Attorney for Penal Code 550

Daniel Horowitz has recently obtained a 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.  The prosecutors threw a myriad of invented and politically motivated charges at Dr. Origel.  He later sued the insurance companies who brought these fraudulent charges.  Daniel won a major jury trial victory for Dr. Sohila Bodner in Hayward, California and Dr. Gary Martinovsky who was investigated relating to that case successfully sued the insurance companies who launched this investigation.  

If you are facing insurance fraud charges under Penal Code section 550 or other code sections, Daniel Horowitz is your first choice as your defense lawyer.

PENAL CODE Section 550 (Insurance Fraud)

Penal Code section 550 is the insurance fraud statute that prosecutors exploit when no specific fraud statute exists. It is a “catch-all” often used to trap honest individuals. Just as the judge in the Georgia criminal case against Donald Trump dismissed charges for being “too vague,” Penal Code section 550 charges are frequently vague and fabricated by prosecutors.

California Penal Code Section 550 criminalizes conduct that may constitute insurance fraud. This section is ruthlessly exploited by insurance companies to target doctors and lawyers who represent injured workers. It is also wielded as a weapon to force settlements of insurance claims for mere pennies on the dollar. This is one of the most abused Penal Code sections, ensnaring countless innocent doctors, lawyers, and insured individuals in its web.

Read about our recent victory in a PC 550 case based upon this motion.

What are some of the Ways to Violate Penal Code section 550?

There are so many ways to be caught in a PC 550 prosecution.  Here are just some of the acts that are prohibited:

1. Presenting a false or fraudulent claim for payment for a loss or injury. 
2. Presenting a fraudulent claim for vehicle theft or damage. 
3. Presenting a fraudulent claim for loss due to theft of, destruction or damage to property. 
4. Signing a document with the intent to support a false or fraudulent claim. 
5. Submitting a claim for healthcare benefit not used. 
6. Overcharging for medical services rendered. 
7. Billing for medical equipment not actually supplied. 
8. Overstating damage suffered in a car accident (to the car) 
9.Overstating the injuries suffered in an accident. 
10. Overstating the injuries and disabilities in a Workers Compensation claim.

Many of these items are simply a dispute between a doctor, a lawyer or an insured person and the insurance company.  Unfortunately, certain prosecutors take the word of the insurance company and launch criminal actions against people who are in a dispute with the insurer.

What Is Fraud?

• 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.

Categories of Fraud:

• Against Individuals: Targeting a single person, including identity theft, phishing scams, and Ponzi schemes.
• Internal Organizational Fraud: Deception by employees, managers, or executives within an organization (e.g., embezzlement, tax evasion, lying to investors).
• External Organizational Fraud: Fraud committed against an organization from outside sources (e.g., vendors, customers, intellectual property theft).  Penal Code section 550 targets only external organizational fraud.