California law makes it a crime to sell or give away your property in order to avoid having to use that property to pay back a debt. The concept is referred to as “concealing assets”. Violators may be charged with Fraudulent Conveyance.
What does the prosecutor have to prove?
§ 154 – Defraud Creditors: 1. Defendant fraudulently removed his or her property or effects out of this state. or
1. Defendant fraudulently sold, conveyed, assigned or concealed his or her property.
2. Defendant committed the above with the intent to defraud, hinder, or delay his or her creditors of their rights, claims, or demands. § 531 – Theft:
Misdemeanor: 0-364 days