California Penal Code § 155 PC: Fraudulent Conveyance by a Judgment Debtor

Under California Penal Code § 155 PC, it is a criminal offense for a judgment debtor—or a defendant facing a pending lawsuit—to intentionally hide, transfer, sell, or dispose of personal property to prevent a creditor or plaintiff from collecting a court judgment.

This statute enforces the integrity of civil judgments by imposing severe criminal penalties on individuals who illegally shield their assets.

What Is the Legal Definition of Penal Code § 155 PC?

California Penal Code § 155 PC defines the offense of fraudulent conveyance by a judgment debtor or defendant facing an active legal claim:

"Every person against whom an action is pending, or against whom a judgment has been rendered for the recovery of any personal property, or upon any debt or demand, and who fraudulently conceals, sells, or disposes of such property, with intent to hinder, delay, or defraud the person bringing such action or recovering such judgment, or with such intent removes any such property out of the county in which the property is situated, is punishable by imprisonment in a county jail not exceeding one year, or by a fine not exceeding one thousand dollars ($1,000), or by both..."

What Are the Key Statutory Definitions Under PC 155?

Understanding the precise statutory language helps clarify how prosecutors evaluate potential criminal violations:

Judgment Debtor: An individual or entity against whom a legal judgment for money or personal property has been rendered by a court, or who has a civil lawsuit currently pending against them.
Fraudulent Conveyance: The act of selling, transferring, assigning, hiding, or moving personal property out of the county to defeat or impair a creditor's legal claim.
Intent to Hinder, Delay, or Defraud: The specific criminal mindset aimed at obstructing, delaying, or preventing a judgment creditor from lawfully attaching or collecting personal property owed to them.

What Must Be Proven to Convict Someone Under Penal Code § 155 PC?

To secure a conviction under PC 155, the prosecution must establish the following elements beyond a reasonable doubt:

Pending Action or Rendered Judgment: The defendant had a civil lawsuit pending against them or a court judgment already entered against them for money or personal property.
Act of Concealment or Transfer: The defendant concealed, sold, disposed of, or moved personal property out of the county where it was located.
Specific Intent to Defraud: The defendant acted with the specific intent to hinder, delay, or defraud the creditor or plaintiff seeking recovery.

What Are the Penalties for Penal Code § 155 Violations?

The severity of a PC 155 charge depends on the nature and value of the personal property transferred or hidden:

Offense Type	Sentences + Fine	Additional Collateral Consequences
Misdemeanor PC 155(a) (Standard Personal Property)	Up to 1 year in county jail. Fines up to $1,000 plus court fees	Civil court reversal/nullification of the asset transfer
Felony PC 155(b) (Stock in Trade over $250)	16 months, 2 years, or 3 years in state prison. Fines up to $10,000 plus victim restitution	Criminal record, loss of professional licenses, formal probation
Civil Fraudulent Transfer (California UVTA)	N/A (Civil Remedies). Full recovery of asset value + attorney fees	Voiding of fraudulent transfer under civil law

What Defense Strategies Are Used Against PC 155 Charges?

Experienced defense counsel can challenge fraudulent conveyance allegations using several key legal defenses:

Lack of Intent to Defraud: Demonstrating that the property transfer was made in good faith, such as paying valid ongoing living expenses or making a routine business transfer without fraudulent intent.
Bona Fide Sale for Value: Showing the property was sold for fair market value to pay legitimate creditors or operational costs, rather than being hidden.
Good Faith / Absence of Notice: Establishing that the defendant was unaware of a pending lawsuit or formal court judgment at the time the transfer took place.
Ownership or Property Disagreements: Arguing that the transferred asset belonged solely to a third party or was exempt from collection under California asset protection laws.

How Does Penal Code § 155 Apply in a Real-World Scenario?

Hypothetical Example:

A business owner is sued in a civil court for breach of contract, and a jury renders a $150,000 judgment against him. Knowing the plaintiff will try to seize his expensive personal luxury vehicles to satisfy the debt, the owner transfers title to the vehicles to his brother for $1 and hides them in a neighboring county.

Because the business owner transferred and concealed personal assets specifically to prevent a judgment creditor from collecting on a valid court order, he can be prosecuted for criminal fraudulent conveyance under California Penal Code § 155 PC.

What Related Laws and Statutes Apply to Fraudulent Conveyance Cases?

Reviewing related statutory offenses is essential because prosecutors often file companion charges or civil actions when they uncover fraudulent financial schemes.

California Penal Code § 154 PC (Fraudulent Conveyance by a Debtor): Prohibits debtors from fraudulently moving or hiding property before a formal lawsuit or judgment is rendered against them.
California Penal Code § 531 PC (Participating in Fraudulent Conveyances): Makes it a crime for third parties to knowingly assist or participate in a fraudulent conveyance scheme.
California Penal Code § 470 PC (Forgery): Applies if fraudulent signatures or fake court documentation are used during asset transfers.
California Civil Code § 3439 (Uniform Voidable Transactions Act): Provides civil remedies for creditors to undo fraudulent transfers and recover damages in civil court.

Frequently Asked Questions (FAQs)

What is the primary difference between Penal Code 154 PC and Penal Code 155 PC?

Penal Code § 154 PC applies generally to any debtor who fraudulently conceals or transfers property, whereas Penal Code § 155 PC specifically targets individuals who do so while a lawsuit is pending or after a civil judgment has already been rendered.

Can transferring real estate lead to criminal charges under PC 155?

PC 155 specifically targets personal property (such as vehicles, stock in trade, cash, and equipment). However, fraudulently transferring real estate can still trigger civil nullification under the Uniform Voidable Transactions Act and potential criminal liability under related fraud statutes.

Is fraudulent conveyance a misdemeanor or a felony in California?

Violations involving general personal property are misdemeanors carrying up to one year in jail. However, if the offense involves "stock in trade" worth more than $250, prosecutors can charge it as a felony punishable by up to three years in state prison.

Can a creditor file civil lawsuits while criminal charges under PC 155 are pending?

Yes. Criminal prosecution under PC 155 is entirely separate from civil remedies. Creditors can simultaneously pursue civil court actions to unwind the transfer, freeze bank accounts, and claim civil damages.

What is "stock in trade" under PC 155(b)?

"Stock in trade" refers to inventory, goods, or merchandise held by a business or merchant for sale to customers in the ordinary course of business.

How Cron, Israels & Stark Can Help You

Facing allegations under California Penal Code § 155 PC threatens your freedom, financial stability, and personal reputation.

Our defense team provides comprehensive support tailored to individuals and business owners navigating criminal fraud charges and complex financial disputes:

Financial & Transactional Forensic Analysis: We evaluate financial records, bills of sale, bank statements, and business transfers to establish that asset movements were legitimate, made in good faith, or made without fraudulent intent.
Pre-Filing Defense & Intervention: We proactively engage with prosecutors and law enforcement investigators before formal criminal indictments are filed to demonstrate a lack of criminal intent and advocate for reduced or dismissed charges.
Integrated Civil & Criminal Defense Strategy: Because PC 155 cases often intersect with civil court judgments, we align your criminal defense strategy with ongoing civil enforcement proceedings to protect your assets and defend your constitutional rights.

Contact our office today to schedule a confidential consultation and discover how we can safeguard your freedom, reputation, and future.

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