California Penal Code § 424 PC – Misappropriation of Public Funds
In California, being accused of misusing public funds is a serious matter — and it doesn’t just apply to politicians.Whether you’re a city employee, government contractor, or anyone entrusted with taxpayer money, even a small mistake can lead to felony charges, prison time, and a permanent ban from holding public office.
Under California Penal Code 424, it’s a felony offense to misappropriate public money. This includes using funds for personal expenses, loaning them out, keeping false records, or refusing to transfer money as required by law. The penalties are harsh: up to four years in state prison, fines of $10,000, restitution, and long-term damage to your career and reputation.
If you’re in this situation, the most important step you can take is to speak with an experienced Los Angeles criminal defense attorney as early as possible — ideally before charges are even filed.
Who Can Be Charged Under Penal Code 424 PC?
PC 424 does not only apply to elected officials or high-level government employees. The law is written broadly to cover anyone who has legal control over public funds and misuses them. This means criminal liability can extend far beyond politicians.
Those who can be charged include:
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Public officers of the State of California, or of any county, city, town, district, or other local government entity.
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Employees or agents who are officially responsible for receiving, safeguarding, transferring, or disbursing public money.
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Non-government individuals entrusted with public funds, such as contractors, accountants, or even university staff who handle student payments on behalf of a public institution.
Importantly, the statute applies regardless of the person’s rank or salary. A city treasurer, a clerk managing departmental funds, or a university registrar who mishandles tuition money could all face felony charges under PC 424. Because the law is so broad, people sometimes find themselves accused of misappropriation even when the alleged misuse was minor, unintentional, or part of a misunderstanding.
What Counts as Misappropriation of Public Funds in California?
Penal Code 424 PC covers a wide range of conduct, some of which might not seem criminal at first glance. What ties all of it together is the unauthorized handling or misuse of money that belongs to the public.
Examples of acts that can trigger charges include:
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Using public money for personal benefit – For instance, a city employee who diverts government funds to pay personal bills or cover a relative’s expenses.
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Loaning or investing public funds – Even if the money is expected to be paid back, lending it without legal authority or using it to make a profit violates the statute.
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Unauthorized spending – Directing public funds toward a purpose that has not been approved by law, such as spending road-repair money on office equipment.
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Falsifying or altering accounts – Keeping false records, creating fraudulent entries, or erasing transactions in order to hide how money was actually used.
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Refusing to turn over money – Public officers are required to transfer funds when demanded by law or a higher authority. Failing to do so — even by delay — can lead to prosecution.
What makes being accused of misusing public funds particularly tough is that prosecutors don’t need to show you personally profited. Simply misusing funds or handling them in a way that goes beyond your legal authority can be enough to support felony charges.
Penalties for Misappropriation of Public Funds
A violation of Penal Code 424 PC is classified as a felony and carries mandatory consequences. If convicted, a defendant may face:
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State prison time of two (2), three (3), or four (4) years
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Formal felony probation in lieu of incarceration, subject to strict terms
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A fine of up to $10,000
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An order of restitution requiring repayment of the misused public funds
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Permanent disqualification from holding public office anywhere in California
Unlike many other financial crimes, misappropriation of public funds is not treated as a “wobbler.” It is always a felony, and the lifetime ban from public office is automatic upon conviction. This makes the stakes particularly high for public employees, elected officials, or anyone entrusted with taxpayer money.
Legal Defenses to Misuse of Public Funds Charges
Being accused of violating Penal Code 424 PC is extremely serious, but an accusation does not equal a conviction. Prosecutors must prove every element of the offense beyond a reasonable doubt, and there are several defenses a skilled Los Angeles criminal defense attorney can raise on your behalf.
Possible defenses include:
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Lack of knowledge or criminal intent – To secure a conviction, the prosecution must show that you either knowingly misused public money or acted with criminal negligence. If the evidence shows that your actions were the result of an honest mistake, oversight, or simple carelessness, that may not meet the legal threshold for criminal liability.
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Minimal or incidental use of funds – The statute requires that the misuse of public money be substantial, but it does not clearly define what “substantial” means. In some cases, it may be possible to argue that the amount involved was too minor or incidental to justify criminal charges.
Every case is different, and the best defense will depend on the facts of your situation. The key is having a defense attorney who knows how to examine the evidence, challenge the prosecution’s case, and fight to protect your rights.
Speak With a Los Angeles Criminal Defense Attorney Today
If you have been accused of misappropriation of public funds under Penal Code 424 PC, the consequences can be life-changing. A felony conviction carries prison time, heavy fines, restitution, and a permanent ban on holding public office. You cannot afford to face these charges without experienced legal representation.
At The Law Offices of Arash Hashemi, we have been defending clients in Los Angeles for over 20 years. Attorney Arash Hashemi understands how prosecutors build white-collar and financial crime cases — and how to dismantle them through early intervention, careful review of financial records, and aggressive courtroom advocacy.
Call our office today at (310) 448-1529 or contact us online to schedule a free, confidential consultation. We will review the facts of your case, explain your legal options, and fight to protect your rights, your reputation, and your future.
The Law Offices of Arash Hashemi
11845 W Olympic Blvd #520
Los Angeles, CA 90064
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