In California, fraud is committed when a person receives an undeserved or unfair benefit that could cause someone else or an organization loss or harm. It is more like profiting from the pain or loss of another through unlawful means. Some people commit fraud for financial gain, while others to avoid criminal culpability. There are many types of offenses under fraud crimes in the state, each attracting severe penalties. Penalties mainly include a lengthy prison term and hefty penalties.

If you face fraud charges in California, CA, it helps to work alongside an experienced criminal attorney. Your attorney will, among other things, advise you on your best options, take you through the legal process, and prepare a solid defense against your charges. At California Criminal Lawyer Group, our team of highly skilled and experienced criminal attorneys will dedicate their time and abilities to your case for a favorable outcome. Contact us today, and let’s review your case and choose the best course for a favorable outcome.

Types of Fraud in California

California laws have a long list of fraud crimes committed by different people for different purposes. The gravity of these offenses varies from one offense to the other. It depends mainly on the type of fraudulent crime, the amount of money involved, and the defendant’s criminal history. It helps to understand your case’s details if you face fraud charges in the state. This will help you understand the gravity of your charges and the possible penalties if you are convicted.  Thus, we will discuss the popular types of offenses under fraud crimes here, with potential penalties.

Note that fraud is a highly punished offense in California. That is why you should seek the help of an experienced criminal attorney after arrest.

Insurance Fraud

From its name, a person commits insurance fraud when they attempt to obtain insurance benefits or payments to which they are not entitled to. There are many ways in which people commit insurance fraud in California. The following are the most popular types of offenses under California insurance fraud:

Auto Insurance Fraud

You commit auto insurance fraud when you knowingly make a false insurance claim or deceive an insurance company to receive benefits that you are not legally entitled to. The offense can be committed in many ways, including:

  • Hiding, damaging, or even abandoning your car on purpose, to collect car insurance benefits from it.
  •  You knowingly file a fraudulent insurance application for a loss incurred through destruction, theft, or damage to your vehicle.
  • You knowingly file two or more insurance applications for the same loss, intending to defraud your auto insurance provider.
  • Participating or causing a vehicle accident to collect insurance benefits fraudulently.
  • Knowingly presenting or preparing an oral or written statement as part of your insurance claim containing misleading or false information. 
  • Falsely claiming that you live in California when applying for auto insurance while residing in another state.

Most forms of auto insurance fraud in California are prosecuted as felonies. Like preparing or submitting false statements, only a few types are wobblers, meaning that they could be prosecuted as misdemeanors or felonies. 

Therefore, if you are convicted of auto insurance fraud, you are likely to face a prison term of between 16 months and five years, plus a fine of up to $50,000 or double the total amount involved in the fraud (whichever amount is greater).

For the few cases prosecuted as misdemeanors, a conviction is likely to carry a jail time of not more than one year and a maximum fine of $1,000. 

Healthcare Insurance Fraud

Many healthcare people in the country today are paid by another person or organization other than the client, including private medical insurance companies and government insurance programs like Medicare. Unfortunately, systems for handling payments for patients are usually very complicated. They have created plenty of chances for fraud. 

Like auto insurance fraud, there are many ways through which healthcare insurance fraud can be committed, including the following:

  • Medical services and procedures in an insurance claim that a patient never received in the first place
  • Billing an insurance provider more costly services than what the patient received, popularly known as upcoding
  • Submitting a duplicate application for one service or procedure, even though in different words. It includes billing an insurance provider twice for a service that a patient only received once

Healthcare insurance fraud is mainly committed by medical professionals like doctors, therapists, and nurse practitioners. Other personnel who work in medical-related offices like record clerks and medical secretaries could also be implicated. 

Penalties for healthcare insurance fraud are provided under Section 550(a) of the California Penal Code. The gravity of the offense is mainly determined by the amount of money involved in the fraud.

If the amount is $950 or less, the offense is prosecuted as a misdemeanor, attracting the following penalties:

  • A maximum of six months in jail
  • A maximum fine of $1,000

However, if the claim in question is more than $950, the offense is a wobbler, which means that it can either be a misdemeanor or felony. If charged as a felony, you are likely to receive the following penalties:

  • Maximum fines of $50,000 or twice the fraud amount
  • Two, three, or five years in jail

Unemployment Insurance Fraud

Unemployment insurance fraud is committed when an applicant provides incomplete or false information intending to obtain or seek unemployment benefits to which he/she is not entitled. The offense can also be committed by an employer when he/she provides false information so that a former or current employee will be denied unemployment benefits to which the employee is entitled. 

Insurance fraud happens every time a person willfully makes a false representation, false identification, or knowing concealment to obtain, increase, or defeat any benefit under federal or state programs. 

Unemployment insurance is among those programs that help individuals who lose their jobs through no fault of their own. The benefits are meant to enable them to cater to their basic needs for a maximum of one year as they actively seek new employment. 

There are many ways in which a person can commit unemployment insurance fraud in California, including the following:

  • Collecting unemployment benefits while you are working and not reporting that work to the California Employment Development Department (EDD)
  • Collecting other kinds of benefits like workers’ compensation and pension without making it known to the EDD
  • Using a fake identity, like a fake name or employment information, to collect benefits while you continue to work using your real identity.
  • Living in California while collecting employment benefits in another state
  • Cashing another person’s unemployment benefits check without their authorization
  • Lying about your efforts to seek employment while you aren’t making any efforts at all

Unemployment insurance fraud is a wobbler, which means that it can be prosecuted as either a felony or misdemeanor. The prosecutor will consider many factors in determining your charges, including your criminal history and the facts of your case.

The Workers’ Compensation Fraud

Like other insurance frauds, workers’ compensation fraud is committed when a person provides misleading or false information to obtain benefits to which they are not entitled unlawfully. 

The workers’ compensation fund is an insurance system that provides medical care and benefits for lost income to employees who suffer workplace injuries.  

Some ways of how a worker can commit workers’ compensation fraud include:

  • Knowingly presenting false information or making fraudulent statements to obtain benefits to which they are not entitled unlawfully or deny compensation benefits
  • Making false or fraudulent statements about an injured employee’s eligibility for workers’ compensation benefits to discourage that employee from claiming their benefits
  • Aiding, abetting, or even participating  in a conspiracy to commit fraud
  • Preparing and submitting multiple claims for the same injury

Workers’ compensation fraud is a wobbler, meaning that it can either be a felony or misdemeanor.  

If you are charged with a felony, you will likely receive two, three, or five years of prison time. Fines can go up to $150,000 or the total amount of fraud (whichever is greater).

California Real Estate & Mortgage Fraud

Real estate & mortgage fraud is committed when a person deliberately makes a false representation connected with any part of a real estate transaction. 

Just like insurance fraud, California has a long list of crimes under real estate & mortgage fraud. The most common ones are:

Foreclosure Fraud

Foreclosure fraud is committed by professionals that claim to help homeowners facing foreclosure. It is among the most frequently prosecuted real estate fraud in California. The offender, in this case, is a self-proclaimed foreclosure consultant who falsely represents that he/she can help prevent or postpone a pending foreclosure. Anyone who engages in any fraudulent activity related to a foreclosed home or a home in the foreclosure process can be charged with this offense.

You could be guilty of foreclosure fraud if you did the following:

  • Charged a homeowner for a service that you are yet to provide
  • Charged and collected an excessive fee for a service rendered to a homeowner
  • Taken an interest in a property that is facing foreclosure
  • Taken money from another party for their services but has not informed the homeowner
  • Taken the homeowner’s power of attorney
  • Defrauded the homeowner into signing an unlawful contract

Forging Deeds

California law defines forgery as knowingly creating, altering, or using a written document for purposes of committing fraud. Forging deeds or real estate documents is committed when you knowingly register, record, or file a forged or false document with a government office within the state. 

Section 115 of the California Penal Code presents the law against filing false documents in California. Forging deeds or real estate documents will be prosecuted under this law. The offense is a felony, attracting a prison or jail sentence of up to three years. 

Check Fraud

California laws against check fraud are under Section 476 of the state Penal Code. The law makes it illegal for a person to write, make or pass a fraudulent or fake check. The offense can be committed in several ways, including:

  • Forging the names of the payer listed on a check
  • Altering the amount on a check
  • Generating a fake check

Check fraud is a wobbler, which means that it can be prosecuted as either a felony or misdemeanor. A misdemeanor is punishable by a maximum of one year in jail. A felony is punishable by a maximum of three years in jail. 

Credit Card Fraud

The various provisions on fraud regarding credit, debit, and access cards are provided in California Penal Code Section 484. The law makes it illegal for any person to use a credit/access card to acquire goods, services, or money to which he/she is not entitled. The various provisions under this section include:

  • Section 484(e) is the provision against the use of a stolen credit card. It makes it illegal for anyone to sell or be in possession of a credit card or even another individual’s credit card data without the person’s consent.
  • Section 484(f) is the section against falsifying credit card data. It is illegal for anyone to change information on an existing card or even sign someone else’s name in a transaction involving a credit card without the person’s consent.
  • Section 484(g) is the provision against fraudulent use of a card or credit card account. It makes it illegal for any person to knowingly use a fake, stolen, or expired credit card to obtain goods, services, or money.
  • Section 484(h) is the provision against fraudulent use of a credit card by a retailer. It makes it illegal for a retailer to knowingly accept payment made using a fake, revoked, or stolen credit card or to present false proof of a transaction to obtain payment for a transaction that never occurred.
  • Section 484(i) is the section against counterfeiting credit cards. It is illegal for any person to make or possess a fake credit card. Under this section, you cannot possess equipment believed to be used in making or trafficking counterfeit credit cards.
  • Section 484(j) is the provision against the issuance of credit card info. It is illegal for any person to knowingly issue out credit card information to defraud another person or company. Credit card data includes the PIN, password, and any other account information that should remain private.

Credit card fraud is a wobbler offense. Therefore, it is prosecuted as either a felony or misdemeanor depending on the offense’s nature and the defendant’s criminal history. A felony offense can attract a jail time of up to one year. A felony offense is punishable by up to three years of jail time. 

Possible Legal Defenses Against California Fraud Crimes

Fraud is taken very seriously in California, which is the reason why we have harsh penalties for anyone found guilty of any fraud-related offense. Thus, you need to think of a way to fight your charges if you face fraud charges today. It is the only way to avoid a conviction and the severe consequences that are likely to affect your life in several ways. The best approach to take immediately after arrest is to engage an experienced criminal defense attorney’s services. 

Fortunately, there are several defense strategies against fraud crimes that your attorney can use to fight your charges in court. If successful, the judge will either drop or reduce your charges. Some of these strategies include:

Lack of Intent

All fraud offenses in California require a defendant to have acted with intent to commit fraud for him/her to be found guilty. If you can convince the court that you didn’t intend to commit fraud, the judge might drop or reduce your charges.

The main challenge prosecutors face in cases like these is to prove beyond a reasonable doubt that the defendant intended to commit an offense. Some people act innocently, but their actions are interpreted as crimes. An experienced criminal attorney will take advantage of the prosecutor’s inability to prove intent to create doubt in the jury. If the jury is not entirely convinced that you intended to commit a crime when you acted the way you did, they will not find you guilty of the offense.

No Probable Cause for Arrest

The Fourth Amendment of the U.S Constitution requires law enforcement officers to have probable cause before arresting a suspect. In cases regarding fraud, it is a challenge to find a probable cause for arrest. Many offenders are prosecuted after the police conduct a thorough investigation into their conduct. But before that, the police must find a good reason to apprehend a suspect.

If you believe that the police did not have probable cause for your arrest, your attorney can use this defense to have your charges dropped. If the court finds out that the police did not follow the proper procedure in arresting you, any evidence they might have gathered against you after arrest may be inadmissible in court.

It could be that someone accused you of fraud, and the police had to act fast to avoid losing time. In that case, the police did not follow the correct procedure, including obtaining a warrant for your arrest. Your charges may be dropped or reduced because of the illegal arrest.

Illegal Search and Seizure

Again, the Fourth Amendment of the U.S constitution prohibits illegal search & seizure by the police. The police need to obtain proper documentation, including a search warrant to conduct a search on a person’s property. If you feel that you were arrested after an illegal search and seizure by the police, your attorney can use this defense to have our charges reduced or dropped.

The police will need a detailed search warrant to search your person or property. It details the nature of the search, reasons for the search, and the limits of the search. If the police exceed the limits provided in the warrant, the search will also be deemed illegal. In that case, the court will dismiss any evidence obtained from that kind of search.

Your attorney’s primary job is to protect your rights. Your rights must not be violated even when you are facing serious fraud charges. If your rights were violated, the court would be compelled to dismiss some or all evidence gathered against you.

Insufficient Evidence

Fraud charges are pretty severe in California. That is why the law requires judges to have sufficient evidence before convicting a defendant. Compelling evidence will automatically lead to your conviction. But if the prosecution cannot prove all elements of the offense beyond a reasonable doubt, your charges could be dropped. 

Your attorney can help your situation by fighting all or part of the evidence presented by the prosecutor. Weakening the prosecutor’s case will work to your advantage. 

False Accusations

Another person might have falsely accused you of reasons like revenge, jealousy, or anger. If that is the case, then your attorney will use this defense to have your charges dropped. 

It is not uncommon to find people accusing others of severe crimes like fraud. Some people even go to the extent of providing false evidence to the police, causing an innocent person’s arrest. If this happens to you, an experienced attorney will know the right approach to convince the court to drop your charges.

Your attorney’s primary task would be to prove to the court your innocence. He/she doesn’t need to prove that the prosecution is lying. Your attorney only needs to convince the court that you did not commit the offense.

Find a California Criminal Lawyer Group Near Me

Fraud crimes are some of the most severely punished offenses in California. If you face charges for any fraud offense in California, CA, it helps to engage the services of a criminal attorney. Your attorney will protect your rights, guide you through the legal process and ensure that you have a solid defense in court. At California Criminal Lawyer Group, we have the skills and experience you need to achieve a favorable outcome of your situation. Call us at 916-775-7660 today and let us review your case.