Fraud victims compensation; Market Accountability Compensation Fund, established to provide restitution assistance to victims of investment fraud

Summary

The bill sets up the Market Accountability Compensation Fund in the state treasury, seeded with $2.5 million, to give cash assistance to victims of securities fraud who cannot get restitution from the perpetrator. The Alabama Securities Commission will manage the fund, awarding up to $25,000 (or 25 % of unpaid restitution) per claimant, with higher limits for vulnerable adults, and can reclaim the money if the underlying restitution order is later overturned.

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