The Nevada Secretary of State’s office is bringing back legislation to help victims of fraud recoup some of their losses.

The restitution fund would be for investment scams, like pyramid schemes and cryptocurrency scams. People could receive up to $25,000 following a criminal conviction or civil judgment.

When the bill was introduced during the 2023 Nevada legislative session, people came forward, said Nevada Secretary of State Cisco Aguilar.

“When we introduced that language and people started to hear about it, the phones in the Secretary of State’s office started ringing, and it was people saying, ‘Hey, I was a victim of fraud. Here’s the situation.’ It really allowed our investigators to gather that information and go after those bad actors,” Aguilar said.

In a previous interview with KUNR, Nevada Deputy Secretary of State for Securities Erin Houston said victims of crime are entitled to timely restitution under the Nevada state constitution, but it’s not always that easy for victims of fraud.

“Individuals who have defrauded Nevada investors often have no money left over to make their victims whole. Even if the victim receives a judgment in civil court, there is no money or assets left with which to collect,” Houston said.

However, Aguilar said the bill didn’t get a vote the first time because of a technical issue with the funding mechanism. The money will come from third-party contributions, and a judge can also direct proceeds from a legal settlement to the fund.

Investors are asked to be cautious and look for red flags, such as being pressed for money immediately or if something seems too good to be true.