Department of Commerce & Consumer Affairs
Business Registration DivisionCommissioner of Securities Office
Investor Education Program
State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program
Investment Fraud
Protect Yourself And Your Money From Predatory Tactics
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 JosephFormer NASAA President
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.
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
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 $$$$$$$
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
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?
CFP ChFC PFS CFA CIC
CSA SS SE RA
Examples of Predatory Tactics
Credentials can be misleading
State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program
Abbreviation Designation Organization
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:
State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program
Abbreviation Designation Organization
1 CSA Certified Senior Adviser Whatever
organization they say they’re with...
2 SS Senior Specialist or Securities Specialist
3 SE Securities Expert
4 RA Retirement Adviser
Financial Expert Designations That Are NOT Recognized
The following are not recognized as financial expert designations under the state securities laws:
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.
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
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
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.Educate Call 587-7400 For educational information and presentations
State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program
Remember:
Don’t Be A VictimAsk questions and contact the State DCCA Securities
Branch before you sign any documents, write a check or turn
over your savings!
State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program
(808) 587-2267 Toll Free 1-877-447-2267
Report FraudIf you believe you or someone you
know might be a victim of investment fraud or a securities
law violation, contact our Enforcement Branch
at:
State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program
Contact InformationDCCA
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