New law gives more time for securities fraud cases

Gavel

MONTGOMERY, Ala. (AP) – The director of the Alabama Securities Commission says a new state law will make it easier to prosecute securities fraud cases that take years for the fraud to emerge.

Gov. Robert Bentley signed legislation Tuesday sponsored by Republican Rep. Paul DeMarco that extends the statute of limitations for many crimes from three years to five years. They include theft of property, extortion and bribery.

Securities Commission Director Joe Borg says the new law also extends the statute of limitations for securities fraud and theft by deception to five years from when the fraud is discovered. The statute of limitations previously started when a transaction was made.

Borg says the time was running out before the fraud was discovered in some investments that weren’t supposed to pay off for several years.

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