California Penal Code §424 — Misappropriation of Public Funds
PC §424 punishes public officers and every person charged with the receipt, safekeeping, transfer, or disbursement of public money who (1) appropriates it to their own use or without authority of law, (2) loans it without authority, (3) knowingly keeps a false account, (4) fraudulently alters or destroys records, or (5) willfully refuses to pay or transfer public money on demand. Straight felony: 2, 3, or 4 years state prison AND permanent disqualification from ever holding office in California. Immigration exposure is aggravated-felony-level at $10,000+ loss.
Reviewed by Daniel S. Rubin, CA Bar 302093 · Los Angeles Criminal Defense Attorney · Misappropriation of Public Funds Cases in All LA County Courts
On This Page
Jump to a Section
01 — Quick Facts
PC §424 — Misappropriation of Public Funds at a Glance
| Fact | Detail |
|---|---|
| Full Name | California Penal Code §424 — Misappropriation of Public Funds |
| Code Type | Penal Code (PC) |
| Classification | Straight Felony |
| Penalty | 2, 3, or 4 years state prison |
| Fine | Up to $10,000 per count |
| Office Bar | Permanent disqualification from public office |
| Strike | No |
| Free Consultation | (213) 723-2337 — 24/7 |
01 — What Is PC §424?
What Is California Penal Code §424?
PC §424 Reads:
"Each officer of this state, or of any county, city, town, or district of this state, and every other person charged with the receipt, safekeeping, transfer, or disbursement of public moneys, who either: 1. Without authority of law, appropriates the same, or any portion thereof, to his or her own use, or to the use of another; or, 2. Loans the same or any portion thereof; ... is punishable by imprisonment in the state prison for two, three, or four years, and is disqualified from holding any office in this state."
— California Penal Code §424(a)
PC §424 is California's public-funds embezzlement statute. It reaches elected officials, city and county employees, treasurers, controllers, school-district administrators, and any private contractor or agent 'charged with' custody or transfer of public money. Unlike private embezzlement (§503), §424 does not require proof of intent to permanently deprive — even temporary unauthorized use or 'borrowing' from public funds is a felony. The California Supreme Court in Stark v. Superior Court held that criminal negligence, not specific intent, is the mens rea for most §424 subdivisions.
PC §424 vs. §503 vs. §487(a) vs. Federal §666
§424 = public-funds misappropriation, elected officials and public employees. §503 = private embezzlement of any property. §487(a) = grand theft of property valued over $950. Federal 18 U.S.C. §666 = theft or bribery concerning federally-funded programs — up to 10 years federal. Most substantial cases run parallel state and federal exposure.
PC §424 — Public Funds
Public officer or fiduciary. Criminal-negligence mens rea. Permanent office bar.
PC §503 — Private Embezzlement
Private employee/agent. Specific-intent mens rea. No office bar.
Why §424 Ends Public-Service Careers Permanently
§424 conviction imposes lifetime disqualification from ever holding public office in California — a career-ending sanction on top of state prison exposure. The 'criminal negligence' mens rea makes §424 far more dangerous than private embezzlement: prosecutors do not need to prove specific intent to steal. Sloppy record-keeping, unauthorized 'petty cash' use, and mixing personal and public funds can all support conviction. Rubin Law, P.C. defends elected officials, city staff, non-profit executives, and school administrators facing §424 charges.
Official Sources
02 — Elements of the Crime
Elements the Prosecution Must Prove Under PC §424
PC §424 has multiple subdivisions. §424(a)(1) unauthorized appropriation is the most-charged; Stark v. Superior Court sets the mens rea.
Public Officer or Person Charged With Public Money
Defendant was either a state/local officer OR a person charged with receipt, safekeeping, transfer, or disbursement of public money — including agents, contractors, and non-profits handling public funds.
Public Money
The funds were public — state, county, city, town, district, or federally-passed-through public money in the defendant's custody.
Appropriated / Loaned / Kept False Account / Altered Records / Refused to Pay
Defendant's conduct fell within one of the enumerated §424(a) prohibitions.
Criminal Negligence (Not Specific Intent)
Per Stark v. Superior Court, criminal negligence — knowledge of legal duty and criminally negligent disregard — is the mens rea. Specific intent to steal is NOT required.
03 — Degrees
PC §424 — Tiers & Degrees
PC §424 subdivisions each carry the same 2, 3, or 4 year sentencing range.
§424(a)(1) — Unauthorized Appropriation
Using public funds for own or another's benefit without authority — most-charged subdivision.
§424(a)(2) — Unauthorized Loans
Lending public funds without authority — even temporary loans.
§424(a)(3)–(4) — False Records
Keeping false accounts or altering records — common companion charge.
§424(a)(5) — Refusal to Transfer
Willfully refusing to pay or transfer public money on lawful demand.
04 — Penalties
Penalties for PC §424 Misappropriation of Public Funds in California
PC §424 exposure and commonly stacked charges.
| Charge | Code | Prison Term | Probation | Strike |
|---|---|---|---|---|
| Misappropriation | PC §424(a)(1) | 2, 3, or 4 years state prison | Available (rare on large amounts) | No |
| Grand Theft | PC §487(a) | 16 mo, 2, or 3 years | Available | No |
| Aggravated White-Collar Enhancement | PC §186.11 | +1 to +5 years | No | No |
| Federal Program Theft | 18 U.S.C. §666 | Up to 10 years federal | Available | No |
Aggravating Companion Charges
Aggravated White-Collar Crime
PC §186.11
Aggregate loss >$100,000 adds 1–5 years.
Money Laundering
PC §186.10 / 18 U.S.C. §1956
Deposits or transfers of misappropriated funds — state and federal ML exposure.
Forgery
PC §470
Altered documents or signatures — common companion count.
Federal Program Theft
18 U.S.C. §666
Federal parallel prosecution when funds are federally passed through — up to 10 years federal.
Perjury
PC §118
False statements on financial disclosures — separate felony.
Collateral Consequences
- PERMANENT disqualification from holding any office in California
- Aggravated felony immigration exposure at $10,000+ loss — mandatory removal
- Professional-license revocation (CPA, attorney, real-estate, financial)
- PERS / retirement forfeiture under Gov. Code §7522.70
- Mandatory restitution to public entity under PC §1202.4
- Federal §666 parallel prosecution risk when federal funds involved
Sentencing References
05 — Defense Strategies
How Rubin Law Defends PC §424 Misappropriation of Public Funds Charges
Rubin Law, P.C. defends §424 cases with forensic-accounting experts, advice-of-counsel defenses, and Stark-standard mens-rea challenges.
Advice of Counsel / City Attorney Approval
Good-faith reliance on written advice from counsel, city attorney, or state auditor defeats the criminal-negligence mens rea. Rare but powerful defense.
People v. Vineberg
Authorized by Budget or Policy
The expenditure was within adopted budget authority, MOU, or governing board resolution — not 'without authority of law.'
PC §424(a)(1)
Not 'Charged With' Public Money
Defendant lacked fiduciary responsibility for the funds — was a peer or lateral employee, not the person charged with custody or disbursement.
People v. Groat
Not Criminal Negligence
Bookkeeping error, undertrained staff mistake, or good-faith interpretation of budget policy is not criminally negligent under Stark.
Stark v. Sup. Ct.
Illegal Search of Records / Devices
§1538.5 suppression of financial records obtained without warrant or beyond warrant scope. Riley controls device searches.
Riley v. California
Statute of Limitations
§801.5 provides four years from discovery. Older transactions may fall outside limitations period — motion to dismiss.
PC §801.5
Constitutional Sources
07 — Court Process
How PC §424 Misappropriation of Public Funds Cases Move Through Los Angeles Courts
How a PC §424 misappropriation case moves through LA County and federal courts.
- 1
Step 1 — Audit / Grand Jury Investigation
Cases typically begin with a State Controller, county auditor, or Grand Jury investigation. Records subpoenaed, employees interviewed, forensic accountants engaged.
- 2
Step 2 — Target Letter / Voluntary Interview
Target letters from DA Public Integrity Division or US Attorney's Office frequently precede indictment. Never appear without counsel.
- 3
Step 3 — State vs. Federal Filing Decision
US Attorney's Office often takes cases involving federal grant funds under §666. State DA handles pure-state-funds cases.
- 4
Step 4 — Arraignment / Grand Jury Indictment
Charges filed by criminal information or indictment. Bail usually low OR/OR on non-flight-risk elected officials.
- 5
Step 5 — Preliminary Hearing / Forensic Discovery
Cross-examine forensic accountant on characterization, authority, and specific subdivision. Advice-of-counsel and budget-authority discovery critical.
- 6
Step 6 — Trial or Negotiated Plea
Common outcomes: dismissal on lack-of-fiduciary status, reduction to §503 wobbler (avoiding office bar), or restitution-and-probation disposition on §424 with strategic sentencing.
Los Angeles Courts That Handle PC §424 Misappropriation of Public Funds Cases
LA-area and federal courts most commonly handling PC §424 filings.
Clara Shortridge Foltz CJC
Downtown LA — DA Public Integrity Division filings.
US District Court, Central District of CA
Federal §666 parallel prosecutions.
Van Nuys Courthouse
San Fernando Valley municipal cases.
Long Beach Courthouse
Harbor-area port and city cases.
Pomona Courthouse
East LA County school-district cases.
Reviewed by Your Attorney
Daniel S. Rubin — Los Angeles Misappropriation of Public Funds Defense Attorney
Daniel S. Rubin has defended clients charged with misappropriation of public funds and related offenses in Los Angeles County courts — including Clara Shortridge Foltz, Van Nuys, Compton, and Pomona. He understands that these cases are won in the details: the suppression hearing that eliminates key evidence, the preliminary hearing cross-examination that exposes a weak witness, the penalty phase argument that keeps a client out of the worst outcome.
This page was written and reviewed by Daniel A. Rubin, Los Angeles criminal defense attorney, CA State Bar 302093, with 10+ years of experience defending clients charged under PC §424 in Los Angeles County. Last reviewed: July 2026.
CA Bar 302093 | Whittier Law School | Rising Star — Super Lawyers 2019–2023 | Misappropriation of Public Funds Cases Throughout LA County
See our full Misappropriation of Public Funds defense practice
09 — FAQs
PC §424 Misappropriation of Public Funds Questions — Los Angeles
What is PC §424?
California's public-funds embezzlement statute. Punishes public officers and any person charged with public money who misappropriates, loans without authority, keeps false accounts, alters records, or refuses to pay public money.
What is the penalty for PC §424?
Straight felony: 2, 3, or 4 years state prison PLUS permanent disqualification from holding any office in California. Also up to $10,000 fine per count and mandatory restitution.
Is specific intent required?
No. Per Stark v. Superior Court, the mens rea is criminal negligence — knowledge of the legal duty and criminally negligent disregard. Specific intent to steal is NOT required.
Does §424 apply to private contractors?
Yes, if the contractor is 'charged with' receipt, safekeeping, transfer, or disbursement of public funds. Non-profit executives handling public grants, election contractors, and public-fund custodians all fall within §424.
What is the office-bar consequence?
§424 conviction imposes PERMANENT disqualification from holding any office in California — elected or appointed. This is separate from the prison sentence and cannot be lifted.
Are there immigration consequences?
Yes, severe. §424 is a crime of moral turpitude and, at $10,000+ loss, an aggravated felony under INA §101(a)(43)(M) — mandatory removal for non-citizens.
Will federal charges follow?
Possibly. When federal grant or pass-through funds are involved, 18 U.S.C. §666 (theft/bribery concerning federally-funded programs) parallels §424 — up to 10 years federal.
What should I do if I receive an audit notice or target letter?
Do not respond, do not agree to a voluntary interview, do not produce documents without a subpoena review, and call Rubin Law, P.C. immediately. First-week decisions frequently determine whether the case is filed and whether federal exposure attaches.
Available 24/7 — Free Consultation
Charged With PC §424 Misappropriation of Public Funds in Los Angeles?
§424 is a career-ending straight felony with permanent office bar, federal §666 exposure, and mandatory-removal immigration consequences. Rubin Law, P.C. defends elected officials, city staff, and non-profit executives. Call now.