Page 9 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
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Georgia Division of Securities & Business Regulation
As Commissioner of Securities, Georgia Secretary of State Brian P. Kemp in 2013
continued to educate Georgia-based entrepreneurs about the availability of the states
Invest Georgia Exemption (IGE) as a potential source of capital for their small Georgia-
based businesses. Te IGE is an exemption from state securities registration for small intra-
state oferings that rely on SEC Rule 147. IGE issuers may ofer their securities publicly
as long as a notice fling is made with the Division. So far, the Division has received 16
such flings. One way of publicly ofering those securities could include participating in a
crowdfunding portal. IGE issuers also could rely on traditional advertising, or simply ofer
the securities privately (which would involve no fling). It is hoped that the IGE will provide
Georgia-based start-up companies and small businesses access to much needed capital for
developing new business ventures, expanding operations, and producing more Georgia jobs.
Hawaii Office of the Securities Commissioner
Te Ofce has increased eforts in cyber investigation that has led to locating witnesses
and respondents with unparalleled speed and accuracy as well as identifying securities scams
happening on the Internet. In a recent case, the Ofce used a face recognition search to track
down a long-missing respondent. On the cusp of a federal expansion of crowdfunding, the
Hawaii Ofce of the Securities Commissioner is working to leverage innovative technology
to respond to securities fraud anywhere, including cyberspace.
Idaho Department of Finance
Te Department settled two civil lawsuits in 2013 involving licensed insurance agents
who were not registered to ofer or sell securities. In the frst case, the agent admitted to
violating the securities salesman and securities registration provisions of Idaho securities
laws by ofering and selling $400,0000 in unregistered life settlement contracts to fve Idaho
investors. Te issuer of the securities had fled for bankruptcy. In the second case, the agent
sold more than $600,000 in promissory notes associated with a Utah company. Tese sales
were intertwined with insurance business the agent conducted on behalf of a Utah fnancial
and insurance company that had several entities and its principal in bankruptcy. In both
cases, the securities violators agreed to disgorge their commissions.
Illinois Securities Department
Te Department launched a new public awareness campaign aimed at encouraging people
to investigate before they invest. In Illinois, courts ordered scammers to repay more than
$33 million to victims the year before, and the Department handled more than 400 such
cases of investment fraud. Te campaign includes television and radio ads airing statewide
to encourage people to research investment advisers and brokers, as well as investment
opportunities before investing any money. Investors can fnd information on how to
avoid potential con artists and scams by visiting the Secretary of States website at www.
AvoidTeScam.net. In addition to the commercials, two videos were created to inform the
public about investment fraud. Te videos were featured at statewide events and seminars
held by the department to educate potential victims, including seniors and members of
community and religious organizations.
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