Legal Question in Real Estate Law in California

It depends upon whether the person submitting the (false) demand knew that it was false, and whether he or she intended to deceive, and perhaps also upon whether the deception was successful and another person suffered harm as a result.

If most or all of the foregoing are present, the situation probably qualifies as fraud or attempted fraud, and fraud is sometimes charged as a criminal offense, although it is more commonly brought as a civil matter by the victim.

For a possibly-useful Web site discussing fraud, try this link:

http://criminal.findlaw.com/criminal-charges/fraud.html

It is not clear what you mean by a false all inclusive deed of trust. A deed of trust is a security instrument that is used to secure an underlying obligation, in most situations, the repayment of a loan. It is not clear whether you are trying to say that the deed of trust was security for nothing, or that the underlying obligation had been paid off, or that an improper payoff amount was demanded during the escrow.