Blog
California Penal Code Section 424 PC: Misappropriation of Public Funds
California Penal Code Section 424 PC: Misappropriation of Public Funds
California Penal Code Section 424 PC makes it illegal for a public officer or trustee of public funds to misuse those funds for personal gain or profit. This law applies to any public official or employee who has control over public money and uses it improperly. Misappropriation of public funds is a serious felony in California that can result in multi-year prison sentences and substantial fines for those convicted.
In this article, we’ll break down California’s law against misuse of public funds. We’ll look at:
- What constitutes misappropriation of public funds
- The penalties for violating Penal Code 424 PC
- Legal defenses that may apply
- Related offenses
- How an experienced criminal defense lawyer can help
What Is Misappropriation of Public Funds?
California Penal Code 424 PC states that “each officer of this state, or of any county, city, town, or district of this state, and every other person charged with the receipt, safekeeping, transfer, or disbursement of public moneys, who either:
- Without authority of law, appropriates the same, or any portion thereof, to his or her own use, or to the use of another;
- Loans the same or any portion thereof;
- Makes any profit out of, or uses the same for any purpose not authorized by law;
- Knowingly keeps any false account, or makes any false entry or erasure in any account of or relating to the same;
- Fraudulently alters, falsifies, conceals, destroys, or obliterates any account;
- Willfully refuses or omits to pay over, on demand, any public moneys in his or her hands, upon the presentation of a draft, order, or warrant drawn upon these moneys by competent authority;
- Refuses to make any report or give any information required of him or her by law;
- Or, violates any provision of law regulating the safekeeping, management, or disbursement of public moneys;
Is punishable by imprisonment in the state prison for two, three, or four years, and is disqualified from holding any office in this state.”
Essentially, Penal Code Section 424 PC makes it illegal for any government employee or public official to misuse, misallocate, or mishandle public funds for improper purposes. This includes everyone from city councilmembers to county clerks to school district employees entrusted with public money.
Examples of Misappropriation of Public Funds
Some examples of misappropriation of public funds would include:
- A city parks employee uses money allocated for park maintenance to pay for personal travel expenses
- A county treasurer secretly transfers public funds to a personal offshore account
- A school board member awards a lucrative contract to a company he has a financial stake in
- A city councilmember embezzles money from a public redevelopment fund
- A county clerk uses the county credit card to pay for home renovations
- A public hospital administrator pockets cash payments made to the hospital
Penalties for Misappropriation of Public Funds
Misappropriation of public funds is a felony under California law. The potential penalties include:
- Felony (formal) probation
- Two, three, or four years in California state prison
- A fine of up to $10,000
Defendants convicted under Penal Code 424 will also be barred from holding any public office in California in the future. This is a substantial additional penalty, as it prevents the person from being employed in any government role going forward.
Legal Defenses to Misappropriation of Public Funds Charges
While misappropriation of public funds cases can seem daunting, there are several legal defenses that an experienced criminal defense lawyer may be able to assert on your behalf. Some of these include:
- You lacked the requisite criminal intent. Prosecutors must be able to prove you knowingly and intentionally misused public funds for an improper purpose. If you can show your actions were the result of a mistake, accident, or good faith misunderstanding, it may defeat criminal charges.
- You had legal authority. The law only criminalizes misuse of funds “without authority of law.” If you can demonstrate your expenditures were legally authorized, it can invalidate the charges.
- No public funds were actually misused. If there is insufficient evidence that you misallocated public monies, the entire case against you may fail.
- You were falsely accused. In some cases, the allegations may stem from false accusations or misunderstandings which a skilled attorney can effectively refute.
An experienced criminal defense lawyer can carefully examine the evidence and determine if any of these defenses may apply in your case.
Misappropriation of public funds charges are often accompanied by other related criminal offenses, such as:
- Embezzlement – Penal Code 503 PC. Willfully stealing or misappropriating property that has been entrusted to you.
- Grand theft – Penal Code 487 PC. Theft of money, labor, or property over $950.
- Petty theft – Penal Code 488 PC. Theft of money, labor, or property under $950.
- Money laundering – Penal Code 186.10 PC. Engaging in transactions designed to conceal illegal funds.
The specific charges will depend on the nature of the alleged financial misconduct. An attorney can advise which charges you may be facing and build the strongest defense to contest them.
Find an Experienced Criminal Defense Lawyer
Facing misappropriation of public funds charges can be an extremely stressful and challenging ordeal. The potential consequences are severe, and you need an advocate in your corner.
An experienced California criminal defense lawyer can be invaluable in these situations. They can conduct a thorough independent investigation of the allegations, identify any police misconduct or other constitutional violations, and build a compelling argument as to why the charges should be dismissed. They can also negotiate firmly with prosecutors to try to get charges reduced or avoided entirely.
Don’t leave your fate in the hands of the justice system without experienced legal representation. The right lawyer can make all the difference in how your case unfolds. With an aggressive defense, many people accused of misusing public funds are able to avoid jail time and move on with their lives.