Fraud charges can surface suddenly and turn your life upside down. You may have received a letter, a phone call, or a knock at your door. Suddenly, you’re facing accusations that carry the weight of jail time, steep fines, and permanent damage to your record. If you or a loved one has been accused of fraud in California, understanding the different charges and fraud penalties for a conviction can help you take the next step toward protecting your future.
At Esfandi Law Group, we know how overwhelming these allegations can feel. Our goal is to break down complex legal terms and give you a clear picture of what you’re up against and what we can do to help.
What Is Considered Fraud in California?
Fraud generally refers to knowingly deceiving another party for financial or personal gain. Under California law, fraud takes many forms and may fall under civil or criminal categories, depending on the details of the case.
Fraud offenses may include:
- Tax fraud,
- Insurance fraud,
- Medicare or Medi-Cal fraud,
- Credit card fraud,
- Identity theft,
- Real estate or mortgage fraud,
- Workers’ compensation fraud,
- Welfare fraud, and
- Bank fraud.
Many of these crimes are charged under the California Penal Code, but others may involve federal laws, especially when public agencies or healthcare programs are affected.
Understanding the specific type of fraud charge is critical, as it determines what statutes apply and what legal options are available.
How Are Fraud Crimes Classified?
In California, fraud charges are often treated as “wobblers,” meaning they can be prosecuted as either misdemeanors or felonies depending on the amount of loss and the defendant’s criminal history. The line between misdemeanor and felony can significantly alter your legal outlook, especially when it comes to eligibility for diversion programs or probation.
Enhanced sentencing may be applied if aggravating factors exist, such as using sophisticated methods, targeting the elderly, or defrauding multiple victims. Similarly, fraud involving government programs or financial institutions may escalate a case to the federal level. These cases are typically subject to more severe penalties and longer investigative timelines.
The classification of a fraud charge significantly impacts sentencing outcomes and the possibility of negotiating lesser charges or alternatives to incarceration. Early legal intervention can often influence how prosecutors file charges and whether they pursue a more severe penalty. This classification also affects pre-trial release options, determines which types of evidence the court will hear, and directs how the state prosecutes the case.
The sooner you act, the more control you have over the direction of your case.
General Fraud Penalties in California
The penalties for fraud vary widely depending on the offense, but here are general consequences you may face:
- Misdemeanor fraud—up to one year in county jail, fines up to $1,000, and probation;
- Felony fraud—up to three years in county jail or state prison, fines up to $10,000, and probation;
- Restitution—required repayment to victims; or
- Civil penalties—in addition to criminal consequences, you may also face civil lawsuits.
These consequences reflect the state’s interest in punishing dishonest conduct and discouraging repeat offenses. Judges may also consider additional penalties for aggravating factors such as using a position of trust to commit fraud or involving a vulnerable victim.
Some fraud crimes may also carry sentence enhancements that apply when the amount of loss exceeds a certain threshold. These enhancements can add years to a prison sentence. Fraud convictions may also carry mandatory community service, victim impact classes, or limitations on financial employment roles as part of sentencing terms.
In short, penalties can pile up quickly and often affect multiple aspects of your life. Seeking timely legal advice can be essential to understanding where you stand and how to reduce or avoid harsh outcomes.
Penalties for Specific Types of Fraud
Different types of fraud charges can carry varying penalties.
Tax Fraud Penalties
Tax fraud includes filing false returns, underreporting income, and claiming false deductions. In California, the Franchise Tax Board (FTB) prosecutes tax fraud. It can result in felony charges, prison time, fines of up to $20,000, repayment of taxes owed, interest, and penalties.
Federal tax fraud charges may result in even harsher penalties, including federal prison time. Because both state and federal agencies may investigate tax fraud, defendants often face scrutiny from multiple fronts and should seek immediate legal advice.
Penalties for Insurance Fraud
Insurance fraud covers auto, health, life, and workers’ compensation policies. Common scenarios include staged car accidents, exaggerated injuries, or submitting false claims.
Penalties depend on whether the fraud is treated as a misdemeanor or felony and may include:
- Misdemeanor—up to one year in jail;
- Felony—two to five years in prison, fines up to $50,000 or double the fraud amount; and
- Restitution—to insurance companies.
These insurance fraud penalties can escalate if multiple offenses are involved.
The insurance industry aggressively pursues suspected fraud, making early intervention and legal strategy critical to minimizing consequences.
Medicare Fraud and Abuse Penalties
Medicare or Medi-Cal fraud may involve billing for services not rendered, double-billing, or accepting kickbacks. You could face state and federal charges, prison time, fines of $25,000 or more per violation, and permanent exclusion from healthcare programs.
These Medicare fraud and abuse penalties can also lead to license suspension for healthcare providers.
Health care providers accused of Medicare fraud face career-ending consequences and should act quickly to preserve their legal and professional standing.
Additional Consequences Beyond Jail Time
Fraud convictions often have collateral consequences that go beyond incarceration:
- Difficulty finding employment,
- Loss of professional licenses,
- Immigration consequences for non-citizens, and
- Damage to reputation and loss of trust.
In many cases, these consequences last far longer than a jail sentence and impact your ability to rebuild your life. Employers, landlords, licensing boards, and even schools may view a fraud conviction as a serious character flaw. For non-citizens, the stakes are even higher, as fraud charges may trigger removal proceedings. Early legal guidance can be critical to addressing these long-term risks.
Fighting Fraud Charges in California
You may be wondering how to respond if you’re accused of fraud. The first step is understanding the elements the prosecution must prove: that you knowingly made a false statement or misrepresentation with the intent to deceive.
Common defense strategies include:
- Lack of intent,
- Mistaken identity,
- Insufficient evidence, and
- Clerical errors.
A thorough investigation into the details of your case can often expose weaknesses in the evidence or procedural errors that can lead to dismissal or reduced charges.
Legal representation that examines every angle of the prosecution’s case is often the best way to safeguard your rights and future. At Esfandi Law Group, we tailor our defense strategies to the specifics of each case, often uncovering flaws that result in dropped or less severe charges.
How Esfandi Law Group Can Help
Fraud charges can affect your job, finances, and freedom. With more than 20 years of combined experience, we are ready to fight for your rights.
Here’s what we offer:
- Case-specific strategy backed by deep knowledge of California fraud laws;
- Comprehensive review of evidence and prosecutorial conduct;
- Bilingual representation in English and Spanish; and
- Decades of courtroom experience.
Whether you’re facing charges for tax fraud, Medicare violations, or insurance fraud penalties, we work tirelessly to keep your record clean and protect your future.
Contact Us Today
Fraud charges don’t have to define your future. At Esfandi Law Group, we take a compassionate yet aggressive approach to defending your rights and restoring your reputation. Led by a former Los Angeles County prosecutor, our firm understands both sides of the courtroom and how to challenge fraud allegations effectively.
Call today for a free consultation. We’ll listen to your story, explain your options, and build a tailored defense to help you move forward with confidence.
