Department of Commerce & Consumer Affairs Business Registration Division Office of the Securities Commissioner Investor Education Program

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program How to Spot a Con Artist and Safeguard Your Investment Investment Fraud

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Lesson One NEVER Give Your Money To Anyone Unless You Know Exactly What They Are Going To Do With It.

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Lesson Two Read Everything You Sign! ● Do NOT Sign Blank Forms Blank Forms ● Get A Copy

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Lesson Three Call Us…We can help! DCCA Securities Branches: RegulateCall To check your broker/adviser registration ProtectCall To report securities fraud (Toll-Free) Educate Call For educational information & presentations

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Threats To Investors ● Ponzi Schemes ● Unregistered Individuals Selling Securities Selling Securities ● Unregistered Investment Products ● Affinity Fraud ● Variable Annuity Sales Practices

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Why Do Con Artists Target Seniors? ● Seniors Have Savings ● Seniors Have Time ● Seniors Are Trusting Con Artists Are Increasingly Targeting Seniors Because:

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Why Do Seniors Fall For Con Artists? ●Planning for Retirement ●Looking for a Good Deal ●Getting a Windfall ●Catching Up: Concerned About Not Having Saved Enough ●Stretching: Concerned Money Won’t Last and Financially Stressed ●Trusting and Failing to Verify ●Inexperienced and Unaware Provided by ARRP

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Con Artists Like To: ● Use High Pressure Sales Tactics To Make Things Happen… TODAY Make Things Happen… TODAY ● Try And Obtain Financial Account Information Account Information ● Deal In Cash − They Use Statements Such As “Guaranteed or Your Money Back!”

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Con Artists Like To: ●Push Poorly Understood Financial Products ●Dress For Success ●Bring Out The Worst In You

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Con Artists Don’t Like To Be Contacted ●You Can’t Call Them Or Visit Their Office “Not In Service” ● Con Artists Are Fair Weather Friends

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Where To Watch For Con Artists  Free Meal “Seminars”  Country Clubs  Churches  Telephone Hot Tips  Phony Fax Tips You Weren’t Expecting  Fancy Offices  Your Living Room  Direct Mail  Internet Provided by ARRP

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program How To Protect Yourself ●Do Your Homework ●Ask For Things In Writing ●Check With State Regulators – DCCA Securities Branch – We’re here to help!

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program How To Protect Yourself ●Always Stay In Charge Of Your Money ●Understand What You Are Investing In ●Never Judge A Person’s Integrity By How They Look Or Sound ●Monitor Your Investments ●Don’t Be A “Courtesy Victim”

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program How To Protect Yourself ●Call Our Confidential Line To Report Investment Fraud: (on Oahu) (on Oahu) or toll free ●For More Information/ Materials Or To Request a Presentation, Call Us At

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Remember ●If It Sounds Too Good To Be True…It Usually Is ●Understand The Risks - Every Investment Has Some Degree Of Risk ●The Promise Of A Big Profit Brings Greater Risk

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Remember ●Ask Questions ●If You Don’t Understand What You Are Investing In… You Shouldn’t Be Investing In It And Most Importantly, Your Greatest Protector Against Investment Fraud Is…Yourself

State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Contact Information DCCA Office of the Securities Commissioner 335 Merchant Street, Rm 203 Honolulu, HI Office Hours: Mon – Fri/7:45am – 4:30pm Website: investing.hawaii.gov To report investment fraud call us on our Scam Line: or Toll Free