California · Corporations Code

CORP §2251: Any promoter, director or officer of a corporation who knowingly and willfully issues or consents to the issuance of certificates for certificated securities, or initial transaction statements or writ

Misdemeanor

What this law says, in plain English

A corporate officer who knowingly issues fraudulent securities certificates or statements with intent to defraud shareholders, purchasers, or creditors commits a misdemeanor punishable by up to one year imprisonment and/or a $1,000 fine.

Read the full statutory text

Any promoter, director or officer of a corporation who knowingly and willfully issues or consents to the issuance of certificates for certificated securities, or initial transaction statements or written statements for uncertificated securities, in violation of this division with intent to defraud present or future shareholders, subscribers, purchasers of shares or creditors is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or imprisonment for not more than one year or both.

Verify at the official source: California legislative text

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