Page 16 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
14
Pennsylvania Department of Banking and Securities
Te Department elevated its outreach to members of the military by becoming a
founding member of the Pennsylvania Military Finance Alliance, a frst-of-its-kind
collaboration that will host a series of military-focused fnancial education conferences
titled Making $ense of Finance. Te Alliance is quickly becoming the premier military
outreach network in Pennsylvania and strives to educate service members, veterans
and their families on ways to protect themselves from investment fraud and enhance
their fnancial readiness. Its membership consists of government agencies, nonprofts
and military-related organizations approved by the U.S. Department of Defense. Te
Department regularly works with Family Assistance Centers, veterans groups and
others to share distribution networks and serve as part of a statewide speakers bureau
on important investing topics. Because of its military outreach, the Department recently
joined the Governors Advisory Council on Veterans Services.
Puerto Rico Commissioner of Financial Institutions
Te Ofce has been working hard to better protect investors. Many fnancial education
conferences have been ofered to students, seniors and the general public. Investor
alerts have been posted in the ofces website in English and Spanish. Te Ofce
has been working with a new system, called ERIC II, to improve the processing of
registration of securities by notifcation. Te Ofce also has worked in cooperation
with state and federal authorities as expert witnesses to prosecute violators of securities
laws. Te Examination Division has detected unethical practices by broker-dealers and,
in conjunction with the Legal Division, has reached settlement agreements to obtain
restitution for investors.
Rhode Island Department of Business Regulation
In 2013, the Department issued a consumer alert to help protect Rhode Island residents,
especially those in the Filipino community, considering making charitable donations
in the wake of Super Typhoon Haiyan. Te alert reminded residents to check with the
Department before donating to ensure the charity or fundraiser is properly registered in
the state.
South Carolina Securities Division
Te Division discovered and stopped a securities fraud scheme operating under
the guise of building a private school. A South Carolina investment adviser and his
wife solicited investments to build and operate the school buoyed by promises of an 8
percent return. Tough investment money was used to buy land and partially construct a
building, the adviser also used those funds to buy his house, jewelry, and groceries, among
other things. Te Division also uncovered an unrelated fctitious investment trust. Instead
of investing the trust money, the adviser converted these funds to his own use. Te
Divisions investigation started as a regular audit and grew as facts and victim complaints
were uncovered. Te adviser s accounts were frozen and ultimately turned over to a court-
appointed receiver charged with marshaling the assets for the beneft of investors.
16 4/30/2014 2:30:52 PM