The Kaufman Law GroupWhite Collar Criminal Defense Lawyer Los Angeles | Complex Civil Litigation2026-09-02T09:20:12Zhttps://www.theklg.com/feed/atom/WordPress/wp-content/uploads/sites/1403978/2021/09/cropped-site-identity-1-32x32.jpgOn Behalf of The Kaufman Law Group<![CDATA[Does good faith defeat fraud charges under California law?]]>https://www.theklg.com/?p=491452026-09-02T09:20:12Z2026-09-02T09:20:12ZA fraud accusation can disrupt your work, finances and reputation quickly. You may worry that one inaccurate statement, failed deal or business loss will lead to criminal charges. Under California law, however, prosecutors generally must prove more than a mistake. They must show that you acted with the required intent to deceive or defraud.
If you honestly believed a statement was true, that belief may weaken the claim that you meant to mislead someone. Still, good faith does not automatically end a fraud case. The facts, the specific charge and the evidence of what you knew at the time all matter.
When good faith can matter
Many fraud-related crimes require prosecutors to prove that you knew a statement was false or acted with an intent to defraud. A genuine and reasonable belief in the truth of what you said may challenge that part of the case.For example, you might share financial information from a business partner and later learn that it was wrong. If you had no reason to doubt the information, that fact may support a good-faith argument. The same may apply if you make a business projection that you honestly believe you can meet but later cannot fulfill.Evidence that may support your position includes:
Emails or messages that show what you believed at the time
Contracts, financial records or reports that supported your statements
Proof that you fully disclosed important information to others
Communications showing that you relied on advice from a qualified professional
Records showing that you corrected an error after discovering it
This type of evidence can help show the difference between an honest mistake and an effort to deceive. Legal assistance can also help by examining the available evidence and identifying facts that may support a good-faith defense.
When good faith may not help
Under California law, fraud charges can depend on whether you knowingly and intentionally deceived another person with an intent to defraud. Good faith may carry less weight if evidence shows that you knew a statement was false, hid key facts or continued making claims after learning they were false.For instance, your claim of good faith may be harder to support if records directly contradicted your statements and you later repeated the same information. A court may consider what you knew, what you disclosed and what you did after you learned of a problem.
Focusing on intent, not outcome
A failed transaction or bad business outcome does not automatically equal fraud. The key issue is whether the evidence shows that you intended to deceive someone when you made the statement or entered the transaction.]]>On Behalf of The Kaufman Law Group<![CDATA[Can your network trigger a federal RICO investigation?]]>https://www.theklg.com/?p=491432026-08-25T13:09:15Z2026-08-25T13:09:15ZHow prosecutors can label a normal network as an enterprise
Federal RICO cases focus on an “enterprise,” which means a group associated together for a common purpose. Prosecutors do not need a formal corporation or written agreement. Instead, they look for repeated coordination, shared goals and steady contact. So a referral chain, management team or joint venture can draw attention.
In Los Angeles industries, people cross paths fast. A doctor refers to a lab, a lab uses a billing service and an executive funds a startup. If one person commits fraud, prosecutors may claim the group helped the scheme run. Then federal agents may sweep you into interviews, subpoenas or charges.
How separate legal acts can turn into a claimed pattern
RICO cases often grow when the government links separate events into one story. Each step may look lawful on its own. Yet prosecutors may argue the steps supported a larger plan. For example, they may connect marketing, billing and vendor payments into one “pattern.”
That risk rises when you hold a leadership role. Boards and partners often face scrutiny because they approve budgets and set direction. Even if you never intended to join a scheme, investigators may claim your willful blindness enabled it. Therefore, you need clear records that show what you knew and when.
Practical steps that reduce guilt by association risk
You can lower exposure by tightening oversight and documenting decisions. Focus on simple controls that match your size and industry.
Review referral and vendor relationships for unusual payment terms
Audit billing, inventory and expense reports on a set schedule
Require written contracts and clear scopes of work
Track board minutes and approval trails for major decisions
Train staff to report concerns without fear of retaliation
These steps help you spot issues early and show good-faith leadership.
Protect your professional reputation before charges arrive
Working within the interconnected nature of California's business landscape can leave you vulnerable to federal oversight. Internal audits help identify potential vulnerabilities before federal investigators come knocking. Furthermore, you need experienced legal counsel who understands sophisticated corporate structures and can protect your interests. Avoid waiting for prosecutors to reframe your legitimate business relationships as criminal associations before taking action.]]>On Behalf of The Kaufman Law Group<![CDATA[California False Claims Act guide for pharma employees]]>https://www.theklg.com/?p=491382026-08-19T08:18:30Z2026-08-19T08:18:30ZWorking in the pharmaceutical industry can give you a close view of how drugs are marketed, priced and billed. That access may also expose you to practices that cause government programs to pay claims they should not. In California, reporting suspected fraud may give you legal protections and, in some cases, a share of money recovered by the government.
How the law protects pharmaceutical whistleblowers
The California False Claims Act allows private citizens to file a confidential lawsuit on behalf of the state against companies that defraud public programs like Medi-Cal. Known as a "qui tam" action, this law rewards insiders who come forward with credible evidence. Pharma employees often uncover fraudulent schemes long before government regulators notice them.Common pharmaceutical fraud schemes that trigger state claims include:
Paying illegal kickbacks or speaker fees to local doctors to drive up prescriptions
Marketing drugs for off-label uses not approved by state health programs
Overcharging Medi-Cal through inflated drug prices or fraudulent rebate claims
Failing to report known manufacturing defects or contaminated batches
These practices drain public healthcare funds and put patient health at risk across Southern California.
Your financial incentives and legal protections
You do not have to put your career on the line for nothing. If your lawsuit leads to a successful recovery, you may receive a portion of the funds recovered, which typically 15% to 30%. This depends on whether the government intervenes and how much you contribute to the caseFurthermore, state law explicitly protects you from workplace retaliation. If your employer fires, demotes or harasses you for reporting fraud, you can sue for double back pay, reinstatement and legal fee reimbursement.Hiring an attorney can help you assess the strength of your claim, protect your rights and navigate the complex filing process while limiting unnecessary risks to your career.
Taking the right steps forward
Exposing workplace fraud takes courage, but you hold unique power as an insider. Taking early action with a clear strategy helps you turn your evidence into a strong case while keeping yourself safe. California law gives you the tools to stand up against corporate greed, protect taxpayer dollars and make a lasting difference in healthcare.]]>On Behalf of The Kaufman Law Group<![CDATA[Can AI chat logs become evidence in white-collar cases?]]>https://www.theklg.com/?p=491362026-08-09T19:02:07Z2026-08-09T19:02:07ZAI Chats as Evidence
AI chat histories act as a digital paper trail. If businesses leave chat accounts open, investigators can easily find evidence to use against them in court. This data gives prosecutors clear, timestamped evidence that is hard to hide. Courts consider these chats discoverable, often using them to prove:
Intent: Asking how to bypass accounting controls, structure bank transfers or hide revenue
Deception: Generating fake financial spreadsheets, invoices or misleading investor decks
Consciousness of guilt: Searching for ways to delete backups or destroy evidence during an investigation
Recent court rulings suggest that using public AI chatbots may void attorney-client privilege, as there is no formal relationship between a user and an AI. However, this area of law remains unsettled; some courts may still protect work products depending on how the AI was used and if an attorney supervised the activity.
Protecting your business in the age of AI
Managing digital records early can help lower legal risks. If you face legal scrutiny in California, it is advisable to check your company's AI policies and speak with a skilled attorney early to reduce potential legal exposure.]]>On Behalf of The Kaufman Law Group<![CDATA[Can post-transaction emails support wire fraud charges?]]>https://www.theklg.com/?p=491342026-07-16T12:14:52Z2026-07-16T12:14:52ZWhat makes an email a lulling communication?
A scheme is a plan to obtain money or property through deception, and it can involve one transaction or several. A message sent after a transaction may count as a “lulling” communication if the government proves that you sent it to reassure the recipient, delay a complaint or avoid detection while the alleged scheme continued. Examples include:
A receipt containing a false transaction number
An email offering misleading reasons for missing investment returns
A status update promising that delayed funds or refunds will arrive soon
These messages do not automatically prove wire fraud. Prosecutors must show that you intended to mislead someone and deprive them of money or property. They must also prove that an interstate or foreign electronic communication helped carry out the alleged plan. An email between two people in California may cross state lines through its server route, but prosecutors must prove that it did.
Why do timing and purpose of the email matter?
The 9th U.S. Circuit Court of Appeals, which covers California, recognizes that a message intended to delay detection may support a wire fraud charge only if evidence shows it helped continue an alleged scheme before the plan ended. A message sent only to hide what happened after the alleged scheme was complete may fall outside the wire fraud statute. Investigators may review the timeline, the message’s wording and what you knew when you sent it.
How can you preserve the full context?
If authorities question your emails, preserve complete threads, attachments, timestamps and related transaction records. Do not delete or alter messages. A chronology showing when funds moved and why you sent each communication may help explain the circumstances.
How the full email thread can clarify what you meant
A single message may appear misleading when viewed by itself. The surrounding emails can show what information you had, whose instructions you followed and whether circumstances changed after you sent it. Keeping the complete exchange intact can provide a more accurate account of your role, decisions and intent.]]>On Behalf of The Kaufman Law Group<![CDATA[SCOTUS rules on critical disgorgement question]]>https://www.theklg.com/?p=491312026-07-12T13:48:36Z2026-07-12T13:48:36Zdiscussed disgorgement here in the past. It is a financial remedy often used by the used by Securities and Exchange Commission. Individuals or companies are ordered repay illegal profits to those the SEC has determined were defrauded through criminal actions like insider trading and embezzlement.
Although disgorgement has long been recognized as an authority the SEC has, a case this year before the U.S. Supreme Court (SCOTUS) involved the question of what the SEC must show in order to seek disgorgement through the courts.
The case before the court
The case involved a man who was ordered by a California court to repay over $3 million along with interest to those he defrauded through various means, including a “pump-and-dump” scheme that involved penny stocks. While he admitted to violating the law, he claimed the SEC hadn’t proven that his actions had caused financial harm to anyone.
So does the SEC have to prove this financial harm before it can order disgorgement in addition to fines and other penalties? Attorneys for the government argued that it wasn’t necessary. In a rare unanimous decision, SCOTUS agreed that the SEC does not have to prove “pecuniary” or financial harm to use this remedy.
The ruling
Justice Neil Gorsuch, who wrote last month’s opinion, said in part that "a showing of pecuniary loss is not required before an investor may qualify as a victim of an offender's wrongdoing entitled to compensation." He referenced a case from many decades ago when he noted that “the plaintiff whose legally protected interest had been invaded was entitled to the defendant’s gain from that wrongful conduct even without showing pecuniary loss.”
Allegations of complex financial crimes require experienced legal guidance to navigate. The stakes can be extremely high, both criminally and civilly. It’s never too early to reach out for support, perhaps especially because this area of law never remains “still” for long.]]>On Behalf of The Kaufman Law Group<![CDATA[Online activity is still tracked in private browsing mode]]>https://www.theklg.com/?p=491292026-07-01T13:02:01Z2026-07-01T13:02:01ZPrivate browsing mode goes by a few different names, including incognito mode. It just depends on what browser you are using, but the function is essentially the same: You are given a new browser session that is not going to record your online activity.
That said, one important thing to remember about using private browsing is that it just deletes the local storage. If someone else opens the browser after you use it and checks your search history, for example, they will not see the search terms that you typed in during your private browsing session. They will not be able to see a list of the websites you visited or the pages you read.But because this is a local feature, all of that information likely still exists. It could be tracked by a network administrator in a professional or academic setting. It could be tracked by a person's internet service provider (ISP). If that person logged into a website, the activity can still be linked to them, even if they were in private browsing mode.
Law enforcement can subpoena an ISP
In the context of criminal defense cases, it is important to know that law enforcement can often approach these other entities to get a record of online activity. They could serve a subpoena on an ISP, for instance, which may then turn over the necessary records.For example, perhaps the police believe that you were involved in online financial fraud. They think that you searched for how to commit that fraud or used the internet to communicate with other people who were also involved in the scheme. Your ISP may be able to provide them with evidence that can be used against you.The complexities of digital evidence make modern criminal cases much different than they were in the past, and it is very important to understand all of your legal options.
]]>On Behalf of The Kaufman Law Group<![CDATA[What is the difference between embezzlement and theft?]]>https://www.theklg.com/?p=491272026-06-29T09:39:23Z2026-06-29T09:39:23ZUnderstanding theft in California
Theft generally refers to taking someone else's property without permission and with the intent to deprive the owner of it permanently. In California, theft can occur in various ways:
Taking property directly from someone (like pickpocketing)
Shoplifting from a retail store
Stealing a vehicle or bicycle
Taking items from someone's home without authorization
These scenarios share a common thread: you did not have lawful possession of the property before taking it. The key factor is that no one ever entrusted the property to you in the first place.
What makes embezzlement different
Embezzlement involves a breach of trust. This is what sets it apart from standard theft. This offense occurs when you lawfully possess someone else's property but then wrongfully take it for your own use. Consider these examples:
An employee with access to company funds transfers money to a personal account
A bookkeeper manipulates financial records to pocket cash
A trustee uses estate funds for personal expenses
A property manager diverts tenant rent payments for personal use
The critical distinction is that you initially had legal access to the property through your position or relationship with the owner. You violated that trust by converting the property for personal gain.
Why the distinction matters
Understanding whether you face embezzlement or theft charges is important because the circumstances of each offense differ substantially. Embezzlement typically involves a professional or fiduciary relationship, which might influence how prosecutors approach the case and what defenses might be available to you.
Both offenses are serious and could result in significant consequences depending on the value of the property involved. If you are facing either charge, knowing your legal options could help you decide your next steps.]]>On Behalf of The Kaufman Law Group<![CDATA[How do financial crime charges impact professional licensing?]]>https://www.theklg.com/?p=491252026-06-23T16:09:19Z2026-06-23T16:09:19ZMany people think about court-imposed sentences when they think about the effects of a criminal conviction. For those who hold professional licenses, the conviction will often come with changes to their license.
Financial crimes are one type of crime that can lead to changes in a professional license. These crimes often have to do with things like fraud, embezzlement, theft and money laundering. In each of those cases, a licensing board may believe that the person isn’t ethical enough to continue to hold their license.
Different licenses, different effects
Each licensing board sets standards for keeping a license valid. They aren’t limited to only looking at criminal convictions. Instead, they can also look into charges and any other disciplinary concerns. The effect that a specific case has on the license depends on a variety of factors, including the profession, state, type of charge, outcome of the case and how closely the charge relates to the licensed work. There are many different ways that a licensing board can handle the presence of criminal charges. They may put the person on probation, undergo continuing education, have specific monitoring requirements or place limits on their professional abilities. They may also choose to suspend or revoke the license. Dealing with a criminal case that could potentially harm a professional license is a serious matter that requires immediate attention. The long-term impact of these cases is significant, so it may be beneficial to work with someone who understands how to handle these matters. They can outline defense strategy options and discuss a plan for addressing the situation.
]]>On Behalf of The Kaufman Law Group<![CDATA[Misrepresenting an event could lead to fraud allegations]]>https://www.theklg.com/?p=491232026-06-09T15:05:01Z2026-06-09T15:05:01ZEvent fraud is a type of fraud that targets those who are interested in large-scale events, such as concerts, festivals, conferences and other things of this nature.
In some cases, fraud allegations revolve around the fact that the event itself never existed. Someone could be accused of selling fake tickets and perpetrating a scam. They knew all along that there was never going to be an event, but they simply marketed it to an interested target audience as if it were a legitimate event and sold tickets that could never be used.But in other cases, the issue is that the event itself was misrepresented. It does exist, but it is not what people thought they were signing up for when they purchased their tickets.
What does misrepresentation look like?
A good example of misrepresenting an event is the infamous Fyre Festival. The producers of this event were actually sued by those who tried to attend what was promoted as a prestigious music festival on an island.But what was promised and what individuals received did not always line up. They were told they would have access to local seafood, sushi and a pig roast, but they actually got cold cheese sandwiches. They were told that there would be A-list musical acts, including Blink-182, but those bands did not play the festival. Concertgoers were also told they would have luxury accommodations, but were instead given emergency tents.In other words, even though the Fyre Festival did happen, fraud allegations stemmed from the fact that it bore almost no resemblance to the event that was promised.
What are your defense options?
If you have been accused of event fraud, you may believe it is a misunderstanding or simply a marketing issue. You never intentionally tried to commit fraud. In a case like that, it is imperative that you understand exactly what defense options you have, and it can help to work with an experienced attorney.
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