Los Angeles Preliminary Hearing for Felony Cases

In Los Angeles, every non-capital felony prosecution must pass through a preliminary hearing (also called the prelim) unless the defendant waives the proceeding. The preliminary hearing for felony cases is a legal checkpoint: the prosecution must convince a neutral magistrate that “a public offense has been committed, and there is sufficient cause to believe that the defendant is guilty.” That language comes straight from Penal Code § 872(a). It is not a full trial; the standard is merely probable cause, not proof beyond a reasonable doubt, but it is still the first time the State’s witnesses are sworn, cross-examined, and locked into their testimony.

Because the preliminary hearings typically occur within 10 court days of the arraignment on the complaint (Penal Code § 859b), they shape everything that follows. A well-prepared defense team that knows how to navigate the Los Angeles criminal process can expose evidentiary flaws, undermine key witnesses, and sometimes obtain a dismissal or a reduction from felony to misdemeanor before the case ever reaches a jury.

Property crimes, such as embezzlement and grand theft by embezzlement, often hinge on intricate paper trails, financial records, and the credibility of business insiders. The prelim offers a defense lawyer a unique tactical opportunity to:

• Pin down disputed facts early. Witnesses who later try to change their stories can be impeached with their preliminary testimony.
• Challenge the valuation or aggregation of loss. Under California’s 2025 anti-retail-theft package, prosecutors may now aggregate multiple takings to reach the $950 felony threshold (AB 2943). Showing that individual losses are unrelated or speculative can keep the case in misdemeanor territory.
• Highlight hearsay weaknesses. Proposition 115 allows certain trained officers to provide hearsay summaries at a preliminary hearing; however, aggressive cross-examination can still expose gaps that may later doom the case.
• Build a record for a Penal Code § 995 motion. If the magistrate nevertheless “holds the defendant to answer,” the defense may seek superior-court review for lack of probable cause, as the California Supreme Court discussed in People v. Henson(2022).

Los Angeles preliminary hearings for felony cases play a crucial role in determining whether charges will proceed to trial or be reduced or dismissed. Having an experienced defense attorney at this stage can significantly impact the outcome of complex property crime prosecutions.

Probable cause means “a rational ground of suspicion supported by circumstances sufficiently strong in themselves to warrant a cautious person in believing the accused guilty” (see Curreri v. Vice, 77 F.2d 130). That is a far lower bar than the constitutional requirement of proof beyond a reasonable doubt at trial.

While the State’s evidentiary burden is lighter, the preliminary is not a rubber stamp. The magistrate must evaluate evidence, weigh credibility, and draw reasonable inferences; “mere suspicion” is not enough. Defense counsel’s goal is to widen every evidentiary crack so that the case collapses under its weight or, at minimum, loses settlement value.

At a California preliminary, the defense has the right to:

• Adequate notice of the charges and supporting reports.
• Representation by counsel (retained or appointed).
• Confrontation and cross-examination of each prosecution witness.
• Presentation of affirmative evidence, including witnesses and documents.
• Argument on legal issues such as jurisdiction, venue, privilege, and constitutional violations.

Los Angeles preliminary hearings for felony cases ensure that defendants have critical procedural rights to challenge the evidence against them. Protecting these rights early can shape the entire defense strategy and improve the chances of a favorable outcome.

Penal Code § 503 defines embezzlement as “the fraudulent appropriation of property by a person to whom it has been entrusted.” In white-collar practice, prosecutorial theories often center on:

• Entrustment. Was the property truly placed in the defendant’s care, or did the defendant merely have access?
• Fraudulent appropriation. Did the defendant act with the intent to permanently or temporarily deprive?
• Ownership vs. partnership disputes. Civil disagreements are routinely miscast as criminal theft.

Because embezzlement is a wobbler, it can be filed as a misdemeanor or felony depending on the amount involved and aggravating factors, especially after the 2025 retail-crime reforms that empower aggregation of multiple small takings.

Grand theft (Penal Code § 487) occurs when the value of the money, labor, or property taken exceeds $950. Below that number, the offense is petty theft, but several nuances matter:

• Aggregation: When multiple takings share a single plan or scheme, prosecutors may aggregate values to exceed $950, even if each act is minor. AB 2943 codifies that approach for retail scenarios.
• Special categories: Certain farm commodities trigger felony charges at just $250.
• Sentencing enhancements: Excessive-loss allegations under Penal Code § 12022.6 add prison time for losses above $65,000, $200,000, $1 million, or $3.2 million.

Understanding these thresholds enables a defense lawyer to craft a negotiation strategy and, at Los Angeles preliminary hearings for felony cases, compel the prosecution to substantiate its claims with competent evidence, rather than speculation.

• Good-faith claim of right. A defendant who honestly (even if mistakenly) believed the property was theirs, or that they were authorized to use it, lacks the requisite intent to defraud.
• Lack of entrustment. If the prosecution cannot show that property was explicitly entrusted to the accused, the proper charge might be simple theft, or no crime at all.
• Civil-law overlap. Contract disputes, shareholder fights, and accounting errors are frequently mischaracterized as criminal. Demonstrating ongoing civil litigation, partnership dissolution, or tax treatment can undermine the assertion of criminal intent.
• Mistaken valuation. Valuation must be reasonable, documented, and as of the time of the taking. Defense experts can attack inflated or replacement-cost figures.
• Statute of limitations and delay. Most felony embezzlement cases must be filed within three years of discovery; unexplained delays may prejudice the defense.

At Kraut Law Group, Criminal & DUI Lawyers, we treat the preliminary hearing as a mini-trial, focusing on cross-examination. By confronting each witness with banking records, emails, QuickBooks ledgers, or corporate bylaws, we are often:

• Expose contradictory statements (“You told the detective the account was locked, yet here is your signature on the withdrawal.”).
• Undermine knowledge and intent (“Show the court where the employee handbook forbids personal use of the card.”).
• Highlight alternative explanations (“Isn’t it true the shortage coincided with the software migration, not any cash-handling by Ms. D?”).

Because preliminary testimony is taken under oath and transcribed, these concessions follow the prosecution for the remainder of the case.

• Complete dismissal when the magistrate finds no probable cause.
• Reduction to a misdemeanor under Penal Code § 17(b), sparing the client felony exposure.
• Partial dismissal of counts or enhancement allegations simplifies the path to settlement.
• Information filed as charged, but with a defense-friendly record that improves negotiation leverage and positions us for a successful § 995 motion.

Even when the prosecution “wins” by clearing the probable-cause bar, a bruising preliminary often prompts more favorable plea offers and makes trial success more likely.

Managing attorney Michael E. Kraut is a former Los Angeles Deputy District Attorney who spent years in the Major Fraud Unit. Our team leverages that prosecutorial insight to:

• Conduct a rapid-timeline investigation, interviewing co-workers, downloading accounting data, preserving CCTV footage, and subpoenaing third-party bank records before they disappear.
• Retain credentialed forensic accountants to trace funds and rebut inflated loss claims.
• Prepare meticulous witness outlines that anticipate not only the direct examination but also every potential pivot under cross-examination.
• File targeted discovery motions to compel spreadsheets, audit trails, and internal emails that the State would rather withhold.

Because credibility is everything in white-collar litigation, we insist on documentary proof and challenge every assumption. Many prosecutors reconsider felony filings once confronted with a binder of defense exhibits at the preliminary hearing.

If the magistrate holds the defendant to answer, the case moves to the superior court for arraignment on an information. The defense then has 15 days to file a Penal Code § 995 motion arguing that the bind-over was legally defective. Appellate courts routinely reverse unsupported holdings, so the preliminary record matters.

Meanwhile, the parties may negotiate diversion, restitution-focused sentencing, or civil compromise. Early, informed advocacy, grounded in the preliminary transcript, often produces outcomes unattainable once a jury is sworn.

A felony embezzlement charge poses more than just incarceration; it also imperils professional licenses, immigration status, and future employability. The preliminary hearing is the first, and sometimes the best, chance to defeat or reshape the case. Kraut Law Group Criminal & DUI Lawyers pairs big-firm resources with former-prosecutor insight to protect what you have built.

If you, a family member, or a valued employee is facing embezzlement or grand theft allegations anywhere in Los Angeles or Southern California, call (323) 464-6453 to use our secure online form for a confidential consultation. We are available 24/7, and there is no fee for the initial meeting.