Imagine being conned out of your life savings after 25 years of work. Picture it happening while providing for your three children and just a month before you walk your daughter down the aisle (and have to pay for the reception to follow).
For Steve Brodie this nightmare was his reality.
Steve, a 51-year-old Indianapolis resident, entered into an investment agreement in 2008, but not before doing his homework. Steve chose an advisor who was well-known in the community, and who had an impeccable reputation.
Steve’s job was terminated at the end of 2010 and he then chose to roll his pension and 401K into the investment. He also began taking classes to finish his undergraduate degree and was anticipating his daughter’s wedding in May.
In April 2011, three years after Steve began investing, his advisor’s partner discovered that the advisor was embezzling the funds and depositing them directly into his checking account. The situation was reported to the Securities and Exchange Commission and the fund was shut down.
But it was too late for Steve. As the third largest investor, all of his assets were completely out of his reach.
With three kids in college and his life savings gone, Steve and his family were devastated. What took 25 years to accumulate was gone in a matter of days. Steve was forced to borrow money from family members just to get by.
Steve has been able to find relief through the state’s Securities Restitution Fund. In 2010, I had the privilege of collaborating with other legislators on House Enrolled Act 1332, which created the fund to help Hoosier investors recoup money stolen by scam artists. The fund is the first of its kind in the nation and uses no taxpayer dollars. Instead it uses fines and settlements collected from violators of the Indiana Uniform Securities Act to repay victims of financial crimes. Eligible victims can receive up to $15,000 or 25 percent of unrecovered costs, whichever is less.
Steve was the first Hoosier to receive payment from the fund.
In order to qualify for assistance from the Securities Restitution Fund, victims of securities violations must show proof that restitution was awarded by a state or federal agency for a transaction that occurred on or after July 1, 2010.
These funds have allowed Steve to get to the next step in the process of financial recovery. He is now able to keep his kids in college and repay some of the money he borrowed.
I tell you this story to raise awareness on this important issue. If you or someone you know has been a victim of a securities fraud, I urge you to seek assistance. For more information about the fund, visit myweb.in.gov/SOS/
