Securities Commissioner Andrea Seidt announced the availability of a recovery fund for victims of investment fraud in Ohio. The fund will help fraud victims recover, if eligible, a portion of their losses.
“We worked with a lot of families who’ve lost almost everything, retirement funds, savings for their child’s college fund,” Seidt said. “We may have retirees who now must rejoin the workforce just to make ends meet. While we obviously cannot reimburse them for their entire loss, this fund provides a bridge to weather the storm for such a loss and help affected Ohioans get back on their feet.”
Ohio victims can now apply to receive compensation of up to 25% of their loss or $25,000, whichever is less. Claims for recovery are eligible from administrative, civil, or criminal cases initiated by the Division for which a final order was issued after Sept. 30, 2021. If the fund falls below $250,000, awards will be suspended and paid out on a prorated basis at the end of the fiscal year.
“Securities fraud can essentially be categorized as a silent crime that results in traumatized victims,” said Vivian McLaughlin, whose father was one of 54 victims in a $9.3 million dollar securities fraud case in Northeast Ohio. “I am elated to state that the Investor Recovery Fund will now give these victims some peace of mind back for which they feel so fortunate and are incredibly grateful. This offers victims a voice, the opportunity to take another step in the right direction for justice and an even larger step forward within the healing process.”
The money for the investor recovery fund comes from the fees and charges paid to the Division by licensees and filings for registrations or exemptions of securities offered to and from Ohioans. No taxpayer money is used.
Cash transfers to investor recovery fund may not exceed $2.5 million in a given fiscal year. The Division helps hundreds of victims in securities-related crime each year.
"This recovery fund has the capacity to grow if funds are not exhausted each year,” Seidt added.
The Ohio Investor Recovery Fund was created in House Bill 110, the state’s two-year budget plan that Gov. Mike DeWine signed in July 2021. Victims of a securities-related crime have already applied to fund since August.
For more information visit, com.ohio.com/irf.
Posted October 12, 2022