California Penal Code §154 — Fraudulent Conveyance
PC §154 makes it a misdemeanor for a judgment debtor to fraudulently sell, transfer, or conceal property with intent to delay, hinder, or defraud creditors. Convictions carry up to 1 year in county jail and a $1,000 fine.
Reviewed by Daniel S. Rubin, CA Bar 302093 · Los Angeles Criminal Defense Attorney · Fraudulent Conveyance Cases in All LA County Courts
01 — Quick Facts
PC §154 — Fraudulent Conveyance at a Glance
| Fact | Detail |
|---|---|
| Full Name | California Penal Code §154 — Fraudulent Conveyance by Judgment Debtor |
| Code Type | Penal Code (PC) |
| Classification | Misdemeanor |
| Jail Term | Up to 1 year county jail |
| Fine | Up to $1,000 |
| Strike | No |
| Probation | Available (up to 3 years summary) |
| Expungeable | Yes — PC §1203.4 |
| Immigration | Potential CIMT — case-specific analysis required |
| Related Codes | PC §155 (fraudulent transfer), PC §532 (theft by false pretenses), PC §487 (grand theft) |
| If Charged | Call (213) 723-2337 immediately |
01 — What Is PC §154?
What Is California Penal Code §154?
PC §154 Reads:
"Every person against whom an action is pending, or against whom a judgment has been rendered for the recovery of any property, or for a sum of money, who, with intent to delay, hinder, or defraud the person who has brought the action or obtained the judgment, or the officer charged with the execution of the judgment, sells, assigns, transfers, or conceals, or is in any manner concerned in selling, assigning, transferring, or concealing, any property, real or personal, or any interest therein, is punishable by imprisonment in the county jail not exceeding one year, or by fine not exceeding one thousand dollars, or both."
— California Penal Code §154
California Penal Code §154 criminalizes fraudulent conveyances by judgment debtors — the act of selling, transferring, or hiding property to avoid satisfying a court judgment or pending lawsuit. Unlike civil fraudulent-transfer actions under the Uniform Voidable Transactions Act (UVTA), §154 is a criminal misdemeanor that requires proof of intent to delay, hinder, or defraud creditors. It applies only to persons against whom an action is pending or a judgment has been entered.
Criminal vs. Civil Fraudulent Transfer
Civil fraudulent transfer (UVTA / former UFTA) allows creditors to undo transactions and recover assets. Criminal fraudulent conveyance under §154 requires the higher burden of proof beyond a reasonable doubt and proof of specific criminal intent. A transaction that is merely 'preferential' or ill-advised is not §154 — the defendant must have intended to defraud.
Why This Law Matters
§154 protects the integrity of California's judgment-enforcement system. When debtors hide assets from judgment creditors, legitimate court orders become unenforceable and victims are denied recovery. Los Angeles County prosecutors typically file §154 in conjunction with white-collar fraud prosecutions, elder-abuse financial cases, and family-law support-evasion matters. At Rubin Law, P.C., we defend by showing the transfer was legitimate, the defendant lacked intent to defraud, or the action was not pending at the time of transfer.
Official Sources
02 — Elements of the Crime
Elements the Prosecution Must Prove Under PC §154
To convict a defendant of fraudulent conveyance under PC §154, the prosecution must prove each of the following elements beyond a reasonable doubt.
An Action Was Pending or a Judgment Had Been Rendered Against You
§154 applies only to persons against whom a lawsuit is pending or a judgment has been entered. If no action was pending and no judgment existed at the time of the transfer, §154 does not apply — though civil UVTA remedies may still be available to creditors.
You Sold, Assigned, Transferred, or Concealed Property
The prosecution must prove an affirmative act of disposition or concealment. Mere failure to pay a debt, financial hardship, or poor money management does not satisfy this element. The defendant must have taken steps to move, hide, or transfer ownership of assets.
You Did So with Intent to Delay, Hinder, or Defraud
This is the critical mens rea element. The prosecution must prove specific intent to defraud creditors. Legitimate business transactions, estate planning, gifts to family members, and good-faith financial decisions do not satisfy this element — even if they happen to disadvantage a creditor.
04 — Penalties
Penalties for PC §154 Fraudulent Conveyance in California
PC §154 is a straight misdemeanor with the following sentencing exposure.
| Charge | Code | Prison Term | Probation | Strike |
|---|---|---|---|---|
| Misdemeanor §154 | PC §154 | Up to 1 year county jail | Summary (up to 3 years) | No |
Additional Consequences Beyond Prison
- Restitution to the victim creditor for the value of fraudulently transferred assets
- Civil contempt in family-court support cases (wage garnishment, asset seizure)
- Professional license discipline for attorneys, accountants, and financial advisors
- Immigration consequences if deemed a crime involving moral turpitude (CIMT)
Sentencing References
05 — Defense Strategies
How Rubin Law Defends PC §154 Fraudulent Conveyance Charges
Rubin Law, P.C. defends §154 charges by attacking the intent element, challenging the existence of a pending action or judgment, and showing the transfer was legitimate.
No Pending Action or Judgment
If no lawsuit was pending and no judgment had been entered at the time of the transfer, §154 does not apply. We subpoena court records and civil dockets to prove the timeline.
Statutory coverage
No Intent to Defraud
The prosecution must prove specific intent. Estate planning, legitimate business transactions, gifts to family, and good-faith asset protection do not satisfy the §154 mens rea requirement.
Mens rea
Legitimate Transfer / Ordinary Course
If the transfer was a bona fide business transaction, payment of legitimate debts, or support of dependents, it is not fraudulent under §154. We present financial records and business documentation.
Factual defense
Insufficient Value / No Concealment
§154 requires an act of concealment or transfer. Mere insolvency, financial distress, or failure to pay debts is not §154. We challenge the prosecution's characterization of routine financial conduct as criminal.
No concealment
Constitutional Sources
07 — Court Process
How PC §154 Fraudulent Conveyance Cases Move Through Los Angeles Courts
§154 cases proceed through the following stages.
- 1
Step 1 — Investigation
Creditor reports the suspected fraudulent transfer. Law enforcement reviews bank records, property deeds, business filings, and financial statements. Forensic accounting may be employed.
- 2
Step 2 — Filing / Arraignment
Filed as a misdemeanor. Arraignment within 48 hours. Bail or O.R. release depending on flight risk and asset-concealment concerns.
- 3
Step 3 — Discovery
Financial records, bank statements, property deeds, business contracts, creditor communications, and forensic-accounting reports.
- 4
Step 4 — Pretrial Motions
PC §995 (insufficient evidence), PC §1538.5 ( Fourth Amendment challenges to document seizures), and restitution hearings.
- 5
Step 5 — Trial
Typically 2–5 court days. Prosecution must prove intent to defraud beyond a reasonable doubt. Forensic accountants and financial experts frequently testify.
- 6
Step 6 — Sentencing
Summary probation, jail time, fines, and restitution. Restitution often exceeds the criminal penalty and requires detailed asset-tracing.
Los Angeles Courts That Handle PC §154 Fraudulent Conveyance Cases
§154 filings occur in the courthouse serving the jurisdiction where the fraudulent conveyance took place or where the underlying judgment was entered.
Clara Shortridge Foltz Criminal Justice Center
Central LA — white-collar fraud and complex financial cases.
Van Nuys Courthouse East
San Fernando Valley white-collar cases.
Airport Courthouse
West LA white-collar and financial cases.
Long Beach Courthouse
South Bay financial crime cases.
Pasadena Courthouse
Pasadena / San Gabriel Valley cases.
Reviewed by Your Attorney
Daniel S. Rubin — Los Angeles Fraudulent Conveyance Defense Attorney
Daniel S. Rubin has defended clients charged with fraudulent conveyance 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 §154 in Los Angeles County. Last reviewed: July 2026.
CA Bar 302093 | Whittier Law School | Rising Star — Super Lawyers 2019–2023 | Fraudulent Conveyance Cases Throughout LA County
09 — FAQs
PC §154 Fraudulent Conveyance Questions — Los Angeles
What is the penalty for fraudulent conveyance under PC §154?
PC §154 is a misdemeanor punishable by up to 1 year in county jail and/or a fine of up to $1,000. The court may also order restitution to the victim creditor.
What's the difference between PC §154 and PC §155?
§154 applies to judgment debtors who transfer or conceal property to avoid satisfying a pending action or judgment. §155 applies to debtors in possession who know an attachment or execution warrant has been issued and who dispose of or encumber the property. Both are misdemeanors with the same penalties.
Can I transfer property to a family trust if I have a judgment against me?
It depends on intent and timing. If the transfer was made with specific intent to defraud creditors, it may violate §154. If it was bona fide estate planning with independent legal advice and fair consideration, it is generally not criminal — though civil UVTA remedies may still apply.
Is §154 a felony?
No. PC §154 is a straight misdemeanor. However, companion charges such as grand theft (PC §487) or conspiracy (PC §182) may be filed as felonies.
Can §154 be expunged?
Yes. Misdemeanor §154 is eligible for PC §1203.4 expungement after successful completion of probation.
Is §154 a CIMT for immigration purposes?
It may be, depending on the specific facts and whether fraud is an essential element. Case-specific immigration analysis is required.
Available 24/7 — Free Consultation
Charged with Fraudulent Conveyance Under PC §154?
§154 allegations can destroy your business and personal finances. Rubin Law, P.C. defends with intent, timing, and legitimacy-of-transfer arguments. Call (213) 723-2337.