Marshall Addresses Elder Abuse Awareness Conference |
|
Protecting North Carolina’s seniors from abuse and financial exploitation took center stage during a World Elder Abuse Awareness Day conference hosted by the NC Department of Health and Human Services Division of Aging & Adult Services and the Triangle J Council of Governments Area Agency on Aging.
Secretary Marshall addressed the conference, outlining the work of our Securities Division in protecting seniors from elder financial abuse. Click below to see Secretary Marshall's remarks.
|
|
Cryptocurrency-Related Scams Take Center Stage in AARP Tele-Town Hall
AARP North Carolina hosted a live Tele-Town Hall on elder abuse in June that highlighted cryptocurrencies and investments involving cryptocurrencies. NC SOS Securities Division Director Andy Penry joined a panel of experts including the SEC’s Atlanta Regional Director Nekia Hackworth Jones, and AARP lead Fraud Watch Network volunteer Lorraine Simmons for this informative event. If you were unable to listen live, click the image below to hear the program, recorded in its entirety.
|
|
Always Read the Fine Print: Secretary of State Warns of Misleading Mailing from NC UCC Statement Service
Secretary of State Elaine F. Marshall is urging people who have recent financing statement filings with the Department’s Uniform Commercial Code Section to beware of a deceptive mailer from a Raleigh-based company.
The mailings from NC UCC Statement Service prompt people to pay a $90 fee to request a copy of a document that they can print directly from the UCC section of the Secretary of State’s website (www.sosnc.gov) for free.
“This appears to be the latest twist on an old scheme of mailers using misleading language aimed at holding consumers up for large and unnecessary fees for government filings,” said Secretary Marshall.
The Secretary of State’s Office has received reports from people with recent UCC filings who have received mailings with the header, “State of North Carolina Uniform Commercial Code Financing Statement Request Form.” The mailer does include fine print acknowledging that the company is not affiliated with any government agency and that consumers are not required to use their services.
“Our agency’s UCC Section is an important repository of records of the collateral used when loans are approved,” noted Secretary Marshall. “We’re the honest broker of information to lenders to help them approve loans based on collateral, so it’s worrying to see anyone using that public information in an attempt to lure consumers to pay unnecessary fees.”
Small businesses and others with UCC financing statements can search for those documents and print them off for no fee on the Uniform Commercial Code section of the Secretary of State’s website at www.sosnc.gov.
Secretary Marshall spoke to WTVD last month about the importance of reading the fine print when you receive mailings implying an owed fee. We have more details about misleading mailings on the Business Registration Division section of our site here.
|
|
NASAA Offers New Power of Attorney Resources
The North American Securities Administrators Association (NASAA) released two new publications in June developed by NASAA’s Senior Issues and Diminished Capacity Committee that are aimed at raising awareness about the use of a power of attorney in managing one’s financial affairs.
“The decision to execute a power of attorney is critically important for investors and can provide peace of mind. However, there are significant questions an investor should discuss with their legal counsel and financial professional when deciding whether to put a power of attorney in place,” said NASAA President Melanie Senter Lubin. “I thank the Senior Issues and Diminished Capacity Committee for their work in preparing these resources.”
The new publications call attention to the benefits of executing a power of attorney and other important considerations. The first, “Powers of Attorney: Basics That All Investors Should Know and Consider”, provides basic power of attorney information for investors, including an explanation of what a power of attorney is, an overview of what to consider when choosing a person to serve as an attorney-in-fact, and a review of different provisions and forms of powers of attorney.
“The power of attorney publications are the result of committee members’ commitment to the protection of older investors. They are important resources for both investors and financial professionals,” said Richard C. Szuch, Chair of the NASAA Senior Issues and Diminished Capacity Committee and Enforcement Chief, New Jersey Bureau of Securities.
|
|
Landmark Remote Online Notarization Bill Approved to Make RON the Law of the Land in North Carolina
Governor Roy Cooper has signed a bill that allows notaries to use internet technologies to identify people and notarize their signatures remotely. This significant legislation means homebuyers will soon be able to close loans and buy houses from the comfort of their couch, marking a major advance in Secretary of State Elaine F. Marshall’s twenty-five year effort to lead the digital transformation of North Carolina’s business environment.
Because of the extensive work required to implement permanent Remote Online Notarization (RON), the portion of House Bill 776 addressing RON becomes effective July 1, 2023. Emergency video notarizations will resume, effective immediately, as a stop-gap measure to allow video notarizations while permanent RON procedures are being put in place.
“Everyone in North Carolina needs to be able to sign contracts safely and conveniently, without sacrificing the certainty of knowing that people signing important documents like wills and loans are exactly who they say they are. Emergency Video Notarizations were crucial tools during the height of the COVID pandemic. The next step, establishing a permanent RON solution that matches intuitive technology with transactional security, is central to maintaining a vibrant and sustainable e-commerce culture across the state that’s accessible for everyone,” said Secretary Marshall.
The new Remote Online Notary fee will be $25 per principal signature when RON becomes effective in July of 2023. The new law also immediately updates other fees that notaries public across the state can charge. The maximum fee that can be charged per principal signature has increased from $5 to $10 for acknowledgments, jurats, and verifications or proofs. For oaths or affirmations without a signature, the maximum fee has increased from $5 to $10 per person, except for the identity of a principal or subscribing witness. The fee for electronic notarizations under G.S. 10B-188 will be $15.
For any notarial act performed under the State Notary Public Act, actual mileage at the federal mileage rate (62.5 cents per mile) can be charged if the travel reimbursement is agreed to by the principal in writing prior to travel.
The Secretary of State’s Office will next begin the administrative rulemaking process to create the requirements and procedures needed to implement the permanent RON law.
|
|
SEC Campaign Uses Game Show Concept to Raise Investor Awareness
Sometimes investing may look and feel like a game, but a wrong answer can put your finances in jeopardy. The SEC debuted its “Investomania” public service campaign in June, using the concept of game shows to educate investors in a playful way that investing is not a game and that they should do their due diligence when making investment decisions.
Bottom line - don’t play games with your financial future. After you watch the campaign videos and learn how you can avoid getting caught up in game-like investing, test your knowledge with this Investomania quiz!
|
|
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.
|
|
CISA Launches First Cyber Innovation Fellows Cohort
Cyber Innovation Fellows brings new private sector expertise into Nation’s cyber defense agency
The Cybersecurity and Infrastructure Security Agency (CISA) in June announced the launch of the Cyber Innovation Fellows initiative to leverage private sector expertise to contribute directly to the nation’s cyber defense on a temporary basis. As particpants, Fellows would lend their expertise to CISA’s technical teams—including threat hunting, incident response, and vulnerability management—that match their skill sets and maximize contributions to the nation’s cybersecurity.
“I couldn’t be more excited to launch our new Cyber Innovation Fellows initiative,” said CISA Director Jen Easterly. “This new effort will allow us to partner even more closely with top talent from the private sector as they become part of our team for a few days each month to help us tackle some of the most complex cybersecurity challenges we face as a nation.”
Fellows will be a part of the CISA team on a part-time basis for up to four months and will be compensated by their private sector employer. The first cohort of up to eight participants is expected to begin fall 2022.
|
|
SEC Proposes Amendments to Shareholder Proposal Rule
On July 13th, the Securities and Exchange Commission (SEC) proposed amendments to the rule that governs the process for including shareholder proposals in a company’s proxy statement. Under Rule 14a-8, companies generally must include shareholder proposals in their proxy statements. The rule, however, provides several bases for exclusion, including several substantive requirements that proposals must comply with to avoid exclusion. The proposed amendments would revise three of the bases for exclusion to promote more consistency and predictability in application. Read more details.
|
|
SEC Adopts Amendments to Proxy Rules Governing Proxy Voting Advice
Amendments Address Concerns by Investors and Others Regarding Rules That May Impair the Timeliness and Independence of Proxy Voting Advice
Also on July 13th, the SEC voted to adopt amendments to its rules governing proxy voting advice as proposed in November 2021. The final amendments aim to avoid burdens on proxy voting advice businesses that may impair the timeliness and independence of their advice. The amendments also address misperceptions about liability standards applicable to proxy voting advice while also preserving investors’ confidence in the integrity of such advice. Read more details.
|
|
SEC Adopts Rules to Require Electronic Filing for Investment Advisers and Institutional Investment Managers
Rules and form amendments will enhance efficiency and make data more usable for the public.
On June 23rd, the SEC adopted amendments to require certain documents filed by investment advisers, institutional investment managers, and certain other entities to be filed or submitted electronically. The amendments also make technical amendments to modernize Form 13F and enhance the information provided. The amendments are intended to promote efficiency, transparency, and operational resiliency by modernizing how information is filed or submitted to the Commission and disclosed to the public. Electronic filings will be more readily accessible to the public and available on websites in easily searchable formats. Read more details.
|
|
SEC Seeking Public Comments Regarding "Information Providers: Acting as "Investment Advisers"
On June 15th, the SEC announced that it is requesting information and public comment on matters related to the activities of certain “information providers,” including whether, under particular facts and circumstances, information providers are acting as “investment advisers” under the Investment Advisers Act of 1940 (“Advisers Act”). The Request specifically focuses on index providers, model portfolio providers, and pricing services. Read more details.
|
|
SEC Updates Electronic Filing Requirements
Amendments Will Help Modernize How Information Is Submitted to Commission
On June 3rd, the Securities and Exchange Commission announced that it adopted amendments to require certain forms that currently are permitted to be filed or submitted in paper format to be filed or submitted electronically. The amendments also amend certain forms to require structured data reporting and remove outdated references. The amendments are intended to promote efficiency, transparency, and operational resiliency by modernizing how information is filed or submitted to the Commission and disclosed to the public. Furthermore, to benefit investors and the public, electronic filings will be more readily accessible to the public and available on the SEC website in easily searchable formats. Read more details.
|
|
-
On April 17, 2022, the founders of a Fake "Hedge Fund," Austin Delano Page and Brandon Alexander Teague, pleaded guilty to federal charges for orchestrating a $4 Million Ponzi scheme. For more information, see this press release.
-
On April 22, 2022, Marlin Hershey and Dana Bradley, were indicted on federal charges in connection with a multi-million dollar investment scheme. Click here for details.
-
On March 8, 2022, former Forsyth County Investment Adviser, Russell Joseph Mutter, pleaded guilty and was sentenced to a minimum of 16 years, 3 months and a maximum of 22 years, 5 months in prison for a scam that cost 12 victims - most of them elderly -- more than $3.3 million. Click here for more details.
-
On November 15, 2021, Joshua Matthew Houchins, 36, of Raleigh, NC, was sentenced to ten years in prison on charges of Wire Fraud, in violation of Title 18, United States Code, Section 1343, and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g). The defendant was also ordered to serve three years of supervised release and to pay restitution to victims in the total amount of $1,771,382.25. According to court documents and arguments made in court, Houchins, owner of various Raleigh real estate development companies, carried out a Ponzi scheme upon numerous local real estate investors. Houchins also possessed a rifle and several rounds of ammunition after having been convicted of a felony. For more details, see the related story in this newsletter and this press release.
-
On July 29, 2021, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order ("Order") with Tannin Capital, LLC. The Order states that Tannin Capital was ineligible for an exemption from state registration as an investment adviser from October 2019 through on or about April 2020. Pursuant to the Order, Tannin Capital agreed to immediately cease and desist from violating any provision of the North Carolina Investment Advisers Act and any related administrative rules, to pay a civil penalty and reimbursement of the costs of investigation. The North Carolina Department of the Secretary of State thanks the U.S. Securities and Exchange Commission, Atlanta Regional Office for their assistance in this matter. For more information on this Order, click here.
|
|
|
|
NC Department of the Secretary of State
Securities Division
Investor Protection & Education Services
|
|
|
|
|
|
|
|
