Page 19 - 2013_2014 NASAA report

NASAA Member Activity | U.S.
NASAA Activity Report 13-14.indd
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Washington Department of Financial Institutions Securities Division
In July 2013, the Division saw the successful closure of a major Ponzi scheme it played
a signifcant role in stopping when a fraudster pleaded guilty in federal court in Seattle
to wire fraud and money laundering charges. Te Ponzi scheme raised more than $30
million from more than 200 investors between 2006 and 2009. In December 2013,
the fraudster was sentenced to 10 years in prison and ordered to pay more than $18
million in restitution. In May 2010, the Division brought an administrative case against
the man, his companies, and fve of his associates alleging they had sold unregistered
securities, committed securities fraud, and acted as unregistered securities salespersons
or broker-dealers. Te Division also made a major contribution to the criminal case,
working closely with the U.S. Attorney s Ofce, the IRS, and the FBI. DFI had primary
responsibility for tracing the investors funds. Division employees spent more than 3,500
hours on this task over a three-year period. Robert Kondrat, Supervisor of the Criminal
Unit, was a key member of the prosecution team for the case as a Special Assistant
United States Attorney.
West Virginia Securities Commission
Te West Virginia State Auditor s Ofce, which includes the Commission, sponsored
its 11th annual Finance University, training 37 high school teachers from 25 West
Virginia counties. Te program brings teachers together to hear experts explain personal
fnance topics. Finance University was developed by the West Virginia State Auditors
Ofce and partners of the West Virginia Jump$tart Coalition in 2003. Since that time,
more than 200 teachers throughout West Virginia have participated. Te program has
been recognized as a best practice for teacher training in the U.S. Financial Literacy
Education Commissions National Strategy for Financial Literacy.
Wisconsin Division of Securities
In 2013, the Division successfully fnished examining all investment advisers that
had switched in 2012 from SEC to state regulation. More than half of these advisers
had never been examined by the SEC, and many had not been recently examined, so
they welcomed our state examiners as a resource for their questions. One switch adviser
subsequently stated that he was impressed with the quality of state regulation because
he found it more fexible to the business being regulated instead of one-size-fts-all. Te
Division added value to the relationship with newly registered advisers by publishing an
e-newsletter sent to all state-registered investment advisers on compliance-related and
other timely topics, and being available on an Examiner of the Day phone line.
Wyoming Compliance Division
Te Division revamped its Investor Awareness program. In 2013, Wyoming partnered
with the AARP and the Securities and Exchange Commissions Ofce of Investor
Education and Advocacy. Given the large geographic size of the state and the small
number of staf in the Division, this partnership allowed the Division to reach a much
larger group than on its own. Outreach included presentations, each with an attendance
of 150-300 individuals; a panel presentation on Wyoming PBS; and articles in each
quarterly newsletter distributed to seniors across the state.
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