Important Notification! - NDBF Securities Citizenship Verification Process Update

Effective December 2018, a new portal will be available for Investment Advisers and Broker-Dealers to submit information for the citizenship verification process.  Information about the new portal can be found here.

News & Publications

DDS Legislative Changes-LB194

Publication Date: Dec 7, 2018

NEBRASKA DELAYED DEPOSIT SERVICES LICENSING ACT

IMPORTANT NOTICE REGARDING LEGISLATIVE CHANGES

EFFECTIVE JANUARY 1, 2019

On April 19, 2018, Nebraska Governor Pete Ricketts approved Legislative Bill 194 ("L.B. 194") which was passed by the Nebraska Unicameral on April 18, 2018. L.B. 194 amended certain provisions of the Delayed Deposit Services Licensing Act, Neb. Rev. Stat. §§ 45-901 to 45-931 ("Act"), which will become effective on January 1, 2019. The revised Act can be found at https://nebraskalegislature.gov.

The Nebraska Department of Banking and Finance ("NDBF") will update current Interpretative Opinions and Frequently Asked Questions providing guidance on the Act on this website on or immediately after the effective date of such changes. Guidance regarding the Act in its current form continues to be available on the NDBF website at https://ndbf.nebraska.gov.

Questions regarding the Act may be directed to the NDBF at dob.consumerfinance@nebraska.gov@nebraska.gov> or by calling (402) 471-2171.

NDBF RELEASES CYBERSECURITY REPORT, BEST PRACTICES TO NEBRASKA ADVISERS

Publication Date: Dec 3, 2018

Dec. 3, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (“NDBF”) released today the results of its 2018 Cybersecurity Survey of Nebraska-Registered Investment Advisers. The report details results of a voluntary survey issued to all Nebraska advisers used to assess cybersecurity practices and risk management.  The 2018 survey is follow up to the 2016 Cybersecurity Survey to determine whether Nebraska advisers had improved their cybersecurity practices. 

“The Department wishes to thank all of the Nebraska advisers that participated in the survey,” Deputy Director Claire McHenry said.

In general, NDBF found that Nebraska advisers were taking steps to address cybersecurity threats, but that firms also could improve their practices.  The survey focused on several cybersecurity issues, including devices, Wi-Fi access, passwords and encryption, and anti-virus/anti-malware protections.  The report also identifies best practices and resources to assist firms to address cybersecurity issues. 

“Cybersecurity remains a key priority for the Department,” said Deputy Director McHenry.  “It is essential that investment advisers address cybersecurity threats to protect their clients and their firms, regardless of the size of the firm.”

2018 Cybersecurity Survey Report.pdf

 

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NEBRASKA MAN CONVICTED OF SECURITIES FRAUD

Publication Date: Nov 30, 2018

November 30, 2018 (Lincoln, Nebraska) – Bruce A. Billesbach (“Billesbach”) of Blair Nebraska has been convicted of securities fraud in two Nebraska counties. Billesbach sold investment interests to Nebraska residents to fund an options and futures trading program operated by him. Billesbach fraudulently failed to provide material information to the investors in his offer and sale of securities to them.  Billesbach was sentenced to a total of ten years of probation in Douglas County and five years of probation in Washington County.  In addition, Billesbach was ordered to pay restitution totaling $70,000. 

 

The Nebraska Department of Banking and Finance investigated the transactions and initiated criminal referrals to prosecutors in Douglas and Washington counties.

  

More information about the laws governing the securities industry in Nebraska can be found on the Department’s website at www.ndbf.nebraska.gov. If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Nebraska man convicted of Securities Fraud.pdf

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MT Call Report Submission

Publication Date: Nov 9, 2018

NEBRASKA MONEY TRANSMITTER LICENSEES

IMPORTANT NOTICE REGARDING CALL REPORTS

The Nebraska Department of Banking and Finance ("NDBF"), by Order of the Director effective November 9, 2018, has adopted "mandatory" Money Services Businesses ("MSB") Call Reports under the Nationwide Multistate Licensing System ("NMLS"). A copy of the Order is attached to this Notice.

Such reporting will commence with the Q4 2018 reporting period, and the initial report is due 45 days after such fourth quarter end (February 14, 2019). Previously, filing MSB Call Reports electronically through NMLS was optional in Nebraska. A "Location" report, which will be available on the NDBF website, will continue to be required to be submitted directly to the NDBF at renewal. A request for an exemption from mandatory reporting through the NMLS may be submitted to the Director.

MSB Call Reports were developed with the goal of enhancing and standardizing the information available to state regulators concerning the activities of MSB licensees, including money transmitters. Electronic submission of MSB Call Reports through the NMLS enables licensees to efficiently, effectively, and securely comply with the reporting requirements of multiple states. Licensees will be able to submit quarterly and annual information directly in NMLS. Twenty-four state agencies currently have adopted mandatory NMLS MSB Call Reports in NMLS. Training and additional materials are available in the NMLS Resource Center

Questions regarding this Notice or the attached Order should be directed to NDBF at dob.consumerfinance@nebraska.gov@nebraska.gov>

Mandatory Money Transmitter Call Reports Order

SECURITIES LICENSE RENEWAL DEADLINE

Publication Date: Nov 5, 2018

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2018 RENEWAL DEADLINE

November 2, 2018 (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, 2018.  Firms will need to assemble required documentation and review filings to make sure information is accurate and up-to-date.  Failure to submit filings or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2019.

State-registered investment adviser and investment adviser representative deadlines:

  • By December 21, 2018 – Submit Nebraska specific forms and documentation to NDBF

  • Before December 27, 2018 – Submit renewal payments through CRD/IARD

  • Before December 27, 2018 – Submit required electronic form filings through CRD/IARD

    FINRA broker-dealer and agent deadlines:

  • Before December 27, 2018 – Submit renewal payments through CRD/IARD

  • Before December 27, 2018 – Submit required electronic form filings through CRD/IARD

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF by December 21, 2018.

2019 IA Renewal Notice.pdf

2019 Non FINRA Renewal Notice and Checklist.pdf

CONSUMER ADVISORY

Publication Date: Oct 22, 2018

NDBF ISSUES ADVISORY ON MARIJUANA-RELATED INVESTMENTS

October 22, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) is cautioning investors about schemes and risks associated with marijuana-related investments.

Investments in marijuana business ventures are becoming more prevalent and are receiving increased media coverage. Fraudsters may attempt to use this attention to convince investors to hand over money for risky or outright fraudulent marijuana ventures.

 

The advisory provides information about common marijuana-related investment schemes and the unique risks associated with marijuana-related investments, including reverse merger and pump-and-dump schemes, and jurisdictional legality.

 

The full advisory is available on the agency’s website here.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Marijuana.pdf

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CONSUMER ADVISORY

Publication Date: Sep 18, 2018

WATCH FOR SCAMS IN FLORENCE’S WAKE

 

September 18, 2018 (LINCOLN, NEB.) — In the wake of widespread damage caused by Hurricane Florence, the Nebraska Department of Banking and Finance (NDBF) cautioned investors to watch out for opportunistic investment or charitable scams.

 

“Natural disasters bring out the best and worst in people. While news stemming from Hurricane Florence has rightfully focused on the tireless efforts of first responders and neighbors helping neighbors, we know from experience that financial predators are lurking like snakes in the water to seek profit from the misfortune of others,” said Deputy Director Claire McHenry “Unsolicited investment offers seeking to capitalize on the aftermath of Hurricane Florence should be approached with extreme caution.”

 

McHenry reminded investors to watch for red flags of hurricane-related scams, including unsolicited email, social media messages, crowdfunding pitches or telephone calls promoting investment pools or bonds to help storm victims, water-removal or purification technologies, electricity-generating devices and distressed real estate remediation programs. She said scam artists may linger long after the storm has passed to prey on victims who anticipate receiving large lump-sum insurance settlements for damaged property and other losses.

 

The agency also cautioned about fraudulent charitable solicitations that prey on the goodness of people seeking to help those in need.

 

“There will be fraudulent solicitations for charities in Florence’s wake,” McHenry said. “Donors are reminded to do their research. As with any charitable contribution, those who want to contribute to relief efforts should send contributions to charitable organizations that are registered properly with state authorities and with an established track record of getting donations to victims.”

 

NDBF offered three quick tips to help investors avoid disaster-related scams:

 

  • Delete unsolicited emails or social media messages and hang up on aggressive cold callers promoting hurricane-related investments, especially those from small companies touting unproven or new technologies or products.

     

  • Use common sense. Claims of guaranteed returns or low/no investment risk are classic red flags. Every investment involves some degree of risk.

  • Do your homework. Contact your state or provincial securities regulator to check that both the seller and investment are licensed and registered. If not, they may be operating illegally. Contact information is available on NASAA’s website.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Hurricane Florence.pdf

 

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CONSUMER ADVISORY

Publication Date: Sep 11, 2018

PROTECT YOURSELF FROM INVESTMENT FRAUD

Sept. 11, 2018 (LINCOLN, NEB.) — If you are looking at an investment opportunity, the Nebraska Department of Banking and Finance (NDBF) urges you consider this first: Americans lose billions of dollars to fraud each year. A little extra effort can help you protect your money. While the details of investment scams constantly change, common warning signs, or red flags, are often present. Watch out for:

  • Guaranteed high returns – a guarantee is only as good as the person offering it, and their credit rating.
  • Low risk and high returns – if it is a high return investment, you are putting your money at risk.
  • Offshore investment opportunities – if you send your money offshore, you lose the protection offered by state securities laws.
  • Tax loopholes – you will still have to pay taxes, even after you lose your money.

 

 If you are offered an investment opportunity, consider these questions:

 

  • Are you dealing with a licensed financial adviser or broker? Anyone selling securities or offering investment must be registered with NDBF or operating under an exemption. Call NDBF or go to brokercheck.finra.org to check their registration and background.

  • Do you understand how the investment works? Scam artists rely on your lack of knowledge to make money. Seek independent advice and verify what you have been told. Get terms of the deal in writing and keep copies.

  • Have you had enough time to make a decision? Take your time. Do not give in to high-pressure sales tactics.

  • Do you understand how the salesperson makes money? Ask questions about what commissions the sales person will receive and whether they have any of their own money invested in the venture.

     

If you have answered no to any of these questions, investigate further.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Protect yourself from investment fraud.pdf

 

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CONSUMER ADVISORY

Publication Date: Aug 16, 2018

STATE RESIDENTS URGED TO BE ON GUARD AGAINST AFFINITY FRAUD

STATE REGULATOR WARNS INVESTORS NOT TO LET GUARD DOWN

 

August 16, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) issued a warning today for Nebraska residents to be on the lookout for affinity fraud.  Affinity fraud occurs when an investment promoter plays upon the fact that they share something in common with a potential investor – such as attending the same place of worship, being a member of the same race or ethnic group, or working in the same profession.  Investors are more likely to trust this type of salesperson. But after lowering their guard and giving their money to a promoter, they can end up losing their entire investment.

 

NDBF urges investors to not be taken in by testimonials from other group members who express enthusiasm for an investment’s success. “Many investors fall prey to promoters who may seem to share your values and life experiences,” said Deputy Director Claire McHenry. “But no matter who is promoting an investment opportunity, you should protect yourself by maintaining your skepticism and investigating before investing your money.” 

 

“While early investors may receive returns on their investments, scam artists frequently use money from later investors to pay high returns to early investors.  Those who invest at the later stages of the scam often lose all the money they thought they were investing,” McHenry said.

 

McHenry encourages investors to be leery about promises of “guaranteed” investments since all investments involve risk.  In addition, she said investors should be very skeptical when high rates of return are promised, especially when few investments are earning high returns. 

 

“Affinity fraud are some of the saddest cases that we see,” said McHenry, “because people not only lose their money but they’ve been betrayed by someone they trusted.”

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

20180816 - Consumer Advisory - Affinity Fraud

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NOTICE OF RULEMAKING HEARING

Publication Date: Jun 22, 2018

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on July 25, 2018, commencing at 9:30 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 repeal of Title 45, Chapters 1-5, 10, 13-14, 22, and 29.

2) The proposed repeal of Title 46, Chapters 1-6, 9 and 12.

3) The proposed repeal of Title 47, Chapters 1-11.

4) The proposed revisions to Title 48, Chapters 6, 13, 16, 38, and 39.

5) The proposed repeal of Title 48, Chapter 35.

45 NAC—Banking Rules: Chapters 1-5, 10, 13-14, 22, and 29, are proposed for repeal as such rules are obsolete.

46 NAC—Industrial, Savings & Loan, Credit Union Rules: Chapters 1-6, 9, and 12 are proposed for repeal as such rules are obsolete.

47 NAC—Electronic Transmission Terminal Rules: Chapters 1-11 are proposed for repeal as such rules are obsolete.

48 NAC—Securities Rules: The following amendments are proposed for Title 48:

48 NAC 6—Agents of Broker-Dealers: The purpose of the proposed revision of 48 NAC 6 is to update provisions governing broker-dealer agents. The proposal adjusts examination requirements for agents to correspond to new examination requirements established by the Financial Industry Regulatory Authority.

48 NAC 13—Information Requirements for the Section 8-1110(5) Exchange Exemption: The purpose of the proposed revision of 48 NAC 13 is to eliminate an obsolete notice filing requirement and to designate approved exchanges for the exchange exemption.

48 NAC 16—Information Requirements for the Section 8-1111(15) Agricultural Cooperative Exemption: The purpose of the proposed revision of 48 NAC 16 is to clarify that the filing requirements apply to all cooperatives and limited cooperative associations.

48 NAC 35—Repealed. This chapter is proposed for a complete repeal as such rule is obsolete.

48 NAC 38—Information Requirements for the Section 8-1111(23) Notice: The purpose of the proposed revision of 48 NAC 38 is to increase the amount that can be raised from $250,000 to $750,000, and to authorize issuers to rely upon the federal "Intrastate Offering Exemption", 17 CFR 230.147A.

48 NAC 39—Conditions and Information Requirements for the Section 8-1111(24) Crowdfunding Exemption: The purpose of the proposed revision of 48 NAC 39 is to eliminate certain restrictions on advertising. Issuers will be allowed to advertise across state lines as long as the advertising states that the offering is limited to Nebraska residents.

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, 1201 N Street, Suite 120, Lincoln, Nebraska 68508. 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 19th day of June, 2018.

Mark Quandahl, Director

Nebraska Department of Banking and Finance

 

The drafts can also be found HERE(https://ndbf.nebraska.gov/about/legal/ndbf-2018-rules-updates-hearing-20180725) on the Department's Website.

WORLD ELDER ABUSE AWARENESS DAY

Publication Date: Jun 15, 2018

NDBF RECOGNIZES WORLD ELDER ABUSE AWARENESS DAY

WARNS OF THE DANGER SIGNS FOR SUSPECTED ABUSE BY GUARDIANS

June 15, 2018 (LINCOLN, NEB.) In recognition of World Elder Abuse Awareness Day (WEAAD) today, the Nebraska Department of Banking and Finance (NDBF) reminds financial professionals and the public throughout Nebraska to be on the lookout for the red flags of suspected financial abuse, including potential abuse by guardians assigned to oversee the financial matters of seniors no longer able to do so for themselves.

"A trusted guardian can be a wonderful resource. But sometimes guardians may take advantage of the trust placed in them to look after the people or assets in their care," NDBF Deputy Director Claire McHenry said.

A guardian is a person or entity appointed by a court to exercise some or all authority over a person and/or estate. A guardian has power to make decisions related to the health and safety of the incapacitated person. Financial abuse by guardians occurs when the guardian improperly uses the protected individual’s financial assets.

"Fraudsters often target seniors for financial exploitation because they may be isolated from family, caregivers, and other support networks. That’s why it is important to know the red flags that could signal a senior’s savings may be in danger," Deputy Director McHenry said.

The North American Securities Administrators Association (NASAA), of which NDBF is a member, recently developed a resource to help call attention to the red flags of suspected guardian financial abuse. The "Guarding the Guardians" publication also provides examples of exploitation and information on how to report suspected abuse.

Suspected signs of guardian financial abuse include:

 Using guardianship authority to transfer property for the guardian’s benefit.

 Receiving personal payments from a protected individual without court permission.

Authorizing frequent cash withdrawals from the protected individual’s accounts without explanation.

Using or borrowing property for personal benefit without court authorization.

 Making unexplained decisions that are not in the protected individual’s best interest.

Deputy Director McHenry asks anyone with suspicions of possible exploitation by guardians to contact the agency at 402-471-2171.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - WEAAD

 

CONSUMER ADVISORY

Publication Date: Jun 8, 2018

NDBF ISSUES ADVISORY ON CRYPTOCURRENCIES AND ICOS

June 8, 2018 (LINCOLN, NEB.)  The Nebraska Department of Banking and Finance (NDBF) reminds investors to be cautious when investing in cryptocurrencies and initial coin offerings (ICOs). Recent enforcement actions by federal and other state regulators against ICOs and cryptocurrency-related investment products show that fraudulent activity involving these products poses a significant threat to Main Street investors.

"Fraudulent activity harms investors and legitimate businesses interested in taking advantage of the new technology. We urge investors to approach initial coin offerings or cryptocurrency-related investment product with extreme caution," NDBF Deputy Director Claire McHenry said.

To help investors understand the risks associated with investing in ICOs and cryptocurrency-related investment products, NDBF issued two new Informed Investor Advisories, "What to Know About ICOs" and "Be Cautious of the Crypto Investment Craze."

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

 

Consumer Advisory - Cryptocurencies and ICOs
Informed Investor Advisory Cryptocurrency
Informed Investor Advisory ICO

Cease and Desist Order Issued

Publication Date: Jun 8, 2018

NDBF WARNS ABOUT FAKE FINANCIAL REGULATOR

JUNE 8, 2018 (LINCOLN, NEB.) - The Nebraska Department of Banking and Finance is warning Nebraska residents about an entity claiming to be a financial regulator.  The Federal Securities Trading Regulatory Board (“FSTRB”), with a website at www.fstrb.org claims to be operating from 201 North 8th Street, Unit 210, Lincoln, Nebraska.  According to its website, the FSTRB is responsible to “oversee, administer, and enforce the federal securities laws related to Corporate Mergers & Acquisitions.”  The FSTRB also claims to license entities and individuals engaged in the financial industry, including broker-dealers, investment advisers, “deposit taking” institutions, and money transmitters.

 

The Department was contacted by a resident of Finland who reported that a group of investors were attempting to purchase the stock of a company located in Pennsylvania.  During the transaction, the FSTRB became involved in the facilitation of the sale of the stock.  As instructed by a FSTRB employee, the investors wired money to an account in the Philippines. 

 

The Department has confirmed that there is no entity calling itself the FSTRB located at the address listed on its website.  Furthermore, the FSTRB is not a legitimate financial regulator.  It appears that this entity and website were created to give credibility to securities transactions and to induce investors to wire funds to “purchase” the securities. 

 

On June 8, 2018, the Department issued a Cease and Desist Order against FSTRB ordering it to cease acting as a broker-dealer and to cease making false and misleading representations to investors, including representing that they are a regulatory agency. 

 

To help investors determine if they are dealing with a bogus regulator, the North American Securities Administrators Association, an organization consisting of state and provincial securities regulators, including the Department, identified the following warning signs:

  1. You cannot find references to them on any other regulatory websites. If you cannot find information about the “regulator” on the site of the International Organization of Securities Commissions, www.iosco.org, they probably are not a legitimate regulator.

  2. They endorse or approve any investment opportunity, stock, or company. Legitimate regulators are not in the business of promoting any deal, only enforcing securities laws and ensuring fair dealing.

  3. They say that paying a fee to “release restricted shares” is anything other than an attempt to steal your savings. This is a common ploy, and a recent twist on age-old advance fee schemes.

  4. Little or no information about the “regulator” appears in Internet search engines. Any legitimate regulator should generate hundreds of entries in any Internet search engine.

  5. If you talk to other regulators, and they say they have “never heard of them,” you are most likely dealing with a fake regulator.

 

The Department strongly cautions consumers on conducting business over the Internet with financial companies with whom they are unfamiliar.  In many cases, the customer is told to wire money or send a money order, often to a location outside the United States. Consumers never receive the promised services and cannot recover their money.  Furthermore, these consumers may be asked to provide personal information such as social security numbers and bank account numbers to the Internet company, which makes them prime targets for identity theft. 

Individuals who conducted business with the FSTRB are asked to contact the Department.

A copy of the Cease and Desist Order is also available on the Department’s website at www.ndbf.nebraska.gov

More information about the laws governing the financial industries in Nebraska can be found on the Department’s website.  If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

FSTRB Cease and Desist Press Release

FSTRB Cease and Desist Order

Consumer Advisory

Publication Date: Apr 24, 2018

NDBF ISSUES ADVISORY ON FINANCIAL UNICORNS

April 24, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) is cautioning investors about pre-IPO investments in large privately held companies with supposed valuations of more than $1 billion, commonly referred to as "unicorns." Investing in unicorns is speculative and generally unavailable to retail investors.

 

NDBF is sharing an Informed Investor Advisory about financial unicorns. The advisory provides information and resources to help investors better understand "unicorn" companies. The advisory discusses the risks of investing in pre-IPO companies, including fraud, as well as disclosure, liquidity and valuation considerations.

 

The full advisory is available on the agency’s website here.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Unicorns

Informed Investor Advisory - Unicorns

Federal Regulatory Alert

Publication Date: Mar 23, 2018

The Federal Trade Commission issued a WESTERN UNION refund alert on March 22, 2018.  FRAUDSTERS are reportedly using official looking emails to collect information about your Western Union settlement.  FTC warns everyone, do not apply for a Western Union settlement refund on line, you must use the forms made available by the FTC.

If you lost money to scammers who had you pay using Western Union between January 1, 2004 and January 19, 2017, you can ask for your money back.

To learn more, follow the link to the Federal Trade Commission.

https://www.consumer.ftc.gov/blog/2018/03/western-union-refunds-scam-alert?utm_source=govdelivery