Additional Archives
Securities Division Newsletters
April 2016 Newsletter
This month's newsletter begins with news of a major conviction in a $1.4 million Ponzi scheme in Yadkin County. We report on our very successful First Annual NC Investor Day, as well as our hosting of the quarterly meeting of the Business Resource Alliance, our participation in the "Modern Times, Modern Crimes" anti-fraud workshop in Wilmington, and our participation in a day-long workshop on investigating investment fraud designed specifically for law enforcement officers that was jointly sponsored by the FINRA Investor Education Foundation and the National White Collar Crimes Center (NW3C). We include information about - and a link to - a new report from FINRA on digital investment advice (also known as "robo investing") which all investors are encouraged to read. We've also included a couple of important bulletins from the SEC on the topics of performance claims and fraudulent stock promotions. Also included is an important NASAA Investor Alert regarding pension advance scams. We're also including a link to some timely recommended reading - a recent New York Times story shines a spotlight on the issue of disclosures against stockbrokers. A recent academic paper found some stats that may surprise you. And as always we hope you'll check out our calendar of upcoming educational events - we may be in your neighborhood soon! - as well as our On the Docket, Enforcement Actions, and News From the Regulators sections.

March 2016 Newsletter
In this issue we encourage investors and entrepreneurs and small businesses alike to register for our 2016 North Carolina Investor Day day-long conference that will be held on April 19 at the NC Biotechnology Center in Research Triangle Park, NC. We also report on the successful financial workshop that was conducted for about 100 Camp Lejeune Marines and their families on March 18. This was the second of a planned series of educational events the NC Department of the Secretary of State Securities Division is conducting in partnership with the USO of North Carolina. In a related article, we include information on the FINRA Investor Education Foundation's Military Spouse Fellowship Program that is taking applications through April 22 for its education and training program needed to earn the Accredited Financial Counselor® (AFC®) designation. We include a reprint of an article from the Consumer Financial Protection Bureau (CFPB) about how to work with financial institutions to help prevent the financial abuse and exploitation of older Americans. We also include investor alerts about scams relating to the Zika crisis and to government impersonators. We also remind people to update their bookmarks to the NC Department of the Secretary of State's website because we have officially changed our domain name from "" to "". Likewise, all departmental email addresses will change from ".com" to ".gov". We also want people to follow, share, and like our Facebook, Twitter, LinkedIn and Youtube social media sites. Finally, we include our regular features, the Calendar of Upcoming Events, On The Docket, Recent Enforcement Actions and News from the Regulators.

February 2016 Newsletter

In this issue, Secretary of State Elaine F. Marshall highlights the seven “Sweetheart Swindles” of 2016. We also include information about Barry Carlton Taylor, 64, of Franklin, North Carolina, who recently pleaded guilty to fraud by commodities pool operator and concealment of money laundering charges. According to the criminal bill of information, Taylor defrauded his investors of approximately $2.5 million. In recognition of “Military Saves Week”, we include fraud prevention tips for military retirees. We remind people to follow us on Facebook, Twitter, Youtube and LinkedIn. We also announce that public comments are now being accepted for initial classification of proposed new administrative rules for the NC Secretary of State’s Securities Division (18 NCAC 06). Comments from the public will be accepted through Monday, April 25, 2016. The public comment period is also open for Notary Public and E-Notary rules (18 NCAC 07) until April 15, 2016, and for E-Commerce rules (18 NCAC 10) until April 20, 2016. We include an in-depth investor bulletin published by the Securities and Exchange Commission (SEC) explaining the new rules about investment crowdfunding. We also announce two upcoming conferences. The first is the 13th Annual Caregiver Education Conference at Barton College in Wilson on March 8, and the second is the 2016 North Carolina Investor Day in Durham (RTP) on April 19th. Registration information is included in this newsletter. Finally, we include our regular features, the Calendar of Upcoming Events, On The Docket, Recent Enforcement Actions and News from the Regulators.

January 2016 Newsletter
In this issue, we report on the sentencing in federal court of David Christopher Mayhew, of Raleigh, to 320 months imprisonment, followed by 3 years of supervised release for his role in a $2 million investment fraud case. Mayhew was also ordered to repay his victims. We also report on the Continuing Legal Education (CLE) seminar on crowdfunding that Secretary of State Elaine F. Marshall and Leo John, Investor and Business Outreach Legal Specialist, co-presented to the Orange County Bar Association. The Department of the Secretary of State will be conducting several free CLEs this year, so please periodically check our Calendar of Upcoming Events ( We include the Securities and Exchange Commission's (SEC) Investor Bulletin on the ten investor tips for 2016 and a joint SEC-FINRA alert on securities-backed lines of credit. We report that the registration renewal compliance rate for investment advisers was the best we've seen in the past five years. Only two investment advisers failed to renew their registrations for 2016 by the December 31, 2015. The Securities Division has made outreach and education a particular priority in recent years. We also report that the North American Securities Administrators Association (NASAA) has launched a new website,, that is designed to provide senior-focused resources in investors, caregivers, industry and policymakers. We encourage everyone to bookmark it. We also recommend a recent Wall Street Journal article entitled, "The Ethical Challenges Facing Entrepreneurs". It expounds on the ethical risks entrepreneurs face at every stage of a company's life. We also include a list of the SEC's examination priorities for the coming year. Although specifically directed to industry professionals, it should give investors an idea of some of the questions they should be asking their brokers. We conclude with our regular features, including the Calendar of Upcoming Events, On the Docket, Recent Enforcement Actions and News from the Regulators.