LANSING – In a move to protect Michigan consumers from fraud, House Democrats today passed the Uniform Securities Act – a plan that also will save Michigan businesses both time and money by bringing Michigan's securities act in line with the federal securities act. It now heads to the Senate for approval.
"There are horror stories about Michigan citizens being victimized by bad actors who prey on unsuspecting seniors and families who are trying to invest in their financial security," said State Representative Andy Meisner (D-Ferndale), Chair of the Commerce Committee. "The Uniform Securities Act will make certain that the state is doing its part to protect our citizens from securities fraud."
The plan will help the Office of Financial and Insurance Regulation (OFIR) crack down on securities fraud by providing the tools it needs to prosecute criminals who try to defraud our residents. Officials from OFIR testified on Tuesday that more than $400 million has been stolen from Michigan residents due to fraud. Many of the people who are targeted are seniors, and some of them have lost their life savings. One elderly woman reportedly lost $250,000, her only source of income.
The plan also creates the Securities Investigation, Enforcement, and Education Fund, which would be used for enforcement actions, OFIR investigations involving securities, and educational programs for the public. The education initiatives would help to inform the public about investing in securities, with an emphasis on preventing and detecting securities fraud. Fees and fines received by OFIR under the Uniform Securities Act would be deposited into the fund.
"In these tough times, we must take action to protect our residents from having the rug pulled out from under them," said State Representative Ed Clemente (D-Lincoln Park). "As we work to create jobs now and get Michigan's economy back on track, we must also fight to ensure that our residents aren't targeted by fraudulent investors. I urge my colleagues in the Senate to take quick action on this plan to help protect our residents and our businesses."