Criminal Profiteering – California Penal Code § 186 PC

Legal Definition of Criminal Profiteering

California Penal Code 186(a)–(c) defines criminal profiteering as:

“Any act committed or attempted… for financial gain or advantage, that is chargeable as a felony and falls within a pattern of criminal profiteering activity.”

The law also identifies over 30 specific felony offenses that may qualify and gives prosecutors broad authority to pursue asset forfeiture under sections 186.2 through 186.11 of the Penal Code.

To secure a conviction for criminal profiteering, the prosecution must generally prove all of the following:

• At least two qualifying felony offenses were committed;
• The offenses were related and part of an ongoing criminal enterprise;
• The acts were committed for financial gain or advantage.

In many cases, PC 186 is filed alongside sentencing enhancements such as aggravated white-collar crime (PC 186.11) or civil asset forfeiture proceedings—both of which can significantly increase the consequences.

Examples of Criminal Profiteering in California

Organized Drug Operations

A group is caught distributing large quantities of fentanyl and laundering the proceeds through cash-heavy businesses. In addition to drug and money laundering charges, the state targets assets like vehicles, properties, and bank accounts by arguing the operation was part of a broader criminal enterprise.

Insurance Fraud Rings

A network involving doctors, attorneys, and fake patients stages car accidents and bills insurance for unnecessary or nonexistent medical treatments. Prosecutors frame the case as more than just fraud—calling it a coordinated scheme aimed at profiting from the system.

Property Theft and Real Estate Scams

Someone forges signatures to illegally transfer ownership of homes, especially from elderly victims. After flipping or refinancing the stolen properties, the suspect is hit with multiple charges—and accused of running a long-term financial scheme to exploit vulnerable homeowners.

Human Trafficking Networks

A group is arrested for forcing people into labor or sex work. Victims are kept in line through threats, violence, or intimidation. Because the group was profiting from the exploitation, prosecutors treat the entire operation as a criminal profiteering enterprise.

Retail Theft Rings

Multiple people work together to hit big-box stores, stealing merchandise and reselling it online. While retail theft alone is already a crime, the scale, structure, and profit motive behind the operation lead law enforcement to treat it as an organized, for-profit scheme.

What Is Considered Organized Crime in California?

Under California law, organized crime doesn’t just mean mafia-style operations. It refers to any structured group or ongoing activity involving two or more people working together to commit serious crimes for financial gain.

Common indicators of organized crime include:

• A coordinated plan involving multiple criminal acts
• A clear profit motive
• Roles or hierarchy among participants
• Ongoing activity—not just a one-time offense

The state uses Penal Code 186 to target patterns of criminal conduct tied to organizations, crews, or loosely connected networks that profit from illegal activity. This can include gangs, fraud rings, trafficking operations, or any group acting collectively to make money through crime.

Penalties for Criminal Profiteering – California Penal Code 186

Criminal profiteering charges under Penal Code 186 are not charged on their own. They are tied to underlying felony offenses such as drug trafficking, fraud, extortion, or organized theft. The penalties can be severe and include both criminal sentencing and financial consequences.

Felony Sentencing

The underlying crimes involved in a criminal profiteering case are typically serious felonies. Sentencing depends on the nature of the offense and the defendant’s prior criminal history. Penalties may include:

• State prison sentences ranging from 2 to 25 years or more
• Felony probation in limited circumstances
• Fines up to $250,000, or twice the value of the illegal proceeds, whichever is greater

Asset Forfeiture and Property Seizure

One of the most significant consequences of a criminal profiteering case is asset forfeiture. Under PC 186.3–186.11, the state may seize:

• Money, property, vehicles, and bank accounts
• Real estate or businesses connected to the alleged criminal activity

These seizures can happen before trial, and the prosecution does not need a criminal conviction to freeze or seize assets in some cases. They must, however, prove that the property was linked to illegal conduct.

Sentence Enhancements

If the offense is found to be part of a larger pattern of organized criminal activity, additional sentencing enhancements may apply. These enhancements can increase the prison term beyond the sentence imposed for the underlying crime.

Common Defenses to Criminal Profiteering – Penal Code 186 Allegations

In many situations, prosecutors attempt to connect individuals to alleged organized criminal activity based on financial records, vague associations, or circumstantial claims. A strong legal defense can challenge the prosecution’s assumptions and help avoid harsh criminal and financial penalties.

Below are some common defenses that may apply:

Lack of Connection to the Underlying Criminal Activity

To secure a conviction for criminal profiteering, the prosecution must prove that you knowingly participated in or benefited from a pattern of criminal activity. If you were not involved in the underlying offenses—or the state cannot prove your connection beyond a reasonable doubt—you cannot be held liable under PC 186.

No Pattern of Criminal Activity

Criminal profiteering requires a “pattern” of at least two qualifying crimes within a 10-year period. If there is only a single offense, or if the alleged acts are unrelated or outside the statutory timeframe, the profiteering charge may not hold.

Assets Were Lawfully Obtained

Prosecutors often move quickly to seize bank accounts, property, or business assets under California’s asset forfeiture laws. If your defense attorney can show that the assets were obtained through legal means—and not connected to criminal activity—the court may order them returned and limit the scope of forfeiture.

Violation of Constitutional Rights

Unlawful searches, seizures, or improperly obtained financial records can be challenged through motions to suppress evidence. If the government’s case relies on evidence gathered in violation of your Fourth or Fifth Amendment rights, that evidence may be excluded—weakening or even collapsing the prosecution’s case.

Insufficient Evidence

In complex financial investigations, the prosecution often relies on inferences rather than clear, direct proof. Your attorney can challenge weak links in the chain of evidence, call expert witnesses, and expose flaws in the state’s theory of the case.

How a Los Angeles Criminal Defense Attorney Can Help with Criminal Profiteering Charges

If you’re under investigation or have already been charged, you need a Los Angeles criminal defense attorney who understands how to fight both the criminal allegations and the financial consequences that follow.

Here’s how we can help:

• Examine the Scope of the Allegations
  We start by identifying the specific predicate offenses being used to justify the PC 186 charges. Criminal profiteering often involves underlying crimes like fraud, drug trafficking, or embezzlement. We break down the state’s theory and isolate weak points.

• Challenge the Link Between Assets and Criminal Conduct
  Asset forfeiture laws under PC 186.11 allow prosecutors to seize property allegedly tied to illegal activity. We scrutinize the financial trail, challenge the timeline, and push back if your assets were legally acquired or unrelated to any offense.

• Protect You from Overcharging and Conspiracy Liability
  In many cases, individuals get swept into broader investigations because of loose associations or minor roles. We work to separate your conduct from the core allegations and challenge any attempt to charge you with crimes committed by others.

• Negotiate Strategically When Appropriate
  If early negotiations are possible, we push for charge reductions, property release, or resolution that avoids prison time. In cases with financial motivations, restitution or structured agreements may lead to better outcomes.

• Prepare a Defense for Trial if Needed
  If your case moves forward, we’re ready to build a targeted defense, challenge each element of the government’s case, and present evidence in your favor—whether financial, character-based, or procedural.

Speak with a Los Angeles Criminal Defense Attorney Today

Criminal profiteering charges carry more than just the threat of prison—they can put your finances, property, and future at serious risk. The government doesn’t just want a conviction; they often want your assets too. That’s why acting early with the right defense strategy is so important.

Attorney Hashemi has been defending clients across Los Angeles County for over 20 years. He will personally review your case, explain what’s at stake, and help you understand every legal option available. Whether you’re under investigation or already facing charges, don’t wait to get legal protection in your corner.

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