Corporate Fraud
In California, there is the Victims of Corporate Fraud Compensation Fund (VCFCF) which provides restitution to victims of corporate fraud.
The VCFCF also holds corporations accountable for fraud judgments, which was created to increase consumer confidence throughout the state.
If you live in another state, check with your Secretary of State's Office for a similar program.
The statutes and regulations governing applications for payment from the VCFCF are set forth in California Corporations Code sections 1502, 1502.5, and 2117 and in Title 2, Division 7 of the California Code of Regulations, Chapter 12, sections 22500 et seq.How the VCFCF Works
There are several important prerequisites to qualify for payment from the VCFCF. A claimant must have a final court judgment, or arbitration award, or criminal restitution order dated January 1, 2003 or thereafter.
The judgment, arbitration award, or order must be based on corporate fraud, misrepresentation, or deceit made with intent to defraud. For additional requirements, please refer to the application requirements.
Applications are accepted throughout the year. The VCFCF may award up to $20,000 per transaction. In order to ensure restitution to all claimants who qualify, the Secretary of State may prorate the amount of an award if the aggregate valid claims exceed funds available for distribution.
Although the Secretary of State does not investigate or prosecute corporate fraud or any type of civil or criminal action against corporations, there are several agencies and resources available to assist in this area.
More detailed information on application procedures can be found on the Application Instructions and Forms page.
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