education and awareness: the best defense against securities fraud
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1
Education and Awareness: The Best Defense Against
Securities Fraud
Texas State Securities Board
Denise Voigt Crawford
Securities Commissioner
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.
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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
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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
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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
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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
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Current investment scams Unregistered Securities Unlicensed Individuals Selling
Securities Oil and Gas Investment Fraud Pump and Dump Schemes Unscrupulous Brokers
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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
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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
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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
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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.
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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)
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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!”
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