U.S. Rep. Todd Rokita today joined Indiana Secretary of State Connie Lawson at the statehouse to announce that the first check from the Securities Restitution Fund (SRF) will be awarded to Hoosier investor Steve Brodie. Mr. Brodie is the first Indiana victim to receive compensation from the SRF, which was established during Rokita's tenure as Secretary of State to help victims of securities fraud recover a portion of their losses.
"As Secretary of State, I worked with legislators to craft the law creating the Securities Restitution Fund for victims of fraud in our state," said Rokita. "Without using taxpayer money, this groundbreaking, first-of-its-kind fund is able to provide some partial restitution for Indiana victims. As we did with other innovations during my tenure -- like our landmark voter ID law and other election reforms -- Secretary Lawson's office today continues to lead the way in finding innovative ways of delivering the best service possible to Hoosiers."
As Secretary of State, Rokita worked with Securities Commissioner Chris Naylor in 2010 to help create the Securities Restitution Fund. They suggested the idea to State Representatives Jeb Bardon and Woody Burton, who authored House Enrolled Act 1332 to establish the fund and guided it to passage with overwhelming support.
"This fund was the first of its kind in the nation and will play an important role in helping Hoosier investors recoup their losses," said Secretary Lawson. "The investors who come to my office for assistance are often unable to recover funds from the scam artist because the money has already been spent. This fund will give us an alternative method to help hard working Hoosiers rebuild their nest egg."
The innovative, groundbreaking law allows the Securities Division to repay fraud victims a portion of their losses using funds collected from violators of the Indiana Uniform Securities Act -- without using any taxpayer money. The SRF was established with an initial $2 million from Securities Division fines collected against violators of the Indiana Securities Act, and is subsequently funded with a 5% collection from all funds collected through fraud investigations.