Imagine an investment opportunity is presented to you and it seems too good to pass up. You plunk forward a decent amount of money, hoping to get a solid return, when the deal goes south. The investment was never real in the first place.

That’s exactly what happened in San Fernando Valley when a former board member of the Beverly Hills Chamber of Commerce conned a North Carolina man out of millions of dollars in a scam that purportedly involved high-yield bonds. The man served eight years in prison for stealing $8.7 million from the victim, and January 2017, was sentenced to to another six months for violating the terms of his probation by appearing to travel to partake in another scheme to defraud.

In California, embezzlement is considered a “white collar crime” — non-violent and involving financial gain — in which property is fraudulently appropriated by someone to whom it has been entrusted. It’s covered under California Penal Code 503, among other laws, and may be either a felony or misdemeanor, depending on how much money was embezzled.

What is Theft by Embezzlement?

Theft by embezzlement is one of the various types of crimes covered by California Penal Code 487. Generally, any property valued at more than $950 is a grand theft.

Embezzlement typically occurs in employment and corporate settings. Some embezzlers steal all the money intended at once, while others steal a small amount over time.

Common embezzlement schemes are:

• Fraudulent billing
• Records falsification
• “Ponzi” or pyramid schemes

Certain elements are necessary in order for the crime to be considered theft by embezzlement. Those found guilty of embezzlement may face several charges, each with a penalty of up to three years in prison. Following prison time, a convicted embezzler may expect a period of court supervision. This is to ensure that the offender does not repeat the same or similar crimes.

Repeat Offenders are Common

Repeat offenders are actually common in investment scams. After the offender completes his prison time, he may try to take his scheme to another location where he may go undetected.

Embezzlement often involves the commission of several crimes. In the case of the San Fernando Valley man, the criminal activity involved embezzlement through high-yield bonds. Because he embezzled money from an out-of-state victim, he was found guilty of interstate transportation of stolen property as well as money laundering. The embezzler reportedly offered a $10 million investment opportunity to the victim, but that money ended up being used for personal expenses for the embezzler and his girlfriend, including the purchase of two lavish homes and five high-end automobiles.

The offender in this case was ordered to spend more than eight years in prison, which was to be followed by a three-year probation period. But he violated the terms of his probation when he traveled to the Ivory Coast without permission. The man was found to be taking the trip to engage in further embezzlement activities, violating the terms of his parole almost immediately after his release from prison. He was prosecuted for a probation violation and sentenced to an additional six months.

How to Prevent Becoming a Victim

The U.S. Securities and Exchange Commission offers some advice on how to identify the warning signs of a Ponzi scheme and avoid becoming a victim. There’s also good information available through the SEC on pyramid schemes, which are a type of investment that’s actual a multi-level marketing program typically revolving around making easy money online or from your home.

To defend yourself from a Ponzi scheme, make sure to ask these questions before investing a large amount of money:

• Is this a high investment return with little or no risk? Beware of any “guaranteed” investment opportunity.
• Are there overly consistent returns? Regular, positive returns are suspicious, as overall market conditions change investment values over time.
• Does this involve unregistered investments and/or unlicensed sellers? Make sure the investment is registered with the SEC or state regulators, as well as the professional or their firm.
• Are the strategies easy to understand and accessible? Anything that’s too complex or secretive is a bad sign. You should also be able to review information about an investment in writing.
• Have you not received a payment? Seems like a no-brainer, but Ponzi scheme promoters often encourage investors to roll over their investments to get a higher return.

Penalties for Embezzlement

An offender who commits embezzlement may be breaking various laws. For example, in addition to embezzlement and grand theft charges, the offender may commit other crimes such as money laundering and transportation of stolen property. The offender may accumulate many counts which, if found guilty, could result in a lengthy prison sentence.

Additionally, the guilty offender may be required to repay money that was stolen, and will need to be supervised after being released from prison.

If you’ve been accused of embezzlement, you have the right to be presumed innocent under the United States Constitution. You also have the right to be heard through an attorney during court proceedings. A skilled and experienced criminal defense lawyer obtained through the San Fernando Valley Bar Association’s Attorney Referral Service may be able to help.

Having a criminal conviction on your record can make life tough – that conviction can affect your ability to get a job or a loan, for example. The law recognizes that we all make mistakes, and you may be able to “expunge,” or clear, that conviction from your records. What does that mean, and how can you do it?

What Does Expungement Do?

There are different expungement processes and rules at the state and federal level. Here, we’ll talk about why and how to expunge your record under California law.

When you expunge your record in California, your conviction is technically dismissed. But that doesn’t mean it undoes the conviction. One of the biggest benefits is that you will generally no longer have to disclose your conviction when you’re applying for a private sector job. When you apply for a government job or license and they ask if you’ve been convicted of a crime, you’ll still need to say yes. However, you’ll also mark it as “conviction dismissed.” The government must then treat your application as if you’d never been convicted.

You will still have to deal with some of the consequences of your conviction. You won’t be allowed to own firearms unless/until you would otherwise be able to. Your driving privileges may still be restricted and a dismissed conviction can still be used to increase your punishment if you’re convicted of another crime. If you were ineligible to hold public office due to your conviction, you will still be ineligible to hold office.

Finally, an expungement will not wipe out a requirement that you register as a sex offender. You will need to ask the court separately to let you out of that requirement.

Do I Qualify For Dismissal?

You can qualify for dismissal under two main circumstances:

• You got probation, completed all the terms, and are no longer on probation (Cal. Penal Code § 1203.4)
• Your criminal was reduced to an infraction

You’re not eligible for expungement if you’re currently charged with or serving a penalty for another crime. You’re also ineligible if you served time in a California state prison. Finally, it’s not possible to expunge some sex crimes, especially if they involve minors.

Applying for Expungement

The expungement process is much easier with the help of an experienced attorney. The court will want to look at the specifics of your case, your history since the conviction, and the specifics of the law surrounding your case. As part of the expungement process, your attorney may also be able to reduce your felony to a misdemeanor on your record. You may be able to handle the process on your own, but the law can be complicated and you may not be able to put together a convincing case for expungement.

Expungement vs. Sealing Your Records

Many people are confused about the difference between expunging and sealing your records. Expungement simply means that your conviction is dismissed and you don’t have to disclose it to most employers or other interested parties. Sealing your records, however, actually wipes them out. Going forward, you will be able to state that you have never been arrested for a crime.

However, you only qualify to have your records sealed if the prosecutor never filed charges, if your case was dismissed, or if you were acquitted in a jury trial. In those instances, it’s technically true that you were never arrested for a crime because you were innocent.

We Can Help

If you’re interested in clearing your criminal record – and making it a whole lot easier to get a job – we can connect you with an experienced local attorney. Your attorney will help you determine whether you’re eligible for expungement and whether you have other options. They will also guide you through the expungement process.

 

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Gun laws are a hot topic around the nation, and California is no exception. While the Second Amendment is often believed to be a straightforward rule allowing citizens to own guns, the reality is much more complicated. Federal, state, and local laws all put limits on the types of guns you can own and where and how you can use them, and the penalties for breaking those rules can be severe. California gun laws are among the more restrictive in the country – there are hundreds of different code sections within the California statutes that govern ownership and use of a gun.

If you own or are considering acquiring a gun in California, here’s what you need to know.

 

Gun Purchase And Ownership

California gun laws restrict who can buy a gun, and how. First, you must be at least 18 years old to purchase a rifle or a shotgun. For a handgun, you must be at least 21. In either case, you must have a Firearm Safety Certificate and complete a safety demonstration with your new gun. Cal. Pen. Code, § § 26800-26850. You’ll need to present valid ID – either a current California driver’s license or identification card issued by the DMV. If you’re not a citizen, you can bring documentation of your Alien Registration Number. In addition, there is a ten-day waiting period after your purchase during which the state will run a background check (note that this rule is currently being appealed in federal court). Finally, all guns must generally be purchased through a California licensed dealer using the Dealer’s Record of Sale (DROS) system, which records your ownership and identity.

New Residents

If you have purchased a gun in another state and are moving to California, you have 60 days to either:

• submit a New Resident Report Of Firearm Ownership and a $19 fee to the California DOJ Bureau of Firearms
• sell or transfer the gun to or through a licensed California firearms dealer
• sell or transfer the gun to your local California police department (you should contact them first for detailed instructions)

If you move to California and do not register or sell your firearm, you face at least a misdemeanor charge with fines and up to 1 year in county jail. If you have prior convictions or if you’re prohibited by California law from owning a firearm, you may face 2-4 years in jail. Cal. Pen. Code § 12072(g).

Under California gun laws, certain people are prohibited from ever owning a firearm. These include:

• Anyone whose probation terms prohibit ownership
• Any individual convicted of a violent crime or felony
• Anyone subject to a permanent or temporary restraining order
• Anyone who has been afflicted with mental illness who has been found by the court to be a danger to themselves or others
• Any individual convicted of misdemeanors outlined under Penal Code section 29805
• Anyone illegally residing in the U.S.
• Individuals addicted to using narcotics
• Any person who was taken into custody under sections of the Welfare and Institutions Code
• Anyone who has been dishonorably discharged by the military
• Anyone determined to be a sex offender with a mental disorder

In order to determine who is disqualified from being able to own a weapon, California uses the Armed Prohibited Persons System. Officers are allowed to confiscate weapons if the individual appears in the database to have purchased a weapon in the past.

Banned Firearms

There are certain types of guns and related equipment that cannot be bought or sold in California, regardless of whether you meet the general requirements. These include:

• Large capacity magazines (those that hold more than 10 rounds of ammunition)
• .50 Browning Machine Gun caliber rifles
• Assault weapons
• All automatic weapons
• Rifles with barrels of less than 16”
• Short-barreled shotguns

Transporting Or Carrying a Firearm

California gun laws are unusually strict as far as transporting and carrying firearms. In general, it is illegal to open carry a “handgun” in any public place and in any incorporated city or county, or in prohibited areas (like schools, airports, and government buildings). You can openly carry firearms in private parts of unincorporated areas. In this case, a “handgun” doesn’t just refer to pistols – it means any gun with a barrel shorter than 16″ or that could be concealed somewhere on your person.  Cal. Pen. Code § 26350. These rules apply even to unloaded weapons.

You are allowed to transport an unloaded firearm in a locked and secured container to or from your vehicle. You can also transport an unloaded firearm in your vehicle as long as it’s unloaded and in either a locked and secured container or in your trunk.  Cal. Pen. Code § 25610. Remember that a glove compartment does not qualify.

Long guns may not fall under this restriction, but certain counties and cities may have separate sets of restrictions on the open carrying of long guns so you’ll need to check with local law enforcement to learn the laws in your area.

Loaded Vs. Unloaded Guns And Other Factors

Carrying an unloaded gun and carrying a loaded gun in public are separate offenses under California gun laws. In general, both crimes are misdemeanors unless there are aggravating factors, such as:

• the person carrying the gun is prohibited from having a firearm under California gun laws
• the gun was stolen
• the gun is unregistered
• the person carrying the gun is a member of an active street gang

If there are aggravating factors, possession of a gun (either loaded or unloaded) in public may be a felony offense involving jail time.

California Concealed Carry Laws

In California, concealing a gun on your person or in a vehicle that’s under your control or direction is illegal. It’s also illegal to cause another person to conceal a gun in a vehicle that you’re riding in. Carrying a concealed weapon may be charged as a misdemeanor with fines and up to a year of jail time, but it may also be charged as a felony if there are any of the aggravating factors listed above. Cal. Pen. Code § 25400.

Under certain circumstances, you may be able to obtain a Concealed Carry Weapon (CCW) license. You’ll need to apply with your local sheriff’s or police department. In order to get the license, you’ll need to prove that:

• you’re “of good moral character”
• you have good cause for wanting a CCW license
• you’re a resident or work in that city or county and have done so for a substantial amount of time
• you’ve completed a state-approved training course on firearm safety and firearm laws.

Cal. Pen Code § 26150(a).

The most difficult part of that process is generally proving that you have good cause for wanting a CCW license; fearing for your personal safety generally does not qualify.

Exceptions

Note that the California gun laws provide for exceptions for certain individuals and uses, including on- and off-duty law enforcement and military personnel. These exceptions may apply to the types of firearms you can purchase or possess as well as where and how you can carry them.

 

 

Facing Charges Under California Gun Laws

California takes gun crime seriously and you may end up facing jail time, or at least fines, for even relatively minor infractions. There are some defenses, but you’ll need to work with an experienced local attorney to make sure that your rights were respected through the search and arrest process and that you use all available defense to avoid conviction. Remember that you always have the right to an attorney and you cannot be forced to incriminate yourself to the police.

If you’re facing charges under California gun laws, we can help you find an attorney to protect your rights.

 

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