CHAPTER 1. RESTITUTION FOR VICTIMS OF SECURITIES VIOLATIONS
IC 23-20
ARTICLE 20. VICTIMS OF SECURITIESVIOLATIONS
IC 23-20-1
Chapter 1. Restitution for Victims of Securities Violations
IC 23-20-1-1
"Claimant"
Sec. 1. (a) As used in this chapter, "claimant" means a victimfiling an application for restitution assistance under this chapter.
(b) The term includes:
(1) a named party in an award;
(2) the executor of a named party in an award; or
(3) the heirs and assigns of a named party in an award.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-2
"Division"
Sec. 2. As used in this chapter, "division" refers to the securitiesdivision of the office of the secretary of state.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-3
"Fund"
Sec. 3. As used in this chapter, "fund" refers to the securitiesrestitution fund established by section 25 of this chapter.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-4
"Out-of-pocket loss"
Sec. 4. As used in this chapter, "out-of-pocket loss" means anamount equal to the amount of restitution ordered under any of thefollowing:
(1) A final court order.
(2) A final administrative order.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-5
"Person"
Sec. 5. As used in this chapter, "person" includes a soleproprietorship, a partnership, a corporation, an association, afiduciary, or an individual.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-6
"Securities violation"
Sec. 6. As used in this chapter, "securities violation" means aviolation of the following:
(1) The Securities Act of 1933, as amended, and any regulations
related to that act.
(2) The Securities Exchange Act of 1934, as amended, and anyregulations related to that act.
(3) The Investment Company Act of 1940, as amended, and anyregulations related to that act.
(4) The Investment Advisers Act of 1940, as amended, and anyregulations related to that act.
(5) The Indiana uniform securities act and any rules related tothat act.
(6) Other state securities acts and any rules or regulationsrelated to those acts.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-7
"Victim"
Sec. 7. As used in this chapter, "victim" means an individual whosuffers monetary injury as a result of a securities violation.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-8
Duties of division
Sec. 8. The division shall do the following:
(1) Prescribe forms for processing applications for restitutionassistance.
(2) Determine whether a claim for restitution assistance filedunder this chapter should be awarded.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-9
Order awarding restitution to claimant required
Sec. 9. The division shall require a claimant to produce a copy of:
(1) a court order; or
(2) an administrative order;
that demonstrates that restitution has been awarded to the claimantas described in section 16 of this chapter.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-10
Confidentiality of claimant's personal information
Sec. 10. A claimant's personal information (as defined inIC 9-14-3.5-5) is confidential.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-11
Persons eligible for restitution assistance
Sec. 11. Except as otherwise provided in this chapter, thefollowing persons are eligible for restitution assistance under thischapter:
(1) A resident of Indiana who is a victim of a securitiesviolation committed: (A) in Indiana; or
(B) in a jurisdiction other than Indiana, including a foreigncountry, if the jurisdiction in which the securities violationoccurred does not offer to Indiana residents who are victimsof securities violations in that jurisdiction assistance that issubstantially similar to the assistance offered under thischapter.
(2) A nonresident of Indiana who is a victim of a securitiesviolation committed in Indiana if the jurisdiction in which thevictim resides offers to Indiana residents who are victims ofsecurities violations in that jurisdiction assistance that issubstantially similar to the assistance offered under this chapter.
(3) A surviving spouse or dependent child of a victim describedin subdivision (1) or (2).
(4) Any other person legally dependent for principal supportupon a victim described in subdivision (1) or (2).
As added by P.L.114-2010, SEC.12.
IC 23-20-1-12
Application for restitution assistance; filing with division
Sec. 12. (a) A person eligible for restitution assistance undersection 11 of this chapter may file an application for restitutionassistance with the division.
(b) The application must be received by the division not morethan one hundred eighty (180) days after the date of the orderdescribed in section 16 of this chapter. The division may grant anextension of time for good cause shown by the claimant. However,the division may not accept an application that is received more thantwo (2) years after the date of the order described in section 16 ofthis chapter.
(c) The application must be filed in the office of the division inperson, through the division's Internet web site, or by first class orcertified mail. If requested, the division shall assist a claimant inpreparing the application.
(d) The division shall accept all applications filed in compliancewith this chapter. Upon receipt of a complete application, thedivision shall promptly begin processing the application.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-13
Division's review of applications; request for additionalinformation
Sec. 13. (a) The division shall review all applications to ensurethat the applications are complete.
(b) If an application is not complete, the application shall bereturned to the claimant with a brief statement of the additionalinformation required.
(c) The claimant may, not more than thirty (30) days after receiptof the request for additional information, either supply theinformation or appeal to the securities commissioner as to the
completeness of the application.
(d) The decision of the securities commissioner as to thecompleteness of the application is final.
(e) The division shall deny the application if:
(1) the applicant does not furnish additional information; or
(2) additional time is not granted by the securities commissionerfor good cause.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-14
Denial of assistance to victim participating in or profiting fromsecurities violation
Sec. 14. (a) Subject to subsection (b), the division may not awardrestitution assistance if the victim:
(1) sustained the monetary injury as a result of:
(A) participating or assisting in; or
(B) attempting to commit or committing;
a securities violation; or
(2) profited or would have profited from the securities violation.
(b) If the victim is a dependent child or dependent parent of theperson who commits a securities violation, restitution assistance maybe awarded if justice requires.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-15
Assistance limited to one claimant per victim
Sec. 15. The division may not award restitution assistance underthis chapter to more than one (1) claimant per victim.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-16
Adjudication of violation required; final order; failure of party topay
Sec. 16. (a) The division may not award restitution assistanceunder this chapter unless the securities violation was adjudicated ina state or federal court or a regulatory agency administrativeproceeding.
(b) The division may not award restitution assistance under thischapter unless:
(1) a final order has been entered ordering restitution to thevictim in a proceeding described in subsection (a); and
(2) the party ordered to pay restitution has not paid the fullamount.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-17
Denial of assistance; order not containing restitution award
Sec. 17. The division shall deny an award of restitution assistanceunder this chapter if a court or administrative order does not containan award of restitution to the victim.As added by P.L.114-2010, SEC.12.
IC 23-20-1-18
Restitution award overturned on appeal; denial or forfeiture ofassistance
Sec. 18. (a) The division may not award restitution assistanceunder this chapter on behalf of a victim whose award of restitutionunder a court or administrative order is overturned on appeal.
(b) If:
(1) restitution assistance is awarded under this chapter; and
(2) after the award of restitution assistance under this chapter,the victim's award of restitution under a court or administrativeorder is overturned on appeal;
the claimant shall forfeit the restitution assistance received under thischapter.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-19
Subrogation rights of state
Sec. 19. (a) The state is subrogated to the rights of the personawarded restitution under this chapter to the extent of the award.
(b) The subrogation rights are against the person who committedthe securities violation or a person liable for the pecuniary loss.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-20
State's lien on victim's recovery; deduction of state's share of courtexpenses
Sec. 20. (a) In addition to the subrogation rights under section 19of this chapter, the state is entitled to a lien in the amount of theaward on a recovery made by or on behalf of the victim.
(b) The state may:
(1) recover the amount under subsection (a) in a separate action;or
(2) intervene in an action brought by or on behalf of the victim.
(c) If a claimant brings an action described in subsection (b)(2),the claimant may deduct from the money owed to the state under thelien the state's pro rata share of the reasonable expenses for the courtsuit, including attorney's fees. The amount the claimant deductsunder this subsection for the state's pro rata share of the expensesmay not be more than fifteen percent (15%) of the money owedunder the lien.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-21
Recovery by claimant receiving assistance; refund to state ofoverpayment
Sec. 21. If:
(1) an award is made under this chapter; and
(2) a claimant receives a sum required to be deducted under
section 20(a) of this chapter;
the claimant shall refund to the state the amount of overpayment.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-22
Victim's contribution to monetary injury; consideration in amountof assistance; basis for denial
Sec. 22. (a) In determining the amount of restitution assistance toaward under this chapter, the division shall determine whether avictim contributed to the infliction of the victim's monetary injury.
(b) If the division finds that the victim contributed to the inflictionof the victim's monetary injury, the division may deny an award ofrestitution assistance.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-23
Limitations on award
Sec. 23. An award under this chapter may not exceed the lesser ofthe following:
(1) Fifteen thousand dollars ($15,000).
(2) Twenty-five percent (25%) of the amount of theout-of-pocket loss.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-24
Award not subject to execution, attachment, or garnishment
Sec. 24. An award made by the division under this chapter is notsubject to execution, attachment, garnishment, or other process.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-25
Securities restitution fund; establishment; funding sources
Sec. 25. (a) The securities restitution fund is established.
(b) The fund consists of amounts:
(1) from funds received for deposit in the securities divisionenforcement account as provided in IC 23-19-6-1(f); and
(2) appropriated from the general assembly.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-26
Securities restitution fund; funds continually appropriated;purposes
Sec. 26. The money in the fund is continually appropriated to thedivision for purposes of:
(1) awarding restitution assistance under this chapter; and
(2) paying expenses incurred in administering this chapter.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-27
Securities restitution fund; funds and income nonreverting Sec. 27. Money in the fund and income derived from money in thefund do not revert to the state general fund at the end of a state fiscalyear.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-28
Securities restitution fund; threshold; suspension of payment ofclaims; proration of claims after suspension period
Sec. 28. (a) If the fund would be reduced below two hundred fiftythousand dollars ($250,000) by payment in full of all awards thatbecome final in a month, the division shall suspend payment of theclaims that become final during the month and the following two (2)months.
(b) At the end of the suspension period, the division shall pay thesuspended claims. If the fund would be exhausted by payment in fullof the suspended claims, the amount paid to each claimant shall beprorated.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-29
State's liability for award; limited to availability of money in fund
Sec. 29. The state is not liable for a written determination madeby the division under this chapter except to the extent that money isavailable in the fund on the date the award is computed by thedivision under this chapter.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-30
Claimant convicted of forgery, fraud, or deception; forfeiture ofaward; civil action by division to recover funds
Sec. 30. (a) A claimant convicted of forgery, fraud, or deceptionin connection with a claim under this chapter forfeits an award paidto the claimant under this chapter.
(b) The division may file a civil action to recover funds against aclaimant described in subsection (a).
As added by P.L.114-2010, SEC.12.
IC 23-20-1-31
False or misleading statements; Class C felony
Sec. 31. A person commits a Class C felony if the personknowingly makes or causes to be made:
(1) in any document filed with or sent to the securitiescommissioner or the division; or
(2) in any proceeding, investigation, or examination;
under this chapter any statement that is, at the time and in the lightof the circumstances under which it is made, false or misleading inany material respect.
As added by P.L.114-2010, SEC.12.
IC 23-20-1-32 Division's authority to adopt rules
Sec. 32. The division may adopt rules under IC 4-22-2 toimplement this chapter.
As added by P.L.114-2010, SEC.12.