Investment Fraud Bill Becomes South Carolina Law

Lawmakers Say Law Gives State More Power To Investigate Possible Fraud

POSTED: 3:41 p.m. EDT June 4, 2003

COLUMBIA, S.C. -- The Attorney General's office now has more money and more power to investigate companies suspected of defrauding investors.

Gov. Mark Sanford signed the Securities Fraud bill into law Wednesday.

Pickens Senator Larry Martin told WYFF News 4's Brad Willis he began working on the bill the day after the Carolina Investors crisis began. He said that at the time, the state had limited power to investigate companies suspected of investment fraud.

Martin said this law changes that.

"You be upfront. You be truthful. You disclose. You don't misrepresent. Those are the kinds of things this law will ensure that we have for the investment community in South Carolina," Martin said.

Gov. Sanford said this law is not intended to scare law-abiding companies.

"Who it would frighten, and I think I'd be thankful for this, are some of the people who would do wrong, who would shave the edge, or who would cut corners. It would frighten those folks, and frankly, I want those folks to be frightened," Sanford said.

Attorney Gen. Henry McMasters told Willis that he is taking steps to assigning the Carolina Investors case to a state grand jury--something he couldn't do before this law was passed.

Previous Stories:

May 30, 2003: Carolina Investors Managers On Hot Seat
May 20, 2003: Morris: Carolina Investors' Collapse Not My Fault
April 30, 2003: Federal Investigators Join Carolina Investors Probe
April 25, 2003: From Gravesites To Death's Door: Carolina Investors' Rise And Fall
April 10, 2003: Carolina Investors Files For Bankruptcy
April 3, 2003: Company's Investors Turn To Legal Action
March 26, 2003: CEO: Investors May Get 'Some Portion Of Their Money'
March 25, 2003: Carolina Investors Chairman: Accounts Frozen, Not Lost