COLUMBIA, S.C. - The state grand jury's duties would be expanded to include investigating securities fraud under a bill approved Tuesday by the Senate Judiciary Committee.

The bill comes after state Attorney General Henry McMaster began an investigation of Carolina Investors Inc., which closed its doors late last month.

Carolina Investors' parent company, HomeGold Financial, filed for bankruptcy last week. McMaster said he has heard complaints or concerns from more than 1,000 investors and is investigating Carolina Investors and its related companies to determine if any laws were broken.

McMaster spoke in support of the bill at Tuesday's meeting.

"This is an area in which state law does not provide a good tool for the investigation and prosecution to take place," he said. With the bill, "we could move forward and take stronger and quicker action than we're able to do now under current law."

The bill would:

_ Expand the state grand jury's jurisdiction to include crimes involving securities fraud;

_ Hold a person who knowingly assists another person who engages in fraudulent acts under the Uniform Securities Act liable to the same extent as the person who engaged in the fraudulent activity;

_ Change the statute of limitations for cases involving deception of an investor to three years after discovery of the untrue statement or omission.