Department of Commerce highlights impact of Ohio Investor Recovery Fund

For 130 Ohio victims of investment fraud over the past three years, justice didn’t end with a conviction, it came with a check. The Ohio Department of Commerce Division of Securities is marking the third anniversary of the Ohio Investor Recovery Fund, a program that continues to deliver financial relief to victims of investment fraud across the state.

Since its inception in August 2022, the fund has provided over $2 million in financial relief through civil and criminal proceedings to 130 Ohio residents who have suffered monetary losses due to securities-related crimes. This type of crime has gotten substantially worse in recent years. According to data shared by the Federal Trade Commission earlier this year, consumers reported losing more than $12.5 billion to fraud in 2024, marking a 25% increase from the previous year.

The Fund offers a path to financial recourse for victims who might otherwise have no way to recoup their losses. It provides eligible victims with up to 25% of their total loss amount, with a maximum award of $25,000.

The Ohio Investor Recovery Fund is not supported by taxpayer dollars; instead, support for the Fund comes from registration fees and charges paid by Division licensees. All victims who benefit from the fund have been impacted by an investigation and formal action taken by the Division. In many cases, the action has been taken in partnership with local, state, and federal prosecutors with regard to securities-related crimes.

Ohio Securities Commissioner Andrea Seidt says this initiative has become an essential tool in the Division's efforts to protect Ohio investors of all financial backgrounds and hold fraudulent actors accountable.

"It is unfortunate that there are those who take advantage of innocent Ohioans who have worked hard to save for their dreams and future only to lose it to bad actors," Seidt said. "I am pleased how this fund has helped so many Ohioans who otherwise would have lost everything, and I am proud of the people in the Division of Securities who work every day to pursue justice for these victims."

One anonymous investor who was defrauded of $70,000 in a cryptocurrency related scam says the $17,000 she received from the Fund has equipped her with resources she is now using to pursue legal action against those who took advantage of her.

“I could have had work done to my house. I could have helped out a family member. I could have had work done to vehicles. There were a lot of ways that money could have been spent and I had to find other resources to help myself out – some of which involved taking on some debt,” the Belmont County resident said. “There is a lot of guilt that you carry when you get taken advantage of from a fraud aspect, and I was never made to feel bad (by the Division’s investigators). Even if there was no resolution, I was still confident that the Division had done everything they could do to recoup the funds.”

To be eligible for relief, the victim must:

· Be an Ohio resident who has suffered a monetary loss as the result of a violation of the Ohio Securities Act or any rules adopted thereunder.

· Be identified in a final administrative order issued by the Division of Securities or a final court order in a civil or criminal proceeding initiated by the Division.

· Meet all additional eligibility requirements set forth by statute and rule.

The Division of Securities encourages Ohioans to always verify the legitimacy of licensed investment professionals and opportunities before committing funds. The success of the fund underscores the state's commitment to consumer protection and financial integrity. 

Ohioans who are considering an investment or suspect they have been scammed should contact the Division of Securities’ Investor Protection Hotline at 877-683-7841 for guidance or to file a complaint. The Division has also compiled a range of helpful consumer education resources on its website.