Fraud Related Cases
WHITE-COLLAR CRIME
White-collar crimes are financial and nonviolent. White-collar criminals are usually well-respected. Fraud, embezzlement, bribery, insider trading, cybercrimes, money laundering, identity theft, and forgery are the most frequent white-collar crimes. We will defend you against any white-collar offenses.
Examples
1) Bank Fraud
This scam includes stealing money from a bank or financial organization. The most typical kind of bank fraud involves using a bogus identity or a phony company to establish an account and steal money from the bank.
2) Embezzlement
Someone who is trusted with money or property embezzles it. If an investor pays you $5,000 to invest for him and you buy a motorbike with it, you may have embezzled.
3) Credit Card Fraud
Credit card fraud is using credit cards to steal money, property, or other commodities. Credit card fraud is varied. Stolen credit cards are the most prevalent way to shop. Another common example is using someone else’s information to get a credit line in their name and using it to purchase goods or withdraw money.
4) Computer Fraud
Computer fraud is becoming the most common method of stealing money. Hacking and other complex crimes are frequently tried federally.
5) Tax Fraud
Tax fraud, or tax evasion, is a prevalent white-collar crime that includes evading taxes. This offense occurs when someone lowers their income to pay fewer taxes.
Punishment
White-collar crimes can be punished in a variety of ways:
- Imprisonment:A jail term might vary. The defendant’s jail sentence depends on the fraud’s cash amount, degree of financial loss, and the number of victims.
- Fines:The legislation determines the amount of money you may be fined.
- Restitution:The court may order you to make the victim(s) whole by repaying them the money that you illegally took from them.
- Forfeiture:Your white-collar criminal earnings are forfeited. The court may require you to forfeit and reimburse $1 million if you cheated victims. The court may even compel you to relinquish ill-gotten assets like property.
CALIFORNIA AUTO INSURANCE FRAUD LAWS
Automobile insurance fraud occurs when a person intentionally defrauds an insurance company to get benefits they are not entitled to. Insurance fraud is a felony in California and may result in five years in jail.
The California Penal Code defines motor insurance fraud as:
- Damage, conceal, or leave your automobile to receive car insurance.
- Knowingly submit a fraudulent auto insurance claim for a loss due to damage, destruction, or theft of a vehicle.
- Knowingly present 2 or more auto insurance claims for the same loss, with intent to defraud.
- Cause or participate in an automobile accident with intent to fraudulently collect the auto insurance proceeds.
- Knowingly present or prepare any written or oral statement as part of an insurance claim that contains false or misleading information.
It is also a form of criminal auto insurance fraud for:
- A business owner or employee to solicit, refer, or accept any business from a person, knowing that she/he intends to commit auto insurance fraud.
- An auto repair shop owner or employee offers insurance agents or adjusters a commission or profit-sharing agreement (a “kickback“) to recommend policyholders to their business (this offense overlaps with commercial bribery in California).
Examples
Examples of California vehicle insurance fraud include:
- A guy abandons his automobile in a distant spot to declare it stolen and receive insurance.
- A lady claims to her insurance company that her SUV’s long-standing marks were caused by a small fender-bender that did no harm.
- In a car insurance fraud scheme, an auto repair business owner habitually inflates repair estimates.
Penalties
Most forms of California auto insurance fraud are felonies.
However, certain types of vehicle insurance fraud—like creating or submitting fraudulent statements on the forms that are perpetrated by a company or auto shop representative—are California wobblers, meaning they may be tried as either misdemeanors or felonies.
Vehicle insurance fraud carries possible prison terms of 16 months to 5 years for felonies. Fines for felonies may be as high as $50,000, or double the amount of the fraud (whichever is greater).
Misdemeanor auto insurance fraud carries a possible county jail term of up to 1 year and/or a fine of up to $1,000 are both possible punishments.
Legal defenses
If you are charged with auto insurance fraud in California, you may be able to get the charges reduced or dismissed by arguing one of the following common legal defenses:
- You did not act with fraudulent intent (a useful defense to any kind of insurance fraud charges).
- There is insufficient evidence to support the charges.
WORKERS’ COMPENSATION FRAUD – THE LAW IN CALIFORNIA
Giving false or misleading information to get benefits to which you are not legally entitled constitutes workers’ compensation fraud in California. The offense carries a maximum 5-year jail or prison sentence and is punishable as either a misdemeanor or a felony.
A system of insurance called “workers’ compensation” offers medical treatment and compensation for lost wages to employees who sustain work-related injuries.
Fraud involving workers’ compensation insurance may result in severe criminal sanctions.
Workers’ compensation fraud in California includes the following actions:
- Knowingly producing or submitting a false or fraudulent statement in order to either acquire or refuse benefits under the workers’ compensation law.
- Making a false or fraudulent statement about eligibility for benefits with the intent of discouraging an injured worker from filing a claim.
- Knowingly aiding and abetting, or taking part in a plot to commit, workers’ compensation fraud.
- Preparing or submitting multiple claims for payment of a health care benefit covered by workers’ compensation insurance, all for the same injury.
- Submitting a claim for a workers’ compensation-covered health care benefit that was not actuarially sound.
Examples
Here are some examples of people who could be charged with California workers’ compensation fraud:
- A man obtains workers’ compensation for missed income after falling down his workplace steps and claiming terrible back pain. Despite his back problems, he is working a new job and getting benefits.
- To avoid paying workers’ compensation payments (which would increase the company’s premium), an employer lies about an employee’s workplace injury.
- A doctor who treats industrial injuries often claims workers’ compensation insurance for unnecessary services.
Penalties
Most forms of workers’ compensation fraud are California wobblers. This means that they may be charged as either misdemeanors or felonies under California law.
The potential felony prison sentence for most forms of workers’ compensation fraud is 2, 3, or 5 years. Felony fines can go up to $150,000, or twice the amount of the fraud (whichever is greater).
In most cases, workers’ compensation fraud as a misdemeanor carries a potential county jail sentence of up to 1 year.
Legal defenses
If you are charged with workers’ compensation insurance fraud in California, one of these popular legal defenses may help you have the charges reduced or dropped.
- You did not act knowingly or with fraudulent intent.
- There is insufficient evidence to support the charges.
PPP LOAN FRAUD / CARES ACT FRAUD
Loan fraud with the CARES Act’s PPP (Paycheck Protection Program) refers to acquiring money under fraudulent pretenses. Starting in April 2020, small firms that qualify may get up to $10 million to pay for eight weeks’ worth of salaries, mortgages, rent, and utilities. And if the money is used for these “qualifying costs,” the government will cancel the debt.
Only companies with less than 500 full-time workers who are impacted by COVID-19 are eligible for CARES aid. It’s illegal to defraud the Small Business Administration (SBA) of this stimulus funding. It entails the risk of jail time, penalties, and debt repayment.
Penalties
PPP loan fraud is a federal crime under the Small Business Act. The sentence depends on the specific offense.
CARES Act crime | Federal punishments |
Making false statements, or Overvaluing securities | Felony: $5,000 and/or 2 years in Federal Prison |
Embezzlement | Felony: $10,000 and/or 5 years in prison |
Plus, the defendant will need to pay restitution.
Defenses
People facing PPP loan fraud charges can argue that either:
- The defendant had no intent to defraud, or
- The SBA made a
- The defendant had no intent to defraud
Defendants are not criminally liable if they accidentally provided false information. Loan applications are complicated. And people, especially in a time of heightened stress, may inadvertently get things wrong.
- The SBA made a mistake
Like all bureaucracies, the SBA gets things wrong. And during this time of increased activity, errors are inevitable. That is why business owners should keep all their records including:
- Email communications
- Voicemails
- Bank statements
- Accounting notes
- Receipts
- Bills
These may serve as valuable proof of the defendant’s innocence if the government levies a false accusation.