Los Angeles Fraud Defense Lawyer

Los Angeles Fraud Defense Lawyer

6 AM. FBI. Search warrant. Fifteen agents at your door, your computers seized, your employees watching from their cars. Your business could be destroyed. Your reputation ruined. OR: LAPD detective leaves voicemail about “financial irregularities” – calls it urgent. OR: Grand jury subpoena taped to your office door. You’re terrified, is this civil or criminal, state or federal, should you call the detective back?

Don’t talk. Don’t talk. DO NOT TALK. Before you say ONE WORD to any investigator – FBI, LAPD, IRS, Secret Service – understand this: The first 72 hours determine whether you face federal charges (20 years), state charges (wobbler with misdemeanor possibility), or no charges at all. Todd Spodek and our team have defended fraud cases for many, many, years. We’re a second generation law firm with over 50 years of combined experience, handling cases from Anna Delvey to clients you’ve never heard of. We appear in Central District of California federal court and Los Angeles County Superior Court every single week. We know how fraud prosecutors think – because many of us used to be prosecutors.

Call us first: 212-300-5196.

Federal or State – Why It Matters More Than You Think

The distinction isn’t academic – it’s the difference between 3 years maximum (California state prison) versus 20 years (federal prison for 18 U.S.C. § 1341 mail fraud).

Federal jurisdiction. Three triggers. You used U.S. mail OR interstate wires (email, phone calls across state lines) in furtherance of the scheme. Example: Fake invoices to Nevada client via email – that’s 18 U.S.C. § 1343 wire fraud, federal felony. Same invoices to LA client via courier – that’s California Penal Code § 487 grand theft by fraud, state wobbler.

Other federal triggers: Federally insured banks (most banks), government programs (Medicare, SBA loans, unemployment), securities fraud. If your case is federal, you’ll be investigated by FBI Los Angeles Field Office (11000 Wilshire Blvd), IRS Criminal Investigation (Federal Building, 300 N Los Angeles St), or Secret Service. You’ll appear in Edward R. Roybal Federal Building, 255 E Temple St, in Central District of California courtrooms. You’ll be prosecuted by U.S. Attorney’s Office, Major Frauds Section – elite prosecutors handling the most sophisticated white-collar cases in the country.

California state fraud: Penal Code § 484 criminalizes theft by fraud, deceit, or trick. Under $950 = petty theft (misdemeanor). Over $950 = PC 487 grand theft (wobbler – prosecutor chooses misdemeanor or felony). State investigations: LAPD Commercial Crimes Division, LA County Sheriff Economic Crimes Bureau. State charges: Los Angeles County District Attorney’s Office, Major Fraud Division. You appear in Criminal Courts Building, 210 W Temple St.

Federal prosecutors have discretion to decline charges pre-indictment if your lawyer presents compelling white paper showing lack of criminal intent. State prosecutors (LA County DA) are more aggressive about filing but will negotiate wobbler charges. Unlike other firms who say federal versus state doesn’t matter – it matters enormously. We tailor strategy based on which system is prosecuting you.

What Happens in the Next 30 Days

Federal arrests = appearance before magistrate judge within 72 hours. Potentially high bond with strict conditions: surrender passport, no contact with co-conspirators, electronic monitoring. State arrests (LAPD/Sheriff) = county jail booking, arraignment within 48 hours, bail set according to schedule or OR release.

Critical instruction: DO NOT discuss your case with ANYONE except your lawyer. DO NOT. Jailhouse phone calls are recorded, cellmates will testify at trial. Your Fifth Amendment right isn’t “looking guilty” – it’s constitutional protection against government overreach.

Under investigation but not arrested? You may receive: (1) Target letter from U.S. Attorney stating you’re target of grand jury investigation, (2) Detective call requesting “voluntary interview,” or (3) Search warrant execution. This pre-charging phase is your golden opportunity, skilled lawyer can contact prosecutor BEFORE charges are filed and present exculpatory evidence showing lack of intent.

Federal fraud investigations: 6-18 months from search warrant to indictment. State investigations: 2-6 months from LAPD to DA filing. DO NOT give post-search interview. They’ll frame it as “your opportunity” – it’s a trap, everything you say will be used against you. Invoke Fifth Amendment, provide our contact, say nothing else.

Penalties – What You’re Actually Facing

Twenty years. Thirty if banks involved. Federal mail fraud (18 U.S.C. § 1341) and wire fraud (18 U.S.C. § 1343) each carry maximum 20 years federal prison, 30 years if defrauding financial institution – sentences that will destroy your career, ruin your family. Maximum sentences are misleading, actual sentences calculated using U.S. Sentencing Guidelines § 2B1.1. Base level 6-7, then increases dramatically: Loss $100K-$250K adds +12 levels, loss $1M-$2.5M adds +18 levels, loss over $25M adds +26 levels. Example: First-timer, $1.2M loss, no enhancements. Level 7 + 18 levels = level 25. Sentencing range: 57-71 months federal prison. Plus mandatory restitution ($1.2M), fines, 3 years supervised release.

Wobbler. Prosecutor decides. California penalties under PC 487 grand theft depend on wobbler charging. Misdemeanor: 1 year county jail, $1K fine, restitution. Felony: 16 months, 2 years, or 3 years state prison, $10K fine, restitution. Enhanced sentencing for high-value fraud: +1 year if loss exceeds $50K, +2 years if over $200K, +3 years if over $1M, +4 years if over $3M. Example: PC 487 conviction, $1.5M loss, 3 years base + 3-year enhancement = 6 years total state prison, plus restitution, plus civil liability.

The wobbler is where aggressive lawyer makes enormous difference. PC 487 can be misdemeanor (1 year max) or felony (3 years base + enhancements). Factors: criminal history, scheme sophistication, victim count, victim vulnerability. Skilled lawyer negotiates with LA County DA pre-filing for misdemeanor instead of felony, or post-filing to reduce felony to misdemeanor at preliminary hearing.

Defenses That Actually Work

No intent. No fraud. Period. Every fraud statute requires prosecutors prove KNOWING and INTENTIONAL deception. Lack of criminal intent is your strongest defense. Not fraud: Business deal gone bad, contract breach, aggressive sales, mistaken product claims. These are civil disputes.

Knowledge at the time. That’s what matters. You promised delivery dates you believed you could meet but supply chain caused delays = civil breach. You promised delivery dates knowing your supplier had shut down = criminal fraud. Difference is your knowledge and intent when you made representations.

Common defenses: (1) Lack of intent – you believed statements were true or intended to fulfill promises but circumstances prevented performance. (2) Mistake of fact – misinformed by accountants or partners. (3) Insufficient evidence – prosecutor can’t prove beyond reasonable doubt you KNOWINGLY deceived victims. (4) False accusations – angry partner falsely characterized business dispute as fraud.

defense: preventing charges from being filed. If under investigation, your lawyer should immediately contact prosecutor with white paper: business documents proving good faith, expert declarations about industry standards, evidence showing lack of intent. Federal prosecutors – the ones at Central District Major Frauds Section who’ve seen everything – will decline prosecution if lawyer demonstrates insufficient evidence. State prosecutors (LA County DA) less likely to decline but will negotiate reduced charges.

Fifth Amendment exists because prosecutors twist statements. Fraud investigations are document-driven, prosecutors already have your bank records, tax returns, emails. They’re not investigating, they’re building a case. Your silence isn’t guilt. Fourth Amendment: Warrants must specify with particularity what’s searched and what crimes investigated. Overbroad warrants can be suppressed. Sixth Amendment: effective counsel means lawyer who understands forensic accounting, sentencing guidelines, prosecutor psychology.

Why You Need a Fraud Lawyer NOW (Not “Soon” – NOW)

Window closing. Fast. You have narrow window to prevent charges. Federal investigations proceed slowly (6-18 months), giving skilled lawyer time to contact U.S. Attorney’s Office Major Frauds with white paper demonstrating lack of intent. We’ve had prosecutors decline to present cases to grand jury after reviewing defense papers. Once indictment is returned, prosecutor has publicly committed – leverage drops dramatically.

NOW. Not tomorrow. Not next week. NOW. State investigations move faster (2-6 months), requiring immediate intervention. LA County DA Major Fraud reviews LAPD reports and decides filing. Your lawyer should contact DA before charges, presenting mitigation and arguing for: no criminal filing (civil restitution instead), misdemeanor instead of felony, or pretrial diversion.

Fraud defense requires specialization – lawyer who can read financial documents, work with forensic accountants to challenge loss calculations (prosecutors inflate losses to increase sentencing), understand Guidelines § 2B1.1, navigate relationships with federal/state prosecutors, challenge intent using business records.

What happens if you wait: Investigation builds evidence, witnesses interviewed without your lawyer present, you may make incriminating statements. Federal: grand jury returns indictment based only on prosecutor’s evidence. State: LAPD forwards to DA, who files complaint and issues warrant. By then prosecutor has invested resources, dismissing becomes much harder.

Due Process requires government provide notice before depriving liberty. But this only works if YOUR LAWYER proactively contacts prosecutor pre-charging with exculpatory evidence. Government won’t seek your side – that’s your lawyer’s job. Waiting until arraignment means you’ve lost the intervention window.

Call Us Now

We’ve defended fraud cases for many, many, years – Anna Delvey to business owners facing check kiting, healthcare providers facing Medicare allegations, real estate investors charged with mortgage fraud. We know prosecutor psychology because many of us used to be prosecutors.

212-300-5196