Cal. Code Regs. Tit. 2, § 22502 - Additional Application Documentation or Information
(a) If the final judgment does not contain a
specific finding of fraud, misrepresentation, or deceit made with intent to
defraud, the claimant shall provide additional documentation supporting the
claim of fraud against the judgment debtor , including evidence submitted to the
court to obtain the underlying judgment or a detailed narrative statement of
facts explaining the allegations of the complaint.
(b) If the final judgment does not expressly
set forth the amount of damages that were awarded for actual loss and
compensatory damages that are payable from the fund, the verified application
shall include copies of documentation supporting the amount of the actual and
direct loss. For purposes of this section, sufficient proof of actual and
direct loss may include copies of bank account statements showing or confirming
particular transactions, copies of the front and back of checks made payable to
the judgment debtor that have been negotiated, credit card statements showing
or confirming particular transactions, or similar documentation demonstrating
financial loss directly resulting from the fraudulent acts by the judgment
debtor .
(c) The verified
application shall include a description of searches and inquiries conducted by
or on behalf of the claimant with respect to each defendant's assets available
to be sold or applied to satisfaction of the judgment, including copies of
documentation proving that the claimant has sufficiently pursued collection
efforts against all judgment debtors and all other persons liable to the
claimant for the fraud that is the basis for the underlying judgment. For
purposes of this section, "sufficient collection efforts" may include filing
abstracts of judgment in counties where the judgment debtor may have assets,
filing a notice of judgment lien, conducting one or more debtor exams in order
to identify and locate assets, obtaining writs of execution and levying upon
assets, or other attempts to find and attach assets for collection. In the case
of a bankruptcy, sufficient collection efforts may include participating in the
bankruptcy proceedings to protect the debt from discharge or to protect the
right to proceed with a civil suit or other collection efforts, or other types
of activities to protect and proceed with collection efforts. In the case of a
corporate bankruptcy, sufficient collection efforts may include protecting the
right to proceed with a civil suit or to proceed with other collection efforts,
participating in any distributions of assets set up by a receiver or other
court appointed liquidator of available assets, or other types of activities to
protect and proceed with collection efforts. A court's determination or finding
of the judgment debtor insolvency or lack of assets may be submitted in
satisfaction of this requirement.
(d) If the final judgment was obtained by
default, by stipulation or consent, or was obtained pursuant to Code of Civil
Procedure section
594,
or was defended by a trustee in bankruptcy, the Secretary of State may request
that the claimant provide additional documents and information including, but
not limited to, the following:
(1) An
explanation of the computation of the amount of the claim, including an
itemization of all sums recovered from any source applied to the satisfaction
of the judgment. The itemization shall identify the person or entity from which
the sum was obtained, the manner in which the recovery was obtained, and sum of
the recovery.
(2) A certified copy
of the final judgment entered by the court.
(3) A copy of the civil complaint upon which
the judgment for intentional fraud was issued, if applicable. If one or more
amendments or amended complaints were filed, a copy of all amendments and all
prior versions of the complaint. The copies should be endorsed by the clerk of
the court or bear other evidence that they are a copy of the actual document
filed with the court.
(4) A copy of
the notice of entry of judgment, if any, or clerk's certificate of mailing, if
any. If the matter was submitted to arbitration, a copy of the arbitration
decision. If the original judgment was appealed, copies of the appellate
decision and remittitur.
(5) Copies
of any findings of fact, conclusions of law, jury verdicts, jury special
verdicts, statements of decision, memorandum decisions, or any other indication
by the court or jury, as the case may be, of its decision on the issue of
intentional fraud and the reasons for the decision. If the matter was submitted
to arbitration, all documentation submitted to the arbitrator or arbitrators
supporting the arbitration award. If the application is based on a criminal
restitution order, a copy of the criminal complaint or criminal indictment and
any other pleadings, orders and documentation supporting the criminal
restitution order.
(6) A
description and itemization by the claimant of the basis for each element of
damages or restitution awarded.
(7)
A listing of all persons and entities that might be potentially liable to the
claimant for the fraud that is the basis of the civil judgment, arbitration
award, or criminal restitution order and if any person or entity was not named
as a defendant or was dismissed from the underlying lawsuit, or if any person
or entity was not a party to the arbitration or was dismissed from the
arbitration of the claims that are the basis of the underlying arbitration
award, a statement of the reasons for failing to pursue a person or entity
potentially liable to the claimant for the fraud that is the basis of the civil
judgment, arbitration award, or criminal restitution order.
(8) Copies of any pre-trial or post trial
motions, briefs, settlement conference statements, orders or rulings or briefs
submitted in arbitration by any party .
(9) Copies of the answer, cross-complaints,
answers to cross-complaints, and all amendments or other subsequent versions of
any of those documents.
(10) Copies
of all depositions, interrogatories, requests for admission, and other
discovery taken in the underlying action by any party , describing the party or
parties taking the deposition(s), the party propounding the interrogatories,
the party propounding the requests for admission, or the party propounding the
other discovery requests, the deponent(s), the party responding to any
discovery request.
(11) A list of
the names of any witnesses who testified at the underlying trial, or
arbitration of the claims that are the basis of the underlying lawsuit,
arbitration award or criminal restitution order and the present or last known
addresses of the witnesses to the extent known by the claimant.
(12) If the claimant claimed any loss related
to the fraud as a deduction on the claimant's tax return or returns, a
description of the amount of the tax benefit derived
therefrom.
(e) If any of
the items in subdivision (d) are required to be included in the initial
application and are not included in the initial application, or if any of the
items in subdivision (d) are requested by the Secretary of State and are not
supplied, the claimant shall provide a statement under penalty of perjury that
the claimant has made a diligent effort to locate and produce the items but has
been unable to locate the items or has found that the items do not
exist.
(f) All documents or copies
of documents submitted to meet the requirements of this section must be clear
and legible.
Notes
2. Amendment of section heading, section and NOTE filed 1-2-2013; operative 1-2-2013 pursuant to Government Code section 11343.4 (Register 2013, No. 1).
Note: Authority cited: Section 2280, Corporations Code. Reference: Sections 2282(d) and 2288, Corporations Code.
2. Amendment of section heading, section and Note filed 1-2-2013; operative 1-2-2013 pursuant to Government Code section 11343.4 (Register 2013, No. 1).
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(a) If the final judgment does not contain a specific finding of fraud, misrepresentation, or deceit made with intent to defraud, the claimant shall provide additional documentation supporting the claim of fraud against the judgment debtor, including evidence submitted to the court to obtain the underlying judgment or a detailed narrative statement of facts explaining the allegations of the complaint.
(b) If the final judgment does not expressly set forth the amount of damages that were awarded for actual loss and compensatory damages that are payable from the fund, the verified application shall include copies of documentation supporting the amount of the actual and direct loss. For purposes of this section, sufficient proof of actual and direct loss may include copies of bank account statements showing or confirming particular transactions, copies of the front and back of checks made payable to the judgment debtor that have been negotiated, credit card statements showing or confirming particular transactions, or similar documentation demonstrating financial loss directly resulting from the fraudulent acts by the judgment debtor.
(c) The verified application shall include a description of searches and inquiries conducted by or on behalf of the claimant with respect to each defendant's assets available to be sold or applied to satisfaction of the judgment, including copies of documentation proving that the claimant has sufficiently pursued collection efforts against all judgment debtors and all other persons liable to the claimant for the fraud that is the basis for the underlying judgment. For purposes of this section, "sufficient collection efforts" may include filing abstracts of judgment in counties where the judgment debtor may have assets, filing a notice of judgment lien, conducting one or more debtor exams in order to identify and locate assets, obtaining writs of execution and levying upon assets, or other attempts to find and attach assets for collection. In the case of a bankruptcy, sufficient collection efforts may include participating in the bankruptcy proceedings to protect the debt from discharge or to protect the right to proceed with a civil suit or other collection efforts, or other types of activities to protect and proceed with collection efforts. In the case of a corporate bankruptcy, sufficient collection efforts may include protecting the right to proceed with a civil suit or to proceed with other collection efforts, participating in any distributions of assets set up by a receiver or other court appointed liquidator of available assets, or other types of activities to protect and proceed with collection efforts. A court's determination or finding of the judgment debtor insolvency or lack of assets may be submitted in satisfaction of this requirement.
(d) If the final judgment was obtained by default, by stipulation or consent, or was obtained pursuant to Code of Civil Procedure section 594, or was defended by a trustee in bankruptcy, the Secretary of State may request that the claimant provide additional documents and information including, but not limited to, the following:
(1) An explanation of the computation of the amount of the claim, including an itemization of all sums recovered from any source applied to the satisfaction of the judgment. The itemization shall identify the person or entity from which the sum was obtained, the manner in which the recovery was obtained, and sum of the recovery.
(2) A certified copy of the final judgment entered by the court.
(3) A copy of the civil complaint upon which the judgment for intentional fraud was issued, if applicable. If one or more amendments or amended complaints were filed, a copy of all amendments and all prior versions of the complaint. The copies should be endorsed by the clerk of the court or bear other evidence that they are a copy of the actual document filed with the court.
(4) A copy of the notice of entry of judgment, if any, or clerk's certificate of mailing, if any. If the matter was submitted to arbitration, a copy of the arbitration decision. If the original judgment was appealed, copies of the appellate decision and remittitur.
(5) Copies of any findings of fact, conclusions of law, jury verdicts, jury special verdicts, statements of decision, memorandum decisions, or any other indication by the court or jury, as the case may be, of its decision on the issue of intentional fraud and the reasons for the decision. If the matter was submitted to arbitration, all documentation submitted to the arbitrator or arbitrators supporting the arbitration award. If the application is based on a criminal restitution order, a copy of the criminal complaint or criminal indictment and any other pleadings, orders and documentation supporting the criminal restitution order.
(6) A description and itemization by the claimant of the basis for each element of damages or restitution awarded.
(7) A listing of all persons and entities that might be potentially liable to the claimant for the fraud that is the basis of the civil judgment, arbitration award, or criminal restitution order and if any person or entity was not named as a defendant or was dismissed from the underlying lawsuit, or if any person or entity was not a party to the arbitration or was dismissed from the arbitration of the claims that are the basis of the underlying arbitration award, a statement of the reasons for failing to pursue a person or entity potentially liable to the claimant for the fraud that is the basis of the civil judgment, arbitration award, or criminal restitution order.
(8) Copies of any pre-trial or post trial motions, briefs, settlement conference statements, orders or rulings or briefs submitted in arbitration by any party.
(9) Copies of the answer, cross-complaints, answers to cross-complaints, and all amendments or other subsequent versions of any of those documents.
(10) Copies of all depositions, interrogatories, requests for admission, and other discovery taken in the underlying action by any party, describing the party or parties taking the deposition(s), the party propounding the interrogatories, the party propounding the requests for admission, or the party propounding the other discovery requests, the deponent(s), the party responding to any discovery request.
(11) A list of the names of any witnesses who testified at the underlying trial, or arbitration of the claims that are the basis of the underlying lawsuit, arbitration award or criminal restitution order and the present or last known addresses of the witnesses to the extent known by the claimant.
(12) If the claimant claimed any loss related to the fraud as a deduction on the claimant's tax return or returns, a description of the amount of the tax benefit derived therefrom.
(e) If any of the items in subdivision (d) are required to be included in the initial application and are not included in the initial application, or if any of the items in subdivision (d) are requested by the Secretary of State and are not supplied, the claimant shall provide a statement under penalty of perjury that the claimant has made a diligent effort to locate and produce the items but has been unable to locate the items or has found that the items do not exist.
(f) All documents or copies of documents submitted to meet the requirements of this section must be clear and legible.
Notes
Note: Authority cited: Section 2280, Corporations Code. Reference: Sections 2282(d) and 2288, Corporations Code.
2. Amendment of section heading, section and Note filed 1-2-2013; operative 1-2-2013 pursuant to Government Code section 11343.4 (Register 2013, No. 1).