Southern California is known for its vibrant economy, luxury lifestyles and booming industries, from entertainment to real estate. With financial success and high-stakes business dealings come increased risks of fraud allegations.
Law enforcement agencies aggressively pursue white-collar crime in the region, and individuals in business, finance, healthcare and real estate may find themselves particularly concerned about their risk of coming under investigation for fraud.
Common fraud-related concerns in Southern California
Fraud takes many forms, and in a place like Southern California, where high-value financial transactions occur daily, the potential for legal trouble is significant. Some of the most commonly prosecuted fraud charges in this area of the U.S. include:
- Real Estate and Mortgage Fraud – Given the region’s high property values, authorities closely scrutinize real estate deals. Misrepresenting financial information on mortgage applications, engaging in property flipping schemes in ways that flaunt regulations or deceiving buyers or lenders can result in serious charges.
- Healthcare Fraud – With numerous hospitals, medical practices and insurance providers operating in the area, healthcare fraud is a major focus of federal and state prosecutors. Billing for unnecessary procedures, overcharging insurance companies or submitting false Medicare claims can trigger criminal investigations.
- Insurance Fraud – From auto accidents to property damage claims, Southern California sees a high volume of insurance fraud cases. Staged accidents, false injury claims or exaggeration of damages can result in felony charges.
- Entertainment and Investment Fraud – The entertainment industry attracts investors and financial backers, but not all deals are legitimate. Ponzi schemes, false investment promises or misrepresentation of financial returns in film and business ventures can lead to securities fraud charges.
Fraud charges in California can result in serious penalties, including substantial fines, orders to pay restitution and prison time. As a result, it is important to take any investigative actions and/or actual charges very, very seriously.
