Financial Nightcap: Reinforcing Your Financial Foundation |
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Has the COVID pandemic set you back financially? North Carolina Secretary of State Elaine Marshall will join AARP, FINRA and Mecklenburg County Government for a virtual panel discussion focused on the financial and emotional impact of the pandemic and the importance of resetting your personal finances and protecting your savings.
Join us at 7 p.m. next Tuesday, May 25, for Financial Nightcap: Reinforcing Your Financial Foundation. This event is free, but registration is required - so register today!
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Retirement Readiness for Military Families Virtual Event
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Military families have access to a lot of great benefits that can help them prepare for a secure retirement, but they also face unique financial challenges, including deployment, that can make reaching their goals more difficult. “Retirement Readiness for Military Families” will feature qualified experts who will discuss many of the benefits available to active duty and retired military families as well as strategies for overcoming obstacles and saving and investing for a secure retirement.
This event will be interactive, allowing participants to ask questions and submit comments.
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One Call Could Save Your Life Savings!
Is that individual offering you an investment opportunity licensed to sell securities in North Carolina? Is the investment opportunity itself registered? Know before you sign!
While registration in and of itself is no guarantee against fraud, not being registered is a very big red warning flag.
We urge you to take five minutes to call our NC Investor Hotline at 1-800-688-4507 to see if the person you have been dealing with – perhaps even for years – is properly registered and/or has a disciplinary history. You can also check to see if the actual investment itself is properly registered.
Pick up the phone and call us. You owe it to yourself and your family to check. And please also consider sharing the information in this newsletter with YOUR contacts or your social networks. Doing so will help keep your friends and loved ones safe, too. More information can be found at https://www.sosnc.gov/divisions/securities/for_investors.
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Advanced Analytics: Transforming Advertising Regulation
MAY 04, 2021
A three-day employee hackathon event a few years ago resulted in an idea that has since transformed the way FINRA’s Advertising Regulation group does its work.
On this episode of FINRA's UNscripted podcast, Amy Sochard, Vice President of FINRA’s Advertising Regulation program, and Lisa Fair and Saugata Chakraborty of FINRA Technology, join host Kaitlyn Kiernan to talk about the impressive collaborative effort to build a tool to apply advanced analytics and machine learning to the review of firm advertising and public communications materials.
FINRA's Advertising Regulation Department helps protect investors by helping ensure that broker dealers' communications with the public -- including their websites, social media and print advertising -- are fair, balanced and not misleading.
Resources mentioned in this episode:
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NC Partnership to Address Adult Abuse Holds Virtual Annual Conference
NC Secretary of State representative leads panel discussion on HelpVul
The North Carolina Partnership to Address Adult Abuse (NCPAAA) wrapped up its 2.5-day long virtual annual conference on May 19th. This year's conference theme was "Partnering to Preserve and Protect."
In keeping with that theme, the morning plenary session focused on a discussion of HelpVul, a web portal designed to improve communication and collaboration between financial institutions, Adult Protective Services, and the Secretary of State's Office.
The HelpVul portal allows financial institutions who suspect that a vulnerable client is being financially abuse or exploited to make simultaneous and secure referrals to both the suspected victim's local Adult Protective Services (APS) office as well as the Secretary of State's Securities Division. This promotes communication and collaboration between all three entities.
The day's discussion was led by John Maron, the Director of Investor Protection and Education Services for the Secretary of State's Securities Division. The panel included Sarah Maness-Smith, Adult Services Program Administrator for the NC Department of Health Human Services, Division of Aging and Adult Services, and Geoffrey Rogers and Sally Reisch of the Silberman School of Social Work at Hunter College (NY). Geoffrey serves as Director of Learning and Development, and Sally serves as Grants Manager.
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Register for the SEC's 40th Annual Small Business Forum, Featuring Inclusive Conversations on Capital Formation from Startup to Small Cap
Monday, May 24: Finding Your First Dollars
Tuesday, May 25: Being a Savvy Investor
Wednesday, May 26: Small and Emerging Funds
Thursday, May 27: Small Cap Insights
The Forum website will continue to be updated with details on the agenda, speakers, registration, and FAQs in the coming weeks leading up to the event. New this year, to foster more inclusive and structured discussions, participants are asked to submit feedback and policy recommendations in advance of the Forum. All participants will have the opportunity to review and prioritize submitted policy recommendations during the live event.
"I look forward to hearing from small businesses and their investors at my first Small Business Forum as Chair," said SEC Chair Gary Gensler. "As the son of a small business owner, I am excited to spotlight the critical role entrepreneurs play in our capital markets ecosystem - providing jobs, spurring innovation, and supporting our communities."
"Our team is thrilled to be hosting the 40th Small Business Forum, where we will hear from a diverse group of entrepreneurs, businesses, and their investors on trends in capital raising," said SEC Advocate for Small Business Capital Formation Martha Legg Miller. "As we examine capital formation policy and solicit feedback from Forum participants, we must ask the critical questions: how is this serving the needs of entrepreneurs and their investors, who is being left behind, and what needs to change?"
How to Participate: Participants should register for the Forum in advance to receive a link to engage in the live virtual event. After registration, participants will receive information about how to submit feedback and policy recommendations to be considered at the event. Information is also available on the Forum website.
About the Forum: The SEC hosts the annual Government-Business Forum on Small Business Capital Formation pursuant to the Small Business Investment Incentive Act of 1980. The Forum is a unique event where members of the public and private sectors gather to craft suggestions for policy affecting emerging businesses and their investors, from startups to smaller public companies. Following the Forum, the Commission delivers a report to Congress that includes a summary of the proceedings and recommendations for changes to improve capital formation. The 2020 Forum Report summarizing the proceedings and recommendations of participants was released on Sept. 14, 2020.
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SEC Approves Registration of First Security-Based Swap Data Repository; Sets the First Compliance Date for Regulation SBSR
The Securities and Exchange Commission has announced that it has approved the registration of its first security-based swap data repository (SDR). With today’s registration of DTCC Data Repository (U.S.), LLC (DDR), the security-based swap market now has the first SDR that can accept transaction reports. DDR intends to operate as a registered SDR for security-based swap transactions in the equity, credit, and interest rate derivatives asset classes.
"Implementing Regulation SBSR fulfills an important mandate under the Dodd-Frank Act," said SEC Chair Gary Gensler. "A centralized database of security-based swap transactions is an essential reform to better understanding these markets, for surveillance and for enforcement. The data repository also will facilitate public reporting of security-based swap transactions, bringing much-needed transparency to these markets."
Today's SEC action sets Nov. 8, 2021, as the first compliance date for Regulation SBSR, which governs regulatory reporting and public dissemination of security-based swap transactions. Regulation SBSR is a key component of the security-based swap regulatory regime established by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Regulation SBSR provides for the reporting of security-based swap information to registered SDRs and for public dissemination of transaction, volume, and pricing information.
Under Regulation SBSR, the Nov. 8, 2021 compliance date represents the first Monday that is the later of: (1) six months after the May 7, 2021 registration date for the first SDR that can accept transaction reports in a particular asset class; or (2) one month after the Oct. 6, 2021, compliance date for registration of security-based swap entities.
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NASAA’s Electronic Filing Depository Expands to Franchise Filings
The North American Securities Administrators Association (NASAA) announced this month that its Electronic Filing Depository (EFD) System will expand to accept franchise filings through its new Franchise Electronic Depository functionality (FRED).
FRED will significantly increase the information and review tools available to filers and regulators. At launch, three states (Maryland, North Dakota, and South Dakota) will participate in FRED, and the NASAA EFD Team is actively working to bring other states on to the system. Developed through its EFD Steering Committee, FRED will be part of NASAA’s existing EFD framework. It is a sophisticated system with management, compliance, and communication tools that will make the franchise filing process more efficient for participating filers and states.
“We are pleased to continue to modernize and streamline the filing process and offer additional efficiencies for franchisors,” said Lisa Hopkins, NASAA President and West Virginia Senior Deputy Commissioner of Securities, and William Beatty, chair of NASAA’s EFD Steering Committee and Director of the Washington Securities Division.
Dale Cantone, Deputy Securities Commissioner for Maryland and Chair of the NASAA Franchise Project Group said franchise regulators look forward to the new FRED filing portal. “FRED should make franchise filings easier for franchisors, facilitate communications among state regulators and, perhaps most importantly, give prospective franchisees greater access to state registration data, including franchise disclosure documents,” he said.
Developed by NASAA, the EFD System was launched in 2014 and was used initially for the electronic filing of Form D for Regulation D, Rule 506 offerings with state securities regulators. The system was expanded in 2019 to facilitate the electronic filing of Form NF-UIT notice filings for unit investment trusts (UITs) with state securities regulators, and again in May 2020 with the development of the UFT functionality to accept additional corporation finance filings and issuer-agent registrations to accommodate the needs of filers and regulators due to COVID-19 restrictions. In addition to providing both filers and state regulators with tools to manage filings and create reports, the EFD system provides a website allowing members of the public to search and view notice filings made with participating jurisdictions for Form D, UIT, and now franchise filings. The system includes a secure file transfer protocol (FTP) that integrates with many state-specific systems and allows for seamless direct download of state filing data. For more information please contact efd@nasaa.org.
The NASAA EFD Team would like to thank the members of the EFD Steering Committee and Franchise Project Group for their significant contributions in developing FRED. Recorded training sessions on FRED functionality were held in late April and are available by contacting efd@nasaa.org. The EFD site is available at: www.efdnasaa.org.
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On April 5, 2021, Anthony Wayne March, 49, of Wake Forest, NC, was sentenced to 135 months imprisonment for wire fraud and ordered to pay $6,040,965.00 in restitution. (See the full story above.) The Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter. The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance. Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States.
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On March 26, 2021, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order to Respondents, Roy Neil Carlson and Carlson Financial Services, LLC. The order found Respondents were transacting business in the State of North Carolina in violation of the North Carolina Investment Advisers Act. The Temporary Order to Cease and Desist ordered each Respondent and any person, employee, officer, director, entity or independent contractor under the direction or control of Respondents, to immediately cease and desist from violating the anti-fraud provisions of the Investment Advisers Act, soliciting or providing investment advice to any prospective or current advisory clients, making or causing to be made any misleading filing to the Administrator and otherwise holding itself out to be or engaged in the business of an investment adviser or investment adviser representative. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.
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On March 15, 2021, Charles Gilbert Murphy, a serial fraudster from Apex, NC, was sent back to federal prison to serve 75 months for an investment scam involving impersonation of a mayor, professor, and a government agency. The investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the North Carolina Secretary of State's Securities Division. For more information, see this press release.
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On January 7, 2021, the Temporary Cease and Desist Order entered on November 9, 2020 (below) against Claybourne Glenn Bass and Claybourne Glenn Bass, LLC (the "Bass Respondents") became final, permanently barring the Bass Respondents from among other things, soliciting for purchase, offering or selling securities in North Carolina until such time as they become fully compliant with North Carolina's securities laws. For more information, click here.
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On November 9, 2020, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order to respondents, Claybourne Glenn Bass and Claybourne Glen Bass, LLC. The order found the respondents were transacting business in the State of North Carolina in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist ordered each respondent to immediately cease and desist from violating the anti-fraud provisions of the Securities Act; entering into investment contracts with the public; offering for sale, soliciting offers to purchase, or selling, any security and otherwise holding itself out to be or engaging in the business of securities dealer or salesman. The Temporary Order to Cease and Desist gives respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.
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On September 8, 2020, a federal grand jury returned a superseding indictment charging Joshua Matthew Houchins, 36, of Sanford, NC, with fraud, money laundering, obstruction of justice and firearms offenses. The charges were announced today in federal court. The Federal Bureau of Investigation and the North Carolina Secretary of State are investigating the case. The Wake County Sheriff’s Office, Apex Police Department, and Sanford Police Department, also provided assistance. Assistant U.S. Attorney William M. Gilmore is prosecuting the case. An indictment is merely an accusation. The defendant is presumed innocent until proven guilty. For more information, please see this press release.
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On August 13, 2020, Mark Colin Ramsey, 50, of Graham, N.C., was sentenced to 65 months in prison for operating a $1.1 million investment scheme. U.S. District Judge Martin Reidinger also ordered Ramsey to serve three years of supervised release and to pay restitution in the amount of $1,098,333.92. North Carolina Secretary of State Elaine F. Marshall joins U.S. Attorney Andrew Murray in making this announcement. According to filed court documents and statements made in court, from April 2008 to September 2013, Ramsey defrauded more than 20 victims out of nearly $1.1 million through a fraudulent investment scheme. In making the announcement, U.S Attorney Murray thanked the Securities Division of the North Carolina Department of the Secretary of State for their investigation of this case. For more information, please see this press release.
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NC Department of the Secretary of State
Securities Division
Investor Protection & Education Services
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