Skip Navigation

NC SOS

Securities Newsletter

Document preview

In this issue, we report on the sentencing in federal court of Robert Louis Winecoff of Huntersville, NC, to 51 months in prison for his role in a fraudulent investment scheme in which he scammed 12 investors out of approximately $343,000. We also ask readers to take an online survey about our newsletter in an effort to improve it. We announce big improvements in the way the Department provides information and services to its customers. We report that Secretary Elaine Marshall was the recipient of the Charlotte Business Journal's 2017 Lifetime Achievement Award for her work on international trade, and that John Curry, the Securities Division's Special Agent in Charge, received his Advanced Law Enforcement Certificate. We include important information for consumers affected by the Equifax data breach. We include alerts from the US Securities and Exchange Commission (SEC) about scams in the wake of the recent hurricanes that have hit the US and Puerto Rico, what the new "T+2" settlement cycle means for investors, and how investors can avoid scams involving companies making "Initial Coin Offerings". We also include a list of resources prepared by the Financial Industry Regulatory Authority (FINRA) designed to help older adults steer clear of investment fraud. Finally we include our regular features: the Calendar of Upcoming Events, our Recent Enforcement Actions, cases that are On the Docket and News from the Regulators.
Document preview

We begin this month’s newsletter with the SEC’s warning issued on July 25 that digital coins and tokens are subject to federal securities laws. We have also reprinted the SEC’s useful Investor Bulletin on the potential risks of Initial Coin Offerings (ICOs). Also please check out the first of the CFTC’s new video series, “True Fraud Stories.”  Federal employees and retirees participating in the Thrift Savings Plan (TSP) are encouraged to check out the SEC’s Investor Alert, included on page 9, for handy tips to avoid investment scam artists who may pretend to be affiliated with a government agency to gain access to your retirement fund. We’re also reprinting the SEC’s Investor Bulletin providing helpful information about the basics of retirement investing through 403(b) and 457(b) plans. And as always we hope you'll check out our calendar of upcoming educational events - we may be in your neighborhood soon! - as well as our On the Docket, Enforcement Actions, and News From the Regulators sections.
Document preview

The May/June SOSNC Securities Newsletter begins with a writeup from Triangle Family Service's May 18th Scam Jam in Wake Forest. In observance of World Elder Abuse Awareness Day we're including a NASAA study that takes a close look at financial fraud and exploitation targeting seniors, and how broker-dealer procedures can help protect senior clients. If you're considering investing in a crowdfunding venture, please check out the SEC Investor Bulletin focusing on what you need to know about so-called SAFEs (Simple Agreement for Future Equity" ). We hope you'll check out some interesting new stats released by the Consumer Financial Protection Bureau on financial literacy among American teens. We're also including a writeup from NASAA on last week's Cybersecurity Roundtable in Washington, D.C. As people here in North Carolina and all along the Atlantic Seaboard brace for Hurricane season, we have some timely advice from FINRA about avoiding scams in the wake of hurricanes and other natural disasters. Also check out news from NASAA about additional securities firms that have agreed to provide a fee disclosure schedule for clients based on a NASAA model. We're also including news from the Commodity Futures Trading Commission's approval of amendments to its Whistleblower Rules that will strengthen the agency's anti-retaliation protections for whistleblowers. And please check out our calendar of community workshops - we may be in your town soon! - as well as our "News From the Regulators" section.
Document preview

This month's newsletter begins with the sentencing of former Raleigh resident Ronald McCullough in a $2 million foreign currency trading scheme. We're also including news from the SEC regarding recent amendments to the federal JOBS Act. Also check out the link that we have included to a writeup in the Raleigh News & Observer on the Limited Public Offering option under North Carolina's new crowdfunding law. We also bring you news this month from the Department of Justice on its actions to dismantle the Kelihos Botnet. If you frequently read articles on investment research websites, you'll want to check out an informative alert from the SEC that we're reprinting in this edition that urges caution in following stock recommendations from those sites.  And we're including a handy recovery checklist from FINRA for victims of Investment fraud. And we hope you'll check out our Calendar of Upcoming Events and News from the Regulators.
Document preview

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., such 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.
Document preview

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.
Document preview

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.
How can we make this page better for you?

Request Support

Request support or submit a suggestion, we will get back to you via email or phone.
 

Get Started
Back to top