Differences Between Theft by False Pretenses, Theft by Trick, and Embezzlement in Los Angeles

When you are being investigated or have already been charged with any form of theft in Los Angeles, understanding the differences between theft by false pretenses, Theft by trick, and embezzlement is crucial. Each theft offense carries its own set of elements, penalties, and strategic defenses, and the exact label the prosecutor places on your case matters.

At Kraut Law Group Criminal & DUI Lawyers, our team, led by former Senior Deputy District Attorney Michael Kraut, has spent decades on both sides of the aisle. We understand how the Los Angeles County District Attorney’s Office builds these cases, and we are familiar with the criminal process, which enables us to dismantle them effectively.

This page breaks down the three most confused California theft offenses: theft by pretense (Penal Code § 532), theft by trick (Penal Code § 484), and embezzlement (Penal Code § 503), so you can understand the accusations you face and the defenses available.

Why Understanding the Nuances of California Theft Law Matters

• Charge severity and sentencing: A misdemeanor allegation can swiftly become a felony if the amount involved exceeds $950, if the property is an automobile or firearm, or if you have certain prior convictions. Knowing which statute the State has chosen affects everything from bail to possible prison exposure.
• Available diversion and reduction options: Los Angeles County offers programs, such as Deferred Entry of Judgment (DEJ) or the Neighborhood Justice Program, which may apply to one theft offense but not another.
• Long-term consequences: Convictions for theft carry a stigma of dishonesty, making it more difficult to secure future employment, obtain professional licensing, and pursue immigration relief. Correctly classifying the offense is the first step in protecting your record.

Theft by False Pretenses in Los Angeles

Under Penal Code § 532, theft by pretense occurs when a person uses deliberate misrepresentation to induce someone to transfer ownership or title to property. The essence of the crime is a lie that causes the victim to hand over their property willingly.

Elements the Prosecutor Must Prove

• Intentional misrepresentation: A false statement, half‑truth, or deceptive omission made with knowledge of its falsity.
• Intent to defraud: The goal must be to convince the victim to relinquish ownership or an important legal right.
• Reliance: The victim believed the misrepresentation and acted on it.
• Transfer of ownership or title: The victim voluntarily passed control or ownership because of the lie.

Real‑World Examples

• Promising investors a non-existent guaranteed return if they wire funds to your account.
• Advertising a car with a “clean title” that is salvaged and convincing a buyer to transfer the full purchase price.

Penalties and Collateral Consequences

• Property value ≤ $950: Generally charged as a misdemeanor, punishable by up to 6 months in county jail and a fine of up to $1,000.
• Property value > $950 or an automobile/firearm: Prosecuted as grand theft, wobbler status, exposing you to up to 3 years in county jail or prison.
• Aggravators such as multiple victims or elder victims can push sentences above the traditional triad via sentencing enhancements.
• Civil exposure: Victims may file a civil suit for treble damages under California Civil Code § 3345 when elderly or disabled victims are involved.

Defense Strategies We Employ

• Good‑faith belief: Demonstrating an honest misunderstanding or mistake of fact can negate intent.
• Lack of reliance: Showing that the alleged victim did not rely on the statement or had independent knowledge contradicting the claim.
• Insufficient proof of ownership transfer: Without clear evidence that the title changed hands, the offense may collapse into an attempted theft or a lesser charge.

Theft by Trick in Los Angeles

Theft by trick, as defined under Penal Code § 484, targets deception that secures only possession, not ownership. The victim expects to retrieve the item, but does not.

Core Elements

• Fraudulent device or artifice: Any scheme or ruse that causes the victim to hand over temporary custody.
• Victim’s continued expectation of return: The owner believes the property will be used for a limited purpose or quickly returned.
• Intent to permanently deprive: Even if formed after obtaining possession, the intent to keep the property must exist at some point.
• Actual taking and carrying away: Physical possession must move from the victim to the defendant.

Illustrative Scenarios

• Borrowing a high-end camera “for a weekend shoot” and pawning it the next day.
• Renting construction equipment with a counterfeit credit card and never returning it.

Potential Punishments

• ≤ $950: Misdemeanor petty theft, up to 6 months in county jail.
• > $950 or special property: Wobbler grand theft, up to 3 years in county jail or prison.
• Prior theft convictions: Under Penal Code § 666, a conviction for petty theft with a previous conviction can be elevated to a felony.

Proven Defense Tactics

• Consent to possess: Demonstrating that the owner voluntarily lent the property for longer than alleged undermines the element of deceit.
• No intent to permanently deprive: Returning the property intact before arrest or charge is robust evidence of a lack of intent.
• Mistaken identity: Surveillance or eyewitness testimony may implicate the wrong person; early investigation can secure alibi evidence.

Theft by Embezzlement in Los Angeles

Embezzlement (Penal Code § 503) involves someone who was initially entrusted with property but later converts it for personal use. It often arises in the workplace or fiduciary settings.

Statutory Elements

• Entrustment: The defendant had lawful possession due to a relationship of trust, such as an employee, agent, fiduciary, partner, or even a family caretaker.
• Conversion: The property is used in a way that benefits the defendant and deprives the owner.
• Intent to deprive: As soon as the decision is made to convert the property, embezzlement is complete, actual loss by the victim is not required.

Common Fact Patterns in Los Angeles Courts

• A bookkeeper siphons small amounts from the business checking account into a personal Venmo account over months.
• A trustee spends a minor’s inheritance on personal travel and jewelry.

Criminal and Civil Exposure

• Wobbler offense: Filing decision mirrors grand theft standards—value over $950 triggers felony potential.
• Restitution orders: Judges routinely require repayment as a condition of probation or supervision.
• Employment repercussions: Embezzlement signals untrustworthiness, often leading to permanent disqualification from financial positions.

Targeted Defense Approaches

• Accounting discrepancies: Complex financial records may reveal innocent bookkeeping errors rather than intentional theft.
• Authority to use funds: Employment contracts or corporate bylaws sometimes authorize actions that appear suspicious at first glance.
• Statute of limitations: For embezzlement, time limits generally begin when the offense is discovered, not when it occurs. Delays in prosecution can open procedural defenses.

Key Differences Summarized

• Ownership vs. possession:
  • Pretenses transfer title.
  • Trick transfers possession only.
  • Embezzlement begins with lawful possession.
• Source of trust:
  • Trickery and pretenses rely on deceiving strangers or acquaintances.
  • Embezzlement arises from a pre-existing fiduciary or employment relationship.
• Timing of intent:
  • Pretenses and tricks require intent to deprive someone of their acquisition before or at the time of acquisition.
  • Embezzlement allows intent to form after acquisition.

Understanding these subtleties can mean the difference between dismissal, misdemeanor plea, or felony conviction.

Collateral Consequences Beyond Jail Time

• Professional licenses: Nurses, real estate agents, contractors, and CPAs must report theft convictions and face possible revocation of their licenses.
• Immigration status: Crimes involving moral turpitude can jeopardize visas and green cards and may trigger removal proceedings.
• Gun ownership: Certain felony convictions strip Second Amendment rights, a significant concern for professionals required to carry firearms.
• Civil lawsuits: Victims often pursue restitution in civil court, which can result in double or triple the original financial exposure.

How Kraut Law Group Criminal & DUI Lawyers Builds Winning Defense Strategies

Our approach is proactive and evidence-driven:

• Immediate investigation: We dispatch former law‑enforcement investigators to gather surveillance videos, digital logs, and witness statements before they disappear.
• Forensic accounting: Certified fraud examiners dissect financial records to locate innocent explanations or mitigate loss calculations.
• Negotiation credibility: As former prosecutors, we speak the DA’s language, often resolving cases early through charge reductions or civil compromises.
• Trial readiness: Preparing every case for trial signals seriousness and often forces better plea offers.

Former Prosecutor’s Insight: What Los Angeles DAs Look For

• ADAs evaluate victim cooperation and documentary evidence, such as bank statements, text messages, and emails.
• They measure jury appeal: sympathetic victims (such as seniors and small businesses) increase pressure; we counter with context and character witnesses.
• Restitution ability often sways filing decisions. We negotiate structured repayment plans to secure misdemeanor dispositions or diversion.

Steps to Take if You Are Under Investigation

• Exercise your right to silence: Politely decline interviews until you have counsel.
• Preserve potential evidence: Bank statements, emails, and text logs can prove legitimate intent.
• Avoid contact with the alleged victim: Well-intentioned explanations can be misconstrued as intimidation.
• Consult proven defense counsel: Early intervention can prevent charges from being filed.

Why Clients Choose Kraut Law Group Criminal & DUI Lawyers in Theft Cases

• Decades of courtroom experience: Michael Kraut spent over 14 years prosecuting complex financial crimes before dedicating his practice to defense.
• Harvard Law pedigree paired with local insight: We combine top-tier legal training with deep relationships in every Southern California courthouse.
• 24/7 availability: Theft investigations don’t follow business hours; neither do we.
• Track record of success: We have secured dismissals, reduced felonies to misdemeanors, and obtained civil compromises for clients facing millions in alleged losses.

Your Path Forward Starts With a Call

If you or a loved one is confronting accusations of theft by pretenses, larceny by trick, or embezzlement, time is not on your side. Evidence goes stale, investigators build their narrative, and the District Attorney moves closer to filing. Let Kraut Law Group Criminal & DUI Lawyers put its experience, reputation, and relentless advocacy to work for you.

Free Confidential Consultation

Contact us anytime, day or night, for a no-obligation review of your case. We will explain your rights, outline possible defenses, and chart a strategy tailored to your unique circumstances.

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