2. 1 Education and Awareness: The Best Defense Against Securities Fraud Texas State Securities Board Denise Voigt Crawford Securities Commissioner

3. 2 Introduction Who is the Texas State Securities Board? Agency mission includes protecting and educating Texas investors and potential investors. Be cautious about investing – do your homework.

4. 3 Topics of Discussion Checking out your salesperson and the company they represent Check out the products you may want to invest in The Top Five Threats to Investors Being an “active” investor

5. 4 Checking out your investment professional Background checks: The State Securities Board is the best source for records. Call us for information at 512-305-8332 or contact us by e-mail at records@ssb.state.tx.us

6. 5 Checking out your investment professional Alternatively, you may go directly to national databases online: Central Registration Depository (CRD) www.nasd.com Investment Advisers Public Disclosure (IAPD) www.adviserinfo.sec.gov

7. 6 Finding out about investment products Registered or exempt Public offerings / Private offerings Check with SSB Registration Division Beware of “secret” offerings and products you have never heard of

8. 7 Current investment scams Unregistered Securities Unlicensed Individuals Selling Securities Oil and Gas Investment Fraud Pump and Dump Schemes Unscrupulous Brokers

9. 8 10 Tips to Avoid Investment Fraud Check out the person touting investment deals Beware of high-pressure tactics Exercise particular caution if you lack financial experience Keep in mind that good manners do not indicate personal integrity Watch out for salespeople who prey on your fears

10. 9 10 Tips to Avoid Investment Fraud Exercise particular caution if you are a senior Monitor your investments and ask tough questions Look out for trouble when retrieving your principal or cashing out profits Report investment fraud or abuse immediately, despite any embarrassment or fear you may feel Beware of “reload” scams

11. 10 Being an “active” investor Don’t hand over your money, then tune out Review your monthly account statements thoroughly Ask questions of your broker or adviser and take notes

12. 11 What This Means Knowledge is power and being informed is your best defense. Be suspicious of things that don’t make sense to you. High returns & no risk – an impossible combination If it sounds too good to be true, it probably is.

13. 12 Contact the SSB www.ssb.state.tx.us 512-305-8300 (Main) 512-305-8332 (Registration) 512-305-8392 (Enforcement) 888-663-0009 (Toll Free)

14. 13 Texas State Securities Board  Austin – (512) 305-8300  Corpus Christi – (361) 887-1085  Dallas – (214) 630-8681  Houston – (713) 426-0336  Lubbock – (806) 762-8010  San Antonio – (210) 886-0073 “INVESTIGATE BEFORE YOU INVEST!”