, seeking legal guidance is crucial.

Forgery and Identity Theft Crimes

Under California PC 530.5, identity theft is defined as the act of obtaining and keeping another person’s identification information to use it fraudulently. The crime violates not only the fraud code but also forgery and identity theft laws. Some of the fraud crimes listed under this category include:

False Impersonation

False impersonation is the crime you commit when you use another person’s identity for financial gain or to cause them harm. In California, false impersonation is charged under PC 529 and has the following elements:

  • You impersonated another person in their private or public capacity.
  • You engaged in additional acts that resulted in liability for the victim or your gain. The additional acts that constitute the requirements for this crime must be more than just identifying yourself as the alleged victim.

False impersonation is a wobbler. A conviction for felony impersonation attracts a three-year prison sentence and a fine that does not exceed $10,000. However, with guidance from a competent criminal defense attorney, you can convince the prosecutor to offer formal probation instead of the prison sentence.

When charged as a misdemeanor, false impersonation, a defendant convicted of this crime will face a maximum of one year in jail and a fine not exceeding $1,000.

Internet Fraud

Internet fraud is a blanket used to describe different crimes carried out through the internet or computers. Most cybercrimes fall under:

  • Fraudulent schemes carried out through the internet or email.
  • Use of the internet to obtain another person’s confidential information.
  • Accessing data from a computer without the owner’s permission.

Internet scams are sometimes prosecuted in federal court due to their scope. The elements of crime specific to internet fraud include:

  • You had a plan to commit fraud.
  • You acted with a specific intent to defraud the alleged victim.
  • You used electronic communication or means to further your plan.

It is important to understand that your plan to commit fraud does not need to be successful for being convicted for internet fraud. However, if you are convicted of cybercrime in federal court, a conviction will result in a 20 years prison sentence.

Fraud Crimes against Elders

Under California law, an elder is an individual over the age of 65years, and there is a law that deals with fraud committed against these individuals. Some of the fraud crimes against elders include:

  • Senior fraud. In California, senior fraud is considered a part of elder abuse. Under California Penal Code 368, fraud is any act that results in financial loss to the elder. In most cases, people take advantage of the senior’s age to pull up fraudulent schemes to gain financially. Senior fraud is a wobbler, and depending on the circumstances, it can be charged as a felony as a misdemeanor. After a conviction, senior fraud attracts a jail sentence of one to five years and $1,000 for a misdemeanor and $10,000 for a felony.
  • Nursing Home Fraud. Nursing home fraud is a type of fraud crime involving financial abuse and occurs in a nursing home. Often such a crime occurs when a nursing home employee makes a senior sign their property over, forges a name on a check, or overbills the elder.

Miscellaneous Fraud Crimes in California

There are a few or fraud charges with which one can be charged, including:

Gambling Fraud

CPC 332 defines gambling fraud as a crime of fraudulently obtaining money from another person through gambling, betting, or pretentious fortune-telling. It is important to understand that the law prohibits gambling but makes it illegal to trick others into gambling. Before you face a conviction for violating PC 332, the prosecution must establish these elements:

  • You fraudulently obtained property or money from another person.
  • You obtained the money by use of card games, gambling, or fortune-telling.

Gambling fraud may be charged as a felony or a misdemeanor depending on the amount of money involved or the value of the property you obtained. For example, if the amount stolen is $950 or less, you will face misdemeanor charges punishable by a one-year jail sentence, misdemeanor probation, and a $1,000 fine.

On the other hand, gambling fraud involving money or property worth $950 or more is charged as a felony. A felony conviction under CPC 332 attracts a prison sentence of up to five years, felony probation, and fines of not exceeding $10,000.

Telemarketing Fraud

Telemarketing is among the most annoying realities of modern life. You commit a crime of telemarketing fraud when you use a fraudulent or deceitful business scheme while attempting to sell something. California statute on general theft is not specific to the method of telemarketing. However, it criminalizes fraud when these elements apply:

  • You act knowingly or by design.
  • A defendant uses fraudulent or false misrepresentation.
  • Your actions result in the financial loss of another person.
  • It involves labor, personal property, or money.

Under Business and Professionals Code 17511.9 is a wobbler. As a felony, telemarketing fraud is punishable by a three-year jail sentence, a fine of up to $10,000, or both. If you are convicted of a misdemeanor, you will face a one-year jail. Sometimes, the court may sentence you to probation as an alternative to jail.

Mail Fraud

Mail fraud is a federal crime you commit when you use a United States post office or private mail carrier to deliver or receive material related to fraudulent activities. When you face charges for mail fraud, the prosecutor has a burden to prove the following elements beyond a reasonable doubt:

  • A scheme to defraud. Any activities aimed at gaining underserved financial gain are considered to be fraud in California. The prosecutor must establish that the misrepresentation was material and was designed to deceive someone else. Also, it is crucial to understand that a financial loss is not necessary for one to face mail fraud charges.
  • Use of mail. If a defendant commits fraud through face-to-face interactions, they cannot face charges for mail fraud. This element requires the prosecution to establish the use of failing to carry on the crime. For mail fraud use of mail could be placing fraudulent material in a post office or mailbox, receiving material sent through a private carrier, or using something delivered through the mail to commit fraud.
  • You acted with an intent to defraud. An intention to commit fraud is a significant element of mail fraud. Even when your participation in the fraudulent acts is clear, the prosecution must prove your intention to deceive the alleged victim.

Since mail fraud is a federal crime, a conviction is punishable by a 20 years sentence in federal prison.

Potential Defenses to Fraud Charges in California

Until you secure an experienced criminal attorney, you are vulnerable to self-incrimination, and simple statements you make could be used to prove your guilt for a fraud crime. Your attorney will investigate the specific factors of your case and build a strong defense against the fraud charges. Some of the viable defenses you can use against fraud charges include:

Absence of an Intent to Defraud. One key element that defines fraud is an intent to defraud or gain financially from your actions. This defense helps challenge this element and establish that you did not act with fraudulent intent. The intent to commit fraud can be very difficult to prove. Therefore, creating a doubt in the prosecutor's evidence on this element can give you room to fight the charges.

  1. Lack of Sufficient Evidence

Many fraud charges in California are dismissed due to insufficient evidence. A case is considered insufficient evidence when the evidence by the prosecutor and witnesses is not objective. Even when it is clear that there was fraud in your situation, the prosecutor has a burden to prove without a reasonable doubt that you were the perpetrator of the crime.

  1. Mistaken Identity

Claiming that you are a victim of mistaken identity may be a good defense against fraud charges. But, unfortunately, many fraud cases in California result from assumptions, especially when you are in a position of trust. Therefore, your attorney can help you uncover the specific factors of the case to prove that you were mistakenly identified.

  1. Expiration for the Statute of Limitation

California has a statute of limitation within which the prosecutor must file fraud charges. Therefore, even when the case against you was serious and compelling, you can file a motion to dismiss the case citing a lapse of the statute of limitation. However, it is crucial to understand that the time concealed might not count towards the limitation if you concealed the crime.

  1. Entrapment

If another person used threats of violence to force you to act against your will, the jury might not find you guilty of fraud. However, entrapment is not easy to prove. It is not enough that someone provided you with the opportunity to commit fraud. It must be clear that you were coerced to act fraudulently. If you believe that your fraud charges are a result of entrapment or duress, you will require a competent attorney by your side.

Find a Criminal Defense Attorney Near Me

There are various fraud crimes in California, and all attract serious legal consequences after a conviction. However, the specific penalties you face come down to the specific circumstances you committed the crime. Although fraud crimes do not involve violence, they result from a violation of trust and responsibility bestowed to the defendant by the victim. Therefore, the court may be stringent when handling these cases. Fortunately, not all arrests and charges for fraud crimes result in a conviction. You can explore various defenses with guidance from your attorney to fight the charges and avoid the harsh penalties.

The first step towards ensuring the best outcome for a fraud case is seeking top-notch legal representation. If you or your loved one faces criminal charges for fraud in Fresno, CA, we invite you to contact California Criminal Lawyer Group. With our highly experienced defense attorneys’ team, we can provide you with the legal guidance and representation you need for any fraud case. Call us today at 559-712-8377 and allow us to guide you through your case.