Lesser-Related Crimes to California Penal Code § 550 (Insurance Fraud)

California Penal Code § 550 (PC 550) is the main statute prohibiting insurance fraud, including submitting false or fraudulent claims, multiple claims for the same loss, staging accidents, and making misleading statements. While PC 550 itself is often a felony (or wobbler in some cases), prosecutors frequently charge related or lesser offenses alongside or instead of it, depending on the facts, amount involved, and intent.

"Lesser-related" crimes here refer to:

Statutes in the same chapter (PC 548–551) targeting specific insurance fraud acts.

Overlapping fraud statutes in other codes (e.g., workers' compensation).

General theft/fraud crimes when the fraud results in monetary gain.

True lesser included offenses, such as misdemeanor versions within Penal Code section 550 itself.  

Below is an overview of the most common lesser-related crimes.

Crimes in the Same Chapter (PC 548–551): Often Charged Together

These are directly tied to insurance fraud, especially auto insurance, and are considered closely related:

PC 548: Destruction or abandonment of insured property (e.g., intentionally damaging your own car to claim insurance). Typically a felony, but can overlap as a preparatory act to PC 550.

PC 549: Soliciting or referring business knowing it will lead to fraudulent claims (e.g., "cappers" referring accident victims to complicit providers). A wobbler (misdemeanor or felony).

PC 551: Offering or accepting illegal compensation for insurance referrals (e.g., kickbacks to agents). Often a wobbler, with penalties based on loss amount.

These are frequently charged concurrently with PC 550 in organized fraud schemes.

Workers' Compensation Fraud: Insurance Code § 1871.4

For fraud involving workers' comp claims (a common subset of insurance fraud):

This crime has the same penalties as the felony PC 550 charges so it is not technically a "lesser" related criime.

• Insurance Code § 1871.4 — Prohibits false statements or claims for workers' compensation benefits (e.g., exaggerating injuries or claiming non-work injuries). This is a wobbler and often charged instead of or alongside PC 550, with similar penalties and prior-conviction enhancements linking back to PC 550/548.

General Theft Crimes: When Fraud Involves Taking Money/Property

If the insurance fraud results in obtaining funds, prosecutors may charge theft offenses:

PC 484/487 (Petty or Grand Theft) → Theft by false pretenses if money is obtained via fraudulent claim. Petty theft (under $950) is a misdemeanor; grand theft (over $950) is a wobbler.

PC 503 (Embezzlement) → If funds were entrusted and misappropriated.

These are "lesser" in the sense of potentially lower penalties for smaller amounts.

Other Commonly Associated Offenses

Vehicle Code § 10501 — Falsely reporting a vehicle theft (often tied to auto insurance claims).

PC 118 (Perjury) — If false statements are made under oath during a claim investigation.

Misdemeanor Versions of PC 550 — Certain subsections (e.g., false statements under PC 550(b) or health-care fraud claims under $950) are wobblers or straight misdemeanors.

For health-care benefit fraud under PC 550(a)(6)–(9), if the total claims ≤ $950, it's automatically a misdemeanor—a true lesser included offense if charged as felony.

Why These Are "Lesser-Related" (and some nuance here)

They involve similar elements (intent to defraud, false representations).  They may lack an element necessary for a PC 550 conviction but interestingly section 550 does not require a successful fraud or even an unknowing victim.  You can fail in an attempt to commit a fraud but be guilty of a PC 550 violation.

Often charged in the same case for different aspects of the scheme.

May carry lighter penalties (e.g., misdemeanors vs. PC 550 felonies with up to 5 years and $50,000+ fines).

Enhancements and priors often cross-reference (e.g., prior PC 550 enhances IC 1871.4).

Defenses like lack of intent, mistake of fact, or insufficient evidence apply across these. If facing charges under PC 550 or related statutes, early legal consultation is critical, as many cases resolve through negotiation or challenges to evidence.