The crime may also be referred to as concealing assets from creditors.
If you owe money to someone or to a company, you probably want to find ways of getting out of debt. This may include setting up a budget, taking out a loan to pay off higher-interest credit cards, or even filing bankruptcy. If you decide that you don’t want to pay back the money that you owe, and decide to give your assets to someone else to avoid your obligations, you may be charged with the crime of fraudulent conveyance.
According to a criminal defense attorney in Whittier, CA, fraudulent conveyance is a crime that occurs when a person gives away their property with the specific intent of avoiding using that property to pay back a debt. For example, if a man knows that he is liable to his ex for a significant amount of back child support and decides to transfer a large amount of cash to his current girlfriend to avoid having to pay that debt, he could be charged with fraudulent conveyance.
Under California law, a person may be prosecuted with fraudulent conveyance if they sell, give away, or otherwise transfer any kind of property with the goal of preventing their creditors from getting at that property to satisfy the debt. For purposes of this law, a creditor is anyone to whom a person may owe money. To prove this crime, a prosecutor must demonstrate that the property was transferred with the intent of preventing a creditor from getting paid, delaying the creditor getting paid, or making it more difficult for the creditor to be paid.
This law applies to all types of property, including money, cars or other vehicles, homes, watches or jewelry, and even clothes or furniture. In short, if the property can be used to pay a debt, it qualifies under this law.
Fraudulent conveyance may be charged as either a misdemeanor or a felony. If the property that is conveyed is a stock valued at more than $250, it will be charged as a felony. Misdemeanor fraudulent conveyance may be punished by imprisonment in county jail for up to a year and/or a fine of $1,000. Felony fraudulent conveyance is punishable by between 16 months and 3 years in California state prison.
In addition to potential state charges, conveying property for the purposes of avoiding a debt may be a federal crime. If you are under investigation for fraudulent conveyance of property by either state or federal authorities, you should contact a criminal defense attorney in Whittier, CA as soon as possible.
There are a number of ways that you can defend yourself against a fraudulent conveyance charge. If you lacked the intent to defraud your creditor, that may be a defense. For example, if you transferred money to a loved one because they were in financial need, that is not a fraudulent conveyance because your intent was not to avoid paying your creditors. A seasoned criminal defense attorney in Whittier, CA can investigate the facts of your case to develop a defense.
At the Chambers Law Firm, we represent Californians who have been charged with fraudulent conveyance and other crimes. We work hard to protect our clients freedom — and have a proven track record of success. To learn more or to schedule a free initial consultation, contact us today at 714-760-4088 or dchambers@clfca.com.
