Secretary of State, advocates back bill to create restitution fund for securities fraud victims

Secretary of State Cisco Ayala told the committee on behalf of his office that SB 76 would establish a restitution fund to help victims of securities and investment fraud recover losses. "We are here today to present SB 76, our bill to create a restitution fund for victims of securities fraud," Ayala said.

The bill would let the Secretary of State's securities division accept gifts and grants for a fund to provide relief to investors, officials said. Ayala noted that in fiscal year 2023 the securities division received complaints alleging nearly $17,000,000 in fraud but investors received about $200,000 in restitution, a disparity he called a gap the fund aims to address.

AARP Nevada's advocacy director Jessica Padron testified in support, saying the measure would assist older Nevadans and others on fixed incomes who are often targeted by investment fraud. "This fund matters particularly because security fraud is a crisis that disproportionately harms older Nevadans," Padron said. "This is more than good policy. It's the right thing to do." She urged passage, noting the sponsor's proposed amendment to delay funding until the next biennium.

Ayala and staff said they submitted a conceptual amendment to move the effective date for funding to the next biennium so the bill would have no immediate fiscal impact and the Legislature could review funding mechanisms before money is appropriated. Committee staff opened public lines for support, opposition and neutral testimony; only AARP Nevada provided live support testimony during the hearing.

The committee held the hearing and took no vote during this session. The chair closed the bill hearing after questions and public-comment opportunities ended.