News & Publications

Hearing notice

Publication Date: Feb 15, 2024

Hearing Notice                                                                             

NOTICE OF RULEMAKING HEARING

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on March 1, 2024, commencing at 10:00 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

The purpose of the hearing is to take testimony and evidence concerning the following changes to the Rules and Regulations of the Department:

1) The proposed revisions to Title 48, Chapter 6

2) The proposed revisions to Title 48, Chapter 7

3) The proposed revisions to Title 48, Chapter 9

4) The proposed revisions to Title 48,

Chapter 12 48 NAC 6-Agents of Broker-Dealers: The purpose of the proposed revisions to Title 48, Chapter 6 is to adopt the North American Securities Administrators Association (“NASAA”) “Examination Requirements for Broker-Dealer Agents Model Rule.” This rule will allow agents who have elected to participate in the Financial Industry Regulatory Authority’s (“FINRA”) Maintaining Qualifications Program to extend the validity of their state examinations from two to five years.

48 NAC 7-Investment Advisers: The purpose of the proposed revisions to Title 48, Chapter 7 is to adopt NASAA’s “Model Rule for Investment Adviser Written Policies and Procedures Under the Uniform Securities Act of 1956 and 2002.” This rule requires investment advisers to adopt policies and procedures to ensure compliance with the Securities Act of Nebraska. The model rule will replace existing provisions in Chapter 7 that require investment advisers to adopt similar policies and procedures.

48 NAC 9-Investment Adviser Representatives: The purpose of the proposed revisions to Title 48, Chapter 7 is to adopt two NASAA model rules. The first model rule, the NASAA “Investment Adviser Representative Examination Validity Program Model Rule” will allow investment adviser representatives who participated in NASAA’s Exam Validity Extension Program and complete continuing education to extend the validity of their state examinations from two to five years. The second model rule, NASAA’s “Model Rule on Investment Adviser Representative Continuing Education” implements continuing education requirements for investment adviser representatives.

48 NAC 12-Fraudulent, Dishonest and Unethical Business Practices: The purpose of the proposed revision is to adopt NASAA’s “Unpaid Arbitration Awards Under the Uniform Securities Acts of 1956 and 2022.” This rule provides that the failure to pay arbitration awards, court judgments, and regulator fines is an unethical practice.

The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84- 907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, Regulations Division, 1201 N Street, Suite 120, Lincoln, Nebraska 68509. In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.

A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.

All interested persons are invited to attend and testify at the hearing. Interested persons may also submit written comments to the Department of Banking and Finance prior to the hearing, which comments will be made part of the hearing record at the time of the hearing.

If auxiliary aids or reasonable accommodations are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 12th day of January, 2024.

Kelly Lammers, Director

Nebraska Department of Banking and Finance

                                                     

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Romance Scams

Publication Date: Feb 13, 2024

Romance Scams

Are you an Informed Investor?

Don’t Get Swept Away by a Romance Scam

February 14, 2024 — Government agencies across North America are seeing an increase in investment-focused romance scams. Sometimes these scams are referred to as “financial grooming,” or “pig butchering.”

In March 2023, the Federal Bureau of Investigation (FBI) released a report that said its Internet Crime Complaint Center (IC3) identified more than 19,000 victims of confidence or romance scams resulting in losses greater $735 million. In a similar report, the Federal Trade Commission (FTC) showed that romance scammers cost nearly 70,000 consumers $1.3 billion in 2022.

Investments tied to cryptocurrencies and digital assets topped the North American Securities Administrators Association’s (NASAA) 2023 list of investor threats. Some of these threats may be tied to romance scams. Finally, the Canadian Securities Administrators (CSA) has also warned of fraudsters using social media, messaging apps, and online dating sites to lure people into investment scams.

Romance Scams Are Real; Know the Warning Signs

Romance scammers set online traps and use technology and social media platforms to profile targets. They also spend time getting to know people before asking for money or introducing an investment opportunity. Here are some common tactics and warning signs to look out for:

• Reluctance to meet in-person or by video: Most scammers avoid meeting face-to-face because often they aren’t who they say there are. They pretend to be anyone they think you would be attracted to. They will make excuses not to meet, like being too busy with work, or not being able to get away from family or community obligations. “In-person” may include refusing a video chat with the victim while they groom them for the scam. Scammers may use video filters or Artificial Intelligence (AI) technology to disguise their identities, sometimes referred to as “deep fakes.”

• Wanting a long-distance relationship: Once you enter a “relationship” with an online romance scammer, they might tell you that they live far away, travel a lot for work, or have a job outside the country or area you live. They won’t offer to visit you and may discourage you from trying to visit them.

 • Discussing wealth or business success: In order to interest you in investing, romance scammers may brag about how successful they are. They may flaunt their supposed wealth, using photos of luxury items, real estate, expensive cars, etc. They may offer to help you make money or become wealthy, often offering access to supposed inside information or trading secrets for trendy or complex investments, like cryptocurrencies or non-fungible tokens (NFTs).

• Pressuring you to give them money: At some point, the romance scammer will likely ask you point blank to provide them with a sum of money. They will likely try to show you that your investment has grown quickly and substantially to hook you into giving larger and larger amounts. If you show reluctance, they may put pressure on you by saying manipulative things, such as that they are considering breaking off the relationship or they are offended that you can’t trust them.

• Introducing an app or website: When you show a willingness to invest, a romance scammer may steer you to an investing app that they say they are using or a website that offers investments. The website or app may be controlled by the scammer or a criminal organization they are associated with. The scammer may also offer to teach you how to invest or trade, and then ask for remote access to your computer or request your online banking information.

How to Protect Yourself from Romance Scams

When we’re smitten with someone, we tend to lead with our heart instead of our head. A romance scammer depends on this, encouraging you not to look too deeply into their background or the type of scheme they are promoting. Protect yourself by following these steps:

• Keep your guard up: If a new romantic interest suddenly starts asking for money or encourages you to start investing, be cautious. A potential partner should be focused on your developing relationship, not your money or investing interests.

• Do your research: Online searches may provide a better idea about the person you are dealing with and what they do. Most people have an online presence these days, which includes personal and professional information. Fake online profiles tend to lack information about an individual, and the images used in an activity feed may feel impersonal or staged. Scammers often use stolen images from real people or stock images, so it’s good to do online image searches to check the origin and use of the image.

• Check registration: Firms that provide investment advisory services in the U.S. are typically registered with the U.S. Securities and Exchange Commission (SEC) or one or more state securities regulators. In Canada, firms and individuals must be registered with the securities regulators in the provinces in which they operate. Check the SEC’s Investment Adviser Public Disclosure database or FINRA’s BrokerCheck to verify registered individuals or firms. In Canada, use the CSA’s National Registration Search. To find your state or provincial securities regulator, visit the NASAA website.

• Suggest meeting in-person: To determine if a person is who they say they are, you can try and meet in-person in a public place. Make sure to meet in a safe, busy, and public place. Bring a friend or family member. This person doesn’t need to stick around if things go well, but it will give you a witness and an easy excuse to leave if you feel uncomfortable.

 • Research websites and apps: Scammers create a custom online platform and direct you to it in order to take your money and hide from authorities. Building a custom app or website that can accept money or crypto assets is surprisingly easy. If a person encourages you to invest and recommends an investing website or app, make sure it is registered to do business in your state or province before investing. When dealing with registered investing platforms, do business directly with the platform, don’t allow someone to act as an intermediary or access your computer.

• Look for red flags: Scammers might attempt to make the investment look safe by convincing you that they are investing and taking risks too. Alternatively, they may say the investment is low risk or no risk, while offering guarantees that your money will be safe. This is a red flag of investment fraud. Review NASAA’s Warning Signs of Fraud to better understand common tactics fraudsters use to scam people.

The Bottom Line

Be careful when you meet new people online, especially when you are looking for romance. Seeking a romantic partner is a complex and emotional experience at the best of times – so it’s a good idea not to mix business with romance. Don’t get swept away – make sure you are in a relationship with a real person who cares about you before even considering sharing financial information, making an investment, or loaning a person money.

Also, reach out to your local state or provincial securities regulator before making any investment or if you ever suspect fraud may be involved. Go to ndbf.nebraska.gov for more information on what Nebraska resources are available for victims. If you or someone you know has been scammed, report it to Nebraska Department of Banking and Finance at 402-471-2171 or via our website in the Complaints section. 

                                                                                                                                                                                                                                                                                                                                                                                                                           

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Notice of Rulemaking Hearing

Publication Date: Jan 17, 2024

Notice of Rulemaking Hearing

NOTICE OF RULEMAKING HEARING

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on March 1, 2024, commencing at 10:00 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

The purpose of the hearing is to take testimony and evidence concerning the following changes to the Rules and Regulations of the Department:

1) The proposed revisions to Title 48, Chapter 6

2) The proposed revisions to Title 48, Chapter 7

3) The proposed revisions to Title 48, Chapter 9

4) The proposed revisions to Title 48, Chapter 12

48 NAC 6-Agents of Broker-Dealers: The purpose of the proposed revisions to Title 48, Chapter 6 is to adopt the North American Securities Administrators Association (“NASAA”) “Examination Requirements for Broker-Dealer Agents Model Rule.” This rule will allow agents who have elected to participate in the Financial Industry Regulatory Authority’s (“FINRA”) Maintaining Qualifications Program to extend the validity of their state examinations from two to five years.

48 NAC 7-Investment Advisers: The purpose of the proposed revisions to Title 48, Chapter 7 is to adopt NASAA’s “Model Rule for Investment Adviser Written Policies and Procedures Under the Uniform Securities Act of 1956 and 2002.” This rule requires investment advisers to adopt policies and procedures to ensure compliance with the Securities Act of Nebraska. The model rule will replace existing provisions in Chapter 7 that require investment advisers to adopt similar policies and procedures.

48 NAC 9-Investment Adviser Representatives: The purpose of the proposed revisions to Title 48, Chapter 7 is to adopt two NASAA model rules. The first model rule, the NASAA “Investment Adviser Representative Examination Validity Program Model Rule” will allow investment adviser representatives who participated in NASAA’s Exam Validity Extension Program and complete continuing education to extend the validity of their state examinations from two to five years. The second model rule, NASAA’s “Model Rule on Investment Adviser Representative Continuing Education” implements continuing education requirements for investment adviser representatives.

48 NAC 12-Fraudulent, Dishonest and Unethical Business Practices: The purpose of the proposed revision is to adopt NASAA’s “Unpaid Arbitration Awards Under the Uniform Securities Acts of 1956 and 2022.” This rule provides that the failure to pay arbitration awards, court judgments, and regulator fines is an unethical practice.

The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84- 907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, Regulations Division, 1201 N Street, Suite 120, Lincoln, Nebraska 68509. In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.

A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.

All interested persons are invited to attend and testify at the hearing. Interested persons may also submit written comments to the Department of Banking and Finance prior to the hearing, which comments will be made part of the hearing record at the time of the hearing.

If auxiliary aids or reasonable accommodations are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 12th day of January, 2024.

Kelly Lammers, Director

Nebraska Department of Banking and Finance

Fiscal Impact Statement

Proposed 48 NAC 6

Proposed Chapter 6 Appendix

Proposed 48 NAC 7

Proposed Chapter 7 Appendix

Proposed 48 NAC 9

Proposed Chapter 9 appendix

Proposed 48 NAC 12

Proposed Chapter 12 Appendix

 

 

 

 

 

2023 Annual Report

Publication Date: Dec 22, 2023

Consumer Advisory

Publication Date: Nov 6, 2023

Cortland Man Ordered to Stop Sale of Unregistered Securities November 6, 2023 (Lincoln, NE) — The Nebraska Department of Banking and Finance (“NDBF”) issued a Cease-and-Desist Order against a Cortland, Nebraska man, Noah Dorn (“Dorn”), in connection with the unregistered sale of investment contracts. The Order includes Dorn’s affiliates, agents, employees, successors, and control persons.

According to the Order, Dorn sold investment contracts to at least four Nebraska residents. The investment contracts were not registered for sale in Nebraska, and Dorn had not filed a claim of exemption for the investment contracts with NDBF. The Order prohibits Dorn from offering or selling securities until such securities are registered with NDBF and until Dorn is registered with NDBF as a broker-dealer or agent. The Order further provides that any claim of exemption from registration must be shown by proof satisfactory to NDBF.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov.

The NDBF encourages consumers who have experienced fraudulent practices in connection with investment advisory services or the sale of commodities, and any unfair, unlawful, deceptive, and abusive practices from a financial service provider to call the Department at (402) 471-2171 in Nebraska, or at (877) 471-3445 if you are out of state.

                                                                                                                                                                                                       

 

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RENEWALS 2024

Publication Date: Nov 1, 2023

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2023 RENEWAL DEADLINE November 1, 2023 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance ("NDBF") reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2023. Firms will need to assemble required documentation and review filings to ensure all information is accurate and up-to-date. Failure to submit supplements or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2024.

Installment Loan Act Update

Publication Date: Oct 23, 2023

October 20, 2023 (LINCOLN, NE)

The Nebraska Department of Banking and Finance (“NDBF”) is providing the following notice regarding the Nebraska Installment Loan License, specifically the application process. Effective June 6, 2023, Legislative Bill 92 (2023) (“LB 92”) amended sections of the Nebraska Installment Loan Act (“the Act”).

Nebraska Installment Loan Act

Resulting from the passage of LB 92, the application process for a Nebraska Installment Loan License has been modified, making the process more cost-efficient and time-efficient for applicants and the Department.

There are two primary changes. First, non-originator applicants, including pending applicants, may request a waiver of the application hearing requirement. Originator applicants will still be required to have a hearing as part of their application process. Second, the number of required publications regarding the application can potentially be reduced from three to one publication. If the Director approves the hearing waiver, a one-time notice will be published, and if the Department receives no written protest within 15 days of publication by the Department, the waiver will be finalized, and the application will be ready for final decision. If written protest is received within those 15 days, a hearing will be required, and additional publications will be required to give notice of the hearing.

Upon a license request through the NMLS, a fillable form will be sent to the applicant for completion. Upon completion of this form, the form will automatically be sent back to the Department for approval.

Additionally, language was added to the Act to include marketing in licensed activity. This language was added not to expand the Act, but to clarify who is required to obtain a license. Companies that only conduct marketing activities related to installment loans, which would not have been required to obtain a license prior to the passage of LB 92, will not be required to get a license after the passage of LB 92.

Questions regarding the updates to the application process or the Nebraska Installment Loan Act should be directed to the Department at dob.consumerfinance@nebraska.gov.

Additional licensing information for consumer lenders is available on NDBF’s website at https://ndbf.nebraska.gov/industries/consumer-lending-licenses and on the NMLS website at https://mortgage.nationwidelicensingsystem.org/Pages/default.aspx. If you have questions, please call NDBF at 402-471-2171.

IL Process-Industry Update OFFICIAL 10.23.23.pdf

ACI Payment

Publication Date: Oct 19, 2023

State Regulators Settle with ACI Payments, Inc. for Unauthorized Withdrawals from Mr. Cooper Customer Accounts

State regulators and state attorneys general levy combined fines of $20 million for data misuse impacting 480,000 consumers nationwide

 

Wednesday, October 18, 2023 (Lincoln) — The Nebraska Department of Banking and Finance and 43 other state financial agencies have reached settlements with ACI Payments, Inc., for erroneously initiating electronic transactions totaling $2.3 billion from the accounts of 480,000 mortgage-holders serviced by Mr. Cooper (formerly known as Nationstar Mortgage, LLC). State regulators levied $10 million in fines through a multistate enforcement action led by regulators from Arkansas, Connecticut, Maryland and Texas with support from the Conference of State Bank Supervisors. Additionally, 50 attorneys general, including the attorney general of Nebraska, levied $10 million in fines to ACI, in coordination with state regulators. Together these fines totaled $20 million.

ACI Payments, a subsidiary of ACI Worldwide Corp., is a state-regulated money services business licensed in Nebraska and nearly all other U.S. states (NMLS ID 936777). Mr. Cooper offered ACI’s Speedpay product for its customers to schedule their monthly mortgage payments, enabling automatic transfers of authorized mortgage payments from their personal bank accounts to Mr. Cooper. The violations occurred when ACI Payments erroneously used live customer data in a test of its Speedpay platform, causing unexpected and sometimes multiple mortgage payments from customer accounts. In some cases, these transactions exposed consumers to overdraft or insufficient funds fees.

Upon notification of the incident from ACI Payments, state regulators commenced a multistate money transmission investigation reviewing all aspects of the event, including investigating the facts and circumstances surrounding the erroneous transactions, evaluating consumer impact, analyzing the root cause of the incident, and evaluating the remedial steps taken by the company.

This enforcement action orders the following of ACI Payments, Inc.:

  • Risk and Compliance Programs – Maintain a comprehensive Enterprise Risk Management Program and a Third-Party Risk Management Program tailored to the nature, size, complexity and risk profile of ACI.
  • Agreement Monitoring – Regular reporting (for two years) to a state regulator monitoring committee to ensure both the adequacy of the risk management programs and compliance with the order.
  • Administrative Costs and Penalties – Payment of $10 million in fines for administrative costs and penalties.

State financial regulators license and supervise over 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS), including mortgage companies, money services businesses, consumer finance providers and debt collectors. Nebraska consumers can submit complaints about nonbank financial services companies through its website at Complaints | Nebraska Banking and Finance or by calling NDBF at 402-471-2171.  Consumers can also verify that a company is licensed to do business in their state, and view past enforcement actions, by visiting NMLS Consumer Access.

Click HERE to read the enforcement action which includes the list of participating states.

 

 

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Consumer Advisory

Publication Date: Oct 18, 2023

Fort Calhoun Man Ordered to Stop Conducting Misleading and Unlicensed Mortgage Activity

 

October 17, 2023 (LINCOLN, NEB.) – The Nebraska Department of Banking and Finance (NDBF) issued a Cease and Desist Order against a Fort Calhoun, Nebraska man, Jeff Rothlisberger (“Rothlisberger”), in connection with residential mortgage loan activities being conducted without a license.

 

According to the Order, Rothlisberger solicited Nebraska residents to enter into reverse mortgages and other types of residential mortgage loan products without obtaining and maintaining a Nebraska Mortgage Loan Originator License. Further, the Order states that Rothlisberger engaged in activities that were false, misleading, and conducted in bad faith.

 

The Order prohibits Rothlisberger from conducting any and all unlicensed mortgage loan origination activities, which includes offering residential mortgage loans and soliciting Nebraska residents to apply for a residential mortgage loan.

 

Individuals who are offered such loans, or solicited to apply for such loans, by Rothlisberger are asked to contact the Department.

 

More information about the laws governing financial institutions in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about the legitimacy of a residential mortgage loan product or the validity or status of an individual or company’s license to conduct mortgage business in Nebraska, call NDBF at (402) 471-2171 in Nebraska, or at (877) 471-3445 if you are out of state.

 

NASAA President Claire McHenry

Publication Date: Sep 14, 2023

NDBF Deputy Director Claire McHenry announced as NASAA President

September 12, 2023 (Lincoln, NE)

Claire McHenry, Deputy Director of the Nebraska Department of Banking and Finance (NDBF), and head of the Department’s Bureau of Securities, begins her one-year tenure today as President of the North American Securities Administrators Association (NASAA). McHenry gave her inaugural address during the annual NASAA conference, held this year in San Diego, California.

McHenry has over fifteen years of state securities regulation experience. Prior to joining NDBF in May 2016, she was an examiner with the Securities Bureau of the DC Department of Insurance, Securities and Banking where she led examinations of complex investment advisers and broker-dealers, investigated unlicensed activities and unregistered securities offerings, and developed enforcement cases. McHenry is a member of the NASAA Broker-Dealer Section and is a NASAA Spring Conference Chair. McHenry has been a speaker at NASAA training conferences presenting on audit findings and effective private fund examinations. She earned her Bachelor of Science and Business Administration from Washington University in St. Louis and her Juris Doctorate from American University – Washington College of Law.

“Nebraska has greatly benefited from having McHenry’s leadership as the Deputy Director of the Securities Bureau,” said Kelly Lammers, NDBF Director. “She has a calm passion in the promotion of the securities industry, recognition of consumer protection, and is a proven leader in policy, moving forward the Nebraska Protection of Vulnerable Adults from Financial Exploitation Act, with a commitment to keeping the Securities Rules current. The Department is both proud of McHenry’s accomplishments and looking forward to our continued strong working relationship with NASAA and with President McHenry leading North American securities policy as NASAA President.”

Organized in 1919, NASAA is the oldest international organization devoted to investor protection. It is a voluntary association whose membership consists of 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico.

 

NASAA President Claire McHenry

Imposter Scams

Publication Date: Sep 7, 2023

           

Are You an Informed Investor?

Will the Real Adviser or Broker Please Stand Up?

Scammers will go to any length to steal your money and personal information, including using technology and publicly available information to impersonate someone else. By taking information from a public database of brokers and investment advisers, a scammer could pretend to be a legitimate investment professional, earn your trust, and steal your identity or convince you to send them money. A little bit of research can prevent you from falling for their schemes. Take the first step in your research by reviewing the PDF below.

 08.29.23 Imposter Scams.pdf

Informed Investor Advisory

Publication Date: Aug 25, 2023

Are You an Informed Investor?

Other People's Money Investment Scams

Securities regulators have seen a rise in schemes where scammers target victims with the promise of making big returns by trading “other people’s money.” This frequently occurs online, with the scammer posting an investment opportunity on a social media platform or reaching out to unwitting recipients via a messaging application (such as WhatsApp). Investors should be cautious when approached with unsolicited investment opportunities. Learn more in the PDF below.

Informed Investor Advisory

State Recoups Overcharges

Publication Date: Aug 2, 2023

State Recoups Overcharges for Investors in Commodity Firm Bankruptcy

State Recoups Overcharges from Lear Capital

Robinhood Financial Settlement

Publication Date: Jul 6, 2023

The NDBF announced it has joined a multi-state settlement with Robinhood Financial LLC, which will pay up to $10.2 million in penalties for operational and technical failures that harmed main street investors. Thanks to states working together, local issues became national settlements and state securities regulators were able to protect investors.

Follow the link to read more on this issue.

Robinhood Financial LLC settlement

NDBF Marks World Elder Abuse Awareness Day 2023

Publication Date: Jun 14, 2023

June 14, 2023 — In recognition of World Elder Abuse Awareness Day on June 15, the Nebraska Department of Banking and Finance (NDBF) reminds financial professionals and the public throughout Nebraska to be on the lookout for signs of elder financial abuse, including potential exploitation and scams. To help protect senior investors, the NDBF recommends investors provide the name of someone they trust as a contact on their investment accounts.

A trusted contact is a person authorized by the investor to allow financial firms, in limited circumstances, to contact them when there are concerns about activity in an account. A trusted contact may be a family member, attorney, accountant or another third-party that respects the investor’s privacy and understands how to handle the responsibility.

“It is a sad truth that there are folks looking to prey on unsuspecting investors and all too often they target older individuals. One way to help detect and even prevent financial exploitation is to add a trusted contact to investment accounts. Having a trusted contact provides another layer of safety for investment accounts,” said Claire McHenry, NDBF Deputy Director of Securities. “The Department is actively working to combat cases of abuse and exploitation by providing tools and resources for investors and caregivers.”

The North American Securities Administrators Association (NASAA), of which NDBF is a member, has developed resources on what is a trusted contact, why they are important and how they help investors to protect themselves. You can find NASAA’s trusted contact videos on its YouTube page. There are also factsheets and links to other helpful information on trusted contacts on NASAA’s Investor Education page.

McHenry asks anyone with suspicions of possible senior financial exploitation to contact the Nebraska Department of Banking and Finance at 402-471-2171 or via the NDBF website, https://ndbf.nebraska.gov/ in the Complaints section.

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World Elder Abuse Awareness Day