California Financial Code 51011 – A person engaged in business as an exchange facilitator shall not do …
A person engaged in business as an exchange facilitator shall not do any of the following:
(a) Make any material misrepresentations concerning any like-kind exchange transaction that are intended to mislead.
Terms Used In California Financial Code 51011
- Client: means the taxpayer with whom the exchange facilitator enters into an agreement described in subparagraph (A) of paragraph (1) of subdivision (b). See California Financial Code 51000
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Exchange facilitator: means a person that does any of the following:
California Financial Code 51000
- Fraud: Intentional deception resulting in injury to another.
- Person: means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, or any other form of a legal entity, and includes the agents and employees of that person. See California Financial Code 51000
(b) Pursue a continued or flagrant course of misrepresentation, or make false statements through advertising or otherwise.
(c) Fail, within a reasonable time, to account for any moneys or property belonging to others that may be in the possession of, or under control of, the person.
(d) Engage in any conduct constituting fraudulent or dishonest dealings.
(e) Commit any crime involving fraud, misrepresentation, deceit, embezzlement, misappropriation of funds, robbery, or theft.
(f) Materially fail to fulfill its contractual duties to a client to deliver property or funds to the client, unless that failure is due to circumstances beyond the control of the person engaging in business as an exchange facilitator.
(Added by Stats. 2008, Ch. 708, Sec. 2. Effective January 1, 2009.)