A.G. File No. 2007-046

The Corporate Accountability Act

September 18, 2007

 


This measure would establish a new civil penalty for corporate fraud related to the purchase and sale of securities. Specifically, a corporation could be held liable for any financial benefit it gains as a result of securities fraud. Further, a corporate executive who willfully engages in securities fraud could be held liable for the compensation he/she receives during the period in which the violation(s) occurs. Any penalties ordered by the court pursuant to this measure would be deposited into an existing state-administered special fund to pay restitution to victims of corporate fraud.