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Education and Awareness: The Best Defense Against

Securities Fraud

Texas State Securities Board

Denise Voigt Crawford

Securities Commissioner

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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!”