Senator Anderson Holds Press Conference to Help Victims of Ponzi Schemes

Senate Bill 797 Heard in Senate Committee
Wednesday, January 8, 2014

Senator Joel Anderson (R-San Diego) held a press conference at the State Capitol today to bring attention to Senate Bill 797, which would stop the state from re-victimizing Californians of investment fraud.   After hundreds of victims’ life savings were wiped out and stolen from con-artists, Anderson is asking the Legislature to pass SB 797 which would align California law to federal income tax law.

“We need to protect these victims whose finances and futures have been destroyed by scam artists and together with the passage of SB 797 we can ensure the state doesn’t re-victimize these innocent Californians,” said Anderson.   “The state should not profit from criminal activity perpetuated against law-abiding citizens.”

SB 797 allows innocent victims of fraudulent Ponzi schemes to carryover or carryback net operating losses they suffered through no fault of their own for each taxable year beginning on or after January 1, 2008.

“My goal is to punish criminals, not victims and many of these innocent victims were not wealthy, they were teachers, welders, and small business owners saving every penny they could toward their retirement and it’s not fair the state is taxing them on this fictitious money that was stolen from them. ” added Anderson. 

State Treasurer Bill Lockyer and several Board of Equalization Members have offered their support to this important legislation.

The bill was heard in the Senate Governance and Finance Committee immediately following the press conference where it failed on a 4-2 vote, reconsideration was granted and will be eligible for another vote on Wednesday, January 15 before the same committee.

For video soundbites of the press conference:

For audio soundbites of the press conference:

Photos (click thumb for larger version):

SB797 Press Conference  SB797 Committee Hearing