Being accused of a white-collar crime, such as fraud, could threaten more than your freedom. It could jeopardize your professional life as well. This article examines how California addresses these issues and what you can do to protect your career.
Which licenses face the greatest risk?
California oversees hundreds of professional licenses through the Department of Consumer Affairs (DCA). All licensing boards check for criminal activity, but those overseeing positions of trust or public safety are stricter regarding white-collar charges.
Professionals who handle finances, sensitive information or patient care—such as accountants, insurance agents and healthcare providers—often face immediate review after an arrest or accusation.
However, a charge alone does not automatically cost you your license. Licensing boards must conduct an investigation and determine whether the alleged conduct is substantially related to your professional duties before acting.
Healthcare boards make an exception. If a charge could immediately endanger public safety, the board can request an Interim Suspension Order to temporarily suspend practice until the case concludes.
What types of charges raise red flags?
The following types of offenses can catch the attention of licensing boards:
- Embezzlement or misappropriation of funds
- Fraud, including securities, insurance and healthcare fraud
- Forgery or falsifying documents
- Tax evasion or filing false returns
- Identity theft
These offenses matter because they involve your honesty and duty to act in others’ best interests. Since they target the foundation of professional trust, a Board can usually prove that these crimes directly affect your ability to practice more than unrelated offenses.
How does the licensing board review process work?
To determine if you can still practice safely, the Board must weigh:
- The nature and severity of the offense
- How much time has passed since the incident
- Evidence of rehabilitation or changed circumstances
- Your overall professional record
Even when an offense closely relates to your duties, California law requires licensing boards to review your character first. This is known as the Criteria for Rehabilitation.
How can you protect your professional standing?
As your case proceeds, it is important to determine your specific board’s reporting requirements for arrests or charges. Some California licensing boards require you to disclose this information within a specific time. Failing to report can create additional grounds for discipline, even if the charge is eventually dismissed.
If a California licensing board files a formal accusation, you usually have 15 days to submit a Notice of Defense. This can preserve your right to a hearing and might prevent the board from automatically revoking your license.
Filing this notice does not necessarily mean you will be going to an administrative hearing. Your attorney will typically engage in settlement negotiations with the Board’s legal team to reach a Stipulated Settlement. If accepted, this may allow you to retain your license under probationary terms—avoiding the cost, risk and public exposure of a full hearing.