Legal Question in Criminal Law in California

Your question is not clear as to what is actually going on. "Charged" implies a fraud crime in this case, with involvement of police and prosecutors. If that is what has happened, then yes they "CAN", because they "HAVE". Yet, your stated facts would indicate a seemingly valid defense that should have prevented being 'charged', and which you would now raise through your lawyer. That gets us back to my statement that it isn't clear what is going on. If you did not borrow money, how would 'they' prove you did?

The bottom line is that if you are threatened with any legal action, promptly consult with an attorney in your area and listen to his advice. His will be the only one of value to you, once you provide him all the facts and issues.