Fraud Charges in California

Why Are Fraud Charges Rare in California?

Fraud, along with related crimes like embezzlement and forgery, falls under the category of White Collar Crime in the U.S. legal system. These are non-violent offenses, usually involving financial deception or abuse of trust, and are generally considered less serious than violent crimes.

Because of this, white collar crimes tend to be prosecuted less aggressively. Law enforcement agencies, particularly in high-crime areas like Los Angeles, are often overwhelmed with violent and high-priority cases. As a result, they may prioritize crimes involving bodily harm, and white collar offenses like fraud may receive less immediate attention from investigators.

What Happens When You Report Fraud?

Our office frequently receives visits from individuals who are victims of fraud, and one of the most common questions we get is:

“Attorney Kim, if I report this fraud to the police, what happens next?”

My response is always: you absolutely have the right to report it.
However, in practice, we’ve seen some unfortunate cases where victims go to the police station to file a fraud report, only to be told at the front desk that it’s a “civil matter” and that the department won’t even accept the report. This is not always the case, but we have seen it happen, especially when the facts seem more appropriate for civil litigation rather than criminal prosecution.

While this situation can understandably be frustrating, it does not mean fraud isn’t a crime. Fraud can absolutely be criminal if it meets the legal elements of deceit and unlawful gain. But again, due to the sheer volume of violent crime cases in cities like L.A., some departments may choose not to pursue investigation unless the case is particularly severe or well-documented.

What Should Victims Do?

Even if the police are hesitant to take action, you should still attempt to file a report. At the very least, it creates a record of the incident.
If you find that the authorities are unwilling to investigate, you still have legal recourse through the civil courts. Hiring a civil litigation attorney to file a lawsuit against the perpetrator is often the next best option to recover your losses.