Page 17 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
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South Dakota Division of Securities
Te Division completed its 8th year of holding the Investor Education Essay Contest
for South Dakota high school seniors. Te competition felded 197 essays by students
from 27 high schools throughout the state. Tis years contest featured fve topics: mutual
fund vs. variable annuity; using a fnancial calculator, illustrate how you can obtain $1
million by the age of 65; describe what it means to have a diversifed portfolio; explain
two types of investment fraud; and discuss the diferences between a securities broker-
dealer and a securities investment adviser. In all, $25,200 was awarded to contest winners.
Tennessee Securities Division
Te Division contributed to an investigation of an $18 million Ponzi scheme that
resulted in the guilty plea of three men for their involvement. Te men ofered clients
the opportunity to invest through promissory notes. More than half the money went
to repay earlier investors, to pay salaries and overhead, or to personal expenses. Te case
began in 2005 when the Tennessee Bureau of Investigation and the Division conducted
an undercover investigation that resulted in a bank record analysis, which led to multiple
afdavits, a temporary restraining order, and asset freeze of business banking accounts.
Te case and records went to the State Attorney Generals ofce as a criminal referral.
Te defendants were indicted by the FBI in 2009 and awaited prosecution until their
guilty plea.
Texas State Securities Board
Te Texas State Securities Board expanded its outreach to prosecutors throughout
Texas during the year and provided trial-ready teams with expertise to secure convictions
for securities fraud and related ofenses that included the assessment of prison terms of
85 years, 80 years, 40 years and 25 years in unrelated and geographically dispersed cases
in Texas state courts.
U.S. Virgin Islands Division of Banking and Securities
Te mission of the Division is to serve and protect the public interest by aggressively
enforcing the insurance, securities and banking laws in the Virgin Islands, while at the
same time, assisting the insurance and banking industries to better serve the public.
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