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HomeCorporations CodeCh. 22.5§ 2280 Corporate Fraud Victim Restitution

§ 2280 Corporate Fraud Victim Restitution

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2280 Corporate Fraud Victim Restitution

This law creates a special money pool to pay back people who were hurt by a company's fraud, and it is run by the Secretary of State.

Key Takeaways

  • •A Victims of Corporate Fraud Compensation Fund is set up in the state treasury.
  • •The fund is only for paying back people who suffered from corporate fraud.
  • •The Secretary of State runs the fund and can make rules to manage it.
  • •Money for the fund is always available, even if other budget rules say otherwise.

Example

A small business owner invests in a company that later turns out to have lied about its earnings, causing the owner to lose money.

Because of this law, the money the state set aside can be used to give the business owner some of the lost cash as repayment.

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

Official Source
View on CA.gov

§ 2280 Corporate Fraud Victim Restitution

The Victims of Corporate Fraud Compensation Fund is hereby established in the State Treasury. The fund shall be administered by the Secretary of State for the sole purpose of providing restitution to the victims of a corporate fraud. The Secretary of State shall adopt regulations in furtherance of the administration of this chapter. Notwithstanding Section 13340 of the Government Code, the money in the fund is continuously appropriated to the Secretary of State for the purposes authorized by this chapter. (Added by Stats. 2012, Ch. 564, Sec. 4. (SB 1058) Effective January 1, 2013.)

Last verified: January 10, 2026

Key Terms

Victims of Corporate Fraud Compensation FundSecretary of Staterestitutioncorporate fraud

Related Statutes

  • § 2287 Corporate Fraud Fund Appeals
  • § 2282.1 Corporation Payment Claim Notice
  • § 2285 Claim Decision Notice Requirement
  • § 2286 Corporation Fund Award Notice
  • § 2288 Fund Payment Determination Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 2280.
View Official Source