Theft or fraud charge in California: what are the charges and penalties?

In California, theft of property worth $950 or less is petty theft and is punished as a misdemeanor, with exceptions for people with certain serious prior convictions (Penal Code § 490.2(a)). Above $950, it is grand theft (§ 487(a)). Since Proposition 36 took effect on December 18, 2024, the value of several thefts can be added together into one charge (§ 490.3), and a person with two or more prior theft-related convictions can face a felony for a new petty theft or shoplifting (§ 666.1).

Theft and fraud cases range from a single item at a store in Mission Viejo to an accusation by a business partner that money was taken through false promises. What they share is that the charge depends on value, intent and record, and that each of those can be argued. This page explains how California defines theft, shoplifting, fraud by false pretenses and forgery, what changed with Proposition 36, how these cases move through the Orange County courts, and what to do in the first days. It sits under the firm's criminal defense and family law practice areas.

How a theft or fraud case moves in Orange County, step by step

1. The accusation. A store, an employer, a business partner or a bank reports a loss. The police report, store video and receipts set out what was taken and its value.
2. Citation or arrest. Many low-value cases begin with a citation and a court date. For an arrest under § 666.1, the court must review the case before release and make an individual decision about public safety and the likelihood of returning to court (§ 666.1(c)). The page on how bail and release work in California covers the release process.
3. Valuing the property. The test is the reasonable and fair market value of what was taken, or for services, the contract price (§ 484(a)). Value decides whether the case is petty or grand theft, and under § 490.3 values from more than one act may be combined.
4. The charging decision. Shoplifting under $950 must be charged as shoplifting, and a person charged with shoplifting may not also be charged with burglary or theft of the same property (§ 459.5(b)). Fraud by false pretenses is punished the same way as theft of the property obtained (§ 532(a)).
5. Arraignment. Misdemeanors from Irvine, Newport Beach, Laguna Niguel, Mission Viejo and the rest of south county go to the Harbor Justice Center, 4601 Jamboree Road, Newport Beach. Felony hearings from every Orange County city are held at the Central Justice Center in Santa Ana. Cases from Costa Mesa, Huntington Beach and other west county cities go to the West Justice Center in Westminster.
6. Pretrial, diversion and resolution. The defense examines intent, value, identification and the paper trail. A judge may offer misdemeanor diversion, and § 666.1 cases may be referred to a theft diversion program (§§ 1001.95, 666.1(b)). Otherwise the case ends in dismissal, plea or trial.

What Proposition 36 changed

Proposition 36 was approved at the November 5, 2024 election and took effect on December 18, 2024. For theft, two new sections apply directly. Section 490.3 allows the value of property or merchandise stolen in one or more acts of theft or shoplifting, including under §§ 459.5, 484, 488 and 490.2, to be aggregated into a single count, with the total value used to decide the degree of theft. In plain terms, several small thefts can be charged together as one grand theft if the combined value exceeds $950.

Section 666.1 applies to a person with two or more prior convictions for listed offenses, including petty theft, grand theft, burglary, carjacking, robbery, receiving stolen property, shoplifting, and identity theft or mail theft. A new conviction for petty theft or shoplifting is then punishable by up to one year in county jail or by jail under § 1170(h), and the statute counts convictions from before it took effect (§ 666.1(a)(2)). The Legislative Analyst's Office described this as turning some misdemeanors into felonies with sentences of up to three years. The same section allows a referral to a theft diversion or deferred entry of judgment program, and, where appropriate, to substance abuse treatment (§ 666.1(b)). Proposition 36 also changed drug law, explained on the page about drug charges in California.

What changes the answer?

• Value. The line is $950, measured by reasonable and fair market value (§§ 484(a), 487(a), 490.2(a)). Price tags, receipts and resale value are often disputed.
• Aggregation. Under § 490.3, separate thefts can be combined into one count, so a series of small incidents can become grand theft.
• Prior record. Two or more listed theft-related priors bring § 666.1 into play. Certain serious prior convictions, or a sex offender registration requirement, allow jail under § 1170(h) even for petty theft or shoplifting (§§ 490.2(a), 459.5(a)).
• What was taken and how. Property taken from the person, an automobile or a firearm is grand theft regardless of value (§ 487(c), (d)), and the petty theft rule does not apply to firearms (§ 490.2(c)). Firearm consequences are on the page about weapon and firearm charges in California.
• Employee theft. Money or property taken by an employee from an employer that adds up to $950 or more in any 12 consecutive months is grand theft (§ 487(b)(3)).
• Proof in fraud cases. For false pretenses not accompanied by a false token or writing, a conviction requires the pretense to be in writing signed by the defendant, or proof by two witnesses, or one witness and corroborating circumstances (§ 532(b)).
• A confrontation. If store staff or a security guard says force was used, separate charges may follow, explained on the page about assault and battery charges.
• Diversion. Theft is not on the exclusion list for misdemeanor diversion, so a judge may offer up to 24 months of diversion and dismiss the case on completion (§ 1001.95).
• Citizenship. Before a guilty or no contest plea, the court must warn a noncitizen that a conviction may lead to deportation, exclusion or denial of naturalization (§ 1016.5(a)).

Questions clients ask about theft and fraud charges

• Petty theft or grand theft in California: where is the $950 line?
• Shoplifting in California: misdemeanor, felony or diversion?
• Can a misdemeanor case be diverted in Orange County?
• Felony or misdemeanor: can a "wobbler" be reduced in California?
• Can you clear a criminal record in California? Dismissal under Penal Code 1203.4
• Not a U.S. citizen: how can a California criminal case affect your green card or visa?
• Can you travel outside the U.S., for example to Iran, while a California criminal case is open?
• Is there a warrant for your arrest in Orange County or San Diego? How to check and what to do
• What drives the cost of a criminal defense in Orange County?
• Can you undo an old California conviction that now causes immigration problems? Penal Code 1473.7

A worked example

For example, imagine a woman in her sixties visiting her daughter in Mission Viejo from Tehran on a visitor visa. This is a hypothetical, not a real case. At a department store, she leaves with a coat and two scarves in her bag that she did not pay for, worth about $400 in total. Store security stops her and calls the police, who cite her for shoplifting and give her a court date. She speaks little English and says she thought her daughter had paid at another register.

Because the store was open and the value was under $950, the charge must be shoplifting under § 459.5, a misdemeanor, and it cannot also be charged as burglary or theft of the same items (§ 459.5(b)). With no prior record, § 666.1 does not apply. The case belongs at the Harbor Justice Center, which hears Mission Viejo misdemeanors. Intent is the center of the defense: § 459.5 requires entering the store with intent to commit larceny, and a misunderstanding between mother and daughter over who paid is a fact to develop. A judge could also consider misdemeanor diversion under § 1001.95.

Her return flight to Tehran is in six weeks. If she was released on her own recognizance, she promised not to leave California without the court's permission (§ 1318(a)(3)), and missing a court date could bring a warrant. Any plea could also affect future visas, so she should speak with a separate immigration attorney; this office does not give immigration advice. Her daughter can be the family's contact for dates and documents, and a Persian-speaking attorney can explain each step to the mother directly. To learn who would handle a case like hers, read about Sourena Sarbazevatan.

Common mistakes in theft and fraud cases

• Signing a written statement for store security without advice. Anything signed after a stop can become evidence.
• Assuming a small value means a small case. Aggregation under § 490.3 and priors under § 666.1 can change the charge.
• Repaying or contacting the accuser in a fraud case without your attorney. Well-meant messages can be read as admissions.
• Leaving the country with the case open. Release agreements bar leaving California without permission (§ 1318(a)(3)).
• Ignoring a citation date. A missed date can lead to a warrant and new charges.
• Pleading without checking immigration consequences. For noncitizens, speak with an immigration attorney first.

What to do this week

1. Write down the court date and courthouse from the citation.
2. Collect receipts, bank and card statements, and any messages about the purchase or the transaction.
3. List everyone who was with you and any store or office where cameras may have recorded events.
4. In a fraud accusation, gather the contracts, invoices and emails that show what was promised and paid.
5. Do not discuss the facts with the store, the employer or the accuser; let your attorney handle contact.
6. If you are not a U.S. citizen, contact a separate immigration attorney before any plea.

When the money at issue belongs to a marriage, the family court decides the spouses' property rights, explained on the page about how property is divided in a California divorce.

Frequently asked questions

Is stealing under $950 a felony in California?

Usually not: petty theft and shoplifting under $950 are misdemeanors (§§ 490.2(a), 459.5(a)). Since Proposition 36, a person with two or more listed theft-related prior convictions can face jail under § 1170(h) for a new petty theft or shoplifting (§ 666.1), and values from several thefts can be combined (§ 490.3).

Can several small thefts be added together?

Yes. Section 490.3 allows the value of property stolen in one or more acts of theft or shoplifting to be aggregated into a single count, with the total value deciding the degree of theft.

Is theft from my employer treated differently?

Employee theft from an employer that adds up to $950 or more in any 12 consecutive months is grand theft (§ 487(b)(3)).

What is the difference between theft and fraud?

California's theft statute includes obtaining property by false or fraudulent representation (§ 484(a)), and § 532 punishes false pretenses the same way as theft of the property obtained. Fraud cases turn on whether the person knowingly made a false representation, and § 532(b) sets corroboration rules for proving it.

Can a theft case be diverted in Orange County?

A judge may offer misdemeanor diversion for up to 24 months and dismiss the case on completion (§ 1001.95). Under § 666.1(b), a person charged under that section may be referred to a theft diversion or deferred entry of judgment program.

Can I clear a theft conviction later?

After completing probation, a court can allow the person to withdraw the plea and dismiss the case under § 1203.4(a)(1), subject to the exceptions in that section.

Where will an Irvine or Mission Viejo theft case be heard?

Misdemeanors from Irvine, Mission Viejo and south Orange County go to the Harbor Justice Center in Newport Beach; felony hearings are at the Central Justice Center in Santa Ana.

The Law Office of Sourena Sarbazevatan represents people in Orange County and San Diego in theft and fraud matters, in English and Persian (Farsi). Call (949) 591-9596 or use the contact page.