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Securities Division Newsletters
March 2017 Newsletter
In this issue, we report on the federal criminal indictment of Alan Peter Darcy, 78, of Murphy, NC, with wire fraud and for orchestrating an $800,000 investment fraud scheme that induced multiple victims into investing in a variety of bogus financial instruments and products., swuch as fraudulent "cash flow contracts," "Joint Participation Agreements," and leased "Bank Guarantees." We also report that the Secretary of State's Securities Division is now accepting filings under the State's new crowdfunding law, known as the NC Providing Access to Capital for Entrepreneurs and Small Business (PACES) Act. We have established a special page on our website that includes links to the statute, rules, forms and FAQs. Investors and businesses are strongly encouraged to read and bookmark and visit our crowdfunding webpage often as it will be updated as needed. We also report on Secretary Elaine F. Marshall's address to the NC Association on Aging conference that was held earlier this month in Winston-Salem. We include a news release from the North American Securities Administrators Association (NASAA) which outlines NASAA's 2017 legislative priorities. We include a link to a new video that the British Columbia Securities Commission has produced that cleverly educates people about investment fraud. It is very entertaining and highly commended. We include investor bulletins from the US Securities and Exchange Commssion (SEC) about robo-advisers and their website, Investor.gov, as well as the Financial Industry Regulatory Authority (FINRA) about binary options follow-up schemes. We also include a notice from FINRA indicating that they are now accepting applications for their highly successful Military Spouse Fellowship program. We spotlight three fellows from North Carolina. Finally, we include a jam-packed calendar of upcoming investor education events as well as our usual features, On The Docket, Recent Enforcement Actions, and News from the Regulators.

February 2017 Newsletter
In this issue we report on the sentencing of former ZeekRewards CEO Paul Burks to more than 14 years in federal prison for his role in operating a $900 million Ponzi scheme. In addition, Burks, from Lexington, NC, was ordered to pay $244 million as restitution. We also report on the public hearing the Securities Division convened this month on the proposed rules for the state crowdfunding law, known formally as the NC Providing Access to Capital for Entrepreneurs and Small Business (NC PACES) Act. We also share the results of an AARP investment fraud vulnerability study that sought to identify key differences between known investment fraud victims and the general investor population in three discrete areas: psychological mindset, behavioral characteristics and demographic characteristics. We share news that the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) have signed an information-sharing agreement for crowdfunding and other types of offerings. The NC Department of the Secretary of State is a NASAA member jurisdiction. As we look to the start of America Saves Week, we include an Investor Bulletin designed to help members of our Armed Services make informed savings and investing decisions and avoid common scams. The article includes links to lots of free, unbiased information. We also include an Investor Bulletin explaining what alternative mutual funds are and how they differ from traditional mutual funds. Finally, we include our usual features: Calendar of Upcoming Events, On The Docket, Recent Enforcement Actions and News from the Regulators.

December 2016-January 2017 Newsletter
In this issue, we report on the sentencing of Charles Caleb Fackrell to more than five years in federal prison after pleading guilty to one count of securities fraud. He was also ordered to repay nearly $820,000 to his victims. We also encourage readers to view our YouTube channel where we have posted several informative how-to videos, including ones detailing the qualifications to be a notary, the process to become a notary, how to complete an application to become a North Carolina Notary Public, and how to file corporate annual reports. With tax filing season just around the corner, we include information about the Tax Identity Theft Awareness Week (Jan 30 – Feb 3) activities that the Federal Trade Commission (FTC) has planned. We also include a link to a podcast about crowdfunding that you won’t want to miss. We include news about Richard Wyatt Davis, Jr., a Mecklenburg County man who is facing federal charges in connection with an investment scheme that defrauded 100 victims of $19 million. We include informational bulletins from the Securities and Exchange Commission (SEC) dealing with the top investment tips for 2017 as well as how to tell if your broker is conducting excessive trading in your account merely for the purpose of generating sales commissions for him- or herself. We also include a summary report of an in-depth analysis of US investors conducted by the Financial Industry Regulatory Authority (FINRA). We also include our regular Calendar of Upcoming Events, On The Docket, and News from the Regulators features.