Nevada lawmakers are considering a new program that would set aside $500,000 a year to compensate victims of investment fraud.
While it may sound like a good idea on the surface, this proposal raises serious concerns about government overreach, accountability, and fiscal responsibility.
The bill, Senate Bill 76 (SB76), would give fraud victims up to $25,000, but only if the scammer was ordered to pay restitution.
Supporters claim this will help those who have lost money in bad investments. But let’s be honest—this isn’t a real solution.
It’s just another government Band-Aid that won’t stop fraud from happening in the first place.
Who Pays for This?
The money for this fund wouldn’t come from the scammers.
It would come from enforcement actions, which currently go into the state’s general fund. That means less money for essential services like schools, roads, and law enforcement.
Instead of holding criminals accountable, lawmakers want to shift the burden onto taxpayers.
And here’s the kicker—there’s no guarantee this money will actually reach the people who need it most.
Government programs like this often start small but grow into bloated bureaucracies.
Today it’s $500,000; tomorrow, who knows? Once the government starts handing out free money, it’s hard to stop.
A Drop in the Bucket
The Secretary of State’s office admits that $25,000 isn’t much when some victims lose their entire life savings. That’s an understatement.
According to the Federal Trade Commission (FTC), Nevada consumers reported $113.6 million in fraud losses in 2023 alone. The American Association of Retired Persons (AARP) says these scams cost Americans $36 billion a year.
So what will this small fund really accomplish?
Instead of creating another government program, lawmakers should focus on tougher penalties for fraudsters and stronger protections for consumers.
Educating people about scams before they happen would be far more effective than handing out taxpayer-funded checks after the fact.
More Government, More Problems
This proposal also raises questions about fairness.
Who decides which victims get paid? Will some people be left out? And what about personal responsibility?
People make bad investments all the time—sometimes because they’re misled, but other times because they take risks that don’t pay off.
Should the government bail out every bad financial decision?
Critics of SB76 point out that government compensation funds often become slush funds for bureaucrats. Just look at similar programs in other states.
Once the money starts flowing, it’s hard to track where it actually goes. How long before Nevada’s fraud victim fund becomes just another wasteful government program riddled with inefficiencies?
A Better Solution
If lawmakers truly want to help Nevadans, they should focus on real solutions that deter fraud and protect consumers before they become victims.
- Stronger enforcement: Instead of setting aside money to clean up the mess, go after scammers aggressively. Make sure they face real consequences.
- Better education: Many fraud victims are seniors on fixed incomes. Why not fund programs that teach people how to spot scams before they happen?
- Encouraging personal responsibility: People should be cautious when making investments. The government shouldn’t be in the business of picking winners and losers.
SB76 might have good intentions, but it’s the wrong approach. It won’t stop scammers, it won’t meaningfully help victims, and it will take money away from more important priorities.
Instead of creating another taxpayer-funded bailout, lawmakers should focus on real solutions that prevent fraud in the first place.
Government handouts rarely solve problems. They usually just create new ones. Nevadans deserve better.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
