Under California law, fraud is defined as intentional deception committed to gain an unfair personal advantage or to cause harm or loss to another person.

The state has numerous laws criminalizing various forms of fraud. Typically regarded as a "white-collar crime," fraud is a non-violent offense rooted in deception.

However, many fraud crimes carry heavy fines and long prison terms if convicted. Some are always prosecuted as felonies, while others are "wobblers" that can be charged as misdemeanors or felonies.

Almost none are strictly misdemeanors. Furthermore, many fraud cases also qualify as federal crimes, and sometimes, you may face charges at both the state and federal levels.

In simple terms, criminal fraud occurs when you use deception or dishonesty to obtain an unfair benefit or to cause harm or loss to someone.

Unlawful Financial Motives

Usually, such acts are driven by financial motives or an effort to evade criminal liability. However, various fraudulent actions are prosecuted under different state laws, and some are motivated by other reasons. Many of these acts could also be classified as theft or federal crimes.

Furthermore, fraud offenses are often classified as crimes of moral turpitude, meaning that a conviction could lead to the deportation of undocumented illegal residents. 

For individuals with a professional license, a fraud conviction might result in suspension or revocation of their license.

Moreover, the government may have the legal authority to seize any money or property implicated in fraudulent conduct. Below is a brief overview of some of the most common fraud crimes in California.

Identity Theft Crimes

This category of fraud includes the misuse of someone else's identity or personal information and the forging of official documents to appear genuine for financial benefits. Typical examples include the following types of fraud:

• Check fraud, as defined under Penal Code 476 PC, involves using someone else's checks or bank account details to make unauthorized withdrawals, cash counterfeit checks, transfer funds without permission, and similar actions.
• Credit card fraud, as outlined in Penal Code 484e - 484j PC, includes actions like using another person's credit card without permission or creating and selling counterfeit credit cards.
• Fake ID under Penal Code 470b PC, making or using a fake driver's license or official ID card is illegal, regardless of whether it's used for financial gain.
• False impersonation, as defined under Penal Code 529 PC, involves using someone else's identity to gain an unfair advantage or cause harm, which is a criminal offense.

Insurance Fraud

Insurance fraud generally happens when someone tries to get insurance payments or benefits they aren't eligible for. Typical forms of insurance fraud include, but are not limited to, the following types:

• Automobile insurance fraud, as outlined in California Penal Code 548-551 PC, occurs when someone tries to obtain insurance benefits through dishonest or deceptive methods. Typical examples include intentionally damaging a vehicle to claim insurance, exaggerating the value of a claim, or deliberately staging or causing an accident to file a claim.
• Health insurance fraud involves individuals, healthcare professionals, pharmacists, and suppliers, impacting private insurers and government programs like MediCal/Medicaid. Examples include billing for unprovided services, 'upcoding', falsifying records, or understating income to qualify for benefits.
• Workers' compensation fraud, as defined in California Insurance Code 1871.4, involves employees injured on the job submitting false or exaggerated claims to obtain higher payments or benefits. Typical instances include falsifying claim details, claiming reimbursement for non-work-related treatments, or trying to secure disability benefits for injuries that did not occur.
• Unemployment and welfare fraud are defined under California Welfare and Institutions Code 10980. This type of fraud occurs when you attempt to claim eligibility for unemployment benefits or welfare benefits for which you're not eligible. 

Real Estate and Mortgage Fraud

California strictly penalizes anyone who intentionally deceives or provides false information in a real estate transaction. Common types of real estate and mortgage fraud include, but are not limited to, the following:

• Foreclosure fraud, as defined in Civil Code 2945.4, occurs when someone tries to exploit a homeowner facing foreclosure by promising assistance to prevent losing their home. Instead of helping, they aim to unlawfully gain title or profits from the sale.
• Fake documents, as defined under Penal Code 115 PC, involve knowingly using forged deeds, powers of attorney, mortgage documents, and other papers to transfer property titles or secure money fraudulently.
• Illegal property flipping occurs when someone artificially inflates a property's value through fraudulent appraisals and loan documents, even though buying, improving, and flipping property isn't inherently illegal.
• Straw buyer schemes involve an agent or broker persuading someone with good credit (the "straw") to secure a loan for another person with poor credit. The agent then absconds with the funds, leaving the straw buyer legally liable for the debt.

Other Forms of Fraud in California

Many other fraudulent activities are considered crimes in California but are not included in the categories mentioned above. These encompass, but are not limited to:

• Gaming fraud is outlined in Penal Code 332 PC. It involves using sleight-of-hand, trickery, "three-card monte," the pretense of fortune-telling, or other confidence schemes to lure individuals into bets they are certain to lose.
• Telemarketing fraud, as defined in Business and Professions Code 17511.9, involves using the telephone to promote fraudulent or deceptive business schemes or to defraud individuals of their money.
• Senior fraud involves schemes targeting individuals aged 65 and older, or other adults dependent due to physical or mental disabilities. This type of abuse is categorized as elder abuse under Penal Code 368 PC. Additionally, nursing home abuse carries additional penalties.

If you've been accused of fraud-related crimes, contact our California criminal defense lawyers to review your case details and legal options. You can reach us by phone or through the contact form. Cron, Israels & Stark is located in Los Angeles, California.