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

This bill creates the Market Accountability Compensation Fund in Alabama to help victims of investment fraud who cannot recover their losses from the perpetrators. It establishes a $2.5 million fund financed by transfers from the Alabama Securities Commission, with additional contributions allowed up to a total cap of $2.5 million. Victims who have been ordered to receive restitution but cannot collect it from the fraudster may apply for assistance, with maximum awards of $25,000 for most claimants and $50,000 for vulnerable adults, subject to overall fund limits. The bill also grants the commission the right to recover funds if a restitution order is overturned and includes penalties for fraudulent claims.