Defending Against Financial Fraud in California

Dealing with financial fraud can be a frightening experience. In the event that you need evidence that a specific fee or transaction is fraudulent, having a police report or record that you recorded the fraud is also helpful. Financial fraud may be reported to the FTC, local law enforcement, or the FBI. You may also seek assistance from a Criminal Defense Lawyer. Consider one of our prescreened California Lawyers in your Cal Bar Attorney Search.

Find A Criminal Defense Attorney for Financial Fraud Cases in California

Any misleading or dishonest business activity that occurs during a financial transaction is referred to as financial fraud. Bank fraud, credit card fraud, and billing fraud are only a few examples of financial fraud. Individuals, businesses, organizations, and even states may be affected.

Check Fraud

Making, writing, or passing a false or fraudulent check is illegal in California under Penal Code 476 PC. Check fraud can be prosecuted as a misdemeanor or a felony, with a maximum penalty of three years in prison. A Criminal Law Attorney can help you with the specifics of these charges.

When is an individual guilty of check fraud?

The California law that makes check fraud a crime is Penal Code 476 PC. To prosecute anyone under this section of the code, a prosecutor must show the following:

• The defendant owned, made, passed, or used a fake, fraudulent, or altered check or bill for the payment of money or goods or attempted to transfer or use one.
• The defendant was aware that the document was forged or tampered with, and he pleaded guilty.
• The defendant planned to defraud when he committed his acts

If a defendant is accused of possessing a counterfeit check, the prosecutor must also show that:

• When the paper was in the defendant's possession
• They intended to pass the paper off as authentic.

A search that is "fictitious or fake" is one that is not genuine or legitimate. This form of search entails:

• a check is drawn on a bank that does not exist
• a check signed by someone who does not exist

The definition of the following terms is often questioned under this statute:

• Fraudulent purpose

• To be found guilty under this provision, a party must behave with the intent to defraud. Someone attempts to defraud if he or she intends to cheat or manipulate another individual.
• It should be noted that a conviction does not require that someone is defrauded or sustain a monetary loss as a result of the defendant's actions. The only thing that matters is the intention to defraud.

• Pass, use, or tamper with

• An individual who transfers, uses, or attempts to pass or use a document under this code section represents to another that the document is true or legitimate. The representation can take the form of words or actions, and it can be direct or indirect.
• An individual changes a document when he adds to it, deletes something from it or changes a section of it.

Is there any way to defend yourself against this charge?

Legal defense can be used and try to beat a check fraud claim. The following are three traditional defenses:

• there is no intention of defrauding
• permission to alter the contents of a search
• Defendant had no idea a check was bad.
• There is no intention of defrauding anybody.

Under this section of the code, an individual is only guilty if he acted with the intent to defraud. This means that proving that the accused lacked the necessary motive is a legal defense.

• Consent to alter the contents of a search

• Although it is illegal to modify a search under PC 476, the defendant is not guilty if he:

• With permission

• received permission from the person who is in charge of the check or bill
• As a result, consent is often a viable defense.

• There was no way of knowing whether a check was bad.

• Remember that a defendant can only be found guilty under this statute if he knew or should have known that a check was forged or changed. This means that if an accused does not have this experience, he is innocent. Perhaps he came into possession of a poor check by mistake.

Are there any implications for immigration?

If you are convicted of breaking this rule, you will face deportation.

According to US immigration law, some types of criminal convictions will result in:

• Deportation of a non-citizen
• a non-citizen who has been labeled "inadmissible."

At least one California court has ruled that committing a forgery crime is grounds for deportation. As a result, depending on the facts of a case, a check fraud conviction could result in negative immigration consequences.

Is it possible to get a check fraud conviction expunged?

• An individual convicted of this crime is eligible for expungement if he meets the following criteria:
• completes probation successfully
• completes a sentence in prison (whichever is relevant)

And if a party breaches a probation term, the conviction can always be expunged. This, though, will be a matter of the judge's discretion. An expungement, according to Penal Code 1203.4, relieves a person of nearly "all fines and disabilities" resulting from a conviction.

What effect does a conviction have on a person's right to bear arms?

A conviction under this law could jeopardize the convicted person's gun rights. Convicted felons are banned from obtaining or owning a firearm in California, according to state law.

That is to say:

• when a prosecutor tries to make this a criminal charge
• The accused has been found guilty of the same crime.
• The defendant's right to own and own a firearm may be revoked.

Is there a connection between the offenses?

Check fraud is divided into three categories. There are the following:

• PC 476a – writing poor checks

• The California law Penal Code 476a PC makes it illegal for anyone to:
• verification to be written or passed
• do so despite the fact that there are insufficient funds to support the check's payment
• PC 476a deals with checks and inadequate funds, while PC 476 deals with forging checks.

• PC 470 – Forgery

• The California law that makes forgery a felony is Penal Code 470 PC. An individual commits forgery when they do any of the following:
• someone else's name on a piece of paper
• fakes a seal or the handwriting of someone else
• any legal record is altered or falsified
• Fakes, changes, or presents a fake document relating to money, finances, or property as real.
• It's worth noting that if the accused altered or amended a check, forgery becomes a crucial part of the case.

• PC 487 – Grand Theft

• Grand theft is described by Penal Code 487 PC as:
• Taking someone else's land without their permission
• when the property is worth at least $950
• It's worth noting that check fraud can be used to commit grand theft.

Credit Card Fraud

Credit card, debit card, and/or access card fraud are all illegal under the Penal Code. Using a credit or access card to acquire money, products, or services to which an individual is not legally entitled is illegal under these parts.

1. The theft of credit cards is punishable under Penal Code 484e PC. It makes it illegal to sell or possess another person's credit card or credit card details without their permission.
2. Forging credit card details is punishable under Penal Code 484f PC. According to the law, it is illegal to change an existing credit card or sign another person's name in a credit card transaction without his permission.
3. The use of a credit card or an account fraudulently is punishable under Penal Code 484g PC. It states that a person who knows a card is stolen, fake, or expired cannot use it to obtain cash or products.

Credit card fraud by a merchant is covered by Penal Code 484h PC. It is illegal, according to the code section, for a retailer to:

• When they know a credit card is stolen, revoked, or fake, they accept payment with it.
• Presents false proof of a sale in order to collect payment for products that did not occur.

Counterfeiting credit cards is punishable under Penal Code 484i PC. It is illegal to produce or possess counterfeit credit cards, according to the law. It also states that a party cannot have the necessary equipment to manufacture or distribute counterfeit credit cards.

Publication of credit card details is punishable under Penal Code 484j PC. It makes it illegal to knowingly share credit card details with the intent to defraud another person or company. The following items are included in "credit card information":

1. PINs (Personal Identification Numbers)
2. passwords
3. some account information that is confidential

Is there any legal defense against credit card fraud?

In California, there are legitimate defenses against accusations of credit card fraud. The following are three traditional defenses:

• There is no motive to defraud.

• An individual may only be charged with credit card fraud if he acted with the intent to defraud. If a person attempts to cheat or manipulate another person, he is committing fraud. As a result, the accused's defense is to prove that he did not act with the required motive.

• There is no probable cause.

• The United States Constitution's Fourth Amendment protects citizens from unreasonable searches and seizures. Before detaining or arresting a criminal suspect, the police must have probable cause, according to the Constitution. If a person was stopped or arrested without probable cause for violating either of these rules, any information gathered as a result of the illegal stop/arrest may be removed from the case. This exclusion could result in the charges being dropped or reduced.

• Unauthorized search and capture

• We all have the right to be protected from arbitrary "searches and seizures" by law enforcement, according to the Fourth Amendment. Evidence obtained by police in an arbitrary or illegal search and seizure can be removed from a criminal case. Any charges in the case may be diminished or even dropped as a result of this.

What are the consequences?

• Grand theft is charged when PC 484e is violated, which is a wobbler. This ensures that the offense will be prosecuted as a misdemeanor or a felony. The maximum sentence is up to three years in county prison.
• Forgery is a wobbler crime, and a breach of PC 484f is charged as a forgery. A misdemeanor charge carries a maximum sentence of one year in county prison. A criminal conviction carries a maximum sentence of three years in county jail.
• A violation of PC 484g will result in either grand or petty theft charges. As previously stated, grand theft carries the most serious punishment of a criminal conviction and up to three years in prison. Petty theft is a misdemeanor offense. The offense carries a maximum sentence of one year in county prison.
• A violation of PC 484h will result in either grand or petty theft charges. The penalties are the same as those outlined in Penal Code 484g.
• The majority of PC 484i breaches are wobbler offenses. The most serious offense is a felony conviction, which carries a sentence of up to three years in county prison.
• A breach of PC 484j is a misdemeanor offense. The offense carries a maximum sentence of six months in the county jail.

Are there any implications for immigration?

A conviction for credit card fraud could jeopardize your immigration status. According to US immigration law, some types of criminal convictions will result in:

• Deportation of a non-citizen
• a non-citizen who has been labeled "inadmissible."

Aggravated felonies are included in the category of "deportable" or "inadmissible" offenses.

Remember that fraud can be prosecuted as a crime based on the particular facts of the case. If this occurs and a conviction is obtained, the conviction will have negative immigration consequences.

Is it possible to get a conviction expunged?

An individual convicted of this crime is eligible for expungement if he meets the following criteria:

• completes probation successfully
• completes a sentence in prison (whichever is relevant)

And if a party breaches a probation term, the conviction can always be expunged. This, however, is a matter of the judge's discretion. An expungement, according to Penal Code 1203.4, relieves a person of nearly "all fines and disabilities" resulting from a conviction.

What impact does a conviction have on a person's gun rights?

The accused party's gun rights can be harmed as a result of the conviction. Convicted felons are banned from obtaining or owning a firearm in California, according to state law.

Remember that a breach of one of these laws will result in a criminal charge depending on the facts of the case. A defendant's gun rights will be taken away if anything happens and he or she is convicted.

Are There Related Offenses?

Credit card fraud is divided into three categories. There are the following:

• PC 530.5 – Theft of Identity

• Identity theft is a felony in California, according to Penal Code 530.5 PC. This crime is committed when a person obtains another person's personal identifying information with the intent of using it in an illegal or fraudulent manner.

• PC 459 – Burglary

• Burglary is a felony in California, according to Penal Code 459 PC. A burglary is described as when someone enters a residential or commercial building or room with the intent to commit a crime or steal something.

• PC 502: Unauthorized network access

• Unauthorized access to a computer is a criminal offense under Penal Code 502 PC. When an individual accesses a device, computer data, or a computer network without authorization, he violates this rule (and usually with an unlawful purpose).

Securities Fraud

Financial instruments such as stocks, commodities, and currencies are controlled by both the state and federal governments. Regulatory bodies such as the Securities and Exchange Commission (SEC), the Franchise Tax Board (IRS), the Attorney General's Office, and other law enforcement agencies investigate suspected fraud extensively. It's not always easy to draw the line between criminal conduct and to become a competitive business player. Your Criminal Law Attorney can explain how you can go about it.

As a consequence, accusations of insider trading and other types of securities fraud are often the result of a miscommunication. A Criminal Law Attorney who has extensive experience defending insider trading lawsuits, financial reporting breaches, accounting fraud, money laundering, and health-care fraud, as well as advising businesses about how to comply with current insider trading laws, rules, and department expectations can help you.

What are securities, exactly?

Under California rule, you can't commit securities fraud unless you're dealing in securities in the first place. Worse, the California Supreme Court has ruled that the concept of defense must be determined on a case-by-case basis. As a result, there is no simple formula for determining if anything is a defense under California law.

Nonetheless, a Criminal Law Attorney will have a general understanding of what protection is. Protection, in general, is a business agreement in which someone receives a share of a company's ownership and/or a right to repayment of a debt. The following are examples of securities:

• A corporation's stock
• A note indicating that a corporation owes the individual who holds the note money.
• A certificate indicating the holder's participation in a profit-sharing agreement.
• A stake in a limited-liability corporation (sometimes)
• The participation of a limited partner in a limited partnership.

The history of securities fraud legislation

Securities fraud isn't like stealing or murder in that it isn't something that has always been illegal. Instead, states (including California) and the federal government have agreed to make such practices illegal in order to protect investors over the last century.

Securities fraud laws first emerged in the United States in the decades leading up to the 1929 Great Depression. Individuals began to invest in company stock or speculative business arrangements during this time period. Any of these arrangements were shams who failed to deliver anything to their backers.

These laws were enacted to prevent investors from being duped by people selling shares in gold mines that didn't exist or businesses they never wanted to start. The Securities Act of 1933 and the Securities Exchange Act of 1934, both passed by the United States Congress, became the first federal securities legislation. The Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is two more recent federal securities laws that you may have read about in the news.

California's current securities fraud legislation is largely based on the California Corporate Securities Law of 1968. Securities fraud is referred to as a "white-collar crime."

What conduct will result in securities fraud being prosecuted as a crime?

Securities fraud is a complex field of criminal law in California. In this section, we'll go through the most common forms that an individual or corporation can face criminal charges for breaking California's securities laws. Your Criminal Law Attorney can further explain the following examples:

• Unqualified securities are being sold.

• If you choose to sell or offer securities for sale in California, you will be required to "qualify" the securities with the California Department of Corporations. The securities must be eligible, which entails a lot of paperwork and reports about the entity issuing the securities.
• Surprisingly, simply failing to complete this paperwork can lead to substantial criminal charges, including prison time.

• Securities that are not subject to qualification

• Fortunately, in California, the qualification provision does not extend to all securities transactions. Certain sales and selling deals are excluded from qualification and do not require qualification.
• When individuals or small companies are accused of securities fraud for selling or offering unqualified securities, one type of exempt sale often comes up. This is an exception for a sale to a limited number of individuals, each of whom has a prior relationship with the seller or is a sophisticated investor.
• Basically, if any of the following are correct, you will escape criminal penalties for selling unqualified securities:
• You sold or offered securities to a maximum of thirty-five (35) individuals (a husband and wife together count as one person)
• Every individual who purchased the security did so on their own behalf (that is, not planning to re-sell or distribute it to someone else)
• You did not place any advertisements in connection with the security's sale or bid.
• Everyone who purchased or was given the security had either a prior personal or business relationship with you OR had substantial business or financial experience and could be considered capable of safeguarding their own interests.

• Having a good faith belief that such securities are excluded

• What happens if you truly assume you are not required to qualify a securities offering with the Department of Corporations but later discover that you were required to do so? Only if you "willfully" sell securities without meeting the qualification condition is it a felony. As a result, you are not criminally responsible if you assumed in good conscience that you were not breaking the law.

• Selling securities that do not meet qualification requirements.

• Another thing to remember about the certification requirement: selling or offering securities for sale in a way that violates the details you included in the qualification paperwork is a securities fraud crime in California.

• When it comes to the buying or selling of shares, deception is common.

• Let's pretend you don't own or run a business and aren't in a position to sell shares to anyone. That isn't to say you aren't subject to California securities fraud rules. If you just hold or trade shares, there are many ways to break those rules.

Certain practices intended to offer a false or misleading impression about the demand for a particular security are prohibited under the California Corporations Code. Essentially, you are not permitted to purposefully trade any protection in such a way that the market is manipulated for it.

Such instances are as follows:

• Trading security in a way that does not result in a real change in ownership in order to create a false or misleading impression.

• Entering a sell or buy order when you know someone else would enter an offsetting order of the same size to create a false or misleading impression.36This usually occurs because heavy selling of a business that is listed on a stock exchange will result in an increase in its price.

• In the selling of shares, false or misleading claims are made.

• It's illegal to intentionally lie to anyone in order to persuade them to buy or sell shares, as you would suspect. This is a common form of criminal deception. In order to convince others to enter into a securities transaction with you, you can break this law by directly misrepresenting the truth.

• Insider trading

• One of the most well-known forms of stock fraud is insider trading. It's illegal to buy or sell a company's shares based on insider knowledge (information that isn't open to the general public and that you know only because of your unique connection with the company).

• Securities fraud penalties

• Securities fraud is a "wobbler," meaning it can be charged as a misdemeanor or a felony, depending on the circumstances. If you break California's securities fraud rules, you could face hefty fines and even jail time.

• Securities fraud rules in the United States

• Securities fraud is a national issue, not just in California. It's still against the law on a state level. You may face criminal charges if you are charged with California securities fraud. The Securities and Exchange Commission investigates most federal securities fraud cases first (also known as the SEC). If criminal charges are filed, the federal Department of Justice may become involved.
• Securities fraud penalties in the United States are much harsher than those in California. Willful violations of federal securities fraud laws can result in a sentence of up to twenty years in federal prison. Since securities fraud charges can be filed in both California and federal court, it's a smart idea to hire a top-notch California Criminal Defense Lawyer who can also represent you in federal court.

• Civil lawsuits have been filed in California for stock fraud.

• In addition to criminal charges, if you are convicted of stock fraud, you will have to defend a civil case filed by individuals who say they were injured as a result of your actions. If the case is successful, you will be forced to pay damages to the individuals involved, which could easily outweigh any criminal penalties you may face for the same action.

Identity Theft and Forgery

The California law that describes identity fraud is Penal Code 530.5 PC. Taking someone's personal identifying information and using it in an unlawful or fraudulent manner is prohibited under this provision. Identity fraud is a wobbler, which means it can be prosecuted as a misdemeanor or a felony.

Information that can be used to classify an individual involves items like:

• surnames
• telephone numbers and e-mails
• number of accounts
• Numbers on driver's licenses and details from passports

What is the legal definition of criminal identity theft in California?

In four cases, Penal Code 530.5 PC makes identity fraud a felony. There are some of them:

• obtaining another person's personal identifying details with intent to use it for any illegal reason without that person's consent
• obtaining another person's personal identification details without their permission in order to commit fraud
• selling, transmitting or providing another person's personal identifying details without their permission in order to commit fraud
• Selling, transferring or supplying another person's personal identifying details with the knowledge that the information will be used to commit fraud is illegal.

• Personal identifying information

• Personal identifying information contains, for the purposes of this act, information such as:

• the name, date of birth, address, and phone number of a person
• ID for taxes in addition to social security numbers
• driver's license numbers and passport information with the Department of Motor Vehicles
• ID from school and a photocopy of the employee's ID an amount
• name of mother's mother's mother's mother's mother's mother.'
• data about your bank account and/or credit card numbers
• Birth and death certificates provide a wealth of material.
• Obtaining something for a bad reason

According to PC 530.5, an individual cannot:

• obtaining someone's confidential identification details on purpose
• for nefarious purposes
• When someone does something willingly or on purpose, he is said to be acting willfully.
• Obtaining or attempting to procure the following items is considered an unlawful purpose.
• honorable mention
• high quality
• products and services
• land for sale
• data on medicine

To be found guilty under 530.5 PC, a district attorney may not have to show that a defendant acted with the intent to defraud. Your Criminal Law Attorney can handle the creative side of creating your defense.

Fraudulent activity

The word "fraud" is used to describe a deliberate act that is intended to:

• obtain an illegitimate or unfair advantage
• trigger another person to lose something

It's worth noting that none of the following are needed to prove anyone guilty under this statute:

• Is there someone who has been defrauded?
• anyone who has actually endured a setback

Is there any legal rebuttal to 530.5 PC?

Legal defense can help a defendant beat an identity theft charge. The following are three traditional defenses:

• No illegal purpose

• Remember that under PC 530.5, a person is only guilty if he obtains personal information for an illegal reason. This means that an accused will use this as a shield by demonstrating that he was not trying to violate the law. For example, he might have used specific details to compile a report.

• There is no willful act.

• Also, keep in mind that a person only commits a crime if he takes personal information with the intent to sell it. As a result, claiming that such information was not taken on purpose is a defense. For example, it's possible that the defendant obtained someone else's information by mistake.

• There is no intention of defrauding anybody.

• To prove guilt, a prosecutor will have to demonstrate that an accused acted with the intent to defraud, depending on the facts of the case. This means that a defendant may claim that he did not act with the required intent as a defense.

The laws in California prohibit forging, counterfeiting, or keeping a forged public seal.

The laws in California forbid forging, counterfeiting, or keeping a forged public seal. It's worth noting that this crime isn't restricted to California seals. Engaging in either of the above activities with respect to any public seal, whether it is the seal of a state, government entity, or company, will result in a conviction for this offense. If you break this law by falsifying an official seal on a document that gives you someone else's identity, you're also breaking California's identity theft law.

California's legislation against the falsification or counterfeiting of a driver's license or identification card

You would also be guilty of identity fraud if you broke California's laws against forging or counterfeiting a driver's license or ID card and gave yourself a new name. It is not, however, sufficient to commit identity fraud in order to break this rule.

The only requirement for this California fraud offense is that you change a government-issued driver's license or identification card. Again, any government would suffice; this law does not apply only to California-issued cards or the creation of a fake one. Possessing a fraudulent or counterfeit driver's license or identification card is also a violation of California's fraud laws.

The False Personation Act

When you impersonate another person in order to gain favor for yourself or to hurt the other person, you are breaking California's false personation rule. This is a direct breach of California's anti-identity theft legislation.

Typical examples include:

• Signing a check in someone else's name and attempting to cash it as that person is also a breach of California's check fraud rule.
• Obtaining welfare benefits in someone else's name again, a breach of California's welfare rules.

This form of crime is mostly committed over the Internet.

Here are a few examples:

1. making an online payment using someone else's credit card
2. hacking into someone else's social networking profile or posing as someone in an anonymous "chatroom."

Both of these cases are examples of Internet fraud in California.

Internet fraud

Any fraudulent behavior that takes place on a device, such as in a chat room, e-mail, or online store, is prohibited under California's Internet fraud laws.

• Making bogus transactions on the internet
• making or transmitting a computer virus
• infringing on California's anti-stalking legislation
• are all cases of Internet fraud in California

Find A Financial Fraud Lawyer in California

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