Connie Lawson Indiana Secretary of State Securities Commissioner

Connie Lawson, Indiana Secretary of State Securities Commissioner, Carol Mihalik

The Secretary of State; Elections Division, Business Services Division, Dealers Division and the Securities Division The Securities Commissioner appointed by the Secretary of State The Securities Division is tasked with investor protection and maintaining integrity in the marketplace The attorneys and investigators are police officers A Review of the Basics

All securities products sold in Indiana must be registered with us unless there is an exemption. (Notes, stocks, bonds, investment contracts etc. ) Anyone who directly or indirectly offers or sells a security must be licensed Licensing and Registration

What is a security? Someone promises to do something with your money while you sit back and await the expected returns. { One word helps; Passivity

Material Misrepresentation / FRAUD If the issuer, in the offer or sale of the securities, makes an untrue statement of a material fact or omits to state a material fact required to be stated or necessary in order to make the statements … not misleading, In other words… “had they told me the truth (i. e. not registered, how they would really use my money, etc. ) about XYZ, I would not have invested” 5

Criminal – with deference and referral to County Prosecutor Unlicensed broker Unregistered product Material misrepresentation Enhanced Level 4 penalty for > age 60 or affinity fraud Administrative Adjudications Ability to impose remedies “in house” Civil – OAG serves as counsel Fraud and receiverships Personal cause of action/ Victim personal counsel How do we deal with bad actors?

They usually start like this… Marcus Schrenker of Hamilton County

Staff – may be deputized Initial investigation PC and Affidavit Prep Restitution fund Search warrant assistance Bank record collection & analysis Discovery Financial Assistance { The Prosecution Assistance Unit How we work for you!

But end like this… Vaughn Reeves of Sullivan County