White-collar charges may put more than your freedom at risk. If prosecutors accuse you of fraud or embezzlement crimes in California, you could face added prison time, fines and court orders that restrict access to property. These added penalties may increase the financial and personal stakes of your case.
California Penal Code § 186.11 is often called the “freeze and seize” law because it allows prosecutors to ask a court to preserve certain assets tied to qualifying fraud or embezzlement cases. The law also creates an added penalty known as the “aggravated white collar crime enhancement” when specific requirements are met.
When does the statute apply?
Penal Code § 186.11 requires a pattern of related felony conduct. The crimes must involve separate victims or the same victim on separate occasions. They must share a similar purpose or method, or have other facts that link them. The offenses cannot be isolated events.
Depending on the facts, the enhancement might arise in insurance fraud, health care fraud, check fraud or embezzlement cases. Other fraud offenses could qualify under the statute.
Prosecutors must state the facts supporting the enhancement in the charging document. You must admit those facts, or the trier of fact must find them true, before the court adds the punishment.
What are the penalties that may apply?
If the pattern involves more than $500,000 in loss or property taken, Penal Code § 186.11 adds a consecutive prison term of two, three or five years to the sentence for the underlying felonies.
The asset rules reach beyond the enhancement. Prosecutors may ask the court to preserve assets when they charge it. They may also seek an order when they charge one fraud or embezzlement felony involving more than $100,000 in alleged loss or property taken.
A court could restrict assets under your control or property you transferred to someone else. If prosecutors prove the required facts, the court might later use qualifying property to pay restitution and fines.
Understanding what the law may mean for your case
A Penal Code § 186.11 allegation may increase the penalties you face and place certain assets at risk. Knowing why prosecutors are seeking the enhancement and which property they want to preserve could help you better understand what to expect as your case moves forward.