Page 12 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
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Michigan Corporation, Securities and Commercial Licensing Bureau
Te Bureau conducted a free investment adviser training seminar, which was open to
all state-registered frms and applicants. Te seminar provided over 150 attendees with
information on current regulatory developments, CRD/IARD updates, and guidance on
how to conduct proper due diligence on their frms sub-advisers and other outsourced
service providers. Te seminar fnished with a presentation on what to expect during a
state examination and recommended best practices that all attendees were encouraged
to adopt to ensure compliance with relevant Michigan statues. Attendees were able to
ask registration and examination questions in a relaxed, educational setting. Te seminar
received excellent reviews and the Bureau plans to continue these programs in 2014.
Minnesota Department of Commerce
Te Department, in conjunction with 19 jurisdictions throughout the United States
and Canada, took coordinated action against Proftable Sunrise, an international
entity allegedly operating an Internet scheme to defraud investors. Te Department s
investigation found that two individuals in Minnesota were allegedly participating in the
investment scheme, soliciting investors but not licensed to sell securities in the state. Te
investment model of Proftable Sunrise is characterized as the charitable platform for a
money lending group. As an incentive for attracting additional investors, a three-tiered
referral opportunity is extended to investors, making it identical to a pyramid or multi-
level sales approach.
Mississippi Securities Division
In an efort to help small businesses and entrepreneurs understand the capital
formation process, the Division of the Mississippi Secretary of States ofce published
a useful brochure outlining the state securities laws that may apply to small businesses
interested in seeking investors or raising money. Tis color brochure, which is available
on the Divisions website, includes an overview of the Mississippi Securities Act in
addition to a discussion of the Act s anti-fraud standards, registration requirements and
coordination with the federal securities laws exemptions.
Missouri Securities Division
Te Division worked to secure more than $4 million in restitution for Missouri
investors and collected nearly $1 million in fnes and penalties over the course of 127
investigations in 2013. With the help of state and federal authorities, referrals from
the Division resulted in 15 individuals being sentenced to more than 119 years in jail
for stealing from Missouri investors in 2013. Te Division also successfully visited and
audited all 30 investment adviser frms from the IA Switch within their frst year as
Missouri-registered investment advisers.
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