§ 5616. Vermont Financial Services Education And Victim Restitution Special Fund
(a) Purpose. The purpose of this section is to provide:
(1) funds for the purposes specified in subsection 5601(d) of this title;
(2) restitution assistance to victims of securities violations who:
(A) were awarded restitution in a final order issued by the Commissioner or were awarded restitution in the final order in a legal action initiated by the Commissioner;
(B) have not received the full amount of restitution ordered before the application for restitution assistance is due; and
(C) demonstrate to the Commissioner’s satisfaction that there is no reasonable likelihood that they will receive the full amount of restitution in the future; and
(3) funds for the purposes specified in section 5617 of this title.
(b) Definitions. As used in this section:
(1) “Claimant” means a person who files an application for restitution assistance under this section.
(2) “Dependent child” means a person who falls within the definition of “qualifying child” as defined in 26 U.S.C. § 152, as may be amended, with respect to the victim or the victim’s surviving spouse as of the date the final order is issued.
(3) “Final order” means an order issued by the Commissioner that disposes of a securities violation claim or claims or an order in a legal action initiated by the Commissioner in the Superior Court of Washington County that disposes of a securities violation claim or claims.
(4) “Fund” means the Vermont Financial Services Education and Victim Restitution Special Fund created by this section.
(5) “Securities violation” means a violation of this chapter and any related administrative rules.
(6) “Victim” means a person who was awarded restitution in a final order.
(7) “Vulnerable adult” means:
(A) a person who meets the definition of vulnerable adult under 33 V.S.A. § 6902(34); or
(B) a person who is at least 60 years of age.
(c) Eligibility.
(1) The claimant shall be limited to the victim or, in the case of a deceased victim, the deceased victim’s surviving spouse or dependent child.
(2) The Commissioner shall not award securities restitution assistance under this section:
(A) unless the victim is a natural person who was a resident of Vermont at the time of the securities violation addressed in the final order;
(B) to more than one claimant per victim;
(C) unless the person ordered to pay restitution has not paid the full amount of restitution owed to the victim before the application for restitution assistance from the fund is due;
(D) if there was no award of restitution in the final order; or
(E) if the victim:
(i) sustained the monetary injury as a result of:
(I) participating or assisting in the securities violation; or
(II) attempting to commit or committing the securities violation; or
(ii) profited or would have profited from the securities violation.
(d) Application for restitution assistance and maximum amount of restitution assistance award.
(1) The Commissioner may adopt procedures and forms for application for restitution assistance under this section.
(2) An application must be received by the Commissioner within two years after the deadline for payment of restitution established in the final order.
(3) Except as provided in subdivision (4) of this subsection, the maximum award from the Fund for each claimant shall be the lesser of $25,000.00 or 25 percent of the amount of unpaid restitution awarded in a final order.
(4) If the victim was a vulnerable adult at the time of the securities violation addressed in the final order, the maximum award from the Fund shall be the lesser of $50,000.00 or 50 percent of the amount of unpaid restitution awarded in the final order.
(5) The following information provided in or with an application for restitution assistance is confidential:
(A) the claimant’s and victim’s name, date of birth, physical address, mailing address, email address, and phone number;
(B) each of the items listed in subdivisions 2430(10)(A)(i)–(vii) of this title pertaining to the claimant or victim; and
(C) any other information provided in or with an application for restitution assistance that alone, or in combination with the other information provided in or with the application, would allow a person to identify the claimant or victim with reasonable certainty.
(e) Vermont Financial Services Education and Victim Restitution Special Fund. The Vermont Financial Services Education and Victim Restitution Special Fund, pursuant to 32 V.S.A. chapter 7, subchapter 5, is created to provide funds for the purposes specified in this section, in subsection 5601(d) of this title, and in section 5617 of this title. All monies received by the State for use in financial services education initiatives pursuant to subsection 5601(d) of this title, in providing uncompensated victims restitution pursuant to this section, or in providing whistleblower awards pursuant to section 5617 of this title shall be deposited into the Fund. The Commissioner may direct a party to deposit a sum not to exceed 15 percent of the total settlement amount into the Fund in conjunction with settling an enforcement matter within the Department’s jurisdiction, as described in 8 V.S.A. § 11(a). Interest earned on the Fund shall be retained in the Fund.
(f) Award not subject to execution, attachment, or garnishment. An award made by the Commissioner under this section is not subject to execution, attachment, garnishment, or other process.
(g) State’s liability for award. The Commissioner shall have the discretion to suspend applications and determine award amounts based on the solvency of the Fund and the designation of monies in the Fund to the other purposes established for the Fund. The State shall not be liable for any determination made under this section.
(h) Subrogation of rights of State.
(1) The State is subrogated to the rights of the person awarded restitution under this chapter to the extent of the award.
(2) The subrogation rights are against the person ordered to pay restitution to the victim for the securities violation addressed in the final order.
(i) Forfeiture of restitution award.
(1) A person shall not engage in dishonesty, forgery, fraud, or deceit in connection with an application for restitution assistance.
(2) A person found by the Commissioner or a court to have engaged in dishonesty, forgery, fraud, or deceit in connection with an application for restitution assistance shall forfeit to the Department any amount paid in a restitution assistance award and may be subject to penalties and other remedies available pursuant to section 5508, 5603, or 5604 of this title or other law.
(j) Rulemaking authority. The Commissioner may adopt rules to implement this section. (Added2019, No. 57, § 17a; amended 2021, No. 139 (Adj. Sess.), § 21, eff. May 27, 2022; 2023, No. 110 (Adj. Sess.), § 20, eff. July 1, 2024; 2025, No. 142 (Adj. Sess.), § 54, eff. July 1, 2026.)