Join Us and Help Fight Securities Fraud

INSERT DESCRIPTION OF YOUR AGENCY

Insert Phone Number When in doubt, call us:

Securities firms and their agents must be properly registered with our office. [JURISDICTION] has: [INSERT NUMBER] registered securities firms [INSERT NUMBER] registered stockbrokers

In the past two years we have recovered nearly [INSERT AMOUNT] for [JURISDICTION] citizens from individuals and firms who violated our securities law.

Many cases of fraud go unreported or unnoticed, leaving untold millions tied up in scams and fraudulent investments.

 Under state/provincial law, we can obtain all pertinent records from your client’s broker.  We can subpoena bank records.  We will do a line by line analysis of your client’s investments to determine if it is legitimate, if it is suitable, and if there is a problem.

If we work together and successfully identify potential fraud, investigate fraud and prosecute it where we find it, we will both look like heroes to your client, the citizen that we helped.

Red Flags In general, look for Anything Odd

Red Flag: Lack of Documentation Missing documents that an investor should receive in preparation for tax season can mean someone is trying to hide fraudulent activity.

Red Flag: Hand Written Tax Documents Hand written documents are legal, but they are unprofessional and can be an indication of fraud.

Red Flag: Exotic Investments Complex, exotic investments can confuse investors and are often used by con-artists to hide their theft.

Red Flag: Large Number of Trades If you see excessive or unauthorized trading in an investment account, it could be a sign the brokerage firm or broker is not working in their client’s best interest.

Red Flag: Unusual Gains or Losses If your client’s current return differs a great deal from past returns and shows unusual gains or losses, they could possibly be a victim of fraud.

Red Flag: Being Paid in Stock A stock is worth what you can sell it for and values change. At a minimum, a client should make sure the stock is registered.

Red Flag: 1035 Exchange A 1035 exchange may indicate your client has been pitched to move from one reasonable investment into a similar replacement for the purpose of generating a commission to the broker.

Red Flag: Distribution from a Qualified Plan that was not Rolled Over A lump-sum distribution from a retirement, college savings or other tax deferred plan that is not rolled over into another plan could indicate theft or fraud.

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Red Flag: Missing Interest or Dividends when Previously Reported If your client’s interest or dividends reported in previous years have significantly diminished, the client may have been lured away from safe, income-producing investments to risky investments.

Red Flag: 1031 Exchanges All 1031 exchanges should be scrutinized. Decreasing active participation in an investment increases the potential for fraud.

Help Protect Your Clients From Securities Fraud Know the Red Flags  Lack of Documentation  Unusual Gains or Losses  Being Paid in Stock  Distribution from a Qualified Plan that was not Rolled Over  Missing Interest or Dividends When Reported Previously  Exotic Investments  Handwritten Tax Documents  Large Number of Trades  1035 or 1031 Exchanges

Who to Contact for Assistance/Referral [INSERT YOUR AGENCY’S CONTACT INFORMATION]