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

2. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Investment Fraud Protect Yourself And Your Money From Predatory Tactics

3. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Predatory Tactic$ = Inve$tment Fraud “Anyone, regardless of income, education, faith or profession, can become a victim.” Provided by NASAA Insight Fred Joseph Former NASAA President

4. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program What are Predatory Tactics?   Deceptive methods intended to financially injure or exploit others for personal gain or profit.

5. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Examples of Predatory Tactics   High Pressure sales techniques  Recommending unsuitable securities that are obviously not right for you

6. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program   Guaranteeing against losses Examples of Predatory Tactics  Making promises that sound too good to be true  Dealing in cash $$$$$$$

7. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program   Failing to disclose material information Predator: “Just sign here and I will get you the details later.” Examples of Predatory Tactics 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

8. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program  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? CFPChFCPFSCFACIC CSASSSERA Examples of Predatory Tactics Credentials can be misleading

9. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program AbbreviationDesignationOrganization 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:

10. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program AbbreviationDesignationOrganization 1CSACertified Senior Adviser Whatever organization they say they’re with... 2SS Senior Specialist or Securities Specialist 3SESecurities Expert 4RARetirement Adviser Financial Expert Designations That Are NOT Recognized The following are not recognized as financial expert designations under the state securities laws:

11. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Stop Predators In Their Tracks!  Take Control Of Your Investments.  Ask Questions BEFORE You Give Away Your Personal Information Or Money.

12. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Stop Predators In Their Tracks!  Ask General Questions  Ask Registration Questions  Ask Referral Questions

13. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Stop Predators In Their Tracks!  Ask Financial Questions  Ask Questions about Fees & Commissions

14. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program 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.EducateCall 587-7400 For educational information and presentations

15. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program Remember: Don’t Be A Victim Ask questions and contact the State DCCA Securities Branch before you sign any documents, write a check or turn over your savings!

16. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program (808) 587-2267 Toll Free 1-877-447-2267 Report Fraud If you believe you or someone you know might be a victim of investment fraud or a securities law violation, contact our Enforcement Branch at:

17. 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 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