Wednesday, Feb. 22, 2017 | 4:45 p.m.
CARSON CITY — The Secretary of State’s Office takes an average of up to two years to complete investigations of securities fraud, but that may be due to a lack of money, according to an executive audit.
The state Division of Internal Audit, at the request of Secretary of State Barbara Cegavske, examined the workings of the Securities Division in her office.
The audit, released today, said it took an average of 17 to 26 months to complete a fraud investigation or inspection of a securities office. The Secretary of State’s Office recently hired two investigators, which should speed things up.
The audit found that penalties and fines have decreased dramatically in the last three years. In fiscal 2014, the agency collected $260,732 in penalties and fines, dropping to $194,100 in 2015 and $117,256 in 2016.
The audit suggested a six-month deadline in most cases to complete investigations and inspections. It also found there was a lack of documentation by investigators and inspectors on the progress of cases.
The Securities Division registers securities sold in Nevada, does office inspections to see if firms are complying with the laws and investigates fraud violations.
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