Los Angeles Fraud Defense Lawyer
6 AM. FBI agents at your door with a search warrant for “mail fraud investigation.” Fifteen agents, your computers seized, your employees watching from their cars. OR: LAPD detective leaves voicemail about “financial irregularities” needing immediate follow-up. OR: You find a grand jury subpoena taped to your office door. You’re terrified.
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.
Don’t talk. Don’t explain. Call us: 212-300-5196.
Federal or State
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).
What makes your case federal: You used U.S. mail OR interstate wires (email, phone calls across state lines) in furtherance of the fraud scheme. Fake invoices to Nevada via email – that’s 18 U.S.C. § 1343 wire fraud, federal felony. Same invoices locally via courier – that’s California Penal Code § 487 grand theft by fraud, state wobbler.
Other federal triggers: Defrauding federally insured banks, government programs (Medicare, SBA loans, unemployment benefits), securities fraud (SEC referral). Federal investigation = FBI Los Angeles Field Office (11000 Wilshire Blvd), IRS Criminal Investigation (300 N Los Angeles St), or U.S. Secret Service. You’ll appear in Edward R. Roybal Federal Building, 255 E Temple St, in Central District of California courtrooms. Prosecuted by U.S. Attorney’s Office, Major Frauds Section.
California state fraud: California Penal Code § 484 criminalizes theft by fraud, deceit, or trick. Under $950 = petty theft (misdemeanor). Over $950 = PC 487 grand theft (wobbler). State investigations: LAPD Commercial Crimes Division, LA County Sheriff Economic Crimes Bureau. State charges filed by Los Angeles County District Attorney’s Office, Major Fraud Division. You appear in Criminal Courts Building, 210 W Temple St.
Federal versus state matters. Federal prosecutors have discretion to decline charges pre-indictment if your lawyer presents compelling white paper showing lack of criminal intent. State prosecutors more aggressive about filing charges but will negotiate wobbler charges (felony down to misdemeanor). Other firms tell you it doesn’t matter. Wrong.
Next 30 Days
Arrested. Federal arrests = appearance before magistrate judge within 72 hours. Federal fraud = potentially high bond: surrender passport, no contact with alleged co-conspirators, electronic monitoring. State arrests = booking at county jail, arraignment within 48 hours, bail schedule or OR release.
DO NOT discuss your case with ANYONE except your lawyer. Jailhouse calls are recorded. Cellmates testify at trial. Your Fifth Amendment right isn’t “looking guilty” – it’s constitutional protection.
Under investigation but not arrested. Target letter from U.S. Attorney. Detective calls requesting “voluntary interview.” Search warrant at your business. This pre-charging phase is your golden opportunity. Contact prosecutor BEFORE indictment, present exculpatory evidence showing lack of criminal intent.
Timeline: Federal investigations take 6-18 months from search warrant to indictment. State investigations faster – 2-6 months. DO NOT give post-search interview. They’ll frame it as “opportunity to tell your side.” Trap. Invoke Fifth Amendment, provide our contact, say nothing.
Penalties
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. Actual sentences calculated using U.S. Sentencing Guidelines § 2B1.1. Base offense level 6-7, then increases based on loss amount: Loss $100,000-$250,000 adds +12 levels, loss $1,000,000-$2,500,000 adds +18 levels, loss over $25,000,000 adds +26 levels.
Example: First-time defendant, loss $1.2 million, no sophisticated means, no vulnerable victims. Base 7 + 18 levels = offense level 25. Criminal history I. Sentencing range: 57-71 months federal prison. Plus mandatory restitution ($1.2 million), potential fines, 3 years supervised release. Judges rarely deviate.
California state fraud under PC 487 depends on wobbler decision. Misdemeanor: Up to 1 year county jail, $1,000 fine, restitution. Felony: 16 months, 2 years, or 3 years state prison, $10,000 fine, restitution.
California enhanced sentencing for high-value fraud: Additional 1 year if loss exceeds $50,000. Additional 2 years if loss exceeds $200,000. Additional 3 years if loss exceeds $1,000,000. Additional 4 years if loss exceeds $3,000,000. Example: Convicted PC 487 felony, loss $1.5 million, 3 years base. Judge adds 3-year enhancement = 6 years total state prison, plus restitution, plus civil liability.
Wobbler factor is where aggressive lawyer makes enormous difference. PC 487 can be misdemeanor (1 year max) or felony (3 years + enhancements). Factors: Criminal history, scheme sophistication, number of victims, vulnerability (elderly = aggravating). Skilled lawyer negotiates pre-filing for misdemeanor instead of felony, or post-filing reduces felony to misdemeanor at prelim.
Defenses
Every fraud statute requires prosecutors prove KNOWING and INTENTIONAL deception. Lack of criminal intent is strongest defense. Not fraud: Business deal gone bad. Contract breach. Aggressive sales. Mistake about product capabilities. Civil disputes, not criminal fraud.
Distinguishing civil from criminal: Promised delivery dates you believed you could meet, supply chain issues caused delays = breach of contract (civil). Promised delivery while knowing supplier shut down = fraud (criminal). Difference is knowledge and intent AT THE TIME.
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, partners, or relied on incorrect data. (3) Insufficient evidence – prosecutor can’t prove beyond reasonable doubt you KNOWINGLY deceived victims. Burden on government. (4) False accusations – angry partner or disgruntled customer falsely characterized legitimate dispute as criminal fraud.
Pre-charging strategy: defense is preventing charges from being filed. Under investigation (target letter, search warrant, detective contact), your lawyer should immediately contact prosecutor with white paper: (1) business documents proving good faith intent, (2) expert declarations showing conduct within normal business practices, (3) evidence showing lack of criminal intent. Federal prosecutors at Central District Major Frauds Section will decline if defense demonstrates insufficient evidence. State prosecutors less likely to decline but will negotiate reduced charges.
Constitutional defenses: Fifth Amendment exists because prosecutors twist statements. Fraud investigations are document-driven – prosecutors already have bank records, tax returns, emails before contacting you. Building a case. Your silence isn’t guilt. Fourth Amendment challenges: Warrants must specify with particularity what’s searched. Overbroad warrants (“seize all business records 2010-2024”) can be suppressed. Your lawyer should immediately obtain search warrant affidavit and challenge violations. Sixth Amendment means lawyer who understands forensic accounting, federal sentencing guidelines, prosecutor psychology – not generic criminal defense attorney.
Why Now
Under investigation but not charged. Narrow window to prevent charges. Federal investigations proceed slowly (6-18 months), giving lawyer time to contact U.S. Attorney Major Frauds Section with white paper demonstrating lack of criminal intent. We’ve had federal prosecutors decline to present cases to grand jury after reviewing defense white papers. Once indictment returned, prosecutor publicly committed – leverage drops.
State investigations move faster (2-6 months), requiring immediate intervention. LA County DA Major Fraud Division reviews LAPD reports and decides filing. Your lawyer should contact assigned DA before charges, presenting mitigation: (1) no criminal filing (civil restitution instead), (2) misdemeanor instead of felony (wobbler discretion), or (3) pretrial diversion (avoid conviction if you pay restitution).
Fraud defense requires specialization. You need lawyer who can interpret financial documents (bank statements, QuickBooks, tax returns, wire transfers). Hire forensic accountants to challenge government loss calculations (prosecutors inflate losses to increase sentencing). Understand Sentencing Guidelines § 2B1.1 and argue downward departures. Navigate federal prosecutors (CDCA Major Frauds) or state prosecutors (LA County DA Major Fraud). Challenge criminal intent using business records and expert testimony.
Investigation continues building evidence. Witnesses interviewed without your lawyer present. You may make incriminating statements (without lawyer, you don’t know what to refuse). Federal: U.S. Attorney presents to grand jury, indictment returns based only on prosecutor evidence (no defense opportunity). State: LAPD forwards to DA, criminal complaint filed, arrest warrant issued. By filing time, prosecutor invested resources – dismissal becomes harder.
We’ve defended fraud for many, many, years. Anna Delvey to clients you’ve never heard of – business owners accused of check kiting, healthcare providers facing Medicare fraud, real estate investors charged with mortgage fraud, executives targeted in securities investigations.
Don’t talk. Call us. 212-300-5196