California · Corporations Code

CORP §27101: It is unlawful for any individual, directly or indirectly, in connection with the solicitation, receipt, or collection of, or solicitation of any subscription or contract to pay any contributions, fee

Felony

What this law says, in plain English

It is unlawful to use fraud, deception, misstatement, or misappropriation when soliciting money or fees from security holders for purposes of protecting their rights.

Read the full statutory text

It is unlawful for any individual, directly or indirectly, in connection with the solicitation, receipt, or collection of, or solicitation of any subscription or contract to pay any contributions, fees, funds, or compensation of any kind, from any owner or holder of any security, for the purpose of protecting, enforcing, or representing the rights of the security owners or holders evidenced by the security, to do any of the following: (a) Employ any device, scheme, or artifice to defraud. (b) By means of any written or oral communication, make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. (c) Engage in any transaction, act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. (d) Misappropriate or convert the funds, security, or property of any other person.

Verify at the official source: California legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.