TORRANCE DAILY BREEZE: Lieu bill would speed up payments to corporate fraud victims

April 12, 2012

By Art Marroquin

The state Senate's Banking and Financial Institutions Committee this week approved a bill aimed at speeding up state payments to victims of corporate fraud.

Senate Bill 1058, introduced by state Sen. Ted Lieu, D-Redondo Beach, calls for paying victims within 90 days, increasing the maximum restitution from $20,000 to $50,000 and blocking corporations from contesting payments.

California's fraud compensation fund has raised nearly $15 million over the past decade, but only seven victims have been paid $112,000 over the same period of time, Lieu said.

Language in the current fraud compensation law is `riddled with red tape" that has prevented victims from getting paid, Lieu said.