department of commerce & consumer affairs business registration division commissioner of...

Department of Commerce & Consumer Affairs

Business Registration DivisionCommissioner of Securities Office

Investor Education Program

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

Investment Fraud

Protect Yourself And Your Money From Predatory Tactics


Predatory Tactic$ = Inve$tment Fraud

“Anyone, regardless of income, education, faith or profession, can become a victim.”

Provided by NASAA Insight

Fred JosephFormer NASAA President


What are Predatory Tactics?

Deceptive methods intended to financially injure or exploit others for personal gain or profit.


Examples of Predatory Tactics

High Pressure sales techniques

Recommending unsuitable securities that are obviously not right for you


Guaranteeing against losses


Making promises that sound too good to be true

Dealing in cash $$$$$$$


Failing to disclose material information

Predator:“Just sign here and I will get you the details later.”


Signature: ________________

Date:____________________

Confidential – Financial Documents

I, Kimo Kealoha give $25,000 to John Smith to invest in his new business and guarantee a 20% return over 3 months.

Contact information:

John Smith

Cell: 123-4567 (preferred to be called)

Sign here


Beware of designations and/or credentials

Can you identify which of the following are financial expert designations recognized under the securities laws and which ones are not?

CFP ChFC PFS CFA CIC

CSA SS SE RA


Credentials can be misleading


Abbreviation Designation Organization

1 CFP Certified Financial Planner

International Board of Standards and Practices for Certified Financial Planners, Inc.

2 ChFC Chartered Financial Consultant

American College

3 PFS Personal Financial Specialist

American Institute of Certified Public Accountants

4 CFA Chartered Financial Analyst

Institute of Chartered Financial Analyst

5 CIC Chartered Investment Counselor

Investment Counsel Association of American, Inc.

Financial Expert Designations That ARE Recognized

These are the only recognized financial expert designations under the state securities laws:


Abbreviation Designation Organization

1 CSA Certified Senior Adviser Whatever

organization they say they’re with...

2 SS Senior Specialist or Securities Specialist

3 SE Securities Expert

4 RA Retirement Adviser

Financial Expert Designations That Are NOT Recognized

The following are not recognized as financial expert designations under the state securities laws:


Stop Predators In Their Tracks!

Take Control Of Your Investments.

Ask Questions BEFORE You Give Away Your Personal Information Or Money.



Ask General Questions Ask Registration Questions Ask Referral Questions



Ask Financial Questions

Ask Questions about Fees & Commissions


How We Can Help

DCCA Securities Branches:

1.Regulate Call 586-2722 To check on your broker/adviser registration

2.Protect Call 587-2267 To report securities fraud (Toll Free)

1-877-447-2267

3.Educate Call 587-7400 For educational information and presentations


Remember:

Don’t Be A VictimAsk questions and contact the State DCCA Securities

Branch before you sign any documents, write a check or turn

over your savings!


(808) 587-2267 Toll Free 1-877-447-2267

Report FraudIf you believe you or someone you

know might be a victim of investment fraud or a securities

law violation, contact our Enforcement Branch

at:


Contact InformationDCCA

Office of the Securities Commissioner 335 Merchant Street, Rm 203 Honolulu,

HI 96813

Office Hours Mon-Fri/7:45am – 4:30pm

Website: investing.hawaii.gov

To report investment fraud call our Scam line: 587-2267 or Toll Free 1-

877-447-2267