What is Penal Code Section 550?
Penal Code 550 (often abbreviated as PC 550 or § 550 PC) is a California law that criminalizes insurance fraud, primarily the knowing submission of false or fraudulent insurance claims.
Key Provisions (Penal Code § 550(a))
It is unlawful to knowingly do any of the following (or aid, abet, solicit, or conspire to do so):
- Present or cause to be presented any false or fraudulent claim for the payment of a loss or injury, including under an insurance contract.
- Present multiple claims for the same loss or injury (e.g., to different insurers) with intent to defraud.
- Cause or participate in a vehicular collision or other accident to file a false claim.
- Prepare, make, or subscribe to any false or fraudulent document or statement in support of an insurance claim.
- Engage in other related acts, such as certain health care billing fraud or misrepresentations to insurers.
The law covers auto insurance fraud, property damage, injury claims, health care fraud, and more. It is often called California's primary insurance fraud statute
Penal Code section 550 is being used to prosecute doctors, attorneys, chiropractors and billing companies for intentional fraud. Insurance companies who are involved in billing disputes with healthcare providers will make referrals to state prosecutors hoping that criminal charges get filed against the healthcare professional. In this way, Penal Code section 550 criminalizes what had previously been a simple billing dispute.
Highly Experienced Penal Code Section 550 Lawyers
Daniel Horowitz is highly experienced in defending against Penal Code section 550 fraud charges. Daniel recently obtained dismissal of Penal Code section 550 charges in Orange County, a dismissal of Workers Compensation fraud charges in Tehama County and he successfully defended Dr. Wilmer Origel D.C. at a landmark medical fraud trial in Stockton, California. In a fraud case involving Dr. Sohila Bodner in Hayward, California Daniel obtained a jury acquittal and finding of innocence for another chiropractor charged with similar PC 550 violations. Daniel has assisted in the defense of Dr. Gary Martinovsky , who was investigated relating to that case. Dr. Martinovsky then successfully sued the insurance companies who launched this unfair investigation.
Summary of California Penal Code § 550 – In
Punishment (as of 2025)
- Wobbler: can be charged as either a felony or misdemeanor.
- Misdemeanor: up to 1 year in county jail and/or fine up to $10,000.
- Felony: 2, 3, or 5 years in state prison and/or fine up to $50,000 (or double the amount of the fraud, whichever is greater).
- Additional civil penalties under Insurance Code § 1871.7: up to $150,000 + assessments + restitution.
- Restitution to the insurance company is virtually always ordered.
Common Examples of PC 550 Charges
- Staged or exaggerated car accidents
- Billing for medical treatment never provided
- Faking or exaggerating injuries in workers’ comp cases
- Submitting inflated repair estimates after a legitimate loss
- Using someone else’s insurance card or policy
- “Patient brokering” in Medi-Cal or rehab scams
Important Notes
- Specific intent to defraud is required (you must know the statement/claim is false).
- Attempted insurance fraud is punished the same as the completed crime.
- Prosecutors often pair § 550 with white-collar enhancements (PC 186.11), grand theft (PC 487), or identity theft (PC 530.5).
In short, Penal Code § 550 is the “catch-all” statute used by district attorneys and the California Department of Insurance to aggressively prosecute virtually any intentional deception involving an insurance claim or policy.
Read about our recent victory in a PC 550 case based upon this motion.
What Is Fraud?
Many doctors are charged with PC 550 violations when they are simply involved in a billing dispute with an insurance company. It is important to distinguish between actual fraud and a simple disagreement. Learn more about doctors who are targeted by insurance companies in a misuse of the Penal Code fraud statutes.
Fraud Statutes Misused Against Doctors
- Definition: Fraud involves intentionally deceptive actions designed to provide the perpetrator with an unlawful gain or to deny a right to a victim. This general definition can include promising to perform a service with no intent to do so. A promise to repave someone's driveway, collecting the money and then not showing up is an example of this. But more subtle frauds can be a promise that a certain medical service was performed when a lesser service actually took place. Is this a disagreement about the nature of what was done? Or was it part of a scheme to defraud an insurance company? There are many other examples.
- Criminal Aspect: Fraud becomes a crime when it involves a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to their detriment” (Black’s Law Dictionary). In simpler terms, if someone lies to deprive another person or organization of money or property, it constitutes fraud.
- Examples: Fraud can occur in various contexts, including finance, real estate, investment, and more. Section 550 focuses on insurance frauds and it is a very broad statute that is creatively used by prosecutors so that almost any insurance reimbursement dispute has the potential of being charged as a PC 550 criminal violation.
- Under Penal Code section 550 it is not necessary that you receive payment or even deceive the insurance company. The simply filing of a false claim triggers the statute.
View News Release on Penal Code Section 550 Guilty Plea in Contra Costa County
Can You Be Prosecuted for a Penal Code section 550 Violation if Someone Else Files the Form?
Physicians or Chiropractors or other care provider who prepares false documents for a fraudulent insurance claim may be prosecuted under Penal Code section 550(a)(1) for “causing the presentation of a fraudulent claim,” even though another person actually presents the claim. (People v. Singh (1995) 37 Cal.App.4th 1343, 1369–1370 [44 Cal.Rptr.2d 644].) Alternatively, the care provider may be prosecuted under Penal Code section 550(a)(5). So this is a crime focused on the claim presented and not the mechanics as to who actually signed the claim form.
Is the Penal Code Section 550 Charge a Felony or Misdemeanor?
The amount of the claim is crucial. Fraudulent claims for health-care benefits under Penal Code section 550(a)(6) to (9) are considered misdemeanors if the total amount does not exceed $950 (Pen. Code, § 550©(2)). If the defendant is charged with a felony, the misdemeanor offense is included as a lesser offense. The court must provide the jury with a verdict form to indicate whether the total amount of the claims exceeds $950. If the jury finds that the amount does not exceed $950, the offense should be classified as a misdemeanor. This determination is made by the jury. If the jury finds the defendant guilty of insurance fraud related to health-care claims, they must also decide whether the prosecution has proven that the total value of the false claims exceeded $950 within a period of 12 consecutive months.
Penal Code Section 550 Defenses
See: Defenses to Fraud in PC 550 Cases
The Williamson Defense to Penal Code section 550 Insurance Fraud Cases
Defense of insurance fraud cases is not a do it yourself project. You need the best lawyer who specializes in criminal defense and criminal fraud defense. Lawyers in Lafayette is a group of affiliated top criminal defense lawyers including former prosecutors and certified criminal defense specialists (State Bar of California, Board of Legal Specialization). Call us if you are facing criminal fraud charges.
Located in Contra Costa County, our group of affiliated independent attorneys (Lawyers in Lafayette) defend Penal Code section 550 cases throughout California. Recent cases are in Tehama County and Riverside (Orange County).
Defending criminal cases from Walnut Creek to Los Angeles and nationwide. Daniel Horowitz is a criminal defense specialist, one of less than 10 in all of Contra Costa County. His main office is in Lafayette, California. On criminal cases requiring a high level of expertise and experience he is contacted by clients and lawyers statewide.
Client Testimonials
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There are lawyers and then there are real lawyers. Dan Horowitz is a real lawyer in every since of the word. Dan is a Certified Specialist in Criminal Law. You will not find very many attorneys having such recognition especially one that hits on all cylinders as Dan. In addition to his knowledge of the law and his experience, which I found to be unmatched, i appreciated the fact that he at all times is genuine, which for me says it all. Thank you Dan.Cory N.
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Daniel and his team did an excellent job. He was always readily available to take my call and provided peace of mind through a stressful situation.Reid V.
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He told me that he hadn't lost a trial in a long time and he didn't want mine to break the streak. I didn't either! We went to trial and he was in control of the courtroom. He was totally prepared. But I was still worried because the prosecutor was very good as well. Daniel was confident but honest. The jury really liked him. As you can tell, he won my case because I am here, writing this review. Thank you.Michael M.
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Tough, humble, has integrity - simply THE best. With Dan it is not so much about the money but about doing what is right. A very rare breed. He has honesty and integrity and the jurys see it. If he doesn't believe in the case or the client he won't waste your time or his. But you better listen to him!...Believe an trust in him. I did and I am totally indebted to him. He is "The best of the best." Thank you Dan for all you have done and continue to do. Carole~ Arbuckle v. Board of Chiropractic ExaminersCarole A.