Call Now! Save $!
Posted on March 1, 2013 by bob in ElderJust
Call now. Save Big! Almost all Alabamians who become victims of investment fraud — many of whom lost a significant amount of their life savings — never invested the small amount of time required to contact the Alabama Securities Commission (ASC) to determine if their financial professional, whether from Alabama or out-of-state , was registered to legally offer investments in Alabama.
According to a Financial Industry Regulatory Authority, Inc. (FINRA) survey of more than 28,000 American adults, only about 14 percent of investors who have used an investment professional in the last five years reported checking that professional’s background with a state or federal regulator. A small investment of your time spent contacting the ASC to request a free background check of a financial professional can determine if any new disciplinary or legal actions are pending against that person. This free ‘checkup’ could pay big dividends.
The ASC is involved in a large number of civil and administrative actions involving infractions or non-compliance of investment professionals and the financial companies they are affiliated with. For example, a recent settlement with a company in the financial industry is returning 5,837 checks totaling more than $14.2 million to Alabamians as a result of ASC actions. For the past ten years, over 80% of criminal prosecutions for violations of Alabama securities law involved people NOT REGISTERED with the ASC to offer investment opportunities to potential Alabama investors.
If you are considering investing, contact the ASC for a free checkup on the financial professional you do business with. The federal Securities Exchange Commission (SEC) and state ASC regulate the sale of securities, with the ASC being your state government regulator for “Main Street” investors, whether the investment offer is made by an Alabama resident or originates from out-of-state. If you check out a financial professional and find they are not registered, as required by law, the ASC will investigate. 
To request an ASC registration and background check call 1-800-222-1253 and ask for the Registration Division, or e-mail information with your postal address to asc@asc.alabama.gov. The ASC website — www.asc.state.al.us — has free educational material about investing, plus articles about prosecution and punishment for violations of securities law. You can order materials from the website, including those produced by Kiplinger’s Personal Finance.
The ASC Education and Public Affairs office conducts investor education seminars for social/business groups, in the workplace, and other groups upon request, anywhere in Alabama. Approximately 70 investor education events are held each year, reaching more than 5,000 Alabamians. Contact the ASC at www.asc.state.al.us/, or call 1-800-222-1253.
Joseph Borg, Exec. Dir., ASC
Joe Borg is Executive Director of the Alabama Securities Commission. This article is made possible by a generous grant from the Investor Protection Trust, www.investorprotection.org.
