BUSINESS FRAUD I CORPORATE FRAUD I DAMAGES – Compensation for “Aggrieved Person” who has obtained a “final judgment” against a Corporation based upon the corporation’s fraud, misrepresentation or deceit – VCFCF: Victims of Corporate Fraud Compensation Fund
October 31, 2019
The Victims of Corporate Fraud Compensation Fund “VCFCF” provides restitution to victims of corporate fraud who have otherwise been unable to collect on their judgment. Corporate fraud for VCFCF purposes is fraud, misrepresentation, or deceit, made with intent to defraud, and involving a corporation.
VICTIMS OF CORPORATE FRAUD COMPENSATION FUND
“In 2002, the Legislature established the Fund for “the sole purpose of providing restitution to the victims of a corporate fraud.” (Corp. Code, § 2280) An “aggrieved person” who has obtained a “final judgment” against a corporation “based upon the corporation’s fraud, misrepresentation, or deceit, made with intent to defraud,” may submit an application to the Secretary of State for payment from the Fund. (Corp. Code, § 2282, subd. (a).) The application may be filed only “upon the judgment becoming final and after diligent collection efforts are made” for the amount unpaid on the judgment that represents an “actual and direct loss” to the claimant in the transaction. (Ibid; see Cal. Code Regs., tit. 2, former § 22501, subd. (a), Register 2004, No. 12-Z (Mar. 9, 2004).) … The code which became effective on January 1, 2013 and the corresponding implementing regulations apply to claims submitted after January 1, 2013. (Corp. Code, § 2296;Cal. Code Reg., tit. 2, § 22500, et seq.) Claims submitted before January 1, 2013 are subject to the regulations in effect before that date.” – Almquist Grp., LLC v. Bowen, 2018 Cal. App. Unpub. LEXIS 371
Other articles discussing the Victims of Corporate Fraud Compensation Fund (VCFCF) are linked below:
Our Civil Fraud Series, discussing causes of action for fraud is included below:
If you have any questions or concerns as it relates to corporate fraud, business fraud or the victims of corporate fraud compensation fundwe encourage you to reach out to one of our experienced corporate law attorneys and fraud lawyers at 619-432-5145.