Los Angeles Fraud Defense Attorney

Fraud allegations can arise from financial transactions, benefit applications, business records, or communications. Prosecutors generally must prove the elements of a specific offense, including the required intent; a mistake, unpaid debt, or business dispute does not automatically establish criminal fraud.

Robert M. Helfend represents people accused of fraud in Los Angeles, including California and federal cases. This page explains common charges, penalties, evidence issues, and defenses, with additional detail on welfare fraud and transfers alleged to conceal assets from creditors.

Understanding fraud under California and federal law

Fraud charges concern alleged deception, but there is no single set of elements for every fraud offense. Prosecutors must prove the conduct and mental state required by the charged statute. A false statement, business loss, or unpaid debt alone does not settle that question.

Federal jurisdiction can arise through use of the mails or interstate wires, a covered financial institution, or other statutory grounds. The defendant does not personally have to cross a state line. California and federal charges may arise from the same conduct.

Common fraud allegations include:

• Mail and wire fraud: use of covered communications to carry out a fraudulent scheme.

• Bank and mortgage fraud: deceptive schemes involving financial institutions or loan applications.

• Securities fraud: unlawful deception in securities transactions.

• Insurance and health care fraud: false claims, billing, or representations covered by the applicable statute.

• Credit card fraud and identity theft: unauthorized use of cards, account information, or identifying information.

• Tax fraud: knowing or willful conduct covered by the charged tax offense.

Bank fraud

It’s illegal under federal law to use false pretenses to obtain money under the custody of a financial institution.

Doing so is the crime of bank fraud. 

Bank fraud can include situations like check kiting or “booster checks,” which is when someone writes a bad check to increase the credit limit on a credit card they plan to abuse. It also includes situations like phishing, credit card fraud and accounting fraud.

Federal bank fraud under 18 U.S.C. 1344 carries a maximum of 30 years in prison and a $1 million fine. The government still must establish the elements of the charged statutory theory; not every bad check or loan dispute is bank fraud.

If you suspect that you or someone you love is under investigation for bank fraud offenses, it’s important to speak with a federal defense attorney as soon as possible.

What is bank fraud?

Bank fraud is defined as “knowingly using a scheme or artifice” to either:

1. Defraud a financial institution, or

2. Obtain any of the money or other property under custody of the financial institution by false pretenses.

For example, let’s say Mike goes to the bank to apply for a small business loan. Mike’s business nets around $70,000 per year in profits, and because they don’t want to give Mike an amount of money he can’t handle, the bank has specific rules around how much they will lend him.

However, Mike intentionally misrepresents his annual business profits on his loan application as $700,000 in order to receive a larger amount of cash. Mike has likely committed bank fraud.

Penalties for bank fraud

A bank fraud conviction is a federal felony. Statutory maximum penalties include:

• 30 years in federal prison

• $1 million in fines

A first offense does not guarantee probation. The guideline calculation, alleged loss, conduct, and other sentencing facts should be reviewed before estimating exposure.

Embezzlement

Embezzlement occurs when an individual entrusted with someone else’s property or funds misappropriates those assets for their own personal gain. This can occur in a variety of settings, including businesses, nonprofits, or even government agencies.

In order for embezzlement to be proven in court, several elements must be established:

• The defendant was in a position of trust or fiduciary duty with regard to the victim’s property or funds.

• The defendant fraudulently or deceitfully took or converted the victim’s property or funds for their own personal use or benefit.

• The defendant intended to deprive the owner of the property’s use, even temporarily. An intention to return it does not necessarily defeat embezzlement.

If all of these elements can be proven beyond a reasonable doubt, the defendant may be found guilty of embezzlement.

Penalties for Embezzlement

California embezzlement is punished under the applicable theft provisions. The value and type of property, charged statute, and qualifying prior convictions can affect whether misdemeanor or felony punishment applies.

Many ordinary grand-theft cases carry felony terms of 16 months, two years, or three years under Penal Code 1170(h), or misdemeanor punishment. Ordinary petty theft generally carries up to six months and a $1,000 fine. Statutory exceptions, including qualifying repeat-theft provisions, require a separate review.

In addition to these criminal penalties, a conviction for embezzlement can also have serious long-term consequences for the defendant, including damage to their reputation and difficulty finding employment.

Defenses Against Embezzlement Charges

If you have been charged with embezzlement, it is important to understand the potential defenses that may be available to you. Some common defenses include:

• Lack of fraudulent intent: permission, accounting records, and the reason for the transaction may show that no fraudulent appropriation occurred. An intent to repay alone is not a complete defense.

• Claim of right: a good-faith claim of entitlement can be relevant under the governing rules. The defense has limits, and a debt owed to the defendant does not necessarily authorize taking unrelated entrusted property.

• Duress or coercion: If you were forced or coerced into embezzling the property or funds, this may be a successful defense against the charges.

Mail and wire fraud

Mail fraud under 18 U.S.C. 1341 involves use of the mail or a covered carrier to carry out or attempt to carry out a fraudulent scheme. Wire fraud under section 1343 uses interstate or foreign wire communications. A mailing need not contain the false statement itself if it furthers the scheme.

What the government must prove

For ordinary money-or-property fraud, the government must establish a scheme involving material false or fraudulent pretenses, the required participation and intent to defraud, and the statutory use of the mails or wires. Materiality concerns whether a representation can influence the relevant decision. The scheme need not succeed.

Intent remains an element. Reckless statements may be evidence from which intent is inferred; an unsupported advertisement does not automatically establish federal fraud without the remaining proof.

Why the alleged misstatement matters

Consider a person seeking restaurant investors who claims a major investor has already committed $500,000 when that investor has withdrawn. The claim may be material to the decision to invest. A minor error that does not affect the decision presents a different issue. The context and evidence matter more than the label placed on the statement.

In Kousisis v. United States (2025), the Supreme Court held that fraudulent inducement can support a federal fraud conviction even without intended net economic loss. Money or property must still be an object of the scheme, and the other elements must be proved. Receiving something of equal economic value is not an automatic defense.

Potential penalties

Basic mail and wire fraud offenses carry maximum terms of 20 years. Specified circumstances, including an offense affecting a financial institution, can increase the statutory maximum. The actual sentencing analysis also considers the guidelines, loss findings, role, record, and any other counts.

Legal defenses against fraud charges

“Mr. Helfend absolutely saved my bacon. After finding myself charged with fraud, I was terrified. I have never been introduced to the legal system from this side before, and it was unsettling. However, Robert was able to calm me down and help me figure out my situation. He even got the case dropped before trial! I don’t want to be in another situation where I need a criminal defense lawyer, but if I ever am, I know who I will call!”Pete, CA

No matter what kind of fraud you’ve been accused of, these are the most common defense against your charges:

1. You didn’t have fraudulent intent;

2. You were a victim of mistaken identity;

3. Authorities violated your right to protection from illegal search and seizure.

If you’ve been accused of fraud, it’s important to speak with a skilled criminal defense attorney as soon as possible. Your attorney can carefully review the facts of your case and work with you to build your defense.

Welfare fraud allegations in California

What does Welfare and Institutions Code 10980 cover?

Section 10980 covers several forms of public-assistance fraud, including intentional false statements, concealment of material information, false identities, multiple-entitlement applications, and unlawful dealings in CalFresh or electronic benefits. Recipient conduct differs from alleged misuse by a public employee.

Applications, income reports, agency notices, benefit calculations, and evidence of identity should be compared carefully. An error or overpayment is not automatically proof of an intent to deceive.

Penalties depend on the subsection

For obtaining or retaining aid by fraud under section 10980(c), an amount of $950 or less carries up to six months in county jail, a $500 fine, or both. Above $950, the statute permits felony punishment of 16 months, two years, or three years under Penal Code 1170(h), with a fine up to $5,000, or misdemeanor punishment up to one year and a $1,000 fine. Other subsections have different requirements.

Notice, agency records, and defenses

Section 10980(j) limits prosecution for specified CalWORKs or CalFresh overpayments when the county had qualifying income-verification information and failed to provide a timely, adequate collection notice. The timing rules and authorized-delay exceptions require review of the agency file.

Other defenses may involve lack of intent, mistaken identity, inaccurate benefit calculations, or insufficient evidence. Repayment does not automatically dismiss a criminal case. See the current text of section 10980.

Asset transfers and fraudulent conveyance

Penal Code 154 addresses disposing of or concealing property with intent to defraud, hinder, or delay creditors. A disputed transfer is not necessarily a crime: ownership, timing, the creditor’s claim, and intent must be investigated.

The statute includes a separate provision for qualifying stock in trade. This means business inventory, not an ordinary stock-market trade. Criminal charges, civil efforts to unwind a transfer, and bankruptcy proceedings have different rules.

Records showing the purpose of the transfer, consideration paid, business needs, and the parties’ communications may help evaluate the allegation. A transfer described as a gift is not automatically lawful if the required fraudulent intent is proved.

Frequently asked questions

Does a mistake on an application automatically amount to fraud?

No. The prosecution must prove the mental state and other elements of the charged offense. The forms, instructions, communications, and explanation for the mistake can matter.

Can fraud be charged when the other party did not lose money?

Yes, in some circumstances. Federal fraudulent-inducement cases can proceed without intended net economic loss, but money or property must be an object of the scheme and the remaining statutory elements must be proved.

Does repaying benefits automatically end a welfare fraud case?

No. Repayment may be relevant to resolution or sentencing, but it does not automatically erase an alleged offense or compel dismissal. Eligibility, notices, agency records, intent, and the charged subsection should be reviewed.

What records should I preserve for a fraud investigation?

Preserve relevant applications, agreements, invoices, account statements, messages, and agency notices. Do not alter or delete records. Have counsel review subpoenas and response deadlines before you provide an account of the transactions.

Speak with a Los Angeles fraud defense attorney

Call 800-834-6434 for a free consultation with Robert M. Helfend about a California or federal fraud investigation. Bring any complaint, indictment, subpoena, or agency notice so the consultation can address the allegations and deadlines.

References

1. 18 U.S. Code § 1341 – Frauds and swindles. https://www.law.cornell.edu/uscode/text/18/1341
2. 18 U.S. Code § 1343 – Fraud by wire, radio, or television. https://www.law.cornell.edu/uscode/text/18/1343
3. Welfare and Institutions Code – WIC § 10980. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=WIC&sectionNum=10980