Page 14 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
12
New Jersey Bureau of Securities
Te Bureau led a multi-state investigation, coordinated by NASAA, that resulted in
2013 to an agreement by UBS Financial Services, Inc. to settle violations stemming from
unregistered personnel accepting orders for the purchase and sale of securities. As part
of the settlement, UBS agreed to pay up to $4.58 million in civil penalties among the 50
states, District of Columbia, Puerto Rico and the U.S. Virgin Islands. UBS revised its
client transaction processes and supervisory procedures to address the violations.
New Mexico Securities Division
In collaboration with Native Community Finance, the Division launched a statewide
initiative to educate and prepare Native investors so that they can protect themselves
from fnancial fraud and can learn about strategies to grow their assets through sound
investments. In 2013, the initiative included a series of 23 investor protection and
education seminars and an outreach campaign targeting Native audiences. A media
outreach campaign to raise awareness about the initiative reached more than 200,000
Native people across the state. Te Division also produced radio infomercials with well-
known Native spokespersons and distributed them to popular New Mexico community
radio stations. It participated twice on Native America Calling, a talk radio show on
National Public Radio.
New York Investment Protection Bureau
In November 2013, Attorney General Eric T. Schneiderman and other members of the
joint state and federal RMBS Working Group announced a $13 billion settlement with
JPMorgan Chase the largest with a single entity in American history to resolve civil
claims arising out of the packaging and sale of residential mortgage-backed securities.
Te settled claims included the complaint Attorney General Schneiderman fled against
JPMorgan in October 2012 alleging fraud under New Yorks Martin Act. As part of the
settlement, JPMorgan acknowledged that it misrepresented to RMBS investors that the
mortgage loans it packaged in various securities complied with underwriting guidelines.
New York State will receive more than $1 billion of the $13 billion settlement: $613
million in cash and approximately $400 million in consumer relief, including mortgage
modifcations for homeowners at risk of foreclosure.
North Carolina Securities Division
In 2013, the Division was the frst securities regulator in the international community
to issue a Cease and Desist Order in the alleged Ponzi scheme known as Proftable
Sunrise. Te Division also saw combined prison sentences of 26 years handed out to 4
people convicted for their roles in various scams. With regard to its investor education
eforts, the Division conducted 140 investor education presentations reaching over
5,400 people across the state. Te division also joined the North Carolina Conference
of District Attorneys in co-sponsoring a two-day multidisciplinary course geared to
prosecutors, victim witness legal assistants, law enforcement ofcers, Adult Protective
Services staf, senior advocates, and other allied professionals. Te course attracted 180
attendees and addressed both the physical and fnancial abuse of the elderly.
14 4/30/2014 2:30:51 PM