Fraud cases in California are among the most complex legal matters—often involving both criminal prosecution and civil litigation. At the Law Offices of Paul P. Cheng & Associates, we’ve helped clients on both sides of fraud disputes navigate these high-stakes cases with discretion, precision, and results.
What Is Fraud Under California Law?
In California, fraud is defined as an intentional act of deception for personal gain or to cause harm to another. The law recognizes a wide range of fraudulent conduct, much of which may lead to criminal charges, civil lawsuits, or both.
As Paul P. Cheng, Esq., former Deputy City Attorney and a seasoned trial lawyer, notes:
“Fraud cases are uniquely dangerous because of California’s dual-track accountability: victims can seek civil damages while prosecutors pursue criminal penalties. Whether you’re accused or the victim, one misstep can have lasting consequences—financial, professional, and even immigration-related.”
Why Early Legal Strategy Is Critical
In our experience, clients often unknowingly make critical errors at the earliest stages. Victims may report incidents before evidence is solidified, and accused individuals may unknowingly make self-incriminating statements during preliminary interviews.
Do not speak to investigators or file reports without legal counsel. Early missteps can dramatically impact your outcome.
Criminal & Immigration Consequences of Fraud
While fraud is considered a white-collar, nonviolent crime, the consequences are anything but minor. Many fraud offenses carry felony penalties, including:
- Lengthy prison sentences
- Six-figure fines
- Restitution orders
- Professional license suspension
- Immigration consequences for non-citizens (fraud is classified as a crime of moral turpitude)
In some cases, defendants face simultaneous state and federal prosecution. The government may also seize assets believed to be tied to fraudulent activity, making asset forfeiture a major risk.
Common Types of Fraud in California
We represent clients in all types of fraud cases, including:
1. Insurance Fraud
Violations of California Penal Code §§ 548–551 and Insurance Code § 1871.4 include:
- Faking or staging auto accidents
- Upcoding or billing for unprovided medical services
- Exaggerating workers’ comp injuries
- Misreporting income to qualify for Medi-Cal or unemployment benefits
2. Real Estate & Mortgage Fraud
Common violations include:
- Foreclosure scams (Civil Code § 2945.4)
- Document forgery (Penal Code § 115)
- Illegal property flipping with inflated appraisals
- Straw buyer schemes to evade lending qualifications
3. Identity Theft & Forgery
Penal Code §§ 470, 476, 484e–484j, and 529 prohibit:
- Unauthorized check writing
- Credit card cloning or skimming
- Use of fake IDs
- Impersonating another person for financial gain
4. Other Fraud-Related Offenses
- Telemarketing fraud
- Elder fraud (Penal Code § 368)
- Gambling scams (Penal Code § 332)
- Online fraud & scams
Legal Definition of Fraud: What Must Be Proven
To convict a person of fraud in California, prosecutors generally must prove:
- False Representation – Defendant knowingly lied or concealed material facts
- Knowledge (Scienter) – Defendant knew the statement was false
- Intent to Deceive – Purpose was to mislead the victim
- Justifiable Reliance – The victim reasonably relied on the falsehood
- Damages – The victim suffered financial or other harm
Often, the “intent to deceive” is the most hotly contested issue. Prosecutors may rely on circumstantial evidence to infer intent, which creates an opening for the defense to present expert testimony, misunderstandings, or lack of motive as a counter.
Key Phases of a Fraud Case – Your Defense Timeline
1. Investigation Phase
- Subpoenas for financial records
- Defense may submit mitigating evidence to avoid charges
2. Pretrial Motions
- Motion to dismiss weak or improper charges
- Suppression of unlawfully obtained evidence
3. Plea Bargaining
Negotiating reduced charges, probation, or diversion in lieu of jail
4. Trial Defense
- Forensic accounting and expert witnesses
- Establishing reasonable doubt in intent, reliance, or damages
What to Do If You Are Accused—or Are a Victim—of Fraud
Time is your most valuable asset in a fraud case. Whether you are being investigated, have been charged, or have suffered losses from a fraudulent scheme, your legal team must act swiftly and strategically.
At the Law Offices of Paul P. Cheng & Associates, we have extensive experience defending clients across Southern California in fraud-related cases—both civil and criminal. We also represent fraud victims pursuing justice through lawsuits and asset recovery.
For a confidential consultation, call us today at 626.570.8888 or email us at info@pprclaw.com.
Protect your rights. Preserve your future. Let us help you build a defense—or claim justice—today.