Fraudulent Conveyance Law in California

Is Fraudulent Conveyance a Crime in California?

Penal Code 1-54 PC is a California statute that makes fraudulent conveyance a crime. A fraudulent conveyance is when a person sells, gives away, or otherwise disposes of money or property to prevent a creditor from collecting that money or property.

An example of a fraudulent conveyance is when a bank is suing you for the money, and you decide to transfer the title of your condominium to your brother to stop the bank from getting at it.

There are civil penalties for fraudulent conveyance, including nullifying or undoing the transfer. Penal Code 154 actually makes it a misdemeanor. This means a person could go to jail for up to six months.

However, many innocent people get wrongly charged under Penal Code 154. It may be that you were acting in good faith and not simply trying to hide assets from creditors. You may have sold the property because you needed the money or for legitimate business reasons. The police may have violated your rights and conducted illegal searches in the course of investigating the alleged crime.