Fraud Crimes

The Los Angeles Law Enforcement Department takes fraud crimes very seriously. A conviction of fraud crimes can result in lengthy imprisonment sentences and hefty penalties. You may also face other adverse consequences, such as losing your professional license and your right to own, possess, or buy a gun. Non-citizens may get deported or become marked as inadmissible.

You need to build a robust defense strategy to avoid these adverse consequences. We at Leah Legal: Los Angeles Criminal Lawyer can help you build one.

This article will list and explain some of the most common fraud crimes in Los Angeles. If, after reading this article, you will still have more questions about these fraud crimes, we invite you to contact us at Leah Legal: Los Angeles Criminal Lawyer for a free consultation.

Insurance Fraud Criminal Offenses

Insurance fraud is trying to obtain benefits and payments under an insurance policy to which you are not entitled. Here are the most common examples of criminal offenses involving insurance fraud in Los Angeles:

• Automobile insurance fraud.
• Healthcare insurance fraud.
• Medi-Cal insurance fraud.
• Unemployment insurance fraud.
• Workers’ compensation insurance fraud.

Below, we discuss each of these criminal offenses briefly:

Automobile Insurance Fraud

You will be charged with automobile insurance fraud if you knowingly make a false auto insurance claim or deceive an insurance company into granting you benefits to your motor cover policy to which you are not entitled. According to the California Penal Code, you will be charged with automobile insurance fraud if you do any of the following:

• Abandon, hide, or damage your vehicle on purpose, with the intention to make a false auto insurance claim for compensation.
• Knowingly submit a false auto insurance claim while lying that your vehicle is damaged, stolen, or destroyed.
• To defraud, you knowingly submit two or more motor insurance claims for the same loss.
• Willingly participate in or cause an accident to collect motor insurance proceeds fraudulently.
• Knowingly present misleading or false information while instituting a claim for compensation with an insurance company.
• Lie that you are a California resident while applying for auto insurance.

Additionally, you will be charged with auto insurance fraud if, as an employee or business owner, you accept, solicit, or refer any business transactions from anyone whom you know intends to participate in auto insurance fraud. Also, you can be charged with auto insurance fraud if you own or are employed in a vehicle repair shop with a profit-sharing arrangement with adjusters or insurance agents to receive business from policyholders.

In most cases, auto insurance fraud is charged as a felony. However, certain types of auto insurance fraud, such as making false statements and those involving business owners and employees, are categorized as wobblers. This means the California Department of Prosecution can charge them as either felonies or misdemeanors.

A conviction for felony automobile insurance fraud can result in a state prison sentence of between 16 months to five years. Or, you may be ordered to pay a fine of up to $50,000 or up to twice the amount of money you gained from the fraud.

As a misdemeanor, automobile insurance fraud is punishable by a county jail term of up to one year. Or, the judge may order you to pay a fine of up to $1,000.

Healthcare Insurance Fraud

Healthcare insurance fraud occurs when medical staff, physicians, or patients submit or make other people submit fraudulent or false claims to an insurance company or a governmental agency. This insurance company can be a private medical insurance company. Here, the governmental agency is a government healthcare insurance program, such as Medicaid or Medicare.

Some people may refer to healthcare insurance fraud as:

• Medicare fraud.
• Billing fraud.
• HMO fraud.
• Health insurance fraud.

You can be charged with healthcare insurance fraud if:

• You charge for medical services you did not provide.
• You receive ‘kickbacks’ for certain prescriptions.
• You engage in prescription fraud or doctor shopping by receiving multiple prescription medications for the same illness.
• You double-bill or over-bill for medical services rendered.

In most cases, healthcare insurance fraud is a wobbler. The prosecutor can charge it as either a felony or a misdemeanor. Typically, this decision depends on the amount of money involved in the fraud.

Upon conviction, the judge may order you to pay a hefty fine. Or, you may receive an imprisonment term of five to ten years.

Medi-Cal Insurance Fraud

Medi-Cal Insurance Fraud is a type of fraud connected with the Medi-Cal program in California. Medi-Cal is a state program in California whose primary aim is to provide low-cost or free health insurance coverage to adults and children with limited assets and income.

As an individual, you can be charged with Medi-Cal Insurance Fraud if:

• You receive Medi-Cal benefits for which you are not eligible based on your false statements while applying for the program.
• You knowingly make a fraudulent or false claim to get Medi-Cal benefits.
• You knowingly submit a claim to get a Medi-Cal benefit which you do not need.

As a healthcare provider, you can be charged with Medi-Cal Insurance Fraud if:

• You present any fraudulent or false claim to the program to defraud.
• You knowingly submit false information to obtain more compensation than what your patient is entitled.
• You knowingly submit false information so that your facility can receive authorization to treat Medi-Cal patients.
• You solicit, receive, offer, or give any bribes or kickbacks to get services referrals covered by Medi-Cal.

In most cases, Medi-Cal Insurance fraud is a wobbler. A felony conviction can result in a state prison sentence of 16 months to five years. Or, you may be ordered to pay a fine of up to $50,000 or up to double or triple the amount of money defrauded.

As a misdemeanor, Medi-Cal insurance fraud carries a potential jail sentence of up to one year. Or, the judge may order you to pay a fine of up to $1,000.

Unemployment Insurance Fraud

You will be charged with unemployment insurance fraud if you supply incomplete or false information to obtain unemployment benefits to which you are not legally entitled. As an employer, you can be charged with unemployment insurance fraud if you supply false information to prevent your former or current employees from receiving unemployment benefits to which they are legally entitled.

You can be charged with unemployment insurance fraud if:

• You are employed but still, collect unemployment benefits without reporting the fact that you are employed to the government.
• You receive unemployment benefits but still collect other types of compensation, such as workers’ compensation or pension.
• You use a false social security number, employment information, or name to defraud so that you can receive unemployment benefits.
• You live in California and try to obtain unemployment benefits in another state.
• You create a fictitious employer profile and list yourself as eligible to receive unemployment benefits.
• You give misleading or false information to be considered eligible to receive unemployment benefits.

As an employer, you can be charged with unemployment insurance fraud if:

• You provide false information as to the employee’s wages or why he or she was terminated to avoid contributing to the unemployment insurance program.

You withhold deductions from employees and fail to contribute to the unemployment insurance program

Unemployment insurance fraud is a wobbler. As a felony, it can attract a state prison sentence of 16 months, two or three years, or a fine of up to $20,000. As a misdemeanor, it can attract a state prison sentence of up to six months or a fine of up to $1,000.

Workers’ Compensation Insurance Fraud

You will face criminal charges for workers’ compensation insurance fraud if you provide misleading or false information to get workers’ compensation benefits to which you are not legally entitled. The workers’ compensation benefits scheme is an insurance scheme that provides medical care and lost income payments to individuals who sustain injuries at the workplace.

You can be charged with workers’ compensation insurance fraud if:

• You knowingly make a fraudulent or false statement to obtain workers’ compensation benefits.
• You knowingly make a fraudulent or false statement to discourage someone else from claiming workers’ compensation benefits.
• You knowingly make a fraudulent or false statement so that someone else can be denied workers’ compensation benefits.
• You prepare or submit multiple claims to receive workers’ compensation benefits for the same injury.
• You solicit, refer, or accept any business from someone else, knowing that he or she intends to commit workers’ compensation fraud.

Workers’ compensation insurance fraud is a wobbler. In most cases, the potential felony prison sentence is two, three, or five years. Or, the judge may order you to pay a fine of up to $150,000 or double or triple the amount of fraud.

If charged as a misdemeanor, workers’ compensation insurance fraud carries a potential jail sentence of up to one year. Or, the judge may order you to pay a fine of up to $1,000.

Elder Fraud Criminal Offenses

In California, criminal offenses involving elder fraud include the following:

• Senior fraud.
• Nursing home fraud.

Below, we discuss each of these criminal offenses briefly:

Senior Fraud

You will be charged with senior fraud if you defraud a person aged 65 years or older with his or her money or property. You can be charged with senior fraud if:

• You fail to pay an elder’s bills that you are responsible for paying.
• You fail to purchase necessary items for the elder that you are responsible for buying, such as clothing, food, or medications.
• You make unauthorized purchases or withdrawals using a credit card or ATM of an elder.
• You make unauthorized changes to the power of attorney or will of an elder.

Senior fraud is punishable in the same manner as theft. This means that the punishment you will receive will depend on the amount of money or value of the item defrauded.

If the amount of money or value of the item defrauded is below $950, you will be charged with senior fraud as a misdemeanor. The penalty for misdemeanor senior fraud is a county jail sentence of up to one year or a fine of up to $1,000.

On the other hand, you will be charged with felony senior fraud if the amount of money or value of the item defrauded is above $950. The penalty for felony senior fraud is a state prison sentence of two, three, or four years or a fine of up to $10,000.

Nursing Home Fraud

You will be charged with nursing home fraud if you financially abuse an elder at a nursing home. For instance, you can be charged with nursing home fraud if:

• You are an employee of a nursing home, and you convince an elderly resident to sign over his or her property to you.
• You overbill for care.
• You forge an elder’s name on a check.

Like senior fraud, the penalty for nursing home fraud varies depending on the amount of money defrauded. You will be charged with misdemeanor nursing home fraud if the amount of money defrauded is below $950. Upon conviction, you will receive a county jail sentence of up to one year or be ordered to pay a fine of up to $1,000.

You will be charged with felony nursing home fraud if the amount of money defrauded is over $950. Upon conviction, you will receive a state prison sentence of two, three, or four years or be ordered to pay a fine of up to $10,000.

Identity Theft and Forgery

In California, forging any document is unlawful. In most cases, forging involves identity theft, which is also unlawful. Below, we list California criminal offenses involving identity theft and forgery:

• Forging, counterfeiting, or possessing a fraudulent public seal.
• Counterfeiting or forging an ID card or driver’s license.
• False personation.
• Internet fraud.

Here is a brief discussion of each of these criminal offenses:

Forging, Counterfeiting, or Possessing a Fraudulent Public Seal

California Penal Code 472 makes it criminal to forge, counterfeit, or possess a fraudulent public seal. You can be charged with this criminal offense if:

• You forge a California state seal on an identification card or driver’s license.
• You forge a public seal to make a fake credit card.
• You counterfeit a corporate seal on a business card.

This offense is a wobbler. As a misdemeanor, it attracts a county jail term of up to one year. As a felony, it carries a state prison sentence of up to three years.

Counterfeiting or Forging an ID Card or Driver’s License

Counterfeiting or forging an ID card or driver’s license is criminal. Possessing a fake or counterfeit ID card or driver’s license is also a criminal offense.

Violation of these criminal offenses can result in misdemeanor or felony charges. A misdemeanor conviction can result in a county jail sentence of up to one year, while a felony conviction can result in a state prison sentence of up to three years.

False Personation

According to California Penal Code 529, it is unlawful to use someone else’s identity or name to gain certain benefits or cause harm to that person. False personation is also referred to as false impersonation.

This criminal offense is a wobbler. A misdemeanor conviction is punishable by a county jail sentence of up to one year. On the other hand, a felony conviction is punishable by a jail sentence of up to three years.

Internet Fraud

Internet fraud is also referred to as cybercrime. In California, it is investigated and prosecuted by the eCrime Unit, a department within the Attorney General’s Office.

The term internet fraud refers to any form of fraud involving computers or the internet. They are prosecuted both under California State Law and federal law. The most common examples of internet fraud include:

• Fraudulent schemes carried out using the internet or through email.
• Phishing, that is, using the internet or email to get sensitive information such as credit card information and social security numbers.
• Accessing computer data or computer without permission.

A conviction of internet fraud under federal law can result in a federal prison sentence of up to 20 years. On the other hand, a conviction of internet fraud under California State Law can result in a state prison sentence of up to three years.

Financial Fraud

In California, the most common criminal offenses involving financial fraud include the following:

• Check fraud.
• Credit card fraud.
• Securities fraud.

Here is a brief explanation of each of these criminal offenses:

Check Fraud

Penal Code 476 is California’s primary law on check fraud. This law states that publishing, making, uttering, or passing a fraudulent or fake check to get something valuable is unlawful.

Check fraud is a wobbler. As a misdemeanor, it attracts a county jail term of up to one year upon conviction. The penalty for felony check fraud is a county jail sentence of up to three years.

Credit Card Fraud

You commit credit card fraud if you use an access or credit card to get services, goods, or money to which you are not legally entitled. For instance, you can be charged with credit card fraud if:

• You use a credit or debit card of another person without his or her consent.
• You use a credit card with the knowledge that it is connected to an account with no funds in it.
• You use a stolen debit card to purchase goods.

Credit card fraud is a wobbler. As a misdemeanor, it attracts a county jail sentence of up to one year. The penalty for felony credit card fraud is a county jail term of up to three years.

Securities Fraud

Securities fraud is also referred to as investment fraud or stock fraud. You commit securities fraud if you do any fraudulent act to encourage stock investors to decide to either buy or sell their securities.

Securities fraud can include altering the financial statements of a company, misstating the value of a company, or stealing from an investor. In most cases, individuals charged with securities fraud include traders, promoters, and accountants.

You can be charged with securities fraud both under California State Law and federal law. The penalties for securities fraud may include fines of up to $10,000,000 or imprisonment terms of up to 20 years.

Mortgage and Real Estate Fraud

The most common criminal offenses in California involving mortgage and real estate fraud include the following:

• Foreclosure fraud.
• Forging deeds.
• Predatory lending.
• Illegal property flipping.
• Rent skimming.
• Straw buyer schemes.
• Phantom help schemes.

You commit foreclosure fraud if you engage in any fraudulent activity relating to any home in the foreclosure process. Often, foreclosure fraud happens when an individual misrepresents that he or she can stop or postpone foreclosure.

California criminal laws prohibit the forgery of deeds. It is unlawful to file, record, or register a forged deed.

As a lender, engaging in predatory lending is unlawful. Predatory lending is taking part in any credit transaction that gives an undue advantage to the creditor.

Although property flipping is lawful, some practices of property flipping are illegal. For instance, it is unlawful to create false appraisals or loan documents so that you can ask for a much higher price than what the property is worth.

You commit rent skimming if you lease out a property you do not own or use rental proceeds obtained during the first year for your own personal expenses without paying your mortgage. Although rent skimming can only subject you to civil penalties, such as a fine, you can be charged with it as a criminal offense if you participate in rent skimming five or more houses within two years.

A straw buyer scheme is a type of fraud where a person purchases real estate on behalf of someone else who cannot legally make the purchase themselves. This is typically done to hide the true identity of the actual buyer, who may have fraudulent intent.

A phantom help scheme is a type of fraud where a person poses as a financial advisor or investment professional and promises to help people get out of debt or invest their money for a high return. However, the scheme is actually a way to steal money from unsuspecting victims.

Find a Los Angeles Criminal Defense Attorney Near Me

Contact us at Leah Legal: Los Angeles Criminal Lawyer if you or your loved one is charged with a fraud crime. We can help you build a robust defense strategy.

Call us today at 424-600-7164 for a free consultation. We are here to help you.