OAH Seeks Opinion Regarding Appearances By Non-Attorneys and Out-of-State Attorneys

I’ve written on several occasions about the Office of Administrative Law.  It should not be confused with the Office of Administrative Hearings.  The OAH provides administrative law judges who conduct hearings for over 1500 state and local government agencies.  In many cases, although the hearings are quasi-judicial, non-attorneys and out-of-state attorneys often appear on behalf of

Tribal Sovereign Immunity Protects Payday Lenders From State Enforcement

Last year, the Commissioner of Business Oversight issued several alerts warning consumers that it has received complaints with respect to unlicensed firms offering payday (deferred deposit) loans in California.  The common thread in each of these alerts is that the lender claims to be wholly owned by a Native American tribe and that the lender is therefore not

DBO to Licensees: “Thou Shalt Have A Dedicated Electronic Mailbox And Read Your Email Daily”

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Late last month, Department of Business Oversight Commissioner Jan Owen issued an order requiring licensees to: establish within their computer electronic mail system an electronic mailbox; dedicate the email address to receiving communications from the DBO; and monitor the mailbox daily. The Commissioner’s order further requires that the mailbox have the capability of receiving attachments.  The Commissioner

How To Get A Request For An Interpretive Opinion Rejected

Corporations Code Section 25618 authorizes the Commissioner of Business Oversight to honor requests for interpretive opinions.  An interpretive opinion offers far more protection than a no-action letter from the SEC staff.  Section 25700 provides immunity from liability for “any act done or omitted to be done in good faith in conformity with any . . .

Should There Be “Bad Actor” Risk Factor?

I’ve devoted several recent posts to the Securities and Exchange Commission’s new “bad actor” rule because it is awash with a sea of troubles for issuers, both private and publicly traded.    The rule prevents issuers from relying on Rule 506 if they are or have been subject to any of a long list of

Ever Wonder Who’s In Charge At The Department Of Business Oversight?

I’m still adjusting to the fact that the Departments of Corporations and Financial Institutions have merged or morphed into the totalitarian sounding Department of Business Oversight.  See DOC and DFI – RIP.  Like each of its predecessors, the new Department is headed by a single Commissioner.  In July, Governor Brown appointed Jan Lynn Owen as the Department’s

Beware Of Fraudulent On-Line Escrows

From time to time, the Department of Business Oversight posts warnings about fraudulent on-line escrow companies.  According to the Department, these fraudsters use stolen identities and credit card numbers to open a Web hosting account.  They then upload content files to the Web hosting server to create a phony site.  These sites often claim to be

DOC And DFI – RIP

Effective today, the Department of Corporations and the Department of Financial Institutions have “merged” to form the Department of Business Oversight in accordance with the Governor’s reorganization of state departments.  The new website is www.dbo.ca.gov. This was an extremely ill-considered change that was opposed by many, including myself.  It is unlikely to save the state

Two Very Good Reasons To Visit The Department’s Website

When I joined the Department of Corporations, it had no website.  I remember reviewing possible designs for a site.  Now, it seems hard to imagine that there was a time when state agencies didn’t have websites.  Today, the Department’s website is a good source of information about enforcement actions, licensing requirements and procedures, as well

If You Did This, It Would Be Fraud!

All fees, reimbursements, assessments, and other money or amounts charged and collected by the Department are required to be deposited into the the State Corporations Fund.  Cal. Gov’t Code § 13978.6(b).  The legislature created the fund to “effectively support the Department of Corporations” in its administration of the laws subject to its jurisdiction.  Id. In