When people hear about theft, they often think of masked burglars sneaking into a home or a crook mugging someone in an alley at gunpoint. Although this kind of situation describes typical theft cases, most theft crimes happen in a non-violent and subtle way, especially fraud crimes.

In California, fraud crimes attract severe punishment that can lead to years of imprisonment and hefty fines. If you or your loved one has been accused of any fraud crime, you should seek help from an experienced fraud crimes attorney to reduce the possibility of hefty fines, imprisonment, or serving jail time. Please schedule an appointment with Bakersfield Criminal Attorney, and let's provide the support needed to minimize chances of conviction.

Insurance Fraud Crimes

In insurance fraud, individuals and insurance companies usually benefit from several types of insurance fraud. Common types of insurance fraud in California include healthcare insurance fraud, unemployment insurance fraud, welfare fraud, automobile insurance fraud, and worker's compensation fraud. Let's have a closer look at these types of insurance fraud.

Automobile Insurance Fraud

Everything to do with automobile insurance fraud in California is defined under Penal Code 548. Under this statute, automobile insurance fraud is a crime that involves purposefully defacing, concealing, damaging, scrapping, or abandoning an insured vehicle to collect compensation from the policy holder's insurance company.

Please note, the target insurance company doesn't necessarily have to incur any financial loss to be charged with this offense. As long as the prosecutor can prove your intention to collect money from the insurance company, you can be accused of automobile insurance fraud.

Under Automobile insurance fraud, there are several types of insurance frauds related to it. These automobile insurance fraud crimes are as follows:

  • Penal Code 550(a)(4): Fraudulent Claims: Under this statute, it's a crime to knowingly present fraudulent or false insurance claim after destructing, damaging, or converting a vehicle or its part.
  • Penal Code 550: Presenting Multiple Claims: Under this penal code, it's a crime to knowingly present two or more claims for the same loss to several of the same insurance companies.
  • Penal Code 550(a)(3): Causing an Accident: Under this statute, it's a crime to cause an accident, knowing that you will be presenting a false or fraudulent insurance claim. You will have committed this crime if the accident was direct and probable consequences of your actions, and it would not have happened if you did not continue with the action.
  • Penal Code 550 (b) (1-4): False Statements: You violate this statute by falsely presenting any oral or written statement as part of opposing an insurance claim payment, knowing that the information is falsely misleading. It also includes falsely preparing any written or oral statements to oppose an insurance claim payment or other benefits and presenting or preparing insurance claims while you reside outside California.
  • Penal Code 549: Soliciting or Referring Auto Insurance Fraud Business: Under this statute, it's a crime to refer someone to an auto repair shop to solicit a business from someone else.
  • Penal Code 551: Unlawful referral to an Auto Repair Shop: Under this statute, it's a crime to offer an insurance agent commission or an offer for referring an insured person to a vehicle repair dealership for repairs covered under the insurance policy. It also involves knowing offering potential customer discounts to offset the deductible supposed to be paid according to his insurance policy.

The penalties for automobile insurance fraud in California depend on the specific type of fraud you've committed. Some of these crimes carry a jail time for as low as one year, while others carry a jail time that lasts up to three years. The lowest fine is $950, while the highest can go up to $50,000.

Other penalties associated with automobile insurance fraud in California would be potential sentence enhancement of three years or more if you inflicted great bodily harm while causing an accident. You can also face misdemeanor or summary probation for misdemeanor penalties.

Health Care Insurance Fraud

Health care insurance fraud covers a broad spectrum of crimes. Most of these crimes target government-sponsored programs like Medi-Cal for Californians and nationwide programs like Medicare. Typical health care insurance fraud in California include the following:

  • Submitting claims for undelivered benefits
  • Submitting false or fraudulent claims
  • Making multiple claims
  • Submitting undercharges without overcharges
  • Writing or preparing a fraudulent claim document

Penalties for health care insurance fraud in California depend on the amount involved in the fraud. For claims worth less than $950, the sentence includes a maximum fine of $1,000 and a maximum jail time of six months. For claims worth more than $950, the potential penalty consists of a maximum of five years in county jail and fines of up to $50,000. People accused of healthcare fraud are also at risk of losing their professional licenses through revocation or suspension.

Unemployment Insurance Fraud

California Penal Code 2101 makes it a crime to commit unemployment insurance fraud illegally. This type of fraud usually occurs when perpetrators take advantage of unemployment insurance claims whereas they are employed.

The penalties for unemployment insurance fraud vary, depending on whether the offense was a misdemeanor or a felony or whether the prosecution charged it under Penal Code 2101 or 550. The maximum jail sentence is five years, while the maximum fine is $50,000.

Workers' Compensation Fraud

Workers' insurance fraud is addressed in several California laws, including Insurance Code 1871.4, Penal Code 550, and Penal Code 549. Generally, these laws define workers' insurance compensation fraud as fraudulently presenting statements to obtain or deny workers compensation benefits, discourage an injured worker from claiming his benefits, and participate in a worker's compensation fraud conspiracy.

They also define workers' compensation fraud as making a fraudulent claim to benefit from a used workers' compensation and accepting or referring a business to commit workers' comp fraud.

Most forms of workers' compensation fraud crimes are wobbler. Penalties include one year in county jail and a maximum of five years of imprisonment. Fines can go up to $150,000 or double the amount involved in the fraud, whichever is greater.

Welfare Fraud

A person commits welfare fraud if they benefit from a public assistance program designed to help the underemployed or unemployed. Welfare fraud involves several activities such as misstating information or failing to provide information to increase or retain undeserved welfare benefits. It also involves multiple applications to obtain various welfare benefits or using counterfeits to receive authorization to food stamps or the actual food stamps.

Penalties for welfare fraud vary according to the crime committed. You can end up serving a maximum of three years in county jail and a fine of $5,000. There are also additional sentences for welfare fraud, such as one year if the transferred benefit exceeds $50,000, two years for $150,000, three years for $1,000,000, and four years for $2,500,000.

Real Estate and Mortgage Fraud Crimes

Real estate and mortgage fraud occur when a person or business takes advantage of another in a real estate transaction. It can occur in several stages of a real estate transaction like an appraisal, closing, foreclosure, among other stages. The following are common types of real estate and mortgage fraud crimes:

Foreclosure Frauds

A foreclosure fraud occurs when professional helping homeowners foreclose does the following:

  • Changes the homeowner for service before providing it
  • Collects or charges an excessive fee for their services
  • Take an interest in a property before a foreclosure
  • Collects money from a third party for the services offered without telling the homeowner
  • Takes a power of attorney from a homeowner
  • Defraud the homeowner into signing an illegal contract

Based on the specifics of foreclosure fraud, there are several examples of fraud that you should know about. These examples include:

  • Title Transfer: Title transfer occurs when homeowners facing foreclosure consult an expert who persuades them to sign over the home title. While in this situation, the expert convinces the homeowners that they can remain in the home through rental and purchase it in the future. However, the expert eventually evicts the renter and acquires existing equity of the home.
  • Bait and Switch: The bait and switch type of foreclosure fraud occurs when a homeowner is unaware of a transfer of their home's title. In this situation, victims believe that they are signing documents that would help them secure a new loan, only to realize that they have transferred their property's title.
  • Phantom Help Scams: A phantom help scam occurs when a foreclosure assistant company promises homeowners that they would help them avoid foreclosure in exchange for an upfront fee but performs zero services. By the time the homeowner is aware of the scam, it would be too late to avoid foreclosure.
  • Straw Buyer Schemes: A straw buyer is a person who purchases a home on behalf of another. Straw buyers are used by buyers who cannot complete transactions due to reasons like bad credit. Straw buying can become illegal if the transaction aims to defraud someone else, and it's unlawful for the actual buyer to make a purchase.
  • Illegal Property Flipping: Illegal flipping occurs when the value of a piece of property is fraudulently appraised, and an unsuspecting buyer buys the property at an inflated price. It also occurs when a bank lends more money on a property than its actual value. Scenarios like buying a property, fixing it, and reselling it at a higher price are not illegal property flipping.
  • Predatory Lending: Predatory lending occurs when a mortgage broker creates a loan for a buyer and loads the loan with unnecessary fees that are not beneficial to the borrower

Prosecutors in California use four main statutes to charge people with real estate fraud. These penal codes include:

  • Penal Code 487: Grand Theft
  • Civil Code 2945.4 Foreclosure fraud
  • Civil Code 890: Rent Skimming
  • Penal Code 115: Filing forged documents

The penalties for foreclosure fraud depend on the statute used to prosecute you. The potential jail sentence can go up to three years, while fines can go up to $10,000.

Financial Fraud

Financial fraud represents several types of offenses where an individual deliberately and knowingly carries out a scheme to defraud another person or financial institution. Below are common types of financial fraud in California.

Bank Fraud

Bank fraud is a serious type of fraud crime with potentially life-altering consequences. Essentially, bank fraud uses fraudulent means to obtain assets, money, and other property owned or controlled by a bank or a financial institution. Individuals can commit bank fraud in several ways, including the following:

  • Mail Fraud: Mail fraud is the attempt to gain access to funds through fraudulent representation by mail.
  • Wire Fraud: Defrauding a bank or a financial institution through telephone, wire, or radio communication.
  • Making False Statement During a Loan Application: This involves misrepresentation to gain access to funds illegally.
  • Forging Checks: Using fake checks or using another person's check to gain funds from a finance institution illegally
  • Counterfeiting Bank Documents: This can include various items, all meant to access in some form into the bank finances.

In most cases, bank fraud is a federal crime, meaning that a successful conviction will lead to harsher penalties than prosecution at the state level. If convicted of bank fraud under federal laws, you might face fines of up to $1,000,000 and a prison sentence that last up to thirty years, depending on the details of your case.

Apart from these penalties, individuals convicted for bank fraud can face issues that can ruin their reputation and career. Criminal records can severely limit your life's essential aspects, including securing a bank loan, securing student loans, and employment opportunities.

Check Fraud

Everything to do with check fraud is defined under California Penal Code 476. Check fraud is part of the broader crimes referred to as crimes of forgery. Under this statute, check fraud is described as making, possessing, or passing on a false or altered check to be used to make payment. It also involves any attempt to do any of the activities mentioned above.

The most frequent form of check fraud in California is signing or endorsing a check with another person's name without his or her permission. Apart from this, check fraud can take other forms like:

  • Altering the routing number of a check
  • False fabrication of a check
  • Changing the dollar amount on a check

Check fraud is a wobbler offense. Minor penalties include one year in county jail and a maximum of three years. Individuals convicted of check fraud can also face a fine of up to $10,000. Other consequences for bank fraud include subjection to deportation, exclusion of admission into the United States, and denial of naturalization.

Credit Card Fraud

Several statutes make it a crime for a person to commit debit, credit, or access card fraud. This section makes it a crime to use a credit card to access money, goods, or services to which you are not legally entitled. These sections are as follows:

  • Penal Code 484e: Using Stolen Credit Cards: Under this statute, it's a crime for a person to sell or possess a credit card, its information, of another person without his or her consent.
  • Penal Code 484f: Forging Credit Card Information: Under this statute, it's a crime to alter an existing credit card or sign another person's name in a credit card transaction without his or her consent.
  • Penal Code 484g: Fraudulent Use of a Credit Card or Account: Under this statute, it's a crime to use a fake, stolen, or expired card to procure goods or cash without knowing that it's not valid.
  • Penal Code 484h: Credit Fraud by Retailers: under this statute, it's a crime for a retailer to knowingly accept payment through fake, revoked, or stolen credit card and present false transaction evidence to receive payment for goods.
  • Penal Code 484i: Counterfeiting Credit Cards: Under this statute, it's an offense to possess or manufacture counterfeit credit cards. It also makes it an offense to possess equipment used to traffic or make fake credit cards.
  • Penal Code 484j: Publishing Credit Card Information: Under this statute, it's a crime to knowingly give credit card information to defraud an individual or a business. Credit card information includes passwords, PINs, and other private information.

Penalties for credit card fraud depend on the specific type of fraud that you are convicted with. The maximum penalty includes a minimum jail sentence of six months and a maximum of three years. Individuals convicted of this offense can lead to negative immigration consequences like being deported or marked inadmissible into the United States.

Securities Fraud

Securities is a complex area of California criminal law that involves several activities. Individuals and companies cannot be part of securities fraud without being part of securities trading. The main ways that individuals and companies can face criminal liability for violation of California's securities laws are as follows:

  • Sale of Unqualified securities
  • Sale of securities exempted from qualification
  • Sale of securities that don't comply with qualification terms
  • Misleading behavior in the sale or purchase of securities
  • Use of false or misleading statement in the sale of securities
  • Insider trading

Securities fraud is a wobbler offense in California. Individuals convicted of a misdemeanor can face fines of up to $1,000,000 and a maximum of three years in county jail. Felony conviction attracts penalties of up to $10,000,000 and a maximum of five years in county jail.

You can also face federal charges if you violate California and federal securities laws. Federal penalties for securities fraud are harsher than those under California securities statutes. Individuals convicted under federal laws can end up with a maximum prison sentence of twenty years.

Identity Theft and Forgery

Identity theft and forgery involve several fraud crimes in California. The most common crimes under this category include:

Identity Theft

In California, everything to do with Identity theft is found under Penal Code 530.2. Under this statute, identity theft is defined as obtaining and using another person's information for unlawful and fraudulent purposes. You can commit identity theft by:

  • Obtaining and using another person's information without their consent.
  • Obtaining and using another person's information without their consent to commit fraud.
  • Selling, conveying or transferring another person's information without their consent to commit fraud.
  • Transferring, conveying, or selling another person's information without their consent, knowing that they will use the information to commit fraud.

"Another person's information" includes the person's birth date, name, address, Tax I.D, social security I.D, bank credit information, employee information, driver's license information, or passport information.

Identity theft in California is a wobbler. A misdemeanor conviction can lead to a maximum of one year in county jail and a maximum fine of $1,000. A felony conviction can lead to three years in prison and a maximum fine of $10,000.

Federal laws are harsher than penalties than state laws. Individuals convicted under federal laws face heavy fines and imprisonment in federal prison for a maximum of thirty years.

Forging, Possessing, or Counterfeiting a Fraudulent Public Seal

Under California Penal Code 472, it's illegal to forge, design, emblem, or counterfeit a public seal like the California state seal on a state identification card or driver's license.

Violation of California Penal Code 472 is a wobbler. A misdemeanor conviction can lead to one year in county jail and a maximum fine of $1,000. A felony conviction can lead to a maximum prison sentence of three years and fines of up to $10,000.

Elderly Fraud or Senior Fraud

Financial elder abuse or elder abuse is a form of embezzlement of money or other property from a person aged 65 or older. This type of fraud is punished under California Penal Code Section 368(d) and 368 (e). Examples of senior fraud include:

  • Failure to pay elder's bill that you're responsible for paying
  • Failing to purchase necessary items for elders that you're responsible for
  • Making unauthorized purchases or withdrawals using an elder's credit card or ATM
  • Making an unauthorized change to an elder's power of attorney or will

Senior abuse fraud is punished similarly to California theft offenses. This means that the penalty largely depends on the value of the money, services, or the stolen property. For properties or money worth $950 or less, you will face a misdemeanor conviction. For properties or money worth more than $950, the offense becomes a wobbler.

In a misdemeanor conviction, the penalties include a one-year county jail sentence and a maximum fine of $1,000. Felony conviction penalties include a maximum of four years in prison and a maximum fine of $10,000, and a strike record under the California Three Strikes Law.

Find a Fraud Crimes Attorney Near Me

Despite the existence of several fraud crimes, there are several legal defenses that your criminal defense attorney can present on your behalf. At Bakersfield Criminal Attorney, we offer quality legal services to all our clients facing any criminal fraud charges. For more information, contact us at 661-750-8230 and schedule an appointment.