Beginning July 1, eligible victims of securities fraud in Indiana will be
able to recover a portion of their losses due to the establishment of the
nation's first state Securities Restitution Fund.
Also under a new law to take effect on Thursday, anyone entering the
financial planning profession as an Investment Adviser Representative in
Indiana will first undergo an FBI criminal background check.
Both new investor protection measures taking effect this week are the result
of House Enrolled Act 1332, which was supported by Indiana Secretary of
State Todd Rokita and passed by the Indiana General Assembly earlier this
“These new laws just add to the growing set of tools Indiana has forged to
protect investors from financial attacks,” Rokita said. “We have found ways
to even more directly help victims avoid fraudsters and recover more of
their losses when they do become victims of financial crimes.”
The Securities Restitution Fund, believed to be the first of its kind
created by any state, becomes an additional way for the Indiana Securities
Division to leverage fines and settlements collected from violators of the
Indiana Uniform Securities Act. For years the Division has successfully used
such fines to support its operations and to educate Hoosiers about financial
With the Securities Restitution Fund, eligible victims of securities
violations where the illegitimate transaction occurs on or after July 1,
2010, will be required to show proof that restitution was awarded by a court
or administrative agency. The Securities Commissioner can award payment of
up to $15,000 or 25 percent of unrecovered awards (whichever is less).
Victims will have access to an online portal where they can submit an
application for awards from the fund.
The Securities Restitution Fund was established with an initial $2 million
investment from the Securities Division enforcement account, which consists
of fines collected against violators of the Indiana Uniform Securities Act.
The Securities Restitution Fund will not use any tax dollars.
Along with the Securities Restitution Fund and new criminal background check
requirement, HEA 1332 includes a new provision that allows the Indiana
Securities Commissioner to financially reward a whistleblower who reports
Securities Act violations and also a new provision enabling the Securities
Division to seek asset freezes and receiverships against Loan Brokers in
For more information about the Indiana Securities Division, visit
information on the Indiana Securities Division, visit