Florida Legislators Introducing Bills to Stop Investment Fraud
Concerns over the increasing number of investment fraud schemes being uncovered have spurred Florida’s lawmakers to introduce legislation they hope will protect investors.
Two southwest Florida lawmakers, Representatives Tom Grady and Senator Garrett Richter, have collaborated with Florida attorney general Bill McCollum to introduce a bill known as the Florida’s Securities and Investors Protection Act. The proposals aim at enhancing the attorney general's powers to begin investigating possible fraud sooner. Prosecutors will need less proof to pursue a case, enabling them to easily crack down on any violations that come to their attention. The bill will also provide for stricter registration requirements for investment advisers and brokers.
Florida has been hit particularly hard in the recent series of investment fraud scandals that have come to light. The victims of Bernie Madoff's scheme included a large number of retirees who invested their funds in the scheme and moved to Florida to live out their golden years. Soon after in January, hedge fund manager Arthur Nadel surrendered in Tampa after leading investigating officers on a cross country chase. Nadel is being sued by federal regulators for inflating investment values in the funds he managed by approximately $300 million.
According to attorney general McCollum, the current system to investigate investment fraud in Florida is in dire need of change. Under the present system, prosecutors cannot interfere in a case until the financial regulation office refers it to them. The new bill allows the attorney general's office to initiate civil investigations.
A lack of attention and poor regulatory practices, both at federal and state levels, has allowed the likes of Madoff, Nadel and more recently, Allen Stanford to continue their fantastical schemes with no fear of getting caught. Their schemes remained under the radar as long as the economy was fine and credit was flowing freely. The credit squeeze has exposed a number of these schemes, audacious Ponzi schemes for the most part.
Investment Fraud Attorney
Pursuing claims in an investment or securities fraud can be a complex affair. Authorities may have access to more than one source for dispensing compensation and the amount of compensation for each investor who lost money can vary.
A professional investment fraud attorney can help you recover damages from all sources possible. If you have lost money in a fraudulent scheme, contact an investment fraud attorney at Arnold & Itkin LLP for a free evaluation of your claim.
