The Kaufman Law Group White Collar Criminal Defense Lawyer Los Angeles | Complex Civil Litigation 2026-10-22T11:33:08Z https://www.theklg.com/feed/atom/ WordPress /wp-content/uploads/sites/1403978/2021/09/cropped-site-identity-1-32x32.jpg by The Kaufman Law Group <![CDATA[Can authorized expenses become embezzlement charges?]]> https://www.theklg.com/?p=49284 2026-10-22T11:33:08Z 2026-10-22T11:33:08Z When does authorized spending cross legal boundaries? Embezzlement occurs when someone fraudulently takes or uses property entrusted to them. An employee may face charges for knowingly using company funds for an improper purpose. Prosecutors must prove fraudulent conduct and an intent to deprive the owner of the property or its use, even for a short time. Under Cal. Penal Code § 511, a good faith "claim of right" defense applies if an employee openly appropriates funds under an honest belief of entitlement, provided the claim is not based on an illegal offset.

What factors determine criminal liability?

Investigators may review spending records, company rules and payment details to find out whether funds were misused. Several types of evidence may help explain what the employee was allowed to spend:
  • Expense records: Reports may show where company funds went and why.
  • Written approvals: Emails or signed forms may show that a manager approved the spending.
  • Company policies: Written rules may explain which expenses were allowed.
  • Payment records: Receipts and bank statements may help explain disputed purchases.
These records can provide useful facts, but they do not guarantee that charges will be dropped. Investigators may also review hidden purchases, changed records or false expense claims for signs of fraud. Embezzlement involving money or property valued over $950 is prosecuted as grand theft, whereas amounts of $950 or less are prosecuted as petty theft. However, some exceptions apply and certain transactions may be combined when deciding the charge.

How do authorization limits affect criminal liability?

Spending more than the approved amount may raise concerns. Still, breaking a company rule does not automatically mean embezzlement occurred. Prosecutors must prove that the employee fraudulently used entrusted property with the required criminal intent. A disagreement over spending rules may remain a workplace matter rather than a crime. Written approvals, payment records and company policies may help explain the employee's actions. A California criminal-defense attorney can review these facts and assess whether the evidence supports an embezzlement charge or a possible defense.]]> by The Kaufman Law Group <![CDATA[What pharmacists should know about upcoding allegations]]> https://www.theklg.com/?p=49151 2026-09-28T09:32:18Z 2026-09-28T09:32:18Z How upcoding allegations typically arise Federal auditors compare submitted claims against patient records to find billing gaps. When billing codes show higher-cost services without supporting records, federal agents may suspect fraud. High billing patterns can trigger a review even when individual claims appear valid. Current or former employee complaints are a common trigger under the False Claims Act's qui tam provisions. These provisions allow private parties with direct knowledge to file lawsuits on behalf of the United States. Pharmacies using automated billing systems may face allegations if software defaults to higher billing tiers without oversight.

Legal consequences pharmacists face

The False Claims Act allows the government to seek three times its losses, plus a penalty for each false claim. These penalties are adjusted for inflation. A conviction under 18 U.S.C. § 1347 may also bring up to 10 years in prison, or up to 20 years if serious bodily injury results. Other consequences include:
  • Federal program exclusion: Mandatory exclusion for certain convictions under 42 U.S.C. § 1320a-7(a).
  • Permissive exclusion: Other fraud convictions may lead to exclusion under § 1320a-7(b).
  • License action: State pharmacy boards may suspend or revoke a license, depending on state law.
These penalties can affect a pharmacist’s finances, federal program status and ability to practice.

How pharmacists can reduce upcoding risk

Pharmacists can take several steps to reduce billing risk:
  • Conduct regular internal audits to catch errors before external reviews occur.
  • Verify that billing codes match documented services in the clinical record.
  • Maintain detailed records of all dispensing activities.
  • Train staff on proper coding protocols to minimize billing errors.
Prompt legal consultation is essential when a pharmacist receives an audit notice, civil investigative demand or subpoena. Early involvement gives attorneys the best chance to review records and build a response strategy.

What pharmacists should do when an inquiry begins

Upcoding allegations can lead to treble damages and exclusion from federal health programs. Pharmacists facing a government billing inquiry should seek legal counsel early to protect their license and practice.  ]]> On Behalf of The Kaufman Law Group <![CDATA[How does victim restitution impact California embezzlement cases?]]> https://www.theklg.com/?p=49147 2026-09-23T16:31:47Z 2026-09-23T16:31:47Z In California, embezzlement convictions carry steep financial consequences that stretch far beyond standard penalties. Chief among these is victim restitution, a mandate central to the state's justice system that demands full repayment of economic losses. Here is what you need to know about it. 

How does victim restitution work?

A court must order restitution immediately upon conviction. Under California law, this requires the defendant to pay for the victim’s full economic losses directly caused by the embezzlement. Some of the common losses covered under victim restitution include:
  • Misappropriated assets or funds
  • Lost revenue resulting from the embezzlement
  • Forensic auditing costs
  • Attorney's fees and related costs, in certain circumstances
In addition to reimbursing the victim’s economic losses, a defendant is also required to pay a restitution fine separately. For a felony conviction, the fine ranges from $300 to $10,000. Meanwhile, for a misdemeanor conviction, the range is between $150 and $1,000.

How does restitution relate to probation and sentencing?

As is common with white-collar crimes, paying back the victim does not guarantee that a person will skip jail time. However, a strong criminal defense often highlights the defendant’s effort to repay the money. The court will typically consider this effort when weighing an appropriate sentence. In some cases, courts can make restitution a condition of probation, allowing a defendant to avoid serving time in custody.

Why the restitution calculation matters and how it can be contested

California restitution orders can be confusing, and the financial impact can follow you for years. Because the rules are so strict, it is wise to speak with an experienced criminal defense lawyer. They can review the restitution calculation, challenge losses that were not directly caused by the defendant's conduct and advocate for a payment structure the client can realistically meet.]]> On Behalf of The Kaufman Law Group <![CDATA[Does good faith defeat fraud charges under California law?]]> https://www.theklg.com/?p=49145 2026-09-02T09:20:12Z 2026-09-02T09:20:12Z A 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=49143 2026-08-25T13:09:15Z 2026-08-25T13:09:15Z How 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=49138 2026-08-19T08:18:30Z 2026-08-19T08:18:30Z Working 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 case Furthermore, 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=49136 2026-08-09T19:02:07Z 2026-08-09T19:02:07Z AI 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=49134 2026-07-16T12:14:52Z 2026-07-16T12:14:52Z What 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=49131 2026-07-12T13:48:36Z 2026-07-12T13:48:36Z discussed 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=49129 2026-07-01T13:02:01Z 2026-07-01T13:02:01Z Private 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.  ]]>