 |
|
Central Registration Depository
West Virginians are investing more into securities than ever before. For the first time, investments outweigh
bank deposits. We are investing into the stock market and other securities faster than ever. The
challenge for new investors is separating the legitimate investments from the fraudulent business scheme;
a swindle; a scam.
Dishonest sales persons are calling with proposals for investing in everything from motion pictures to worm
farms and are finding investors! It may seem bizarre that there are actually victims of these "tips" or "secret
markets", but even the smallest investment seems to snowball until investors find themselves with a life's
savings involved and no way out of what was guaranteed to them as a "safe investment that will double or triple
your money in as little as two months."
These crooks may also put up money for radio and television advertisements. Sometimes, at the end of a sales
pitch you may hear a quickly spoken disclaimer like: "Some investors can and do lose money." or "Past performance
is not indicative of future results." These disclaimers are a good warning and should be heeded. The disclaimer
may have unequal weight in the advertisement, but it nonetheless warns investors and protects marketers.
Not only could an investor lose all the money involved, but if investors chose to use a margin account and an
investment falls through, more money can be lost than was initially invested. Crooks have no problem with taking
your life's savings!
"Security" could be considered a misnomer because it always involves some risk. Investors should be suspicious
anytime "risk-free" is mentioned. "Security" also means no guarantee. Crooks will tell you anything to get your
money ~ so beware! Investigate before you invest!
The Central Registration Depository [CRD], is a computer database containing the licensing and disciplinary
histories on nearly 600,000 securities professionals and
5,600 securities firms. The CRD, established in the early 1980's, is jointly owned by
North American Securities Administrators Association [NASAA]
and the Financial Industry Regulatory Authority [FINRA].
Disciplinary information in the CRD system includes customer complaints, arbitrations and actions by state,
industry and federal regulators and law enforcement agencies. The majority of brokers are honest, ethical
professionals, but investors should always check with state or industry regulators before investing. Investors
should also check a broker's education and work history.
When speaking with a securities salesperson or adviser, be sure to record details of the recommendations
received and the instructions given. Be sure to keep the notes in your files.
You may call the Financial Industry Regulatory Authority toll-free disclosure hotline at 800.289.9999.
You can also request a broker's record online at www.finra.org
To check the CRD record of a broker or firm, or if you have any questions, contact
the West Virginia Securities Commission at 304.558.2257.
Disclaimer
The West Virginia Securities Commission uses links to other Web sites for the convenience of the user. Whenever you
click on links provided, you are leaving the West Virginia Securities Commission and entering an external site. The
Security Commission cannot attest to the accuracy of the information provided by the external linked sites, nor does
the Securities Commission endorse any products or information obtained from these external sites.
|
|
|
