FREE Services From the Office of Financial Institutions (O.F.I.)

Could Reduce Investment Fraud

In a 2007 Investment Fraud Risk Survey conducted by the Financial Industry Regulatory Authority, 70 percent of fraud victims had never checked the broker’s registration with their states.  Many investment scams could be avoided if investors would start verifying the salesperson’s credentials before investing.

The Securities Division of the Louisiana Office of Financial Institutions (OFI) offers FREE background checks, called CRD Reports, on investment professionals upon receiving written requests from investors.  The report includes valuable information, such as:  the person’s background, certifications, pending arbitration, criminal history, and employment history (including terminations, disciplinary actions and customer complaints filed).

When requesting a CRD Report, include either the investment professional’s CRD Number, or the person’s legal name, for OFI to search a nationwide data base called the Central Registration Depository (CRD).  A CRD Number is an exclusive identifying number, much like a personal Social Security number, used for investment professionals.  Investors should always feel free to ask for any investment professional’s CRD Number, although there are exemptions to needing one.  OFI can be contacted at (225) 925-4512 to verify details when an investment professional claims an exemption from needing a CRD Number.

For fastest response, email requests to complaints@ofi.la.gov or fax them to (225) 925-4511. Requests for CRD Reports can also be mailed to the Securities Division of the Office of Financial Institutions (OFI) at 8660 United Plaza Boulevard in Baton Rouge, LA 70808.

OFI’s web site now offers a new Investor Education section at  www.ofi.la.gov/SecuritiesInvestorEd.htm.  Readers can access more details about requesting CRD Reports, read about new fraud schemes and tips on avoiding them, or use the Investor Checklist form to evaluate new investments.  As new scams are uncovered, the web site will be updated with relevant articles every quarter.

Investor education is a powerful tool in the fight against investment fraud.  That’s why OFI now offers a FREE professional speaker with the hottest topics on avoiding investment fraud to groups, associations and conferences.  Contact OFI’s new Investor Education Trainer, Nancy Boudreaux, at (225) 925-4677 or  nboudreaux@ofi.la.gov  to check her availability to speak to your group about protecting investments from today’s con artists.