Penalties for Financial Fraud Convictions in California
Financial fraud is a broad category of criminal activity that involves intentional deception or misrepresentation for financial gain. In California, financial fraud charges encompass a wide range of offenses, including securities fraud, mortgage fraud, wire fraud, and embezzlement. Being convicted of financial fraud can lead to severe legal consequences that impact both personal and professional aspects of one’s life.
The penalties for financial fraud convictions vary depending on the type of fraud, the amount of financial loss, and the defendant’s criminal history. Regardless, any charge of financial fraud is serious and should be taken up with the help of an experienced white-collar criminal defense attorney who specializes in such cases. In Los Angeles, count on The Law Offices of Stanley L. Friedman, a former federal prosecutor and criminal law specialist ready to provide smart, strategic advice and zealous, effective representation in your defense.
Fines for Financial Fraud Convictions
One of the primary penalties for financial fraud in California is substantial fines. Depending on the type of fraud and the amount involved, fines can range from thousands to millions of dollars. For instance:
- Securities Fraud: Under California’s Corporate Securities Law, violators may face fines of up to $10 million, depending on the scope of the fraudulent activity.
- Embezzlement: If the amount involved exceeds $65,000, the fines can be particularly severe, potentially matching the amount stolen or even doubling it under certain circumstances.
Fines are often coupled with other penalties and may be imposed both in state and federal cases, especially when dealing with large-scale financial schemes or cross-state operations.
Restitution to Victims
Restitution is another significant penalty for financial fraud. Courts typically order defendants to compensate victims for the losses they incurred as a result of the fraudulent activity. Restitution is meant to restore the financial standing of those impacted, ensuring that victims recover as much of their lost money or property as possible.
In many cases, restitution can be substantial and, in some instances, exceed the original amount taken due to interest, penalties, and legal fees. If a convicted individual cannot pay the full amount immediately, they may be required to set up a payment plan, often for an extended period, to satisfy the restitution order.
Imprisonment and Length of Sentencing
Financial fraud convictions often come with the threat of imprisonment. In California, the length of prison sentences can vary dramatically based on the type of fraud and the amount of loss involved:
- Grand Theft by Fraud: If convicted of grand theft under California Penal Code 487, individuals can face up to three years in state prison. Grand theft involves property valued at over $950. It is classified as a felony, which explains the lengthy prison sentence even when relatively small amounts of money are involved.
- Securities Fraud: This offense can result in federal charges, leading to up to 20 years in federal prison, especially for large-scale schemes.
- Mortgage Fraud: A conviction can lead to state imprisonment ranging from two to four years, depending on the amount of money involved and whether the fraud is classified as a misdemeanor or felony.
In some cases, federal charges are brought alongside state charges, which can add years to prison sentences. Additionally, some fraud convictions may include sentencing enhancements, which increase the prison term based on aggravating factors, such as the involvement of vulnerable victims or the use of sophisticated fraudulent schemes.
Professional and Personal Consequences
In addition to fines, restitution, and imprisonment, a financial fraud conviction can have long-lasting effects on an individual’s personal and professional life. Many white-collar professionals, particularly in industries such as finance, healthcare, and law, risk losing their professional licenses. Convictions may be reported to licensing boards, resulting in license suspension or revocation.
Additionally, the long-term damage to a person’s reputation can make it difficult to regain employment or maintain professional relationships. Convictions for financial fraud often come with collateral consequences, such as being barred from holding certain jobs, government contracts, or obtaining loans.
Federal Charges for Financial Fraud
Many financial fraud cases in California are prosecuted in federal courts, particularly if the fraud involves interstate commerce, industries over which federal agencies have regulatory authority, or large financial institutions. Federal penalties for financial fraud tend to be more severe than state penalties, with longer prison terms and larger fines. For example, wire fraud, a common federal charge in financial fraud cases, carries up to 20 years in prison per count and fines up to $250,000.
Defendants in federal financial fraud cases also face mandatory minimum sentences in certain circumstances, as well as the possibility of being tried under the Racketeer Influenced and Corrupt Organizations Act (RICO) if the fraud was part of an ongoing criminal enterprise.
Defending Against Financial Fraud Charges
Given the severity of the penalties for financial fraud, individuals charged with such offenses must seek experienced legal representation. A strong defense can challenge the evidence against the defendant, question the intent behind the actions, and explore options for mitigating the charges or penalties. In some cases, defendants may be eligible for plea bargains that reduce the severity of the charges or penalties.
At The Law Offices of Stanley L. Friedman, clients benefit from our decades of experience in white-collar criminal defense. Financial fraud cases require a meticulous approach to investigation and defense, and having an experienced attorney can be the difference between severe penalties and a favorable resolution.
Contact Us for Help With Financial Fraud Charges in Los Angeles
The consequences of a financial fraud conviction in California can be life-altering, with potential penalties including significant fines, restitution, and imprisonment. Beyond these legal penalties, the long-term impact on an individual’s career and reputation can be profound. For those facing financial fraud charges, it is essential to work with a knowledgeable and experienced defense attorney to navigate the complex legal landscape and work toward the best possible outcome.
In Los Angeles, contact The Law Offices of Stanley L. Friedman at 310-598-2000 to discuss your situation with a California white-collar criminal law defense specialist.
