Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Utah Division of Securities Utah Division of Securities Leigh Davis-Schmidt Securities Examiner Utah Division of Securities Utah Division of Securities Mission: The Securities Division enhances Utah’s business climate by protecting Utah’s investors through education, enforcement and fair regulation of Utah’s investment industry while fostering opportunities for capital formation. Utah Division of Securities How Do We Accomplish This? • • • • • • Register Securities License Investment Professionals Conduct Compliance Examinations Educate Investors Investigate Investor Complaints Enforce State Securities Laws Utah Division of Securities Top 10 Ways to Lose Your Money Utah Division of Securities 1. Ponzi Schemes 2. Unlicensed Individuals Selling Securities 3. Unregistered Investment Products 4. Promissory Notes 5. SENIOR INVESTMENT FRAUD 6. High-Yield Investment Schemes 7. Internet Fraud 8. Affinity Fraud 9. Variable Annuity Sales Practices 10. Oil and Gas Schemes Utah Division of Securities Why Is This Important To You? EVERYONE IS A TARGET – ESPECIALLY SENIORS! Utah Division of Securities Why Seniors Are Targeted • Home To Answer The Phone Or The Door • May Have Substantial Assets (e.g., Home, Retirement & Other Savings Accounts) • Fear of Losing Financial Independence Utah Division of Securities Utah Division of Securities Unsuitable Investments • Not All Investments Are Appropriate For All People • Get A 2nd Opinion From Other Financial Professionals • Discuss With A Trusted Friend Or Relative Utah Division of Securities Phony “Experts” • “Senior Specialists” – Certified Elder Planning Specialists (The National Registry of Elder Planning Advisors) – Certified Senior Advisors – Senior Benefit Centers Network – Senior Financial Survival Workshop Utah Division of Securities Annuity University • Use Introductory Seminars • Offer Free Meal • “Probe, Then Disturb, Then Enhance The Problem” Wall Street Journal July 2, 2002 Utah Division of Securities Annuity University • “You’re there to solve their problems, but you have to create those problems first – No Problem, No Sale” • “Tell them you can protect their life savings from nursinghome and Medicare seizure of assets. They don’t know what that is, but it sounds scary…it’s about putting a pitchfork in their chest.” • “Show them their finances are all screwed up so that they think Oh, no! I’ve done it all wrong – this will make you money” Wall Street Journal July 2, 2002 Utah Division of Securities Utah Division of Securities To age 99 Source mass mailing sent to Maryland life agents Utah Division of Securities Equity Index Annuity Utah Division of Securities Other Schemes • Boiler-Room Brokers – Cold Callers – High Pressure Sales • Promissory Notes • Affinity Fraud • Off-Shore Trading Programs, Bank Debentures, Prime Bank Instruments • Reload Scams Utah Division of Securities Typical Boiler Room • Locked Doors • 157,000 Telephone Calls –50 Cold Callers –Stratton Oakmont - 13,000 Calls Per Month To Utah Citizens • Scam People Located Out Of State Utah Division of Securities 10% Per Annum Foreign Currency Investor’s Name Utah Division of Securities Affinity Fraud • “I am also a member of (insert your religious, ethnic, professional or community-based organization)” • Same “deal” was made with a prominent leader of your organization – “name dropping” • Example: Tooele Community Utah Division of Securities Not A Solicitation IMF Sponsored High Yield Investment Program $600 Billion In 10 Days Utah Division of Securities 665% In 12 Months Secret Currency Beyond Reach of Government Used By World’s Wealthy Utah Division of Securities What Is A Reload Scam? Once A Victim, Twice A Victim… • “I promise, you’ll make your money back if only you’ll invest in…” • Promoter's Will Not Only Sell A Scam To The Same Person Twice, They Share Their List of “Suckers” With Other Promoters Utah Division of Securities So, What Can You Do? Utah Division of Securities • Ask Questions – Be An Informed Investor • Check Out Strangers Touting Strange Deals • Watch Out For Salespeople Who – Prey On Your Fears – Try To Rush Your Decision • Don’t Be Afraid To Hang Up The Phone • Don’t Put All Of Your Eggs In One Basket • Monitor Your Investments - Always Stay In Charge Of Your Money Utah Division of Securities • Get Everything In Writing And Keep A Copy Of All Documents • Risk No More Than You Can Afford To Lose • If You Don’t Understand The Investment Avoid It!!! • Read And Understand Everything You Sign • Don’t Let Fear or Embarrassment Keep You From Reporting Fraud Or Abuse • Pass This Information On To Your Family, Your Friends, And Others Utah Division of Securities REMEMBER: Investigate EVERYTHING Before You Invest Utah Division of Securities Utah Division of Securities 1-800-721-SAFE (7233) (801) 530-6600 www.securities.utah.gov