People v. Recla CA5

BACKGROUND

In 2018 and 2019, defendant convinced several victims to invest about $300,000 in a restaurant she claimed she was starting in Los Banos. Instead of starting a restaurant, however, she embezzled most of the money. She then filed a fraudulent tax return, failing to claim any of that money as income. On October 22, 2021, the Merced County District Attorney filed a first amended complaint charging defendant with five counts of grand theft by embezzlement (Pen. Code, §§ 504, 487, subd. (a);1 counts 1–5) and filing a false or fraudulent income tax return (Rev. & Tax Code, § 19706; count 6). As to counts 1 through 5, the complaint further alleged the crimes constituted aggravated white-collar crimes in which the related crimes caused a loss exceeding $100,000. (§ 186.11, subd. (a)(3)). On April 26, 2022, defendant filed a motion for pretrial mental health diversion pursuant to section 1001.36. On May 18, 2022, the prosecution filed an opposition. On May 20, 2022, after hearing argument on the motion, the trial court denied the motion. On May 25, 2022, defendant pled no contest to counts 1 and 6, with a maximum exposure of two years eight months. The remaining counts were…