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, 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. A list of potential resources is located on our Fraud Resources page.

More detailed information on application procedures can be found on the Application Instructions and Forms page.