Strategic Federal And State Criminal Defense

Landlords can face real estate fraud charges

On Behalf of | Aug 21, 2024 | Criminal Procedure, White Collar Crimes

Many believe that landlord fraud is a significant issue in the rental market. Approximately 43.1% of renters have encountered a listing they suspected was fraudulent, and around 5.2 million U.S. renters have lost money due to rental fraud. This type of fraud can take many forms, from fake listings to illegal charges, and it often exploits tenants’ trust and financial vulnerability. The rise of online rental platforms has made it easier for scammers to operate, making vigilance essential for renters.

Still, the prosecution must prove landlord fraud charges in a court of law. Just because a tenant is unhappy doesn’t mean the landlord or management did anything illegal. It’s crucial to understand your rights and the steps you can take to defend yourself if you’re accused of landlord fraud in California.

Not all landlords are guilty

As with all criminal cases, the accused are innocent until proven guilty by the prosecution. No one understands this better than a criminal defense attorney. While the situation may be challenging, they may take one or more of the following lines of defense when representing their client:

  1. Lack of intent: One of the most common defenses is to argue that there was no intent to commit fraud. A defendant can show that any misrepresentations or errors were unintentional.
  2. Consent: If the tenant consented to the actions in question, this can be a defense. For example, if the tenant agreed to specific fees or charges, it may not constitute fraud.
  3. False accusations: Some tenants may falsely accuse landlords out of retaliation or misunderstanding. A landlord can provide evidence (contracts, financial paperwork, etc.) that contradicts the tenant’s claims.
  4. Compliance with laws: Landlords can demonstrate that they have complied with all relevant landlord-tenant laws and regulations. Keeping thorough records of all transactions and communications with tenants is essential.

Potential penalties

If convicted of landlord fraud in California, the penalties can vary depending on the severity of the offense. Misdemeanor grand theft charges may result in up to one year in county jail, while felony grand theft charges can lead to up to three years in state prison and fines up to $10,000. Additionally, the defendant may face civil penalties, including compensatory and punitive damages.

Fighting back against charges

As stated above, defendants need to provide relevant documentation, such as leases, receipts and correspondence with tenants, to support their defense and challenge inconsistencies in the prosecution’s evidence. Regardless of the strength of the defendant’s evidence, it is generally best to work with a skilled and experienced defense attorney who can effectively use the evidence to provide a strong defense. They may also be able to negotiate a settlement with the prosecution to avoid a trial and reduce the severity of the charges.