A provision of the
Sarbanes-Oxley Act that allows courts to extract
funds from companies that have used
aggressive accounting techniques to
defraud investors in order to repay those investors. That is, if one suffers a
loss because a company was conducting an illegal
activity, the Fair Funds for Investors provision allows them to recover their losses from the company. This provision was enacted following the Enron scandal to maintain confidence in the
stock market and to reduce
risk for investors.