A third of the inspections done by the State Securities Board in 2008 and 2009 have not been acted upon by the board, a review by the State Auditor's office found.
 
In a report released today, the auditor recommended the Securities Board develop a policy establishing a timeframe for closing inspections or risk undercutting their effectiveness. 

The board, which registers some securities including mutual funds, registers and oversees securities sellers and monitors and investigates securities fraud in Texas, left open 157 of its 476 investigations over the two-year period. A response from the board can range from a notice of pending legal action to a notice of no action at all.

The board, however, had no plan for bringing investigations to a close, the report concluded.

Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org.