INDIANAPOLIS (February 5, 2013) – Secretary of State Connie Lawson announced Hoosier investors are one step closer to being protected from scam artists like Tim Durham. Today, the Indiana House of Representatives passed House Bill 1179, which adds protections for Indiana investors from future schemes like those convicted felon Tim Durham used to swindle Ohio investors. The bill passed the House with a vote of 99-0 and will move to the Senate for a hearing.

“Over the past two years, Hoosiers have watched the Tim Durham case unfold involving over 4,000 Ohio investors,” said Secretary of State Connie Lawson. “Many have wondered if this could happen here in Indiana and how they can protect themselves from thieves like Durham. I applaud Representatives Bob Heaton, Dale DeVon, Justin Moed and Christina Hale for giving our securities regulators the tools they need to protect Hoosier investors from similar crimes and to prevent this from happening in Indiana.”

The securities offered and sold by Tim Durham and Fair Financial that were the subject of the criminal actions, were securities registered in the state of Ohio that could only be sold to Ohio residents. Durham was not required to submit financial statements that had been audited by an outside, independent CPA which helped Durham facilitate his crimes because Ohio regulators were not given complete, accurate information regarding the finances of Durham’s companies.

The Durham case illustrated how certain securities laws could be exploited and as a result, House Bill 1179 will require audited financial statements to be on file with the Secretary of State’s Securities Division for intrastate offerings registered by qualification. Requiring independent CPAs to audit these financials statements will provide investors with a more complete picture of the offerings so they can make more informed investment decisions.

For information on how to protect yourself from investment fraud visit http://www.in.gov/sos/securities/2521.htm.