Sacramento Laws on Embezzlement, Fraud and Forgery

Sacramento Laws on Embezzlement, Fraud and Forgery

Financial crimes like embezzlement, fraud, and forgery are unfortunately common occurrences that can destroy companies and ruin lives. As the capital of California, Sacramento has its fair share of these white collar crimes. Let’s take a look at what exactly constitutes embezzlement, fraud, and forgery under Sacramento laws, what kind of penalties perpetrators face, and what kind of defenses are available.

Embezzlement

Embezzlement refers to when someone who has been entrusted to manage or monitor someone else’s money or property steals all or part of it for personal enrichment. For example, if a Sacramento company’s accountant started secretly transferring money from the company bank account to their own account, that would be embezzlement.

Under California law, embezzlement is prosecuted under Penal Code 503 PC. This law states that every person guilty of embezzlement is punishable in the same manner and to the same extent as theft by false pretenses. So an embezzlement charge can be filed as either a misdemeanor or felony, depending on the value of what was stolen.

If the value is $950 or less, it’s a misdemeanor punishable by up to 1 year in county jail. If the value is more than $950, it’s a felony punishable by 16 months, 2 years, or 3 years in state prison. The potential penalties increase as the value stolen increases. Grand theft embezzlement over $500,000 could result in up to 10 years in prison!

Some of the common defenses against embezzlement charges include:

• You had permission to use the money/property
• Someone else is actually responsible for the embezzlement
• You intended to return or repay the money/property

One recent Sacramento embezzlement case involved a Postal Service worker named Shawne Alsbury. She was accused of stealing over $93,000 worth of merchandise that had been mailed to Sacramento addresses. After a jury trial, she was convicted of embezzlement of mail by a postal employee. Alsbury was sentenced to 3 years in federal prison.

Fraud

Fraud refers to intentionally deceiving someone in order to gain something of value. Common types of fraud include tax fraud, insurance fraud, credit card fraud, wire fraud, bankruptcy fraud, and more. Fraud can be prosecuted either under specific California fraud laws or general theft laws depending on the circumstances.

Some examples of California fraud laws include:

• Insurance fraud – Penal Code 550
• Real estate fraud – Penal Code 532a
• Welfare fraud – Welfare and Institutions Code 10980
• Securities fraud – Corporations Code 29536

Like embezzlement, potential penalties depend on the value of what was fraudulently obtained. Misdemeanor fraud involves less than $950, while felony fraud involves more than $950. And penalties increase as the value increases.

Defenses to fraud charges often focus on the intent element. The defense may argue things like:

• You did not act with an intent to defraud
• The alleged victim was not actually deceived
• You had a good faith belief that your statements were true

A recent high profile Sacramento fraud case involved real estate developer Kelly Kerns. He was accused of defrauding over 80 investors out of $13 million in a Ponzi scheme involving Sacramento real estate projects. Kerns was convicted on multiple felony fraud charges and sentenced to 17 years in prison.

Forgery

Forgery refers to signing someone else’s name on a document without authorization or altering a document without permission to change its meaning. Under California law, forgery can be charged as either a misdemeanor or felony under Penal Code 470.

Like other financial crimes, potential penalties vary based on the value of the forged document:

• Less than $950 – misdemeanor up to 1 year in jail
• $950 to $10,000 – felony up to 3 years in jail
• Over $10,000 – felony up to 5 years in jail

Defenses to forgery charges often question whether or not the defendant actually had an intent to defraud anyone by signing another’s name or altering a document. The defense may claim:

• You had permission to sign their name
• You did not intend to defraud or deceive
• It was an honest mistake

A recent Sacramento forgery case involved a former Postal Service employee named Lebrashawn Morris. He was accused of forging money orders while working at the Post Office. Morris was found guilty of multiple counts of forgery and was sentenced to 1 year in prison.