Page 10 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
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Indiana Securities Division
Te Division fnalized a $14 million settlement following a four-year investigation and
federal lawsuit alleging securities fraud against the Indiana State Teachers Association
and the National Education Association. Te division alleged that the promise to invest
and the guarantee of a return on the unused portion of medical claim dollars associated
with the health plan ofered by the state association was a security. Te $14 million was
distributed among very grateful school districts that had various levels of participation in
the program, with the largest district receiving in excess of $3 million.
Iowa Securities Bureau
Te Iowa Insurance Division, which includes the Bureau, launched a statewide public
education program Iowa Fraud Fighters Shield Your Savings. Te program will
educate and empower Iowans to prevent and report investment and insurance fraud.
Te Iowa Fraud FightersShield Your Savings program also includes six consumer
outreach and educational forums across the state. In addition to the community forums,
brochure and website, the public education program includes a TV and newspaper public
service advertising campaign.
Kansas Office of the Securities Commissioner
Ofcials from the Ofce fled criminal charges against a former fnancial adviser for
multiple violations of the Kansas Uniform Securities Act. Te criminal complaint alleges
that the adviser committed securities fraud by unlawfully employing a scheme to defraud
seven individuals by selling securities resulting in victim losses of more than $700,000.
Te adviser was charged with 39 felony counts of securities fraud and selling unregistered
securities.
Kentucky Department of Financial Institutions
Securities cases tend to be highly complex and document intensive. Moreover, white-
collar cases traditionally have lower priority than crimes involving persons. Te
Department created the Prosecution Assistance Unit to assist state and federal
prosecutors in the prosecution of cases involving criminal violations of the securities
laws. In addition the PAU also provides the investigative support to successfully bring
securities cases to trial.
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