Fraud - What You Need to Know

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Fraud charges can arise from a wide variety of circumstances, from alleged credit card misuse to complex financial schemes. These cases often involve extensive documentation, financial records, and disputed intent. If you're facing fraud allegations, you need an attorney who understands how prosecutors build these cases and how to dismantle them. 

Penal Code § 484 - Theft by False Pretenses (Petty Theft) When someone obtains property or money through intentional deception involving amounts of $950 or less, they may be charged with petty theft by false pretenses. This is a misdemeanor punishable by up to six months in county jail and/or fines up to $1,000. Common examples include writing bad checks, using someone else's credit card, or making false representations to obtain goods or services.

Penal Code § 487 - Grand Theft by False Pretenses Grand theft involves obtaining property, money, or services valued at more than $950 through fraud or deceit. This is a wobbler offense that can be charged as either a misdemeanor or felony depending on the circumstances and your criminal history. As a misdemeanor, penalties include up to one year in county jail. As a felony, you face 16 months, two years, or three years in state prison.

Penal Code § 470 - Forgery Forgery involves signing another person's name, counterfeiting a document, or altering a legal document with intent to defraud. This includes forged checks, contracts, identification documents, or academic records. Forgery is a wobbler offense. Misdemeanor forgery carries up to one year in county jail, while felony forgery can result in 16 months, two years, or three years in state prison.

Penal Code § 530.5 - Identity Theft Identity theft occurs when someone willfully obtains another person's personal identifying information and uses it for unlawful purposes. This includes using someone else's name, Social Security number, credit card information, or other identifiers without permission. Identity theft is a wobbler, with misdemeanor convictions carrying up to one year in county jail and felony convictions resulting in 16 months, two years, or three years in county jail or state prison.

Penal Code § 550 - Insurance Fraud Insurance fraud involves making false or fraudulent claims for insurance benefits, submitting inflated claims, or staging accidents. Examples include faking injuries in auto accidents, burning property for insurance money, or billing for medical services never provided. Penalties vary based on the value of the fraud. Claims under $950 are misdemeanors punishable by up to six months in jail. Claims over $950 are wobblers with potential felony sentences of two, three, or five years in state prison.

Penal Code § 118 - Perjury Perjury is willfully stating material information under oath that you know to be false. This includes lying in court testimony, depositions, affidavits, or on official government documents. Perjury is a felony punishable by two, three, or four years in state prison.

Welfare Fraud (Welfare and Institutions Code § 10980) Welfare fraud includes providing false information to obtain benefits, failing to report income, or continuing to collect benefits after becoming ineligible. This is a wobbler offense. Penalties depend on the amount fraudulently obtained, ranging from misdemeanor charges with up to six months in jail for amounts under $950, to felony charges with potential prison sentences for larger amounts.

Real Estate and Mortgage Fraud (Penal Code § 532f) This involves making deliberate misrepresentations in real estate transactions or mortgage applications, including falsifying income, employment, assets, or property values. Penalties vary but can include substantial prison time, particularly for schemes involving multiple properties or large sums.

Securities Fraud (Corporations Code § 25541) Securities fraud involves deceptive practices in stock or investment transactions, including insider trading, Ponzi schemes, or misrepresenting investment opportunities. These charges can be prosecuted at both state and federal levels and carry severe penalties including lengthy prison sentences and substantial fines.

Check Fraud (Penal Code § 476a) Writing checks with insufficient funds, forging checks, or passing checks on closed accounts constitutes check fraud. Depending on the amount involved, this can be charged as a misdemeanor or felony, with penalties ranging from county jail to state prison.

Fraud investigations often begin long before an arrest occurs. Unlike crimes involving immediate physical confrontations, fraud cases typically involve:

Investigation Phase: Law enforcement or regulatory agencies may investigate for weeks or months, gathering financial records, interviewing witnesses, and building their case. You may not know you're under investigation until charges are filed.

Search Warrants: Investigators may execute search warrants at your home or business to seize computers, financial documents, and other evidence. They may also obtain warrants for your bank records, emails, and phone records.

Arrest or Surrender: You may be arrested directly, or your attorney may arrange for you to surrender voluntarily once charges are filed. Given the non-violent nature of most fraud offenses, many defendants are released on bail or their own recognizance pending trial.

Booking and Arraignment: After arrest, you'll be booked, fingerprinted, and photo

graphed. Your first court appearance (arraignment) typically occurs within 48 hours if you're in custody, where you'll hear the formal charges and enter a plea.

Lack of Intent to Defraud The prosecution must prove you acted with specific intent to defraud—that you knowingly made false representations to obtain money or property. If you made an honest mistake, genuinely believed the information was true, or had no intention to deceive anyone, you cannot be convicted of fraud. Many fraud cases fall apart when we demonstrate the alleged misrepresentation was an error rather than intentional deception.

Mistaken Identity In identity theft and financial fraud cases, criminals often use stolen information or conduct transactions in someone else's name. You may be wrongly accused due to someone else using your information, conducting unauthorized transactions on your accounts, or fraud committed by someone with access to your credentials.

Insufficient Evidence The prosecution bears the burden of proving every element of fraud beyond a reasonable doubt. This requires demonstrating not just that a transaction occurred or a statement was made, but that you made it, that it was false, that you knew it was false, and that you intended to defraud. In complex financial cases involving multiple parties and extensive documentation, there are often significant gaps in the evidence.

False Accusations Fraud allegations sometimes arise from civil disputes, business disagreements, or personal vendettas. A disgruntled business partner, former spouse, or competitor may file false charges to gain advantage in a civil case or simply to cause you harm. We examine the accuser's motives and credibility to expose false allegations.

Good Faith Belief If you genuinely believed you had authorization to use certain funds, that a transaction was legitimate, or that information you provided was accurate, you lacked the criminal intent required for a fraud conviction. Many business dealings involve reasonable disagreements about contractual obligations or authorizations that don't constitute criminal conduct.

Duress or Coercion If you were forced or threatened into participating in fraudulent activity, you may have a valid duress defense. This applies when someone else compelled your actions through threats of harm.

Violation of Constitutional Rights Evidence obtained through illegal searches, coerced statements, or violations of your right to counsel may be suppressed, potentially leading to dismissal of charges. Law enforcement must follow strict procedures when investigating fraud cases, particularly when obtaining search warrants or seizing financial records.

A fraud conviction carries consequences that extend far beyond fines and incarceration:

Professional Licenses: Many professional licenses require trustworthiness and good moral character. Fraud convictions can result in suspension or revocation of licenses for attorneys, CPAs, real estate agents, insurance agents, financial advisors, and healthcare professionals.

Employment Consequences: Fraud convictions can disqualify you from jobs involving financial responsibility, positions of trust, or roles requiring security clearances. Background checks will reveal the conviction, potentially limiting career opportunities for years.

Immigration Consequences: For non-citizens, fraud convictions can have devastating immigration consequences. Crimes involving fraud or deceit are often considered crimes of moral turpitude, which can result in deportation, denial of naturalization applications, or inadmissibility for those seeking to enter or remain in the United States.

Restitution Orders: Courts typically order defendants to pay full restitution to victims, which can amount to tens or hundreds of thousands of dollars. This obligation survives even after completing your sentence and can be enforced through wage garnishment and liens.

Civil Liability: Beyond criminal charges, you may face civil lawsuits from alleged victims seeking compensatory and punitive damages. A criminal conviction can be used against you in civil proceedings.

Security Clearances: Fraud convictions will result in denial or revocation of government security clearances, ending careers in defense contracting, intelligence, and many government positions.

Having served as a Deputy District Attorney in Orange County, I prosecuted fraud cases and know exactly how prosecutors approach these charges. I understand the investigative techniques they use, the evidence they prioritize, and the weaknesses they try to conceal from the defense.

As a former law enforcement officer for 24 years, including serving as Chief of Police in Ketchikan, Alaska, I know how fraud investigations are conducted from the ground up. I understand how evidence is gathered, how witnesses are interviewed, and where shortcuts or mistakes are likely to occur in complex financial investigations.

This dual perspective is invaluable when defending fraud charges because:

I Know Where to Look for Weaknesses: Having built these cases from the prosecution side, I know which elements are hardest to prove and where the evidence is most likely to fall short. I can identify flaws in the investigation that other defense attorneys might miss.

I Understand Prosecutorial Strategy: I know how prosecutors prioritize their resources, which cases they consider strong, and when they're likely to negotiate. This insight allows me to develop defense strategies that exploit weaknesses in the prosecution's approach.

I Can Anticipate Their Moves: Fraud trials often involve battles over the admissibility of financial records, expert testimony, and complex legal issues. Having prosecuted these cases, I can anticipate the prosecution's arguments and prepare effective counter-strategies before we even get to court.

I Recognize Investigative Shortcuts: Law enforcement sometimes takes shortcuts in fraud 

investigations, particularly when cases involve large volumes of financial records. My experience on both sides helps me identify when proper procedures weren't followed, evidence was improperly obtained, or constitutional rights were violated.

When you're facing fraud charges, you need more than just legal representation—you need an attorney who has sat in the prosecutor's chair, worn the badge, and understands the justice system from every angle.

My background as a Marine Corps veteran, 24-year law enforcement officer, Chief of Police, Georgetown Law graduate, and former Orange County Deputy District Attorney gives me insights that few defense attorneys can match. I've investigated fraud cases as a police officer, prosecuted them as a deputy DA, and now I use that knowledge to defend clients facing similar charges.

I know how weak cases get charged, how investigators cut corners under pressure, and where the prosecution's evidence is most vulnerable. Whether you're facing allegations of identity theft, insurance fraud, forgery, or complex financial schemes, I provide the experienced, strategic defense you need.

Fraud charges are serious, but they are also highly defensible when you have an attorney who understands the technical elements, the investigation process, and the prosecution's strategy. Contact my office today for a confidential consultation about your case.

Disclaimer: This information is provided for educational purposes only and does not constitute legal advice. Every case is unique, and outcomes depend on specific facts and circumstances. If you are facing fraud charges, contact an experienced criminal defense attorney to discuss your specific situation.