Although a fraud charge does not involve violence or bodily injury, a conviction for any fraud crime can result in severe penalties under the law because large sums of money are involved in most fraudulent cases.

When you run into trouble with the law in Pasadena for alleged involvement in any fraud crime, you will need legal representation from a skilled defense attorney for legal counsel and best legal defense to increase your chances of fighting this charge.

At Michele Ferroni Pasadena Criminal Attorney Law Firm, we have the necessary skills and experience to fight for your freedom and legal rights if you are in police custody for any alleged fraud charge. We will carefully review your alleged fraud case and prepare the best defense strategies to fight for an appealing outcome on your behalf during the prosecution process.

Fraud Crimes at A Glance

When most people hear or think of a theft case, they assume the theft involved a masked-up individual or individuals breaking into another person's house or business to steal at a gunpoint. Although most theft cases are violent, it is not uncommon for people to commit theft crimes through fraudulent ways, which are non-violent.

Generally, fraud is a collective term that defines various criminal behaviors and acts that involve using false statements, deceptions, or any other kind of untruthful information to obtain an unfair benefit. The main reason why most people commit fraudulent activities is to obtain undeserved financial benefits or escape criminal liability.

However, it is worth noting that you can be subject to fraud charges even for acts or behaviors that are unrelated to escaping criminal accountability and gaining undeserved financial profits. Any fraud charge can quickly turn into a complex legal situation because these immoral crimes involve state and federal laws, leaving you susceptible to severe consequences in both courts.

We encourage you to keep reading this article to have in-depth knowledge and awareness of various types of fraud charges that are chargeable under the law.

An Overview of Various Types or Forms of Fraud You Can Be Subject to Under the Law

The penal code prohibits various fraudulent acts and behaviors that many people commit every day without even thinking of possible repercussions they could be subject to under the law. Several fraudulent activities are chargeable and punishable under the law, depending on your unique case situation and facts.

Below we will briefly elaborate on some of the most common types of fraud crimes prosecuted under the law:

Financial Fraud

You commit financial fraud when you use another person's property or money fraudulently, intending to gain undeserved benefits from it. Below are some of the most prevalent financial fraud crimes:

1. Check Fraud

Section 476 of the Penal Code (PC) makes it unlawful to write, make, possess, use or pass on a fraudulent or false check as a form of payment with the intent to defraud a payee. Even if your intentions were unsuccessful, you could be subject to prosecution for attempting to commit a check fraud under PC 476. Below are some of the acts that could count as check fraud under PC 476:

  • Altering or changing the routing numbers of a check
  • False fabrication or making of a check
  • Signing another person's check without his/her consent
  • Altering the dollar amount indicated on a check
  • Forging or altering the payer's name or signature on a check

For a conviction for violating PC 476, the prosecution must prove each element of the crime in your offense, including:

  • You attempted to make any of the above fraudulent acts to make a payment for any goods or services
  • You were aware the document "check" was fraudulent or false
  • You had the criminal intent to defraud when you performed the above fraudulent acts

Since check fraud is a wobbler offense, you might be subject to misdemeanor or felony penalties if you are guilty of the offense. A check fraud conviction as a misdemeanor will attract a maximum of one (1) in the county jail and a fine not exceeding $1,000.

On the other hand, if you are guilty of violating PC 476 as a felony offense, you will face harsher penalties, including:

  • A fine not exceeding $10,000
  • A maximum of three years incarceration in the county jail

2. Credit Card Fraud

As the name sounds, credit card fraud occurs when you use or attempt to use a credit card or its information fraudulently with the intent of gaining undeserved benefits. According to section 484e-484i, the following prevalent acts can count as credit or debit card fraud:

  • Knowingly using an expired or revoked credit card to make any transaction
  • Knowingly buying and selling counterfeit debit or credit cards
  • Knowingly using another person's credit or debit card without his/her authorization or permission
  • Knowingly forging information linked to a debit or credit card
  • Knowingly using a stolen debit or credit card to purchase services or goods

Depending on various unique circumstances in the alleged credit card fraud case, the prosecutor will file this charge as a forgery, petty theft, or grand theft. That means you might be subject to misdemeanor or felony penalties, depending on the sophistication of your unique credit card fraud case.

3. Securities Fraud

Also known as investment or stock fraud, securities fraud occurs when you make false or untruthful statements about a particular company, causing other people to make false financial decisions, depending on your fraudulent information as true. First of all, it is worth noting that you cannot commit this offense if you aren't involved or associated with securities.

Typically, in the business context, securities is a business plan or arrangement that allows you to acquire the right to debt repayment or an ownership stake or right in a particular company or business entity. Securities fraud can involve any of the following types of fraudulent activities:

  • Knowingly misquoting a particular company or business entity stock value
  • Selling unqualified securities
  • Making false or fraudulent statements during a particular transaction
  • Presenting misleading or false information when buying or selling securities
  • Selling or marketing securities while knowing that they don't meet the required qualification terms
  • Insider trading

A conviction for violating security fraud statutes can attract felony or misdemeanor penalties depending on the circumstantial evidence surrounding your case. Generally, depending on the sophistication of the alleged case, a conviction for violating security fraud laws will attract the penalties listed below:

  • An incarceration term ranging from sixteen months to five years in the county jail
  • A maximum fine ranging from $1,000,000 t0 $10,000,000

Insurance Fraud

According to section 1871 of the Penal Code, you commit insurance fraud when you falsify information of an insurance policy with the intent of acquiring or obtaining undeserved benefits from an insurer. Here are various types or forms of insurance fraud that can make you subject to prosecution under the law:

i. Unemployment Insurance Fraud

Under the law, you might be able to keep your head above water if you lose a job due to circumstances you could not control by claiming unemployment insurance benefits to keep you going as long as you are actively looking for a new job.

As the name suggests, you commit unemployment insurance fraud when you provide falsified documents or untruthful information with the intent of obtaining unentitled unemployment insurance benefits. Here are common acts that can make you subject to unemployment insurance fraud under the law:

  • Receiving other forms of compensation without reporting
  • Falsifying your efforts to search for new employment
  • Providing false information as to why you are unemployed
  • Being employed and still receiving unemployment insurance benefits
  • Receiving another person's unemployment insurance benefits without permission or authorization to do so

According to Unemployment Insurance Code 2101, this offense is a wobbler, meaning you might be subject to misdemeanor or felony penalties following a conviction. A conviction for misdemeanor unemployment insurance fraud will attract the following possible penalties:

  • A maximum fine of up to $20,000
  • One year incarceration term in the county jail

On the other hand, a conviction for unemployment insurance fraud as a felony will make you face harsher penalties, including:

  • A fine amounting up to $20,000
  • Sixteen months(16), two (2) or three(3) years incarceration term in the state prison

Unemployment insurance fraud can also attract additional penalties under the general insurance fraud law under Penal Code 550 PC. The penalties you will face under PC 550 if you are guilty of unemployment insurance fraud depend on the amount involved in this fraud offense.

If the amount involved in the alleged unemployment insurance fraud is less than $950, your case will count as a misdemeanor offense. In this case, you should expect the following possible penalties if you are guilty of the offense:

  • A fine not exceeding $1,000
  • A county jail term of six months

If the amount involved in this offense exceeds $950, the prosecutor will file your fraud case as a wobbler offense. Below are the penalties you might be subject to for a misdemeanor conviction if your fraud case is a wobbler:

  • A fine amounting up to $10,000
  • A county jail term of one year

If your unemployment insurance fraud offense is a felony because the involved amount exceeds $950, you should expect the following potential penalties:

  • A fine amounting up to $50,000 or twice the amount of money involved in this fraud offense
  • A prison term of 2, 3, or 5 years

ii. Workers Compensation Fraud

The workers' compensation program allows employees to seek compensation for any loss or injury they suffer on the line of duty. Typically, you commit workers' compensation fraud when you make and submit false statements or information to benefit yourself from the workers' compensation program.

According to Insurance Code 1871.4, even an employer can be subject to a workers' compensation fraud charge when he/she helps an employee to obtain unentitled workers' compensation insurance benefits. Like most fraud offenses, workers' compensation fraud is also punishable as a wobbler offense under Insurance Code 1871.4.

A conviction for a misdemeanor workers compensation fraud under this insurance code will attract the penalties listed below:

  • A fine not exceeding $150,000 or twice the amount of money involved in this form of insurance fraud
  • A maximum of one-year incarceration term in the county jail

However, if the insurance fraud charge is a felony, you should expect the following potential penalties if the prosecutor wins this case against you:

  • 2, 3, or 5 years incarceration term in the county jail
  • Felony probation
  • A fine not exceeding $150,000 or twice the amount of money involved in this form of insurance fraud

Workers' compensation fraud can also attract penalties under PC 550 because it is unlawful to claim or receive undeserved health insurance benefits. If you are guilty of a misdemeanor workers' compensation fraud under this statute, you should expect the following penalties:

  • A fine amounting up to $10,000
  • A term in the county jail for a maximum of one year

A conviction for workers' compensation fraud as a felony under PC 550 will attract the following penalties:

  • An incarceration term ranging from two to five years in the county jail
  • A maximum fine of $50,000

iii. Healthcare Fraud

Also commonly known as medical fraud or health insurance fraud, healthcare fraud is another fraud crime that can put your freedom at stake. Some of the people involved in healthcare fraud include:

  • Doctors
  • Nurses
  • Medical equipment suppliers
  • Pharmacists
  • Hospital employees

Below are some of the acts or behavior that could attract healthcare fraud charges according to Penal Code 56O (a) PC:

  • Billing for a procedure or medical services that you didn't receive knowingly
  • Filing a duplicate compensation claim for a similar medical service knowingly or billing a medical insurer for a medical service or procedure you had received
  • Overbilling for medical services you had received knowingly
  • Preparing fraudulent documents to support a false health care compensation claim knowingly
  • Receiving kickbacks or bribes for prescribing particular drugs knowingly

A conviction for violating PC 560 will require the prosecution to prove beyond a reasonable doubt that you were aware the alleged acts or behavior were fraudulent, and you had the intent/motive to defraud.

If the money involved in this fraud case does not exceed $950, the prosecutor will submit your case a misdemeanor. A misdemeanor conviction for violating PC 950 may attract the penalties listed below:

  • A maximum of five years incarceration term in the county jail
  • A fine not exceeding $1,000

However, if the alleged amount of money involved is more than $950, the prosecutor will file your healthcare fraud charge as a wobbler. In this situation, you should expect misdemeanor or felony penalties depending on the sophistication of your fraud case and other surrounding circumstances.

If your healthcare fraud charge is a felony, a conviction can result in the following possible consequences:

  • An incarceration term for 2, 4, or 5 years
  • A fine not exceeding $50,000 or twice the amount of money involved, whichever is greater

If your criminal defense attorney raises mitigating arguments to counter these detrimental charges, the prosecutor might decide to file your case as a misdemeanor. When that happens, a conviction for violating PC 560 will result in less severe penalties mentioned above.

iv. Automobile Fraud

As the term sounds, automobile fraud happens when a person makes a false or fraudulent compensation claim to deceive or defraud his/her auto insurer. Listed below are some of the acts that can make you subject to automobile insurance fraud charges according to section 548-551 of the Penal Code:

  • Knowingly submitting two or multiple insurance claims for a similar type of loss with the criminal intent to deceive or defraud your auto insurer.
  • Abandoning, hiding, or damaging your car to obtain undeserved insurance payments or benefits from an auto insurer knowingly and intentionally
  • Causing a loss or damage to your car to obtain undeserved insurance payments from an auto insurer knowingly and intentionally
  • Preparing and submitting misleading oral statements or information to your auto insurer to receive undeserved proceeds or benefits
  • Filing a fraudulent compensation claim for a loss that you didn't experience with the intent to defraud your auto insurer

Automobile fraud is typically chargeable as a felony offense, carrying a prison term of not more than five years in the state prison. If the prosecutor lacks sufficient evidence to prove you guilty of automobile fraud, he/she may prosecute you for other related charges like arson or healthcare fraud.

For that reason, you should have an attorney to represent your interest and protect your legal rights during the nervous and confusing prosecution process for a pleasing outcome or verdict.

Identity Theft

According to section 530.5 of the Penal Code, it is illegal to forge another person's identifying documents or information fraudulently with the criminal intent of obtaining undeserved benefits, causing a loss to him/her. For the sake of this law, identifying information or documents could be any of the following:

  • Employer ID
  • Driver's license number
  • School ID
  • Addresses
  • Social security number
  • Names
  • Date of birth

Since this crime involves forging another person's documents to obtain undeserved benefits knowingly, you will not only violate identity theft laws but will also violate fraud and forgery laws. Generally, depending on your case's facts and circumstances, you might be subject to any of the following charges under these categories for using another person's identifying information fraudulently:

a. Internet Fraud

Also commonly known as cybercrime, internet fraud was not a crime several years ago, but it is now an offense that can make you subject to severe consequences under the law. Generally, internet fraud refers to any form of fraud that occurs on the internet, using a computer or phone, for example:

  • Making fraudulent purchases online.
  • Cyberstalking which is a separate crime under PC 646,9
  • Forwarding or creating computer viruses

b. False Impersonation

You commit false impersonation under PC 529 when you intentionally pose as another individual with the motive of obtaining undeserved benefits, causing him/her to incur a loss. Below are common acts that can make you subject to false impersonation charges under PC 529:

  • Using another person's name to collect welfare benefits fraudulently
  • Signing another person's check with the intent of cashing it as if you are the legit check owner

Generally, an identity theft charge may attract felony or misdemeanor penalties, depending on various unique factors surrounding your specific case. A conviction for violating identity theft laws may result in a prison term of 16 months or 2 to 3 years and a fine not exceeding $10,000.

Reliable Defense Tactics an Experienced Defense Attorney Will Use to Counter Fraud Charges Against You

Finding an experienced and skilled defense attorney is the key when you are under arrest for any fraud charge elaborated above for an exemplary legal defense that you deserve during this time of need. Listed below are common and applicable legal defenses your attorney may apply to counter this detrimental charge against you:

  • You had good faith belief the alleged fraudulent acts or activities were lawful.
  • You didn't have the criminal intent to defraud
  • Illegal search and seizure, meaning the prosecutor's evidence against you were due to police misconduct during the arrest.
  • The alleged victim of this offense didn't incur any loss
  • Insufficient evidence
  • Mistake of fact
  • Entrapment
  • Mistaken identity
  • False allegations

A defense attorney familiar with the court system and how judges treat these forms of fraud will know how to use the above defenses to create a viable argument to fight for an appealing or desirable result on your behalf.

Since a fraud offense qualifies as an offense of moral turpitude under the law, a conviction for violating any fraud law discussed above can attract negative immigration consequences if you are an alien or non-citizen. That means you could be subject to deportation and inadmissibility consequences.

Find a Credible Pasadena Criminal Defense Attorney Near Me

Dealing with law enforcement officers and Pasadena prosecutors without a legal representative in your corner is a risky move following an arrest for an alleged fraud offense or any other criminal offense. We invite you to call the Michele Ferroni Pasadena Criminal Attorney Law Firm at 626-628-0564 if you are in custody for any alleged fraud crime.

When it comes to fraud crimes, our experienced attorneys have what it takes to fight for your best interests during these difficult times to increase your chances of fighting this detrimental crime.