§ 827 Public Utility Fraud Prohibition

Key Takeaways

•You can't lie or give false info to get permission to sell stocks or bonds for a public utility.
•You can't sell or use stocks or bonds in a way that breaks the rules set by the commission.
•If you know someone lied to get stocks or bonds approved, you can't sell or use them either.
•Breaking these rules is a serious crime (felony).

Example

A manager at a power company tells the commission they need $1 million to fix old power lines, but really, they use half the money to buy fancy cars for the bosses.

The manager broke the law because they lied about how the money would be used and spent it on something not allowed. This is against the rules in section (d).

Every officer, agent, or employee of a public utility, and every other person is guilty of a felony who does any of the following acts: (a) Knowingly authorizes, directs, aids in, issues, or executes, or causes to be issued or executed, any stock or stock certificate or other evidence of interest or ownership, or bond, note, or other evidence of indebtedness, in nonconformity with the order of the commission authorizing the issue, or contrary to the provisions of this part or of the Constitution of this State. (b) Knowingly makes any false statement or representation in any proceeding before the commission or with knowledge of its falsity files or causes to be filed with the commission any false statement or representation which tends in any way to influence the commission to make an order authorizing the issue of any stock or stock certificate or other evidence of interest or ownership, or any bond, note, or other evidence of indebtedness, or which results in procuring from the commission the making of any such order. (c) With knowledge that any false statement or representation was made to the commission, in any proceeding, tending in any way to influence the commission to make such order, issues or executes or negotiates, or causes to be issued, executed, or negotiated any such stock or stock certificate or other evidence of interest or ownership, or bond, note, or other evidence of indebtedness. (d) Directly or indirectly, knowingly applies, or causes or assists to be applied any part of the proceeds from the sale of any stock or stock certificate or other evidence of interest or ownership, or bond, note, or other evidence of indebtedness, to any purpose not specified in the commission’s order, or to any purpose specified in the commission’s order in excess of the amount authorized for such purpose. (e) With knowledge that any stock or stock certificate or other evidence of interest or ownership, or bond, note, or other evidence of indebtedness, has been issued or executed in violation of any of the provisions of this part, negotiates, or causes the same to be negotiated. (Enacted by Stats. 1951, Ch. 764.)

Key Takeaways

•You can't lie or give false info to get permission to sell stocks or bonds for a public utility.
•You can't sell or use stocks or bonds in a way that breaks the rules set by the commission.
•If you know someone lied to get stocks or bonds approved, you can't sell or use them either.
•Breaking these rules is a serious crime (felony).

Example

A manager at a power company tells the commission they need $1 million to fix old power lines, but really, they use half the money to buy fancy cars for the bosses.

The manager broke the law because they lied about how the money would be used and spent it on something not allowed. This is against the rules in section (d).

Key Takeaways

Example

Key Terms

References

§ 827 Public Utility Fraud Prohibition

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References