Fraud Crimes

Fraud crimes in Los Angeles encompass a wide spectrum of offenses, each characterized by the use of deception, trickery, or misrepresentation to unlawfully acquire money, property, or services. Unlike traditional theft crimes, fraud often leverages existing trust or creates a false sense of security, which significantly amplifies the perceived severity of these offenses. Prosecutors and judges in Los Angeles, both at the state and federal levels, treat fraud with exceptional gravity due to the substantial financial and emotional harm it inflicts on individuals, businesses, and public institutions.

The complexity of fraud cases often necessitates a deep understanding of intricate financial transactions, digital records, and legal statutes. A conviction can result in devastating consequences, including lengthy prison sentences, substantial fines, restitution obligations, and a permanent criminal record that severely impacts future opportunities. 

This page aims to provide a detailed overview of common fraud crimes in Los Angeles, the legal framework governing these offenses, and crucial defense strategies. If you have been accused or charged with a fraud crime do not hesitate to seek expert legal advice from a skilled and experienced criminal defense attorney in Los Angeles. 

California law defines fraud broadly, encompassing various deceptive practices aimed at financial gain. The prosecution must prove that the defendant acted with specific intent to defraud, meaning they knowingly and intentionally made false representations to obtain something of value. This element of intent is often the focal point of legal defense.

• Credit Card Fraud (California Penal Code Sections 484e-484j PC)
  • Credit card fraud is rampant and highly prosecuted in Los Angeles. These sections cover a wide range of activities: 
    • PC 484e: Stealing, acquiring, or possessing stolen credit card information. This includes physical cards and digital data.
    • PC 484f: Forging, altering, or counterfeiting credit cards. This involves creating fake cards or manipulating existing ones.
    • PC 484g: Using stolen, forged, or fraudulent credit cards for purchases. This covers both in-person and online transactions.
    • PC 484h: Retailers or merchants knowingly accepting fraudulent credit card transactions. This extends liability to those who facilitate fraud.
    • PC 484i: Altering, encoding, or re-encoding credit card data. This addresses the technological manipulation of card information.
    • PC 484j: Publishing, distributing, or selling stolen credit card information. This targets the dissemination of compromised data.
  • Penalties: Depending on the amount of loss and the defendant's criminal history, credit card fraud can be charged as a misdemeanor or a felony. Felony convictions can result in years in state prison, substantial fines, and restitution.
  • Federal Involvement: Due to the interstate nature of many credit card transactions, federal agencies like the Secret Service and FBI often investigate, leading to federal prosecution under laws such as 18 U.S.C. § 1029 (Fraud and related activity in connection with access devices). Federal penalties are often more severe.
• Insurance Fraud (California Penal Code Section 550 PC)
  • Insurance fraud involves knowingly submitting false or misleading information to an insurance company to obtain benefits.
  • Types: 
    • Auto Insurance Fraud: Staged accidents, exaggerated damage claims, and false reporting.
    • Healthcare Fraud: Billing for unnecessary procedures, falsifying medical records, and prescription fraud.
    • Workers' Compensation Fraud: Faking or exaggerating workplace injuries to receive benefits.
  • Penalties: Insurance fraud is generally a felony. Penalties can include up to five years in state prison, fines reaching $50,000, and mandatory restitution.
  • Investigative Techniques: Insurance companies and law enforcement use sophisticated techniques, including surveillance, forensic accounting, and data analysis, to detect fraud.
• Forgery (California Penal Code Section 470 PC)
  • Forgery involves creating, altering, or using false documents with the intent to defraud.
  • Examples: 
  • Signing another person's name without authorization.
  • Altering or creating false checks, contracts, wills, or financial instruments.
  • Using false identification or counterfeit documents.
  • Penalties: Forgery is a "wobbler" offense. Misdemeanor convictions carry lesser penalties, while felony convictions can result in up to three years in state prison and substantial fines.
  • Related Offenses: Forgery often intersects with identity theft and check fraud.
• Public Assistance and Welfare Fraud (California Welfare & Institutions Code Section 10980 PC)
  • Welfare fraud involves intentionally misrepresenting information to obtain government benefits.
  • Examples: 
  • Failing to report income or assets.
  • Using a false identity.
  • Misrepresenting household size.
  • Penalties: Can be charged as a misdemeanor or felony, depending on the amount of loss. Felony convictions can result in up to three years in prison, heavy fines, and mandatory repayment.
  • Disqualification: Conviction can lead to permanent disqualification from future government assistance.
• Identity Theft (California Penal Code Section 530.5 PC)
  • Identity theft involves the unauthorized use of another person's personal identifying information.
  • Examples: 
  • Opening fraudulent accounts.
  • Obtaining employment or benefits using stolen Social Security numbers.
  • Filing fraudulent tax returns
  • Penalties: A felony offense with penalties of up to three years in state prison.
  • Federal Implications: If identity theft is part of a larger fraud scheme or involves interstate activity, federal charges under 18 U.S.C. § 1028 (Fraud and related activity in connection with identification documents) may apply.

Our attorneys at Kraut Criminal & DUI Lawyers will employ various strategies, including:

• Lack of Intent: Challenging the prosecution's assertion that the defendant acted with fraudulent intent.
• Insufficient Evidence: Questioning the reliability and sufficiency of the prosecution's evidence.
• Mistaken Identity: Presenting evidence that another person committed the fraud.
• Entrapment: Arguing that law enforcement induced the defendant to commit the crime.
• Illegal Search and Seizure: Suppressing evidence obtained through unlawful means.
• Complex Financial Analysis: Hiring forensic accountants to challenge the prosecution's financial claims.
• Negotiation: Seeking reduced charges or alternative sentencing.

Michael Kraut's extensive experience as a former Deputy District Attorney, including his time in the Major Fraud Division, provides a unique advantage. His deep understanding of prosecutorial strategies and tactics enables him to build robust defenses. If you need legal assistance contact Kraut Criminal & DUI Lawyers for a free consultation and start fighting for your freedom. 

Kraut Criminal & DUI Lawyers

6255 Sunset Boulevard, Suite 1520

Los Angeles, CA 90028

Phone: (888) 334-6344 or (323) 464-6453

Available 24/7