Sponsor says new measure would let securities regulator order return of investor funds after First Liberty losses

The President Pro Tem presented SB 284 as a response to investor losses tied to the First Liberty collapse, saying the securities division can currently levy fines and issue cease-and-desist orders but cannot require return of funds to defrauded investors.

The presenter explained that adding restitution authority would allow the securities division commissioner to require money be returned directly to investors harmed by fraud. He noted that the First Liberty receivership might allocate recovered funds to vendors or other creditors before investors, and that the proposed change could allow more direct relief if the bill becomes law. The sponsor also said the bill would be effective upon the governor's signature.

A local resident, Shirley Smith, addressed the committee and described witnessing people in her community lose savings, thanking the sponsor for bringing the measure. The committee did not take a vote; members asked clarifying questions but the principal topic was whether the securities division should gain restitution authority as a tool to help defrauded investors.