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Victims of Corporate Fraud Compensation Fund
Frequently Asked Questions
The concept of corporate fraud is very broad and encompasses a variety of criminal and civil violations. There is no single definition in the law. For VCFCF purposes, corporate fraud is fraud, misrepresentation, or deceit, made with intent to defraud, and involving a corporation. Some examples of corporate fraud may include, but are not limited to, fraud or illegal practice in the issuance or sale of securities, false reports or entries on corporate documents with intent to deceive, or purchase or sale of securities by a person having access to material information not available to the public through a special relationship with the issuer (insider trading).
Although the Secretary of State does not have the authority to investigate or prosecute corporate fraud, we have created a list of agencies and resources that can provide you with assistance. Visit our Fraud Resources page for more information. You may also wish to consult private legal counsel or your local District Attorney's Office.
There are certain minimum requirements before applying to the VCFCF. For example, you must have a final court judgment, arbitration award, or criminal restitution order based on corporate fraud. Refer to the Application Requirements for additional information.
You have an obligation to protect the underlying judgment in bankruptcy. The debt must be declared nondischargeable to qualify for payment from the VCFCF. If bankruptcy proceedings are ongoing, you must file a claim in the bankruptcy and that matter must be resolved in your favor before your application can be processed.
Refer to the Secretary of State's California Business Search to find the corporation's most recent mailing address, and the name and address of the Agent for Service of Process. Additional information may be obtained by ordering a copy of the corporation's last complete Statement of Information filed with this office. Fees and instructions for requesting a copy of the statement are included on the Business Entities Records Order Form. You may then use this information to consult private legal counsel or your local District Attorney's Office to determine if legal action is necessary.
For assistance in determining where to file a complaint against a corporation and how to proceed, please refer to the Department of Consumer Affairs, Consumer Resource & Referral Guide. You may also wish to consult private legal counsel or your local District Attorney's Office.
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