§ 12671 Fraudulent Membership Certificate Issuance

Corporations Code·California

AI SummaryVerified

This law says that if a company leader knowingly sells fake membership certificates to trick members or creditors, they can be charged with a misdemeanor.

Key Takeaways

•It’s illegal to knowingly issue fake membership certificates to trick anyone.
•The person must do it on purpose, not by accident.
•Punishment can be a fine of up to $1,000, up to one year in county jail, or both.

Example

A director of a club creates membership cards that say members own part of the club, even though they don’t, and sells them to people who want to invest.

Because the director knew the certificates were false and sold them to fool the buyers, the law says they could be fined up to $1,000, sent to county jail for up to a year, or both.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 12671 Fraudulent Membership Certificate Issuance

Any promoter, director, or officer of a corporation who knowingly and willfully issues or consents to the issuance of memberships or membership certificates with intent to defraud present or future members or creditors is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in county jail for not more than one year or by both such fine and imprisonment. (Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

Last verified: January 10, 2026

Key Terms

promoter director officer knowingly and willfully memberships or membership certificates intent to defraud misdemeanor

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 12671.

§ 12671 Fraudulent Membership Certificate Issuance

Corporations Code·California

AI SummaryVerified

§ 12671 Fraudulent Membership Certificate Issuance

This law says that if a company leader knowingly sells fake membership certificates to trick members or creditors, they can be charged with a misdemeanor.

Key Takeaways

•It’s illegal to knowingly issue fake membership certificates to trick anyone.
•The person must do it on purpose, not by accident.
•Punishment can be a fine of up to $1,000, up to one year in county jail, or both.

Example

A director of a club creates membership cards that say members own part of the club, even though they don’t, and sells them to people who want to invest.

Because the director knew the certificates were false and sold them to fool the buyers, the law says they could be fined up to $1,000, sent to county jail for up to a year, or both.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 12671 Fraudulent Membership Certificate Issuance

Last verified: January 10, 2026

Key Terms

promoter director officer knowingly and willfully memberships or membership certificates intent to defraud misdemeanor

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 12671.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References