How Do I Sign Arizona Banking Presentation

How do i industry sign banking arizona presentation secure

the Arizona Corporation Commission prevents a senior security seminars gear Commissioner Andy Tobin hello and welcome to the Arizona senior security series I'm Arizona Corporation Commissioner Andy Tobin and this is the first of three videos in the series which highlight some state agencies and their role in protecting seniors against fraud the series is made possible with the help of the Corporation Commission Governor Doug Ducey Blue Cross Blue Shield of Arizona in the Arizona home health nursing Association we're going to hear from representatives from the state agencies that work collectively to keep you safe we'll start with Terry act Alex on who is the investor education coordinator in the Corporation Commission Security Division today's segment is entitled outsmarting investment fraud for seniors why are we seniors targeted well con artists and unscrupulous financial professionals specifically target those individuals over 55 years of age because we're perceived to have the assets to invest and today's seminar is specifically going to give you some guidelines on how you can protect yourself the Arizona Corporation Commission oversees the securities industry and investment management in Arizona the Securities Division has a team of lawyers accountants and financial examiners and an investor education coordinator Terry elects on during the free time together we're going to answer four major questions first of all what can we specifically do for you as an Arizona investor and what we cannot do second you'll know again what the red flags are and you'll be able to recognize them and alert authorities third and we're actually going to find out what a security actually is it's more than what you might think and next we're going to learn how to ask in check before you invest and you're going to know who you're going to be able to call and I'll give you a hit it's not ghostbusters the Arizona Corporation Commission is unable to provide legal advice to residents the Securities Division informs the public through presentations and by facilitating senior expose it provides brochures and other resources available in paper or on website in response to public inquiries it investigates complaints registers securities offerings regulates salesmen and advisers promotes legitimate capital takes action against violators and investigates complaints we encourage you to file that complaint with us chances are though we may get a portion of your money back but Chancellor wants you to hand it over that check the money is gone so that's why prevention is the key we take action against the violators and by taking action I mean we can order restitution and levy fines and penalties if it rises to a criminal nature we would refer that to either a county state or federal prosecuting office but by all means if even if you have don't feel like it's too late we need we need to have you complain because we can stop that person from hurting financially hurting someone else by requiring adequate disclosures for investment offerings and for taking the bad actors off of the marketplace we are creating instilling the environment that we can promote legitimate capital and have Arizona grow and create jobs the Arizona Corporation Commission cannot recommend investments or indicate which ones are safer or guaranteed it cannot promise restitution it cannot represent individuals or provide legal advice you can file your own civil lawsuit but the Securities Division will not provide legal assistance on your behalf what exactly is the security I myself when I first took this job about fourteen years ago thought oh it stocks and bonds and and so forth and I knew what that was and his basics of wise investing but what I didn't know was that it's more than just stocks and bonds anytime you hand your money over to someone with an expectation of receiving a profit on that money based upon someone else's effort from a common business enterprise you've just probably entered into what we call an investment contract and that can be anything from ostrich farms to bottles of wine we had a case not too long back involving bottles of wine that were it was called I remember the headline because I wrote commission corks fine wine scheme and these were targeted these cars were targeting doctors and lawyers very sophisticated educated folks so you see it can happen to the best of us we've had our share of bank presidents stockbrokers who are fallen victim to this kind of investment fraud basically because they did not ask in check before they invested an investment is typically required to be registered there are some exemptions if you are being presented an investment where the salesperson claims an exemption you should seek out independent legal advice to ensure you understand the exemption and that the exemption is valid by law the Securities Division is not able to interpret statute so what exactly is securities fraud anyway well there is a complicated legal definition that's on the books and then an Arizona revised statutes but I'll sum it up for you in about three words lying cheating and stealing it's as simple as that in regards to a securities transaction anytime that I could lie to a couple of different ways any time I could tell you a false statement I could tell you that this investment is going to make you millions of dollars when in fact and I'm going to be putting it in my pocket or I could admit a material fact say for example I was convicted of tax evasion which I wasn't but if I were that is a material fact I think an investor would want to know and those are two indications of investment fraud now keep in mind that an investment fraud goes on a different time frame not like a robbery where someone puts a gun in your face and says give me all your money this may take years we've had some cases some ponzi schemes for example where's that rob Peter to pay Paul later and but earlier investors are paid off from later investors and it can go for four years four years and until perhaps the economy goes south or people clamoring for their money and then the whole scheme unravels according to the North American securities administrators Association investment fraud complaints from seniors account for nearly one half of all fraud complaints received by state regulators and financial losses suffered by seniors are higher with investment fraud than any other forms of financial abuse nine trillion dollars are potentially available for fraudsters or unscrupulous financial professionals that's a lot of money so huge problem and in Arizona we've I think eyes of my memory serves me correct we had hundreds of millions of dollars in restitution that we know about that we've ordered here for Arizona investors but nationwide there's another important statistic you need to know about based upon a 2013 FINRA study they found that 8 out of 10 investors were approached with a potentially fraudulent one so it's a question not a question of if or a question of when it's happened to me it's actually happened with your commissioners that I've known past commissioners very prominent individuals and they they don't really care they're going to target anyone they've targeted the poorest of the poor I've seen one particular case involving a very very low income area and you think well these folks don't have any money to invest but this particular con artists who in fact registered his company with the Corporation Commission and he with a cloak of legitimacy any what targeted these folks claiming that they could get rich quick and that's and they gave them their last dollars so it's not their money spends just the same as if you had Milly of dollars to invest but this this is you know fifty billion dollar a year business and at minimum that are lost fraud nationwide and this again according to the FINRA study when you consider that Americans aged 65 or older are more likely to be targeted and when they are they're 34 percent more likely to fall victim so that's that's the disturbing statistics but we're going to change that you know they say it takes a village to protect a child but I believe it takes a village to protect seniors there are red flags to watch for to avoid falling victim to scam those include a business that does not have a verifiable business history or has a false history sales people are products that are not registered on realistic projections for returns ambiguous or complex strategies limited time or the product will be available but if you don't understand the investment obviously I would be very leery and if they're giving you pressure and saying you know you've got them invest now and putting a sort of supply on the product or time I would take my checkbook and run as fast as you possibly can next if they're putting emphasis on other savvy people well you know Commissioner Tobin is invested or some governor or senator has invested or prominent individual in in the US has invested that you want to base your decision on objective information financial track record that sort of thing or is it really suitable for me if they're putting emphasis on a secret technology we had one gentleman that said claims he could get gold out of kitty litter okay on the west side of town in fact it was a Wickenburg four to be exact to be exact he had a technology but he said you know he could do it but what he didn't realize what he was saying is it wasn't economically feasible alright so that tends to be a warning sign if they claim the investment is not a security now you know what the definition is and you're going to check it out if they downplay the risk it's you know it's no risk to you I'll give you my personal guarantee no we said risk vesting is risky business that is a red flag the higher rate of the return the higher rate of risk and lastly if they're offering you a chance to invest by sending you a courier to your home I can assure you no legitimate folk investment professional out there expensive and they're not going to do that you're going to electronically transfer the money or you know you're going to write a check and so forth okay now to kind of sum up what we've talked about it have a nice couple of video clips here at courtesy of the financially Financial Industry Regulatory Authority which is called FINRA that's the other non-governmental regulator they their purview with stockbrokers and brokerage houses we work very closely with their foundation they produce this video which I think will illustrate what we've been talking about today first the wrong look hello hi there hi is this mr. Rucker yeah how are you tonight sir good I'm good too sir let me tell you why that's funny mr. wrecker okay my name is good Ron good oh it's got an e on the end so some people pronounce it good E but it's so good yeah and may I say sir that the news is good especially for you oh yeah you like you might remember you went to one of our seminars couple weeks ago I'm just following up on that I'm a money manager with the dunking t'n I would imagine that name is familiar to you I mean you came to the seminar after all you do remember the name don't you sir sure yeah we are you are I should say sitting on the ground floor of an incredible new equity fund opportunity I've never seen one like it already paying 48 percent annually and you probably saw with the Wall Street Journal says it's heading to 70 or 80 percent territory you read the journal third sometimes you can probably figure of fun this hot is bringing all the big boy investors like gates and buff running into smash it all up right we're generally seeing people with annual incomes oh I don't know 100,000 or more coming in on this deal is that your ballpark mr. Rucker yeah Ron that I would love sir to overnight use some information so you can see the numbers all in black and white okay give you a day or two to look at and then I'll see what you think okay okay what's the best mailing address for you sir I guess it'd be right here to my home on your family live there do you just my wife and me the kids were growing up now whoa you sound so much younger sir okay what is that address forty to fifty seven oak that is a beautiful part of town yeah nice yeah what town is that exactly Edgemont South Dakota okay and what's the zip code I'm not sure cuz they changed it a couple weeks ago okay well I'll just make a note here that you don't know that okay all right bye now bye now mr. Rucker has taken this class and then absorbed the information from the presentation and he's going to now listen while he does it the right way hello hi there hi this mr. Rucker yeah yeah how are you tonight sir good good I'm good too let me tell you why that's so funny mr. Rucker my name is good Ron good and why are you calling a script well I'm a money manager with the dunking tandino seminar a couple weeks ago I'm just following up on that Duncan can fund I imagine that names familiar too if you know anything about investing are you a registered brokers sir oh yeah yeah we're registered with everybody in fact we want an award we'll see let me ask you a question mr. Rucker are you interested in making money what I'm interested in is getting your registration number and a phone number where I can call you back after I verify things okay well well you could do that but by the time you call me back the opportunity is going to be gone well I guess you better call someone else in conclusion I'd urge you not to simply invest with someone just because you know them and you like the salesperson the first mr. Rutgers you saw in the video don't feel obligated to invest just because someone gave you a free meal you want to take that information verify it check it out but do I want you to develop a refusal script this is very important I did this with my parents and it worked beautifully it could go something like this I don't make a financial decision without consulting with a law enforcement agency and just wait for the click on the other side it works every time remember the four C's first consider your options compare the investment to others consult with someone you trust and call a securities regulator you can contact the Arizona Corporation Commission Security Division at six zero two five four two four two four two or call toll free at 866.929.5585 or