The Victims of Corporate Fraud Compensation Fund, commonly abbreviated VCFCF, is a fund created and maintained by the state of California. It provides financial compensation to corporate fraud victims who haven’t yet been able to collect.
People can fill out an application to receive restitution if they meet certain requirements.
Requirements to Fill Out an Application
For those who live in California, victims of fraud can recuperate their money through compensation, with the help of a lawyer. If you want to file an application to receive compensation from the VCFCF, you must meet a number of requirements first.
Firstly, you need to have been given a civil or criminal judgment, restitution, or arbitration award based on misrepresentation, deceit, or fraud. A judge must have indicated that you are the victim of corporate fraud and that you are entitled to compensation.
Secondly, you’ll need to have the judgment or order is passed down by a federal court conducted in the State of California or by a California state court. This is because the fund is state legislation that covers only in-state affairs.
Similarly, the victim must have been a California resident when the fraudulent activity occurred. The involved corporation must be registered in California or qualified to conduct business within California borders.
The corporation or debtor must have filed for bankruptcy. During these proceedings, the debt they owe to the victim must be declared nondischargeable. This means that it is a type of debt that can’t be waived during bankruptcy proceedings.
Submitting an Application
You must meet the deadline for your application. There are 18 months following the judgment’s finality in which you can file your application. For a judgment to be final, the corporation must have no way to appeal, which means that an appeal must be rejected or the appeal period must expire.
You must also prove that you have done your best to collect your debt and that the corporation has no way of paying the debt. This is why the corporation must declare bankruptcy.
Since you won’t get restitution from the corporation itself, the VCFCF exists to provide relief. That way, you’re still protected against corporate fraud even when the corporation itself cannot pay reparations.
Types of Corporate Fraud
There are a variety of types of corporate fraud. With regards to the VCFCF, any corporate crime that is based on fraud, deceit, or misinformation counts.
Corporate fraud is one of the most common white-collar crimes throughout the US. One of the biggest issues is that corporate fraud threatens the confidence of investors in addition to the livelihoods of individuals.
One form of corporate fraud is falsifying financial information. Many corporations use loopholes in tax codes to pay as little in taxes as possible. But it’s illegal to falsify tax documents so you don’t declare income. This is a huge problem, but the victim of the fraud tends to be the US government rather than an individual.
Another type of corporate fraud is identity theft. This occurs when an individual uses the details of a corporation or another person to acquire assets or avoid penalties. People who have their identities stolen can have their entire lives ruined. Identity theft is a federal crime because of this.
Another common form of corporate fraud is copyright infringement. In these cases, intellectual property is stolen from an individual. When this property is marketed or sold, it can result in the individual losing thousands of dollars. Copyright infringement is a serious issue, and many people find themselves the victim of it.