NDBF and the Office of the Nebraska Attorney General Join with CFTC to Charge Precious Metals Dealers in $185 Million Scheme Targeting Elderly Investors

Sept. 25, 2020 (LINCOLN, NE) – The Nebraska Department of Banking and Finance (NDBF) and the Office of the Nebraska Attorney General announced today that they are participating in a consolidated nationwide enforcement action to halt a fraudulent precious metals scheme that has solicited $185 million from at least 1,600 seniors and other investors, including $600,000 from investors in Nebraska.

NDBF and the Office of the Nebraska Attorney General announced today that they joined the Commodity Futures Trading Commission (CFTC) and 29 other states in filing a complaint in the U.S. District Court for the Northern District of Texas alleging Metals.com and Barrick Capital Inc. defendants solicited $185 million from seniors and other vulnerable investors nationwide by touting precious metals at grossly inflated prices that were not disclosed.

“The defendants had a reckless disregard for the truth by failing to disclose that virtually every investor lost the majority of their funds in the investments the firm was peddling,” NDBF Deputy Director Claire McHenry said. “They capitalized on investor fear of market instability and economic uncertainty.  Investors suffered substantial losses from retirement savings by relying on the false representations made by the defendants and their sales representatives.”

“This historic joint effort between the CFTC and 30 state regulators is an important step toward rooting out fraud across the country,” said CFTC Chairman Heath P. Tarbert. “This case highlights just how geographically broad commodities fraud can be in our rapidly-evolving financial markets and how important it is for regulators at all levels of government to work together to pursue bad actors and protect market participants.”

The complaint names Los Angeles, California-based companies TMTE Inc., also known as Metals.com, Chase Metals Inc., Chase Metals LLC, and Barrick Capital Inc., along with Simon Batashvili, Lucas Asher, and Tower Equity LLC. The defendants are accused of using cold calling, television, radio, and social media advertisements designed to “instill fear in elderly and retirement-aged investors and build trust with investors based on representations of political or religious affinity.” Investors were advised to liquidate their holdings at registered investment firms to fund investments in precious metals bullion through self-directed individual retirement accounts and bullion coins, the complaint said.

The defendants also are accused of failing to disclose, among other things, the markup Metals.com and Barrick charged investors for their precious metals bullion products and that investors could lose the majority of their funds immediately upon completing a transaction. The defendants charged investors prices for gold or silver bullion averaging from 100% to more than 300% the melt value or spot price of that gold or silver bullion. In many cases, the market value of the precious metals sold to investors was substantially lower than the value of the securities and other retirement savings investors had liquidated to fund their purchase.

The complaint requests the Court order the defendants to cease sales activity, return money to investors, and stop defrauding investors and violating federal and state laws going forward. The complaint also requests that a receiver be appointed to take over the companies to marshal funds for the benefit of investors across the country.

Metals.com and its agents have attempted to evade previous regulatory actions from 12 states by, among other tactics, changing its business name. Today’s coordinated state and federal action to put a stop to the company’s efforts to continue to prey on elderly investors is the result of a multi-state collaboration by members of the North American Securities Administrators Association (NASAA), of which NDBF is a member, and the Commodity Futures Trading Commission’s Office of Cooperative Enforcement.

NDBF encourages investors to come forward if they suspect they have been targeted by similar precious metals investment schemes. Please contact NDBF at 402-471-3445.

Consumer Advisory - Metals.com

Metals.com Complaint

Metals.com Ex Parte Order

Metals.com Notice of Service and Lifting of the Seal

Nebraska Department of Banking and Finance Now Accepting Additional Online Corporation Finance Filings

June 15, 2020 (LINCOLN, NE) –The Nebraska Department of Banking and Finance (NDBF) today announced that the North American Securities Administrators Association’s (NASAA) Electronic Filing Depository (EFD) System has been expanded to accommodate the electronic filing of a greater range of corporation finance materials with the agency.

“We are pleased to continue to modernize and streamline the filing process and offer additional efficiencies for issuers,” said NDBF Deputy Director Claire McHenry.

The new functionality, referred to as “Universal Filing Type,” allows filers to submit electronic filings to the NDBF for a variety of corporation finance offerings not previously available through EFD and to pay associated fees. These offerings include, among others, registrations by coordination and qualification, Regulation A (Tier 1 and Tier 2), crowdfunding (federal and state), and franchise filings. The expanded functionality also facilitates the filing of materials such as issuer-agent registrations.

Developed by NASAA, of which the NDBF is a member, the EFD System was launched in 2014 and was initially used to facilitate the filing of Form D for Regulation D, Rule 506 offerings with state securities regulators and to pay related fees. The system was expanded last year to accommodate Form NF-UIT notice filings for unit investment trusts (UITs) with the NDBF. Future system enhancements are being considered to accommodate the electronic filing of Form NF-Mutual Funds.

The EFD website also enables the public to search and view, free of charge, Reg. D Rule 506 and Form NF-UIT filings made through EFD. EFD is available at: https://www.efdnasaa.org.

“If you have questions about a particular offering, you should contact the NDBF,” Deputy Director McHenry said.

Issuers or investors with questions about EFD can contact the NDBF at DOB.SecuritiesFiling@nebraska.gov or 402-471-3445.

Expanded EFD Functionality

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COVID-19-Related Investment Schemes Anticipated

April 21, 2020 (LINCOLN, NEB.)  — Amid the ongoing COVID-19 pandemic, the Nebraska Department of Banking and Finance (NDBF) is alerting investors to be on guard against an anticipated surge of fraudulent investment schemes.

“In these extraordinary times, the health and welfare of all must be our foremost concern, and that includes our financial health. Our focus remains on the protection of Nebraska investors,” said NDBF Deputy Director Claire McHenry.

NDBF warns investors that the fraudulent schemes launched amid COVID-19 outbreak will not be elegant. “Scammers will create schemes that require little or no advance planning and little sophistication,” Deputy Director McHenry said. “Most will simply be old scams dressed in new clothes.”

The North American Securities Administrators Association, of which NDBF is a member, anticipates fraudulent investment schemes will rise as a result of the ongoing pandemic. “Scammers will be targeting investors, taking advantage of recent developments in the economy, and preying on concerns about the regulated securities market,” said Deputy Director McHenry. “Investors must remain cautious to protect themselves.”

In particular, NDBF warns investors to be on the lookout for investments specifically tied to the threat of COVID-19. Scammers can be expected to develop schemes that falsely claim to raise capital for companies manufacturing surgical masks and gowns, producing ventilators and other medical equipment, distributing small-molecule drugs and other preventative pharmaceuticals, or manufacturing vaccines and miracle cures. The schemes often appear legitimate because they draw upon current news, medical reports, and social and political developments. 

Scammers also will seek to take advantage of concerns with the volatility in the securities markets to promote “safe” investments with “guaranteed returns” including investments tied to gold, silver and other commodities; oil and gas; and real estate. Investors also can expect to see “get rich quick” schemes that promise quickly earned guaranteed returns that can be used to pay for rent, utilities or other expenses. These schemes also target retirees and senior citizens, falsely claiming they can quickly and safely recoup any losses to their retirement portfolios.

Investors must remain vigilant and protect themselves from new schemes tied to COVID-19 and recent economic developments. NDBF warns investors to stay clear of anything sounding too good to be true, such as guarantees of high returns with no risk, and to verify the licenses and registrations of investment professionals. 

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 - COVID-19 Investment Threats

Consumer Advisory - COVID-19 Related Schemes to Watch For

Consumer Advisory - How to Protect Yourself from COVID-19 Scams

Omaha Man Ordered to Stop Misleading Investors

April 2, 2020 (LINCOLN, NEB.)  — The Nebraska Department of Banking and Finance (NDBF) issued a Cease and Desist Order against an Omaha man, Amogh Karney (“Karney”), in connection to his 2019 offer and sale of investment interests in an entity known as ARK Capital, LLC (“ARK”). The Order includes Karney’s affiliates, control persons, officers, directors, agents, employees and successors.

According to the Order, Karney offered and sold securities in ARK.  Karney provided a potential investor with information that falsely stated that an Omaha business owner was an investor in ARK.

The Order prohibits Karney from making any untrue statements of material facts in connection with the offer and sale of securities.  The Order also prohibits Karney from omitting material facts in connection with the offer and sale of securities.

Individuals who purchased securities from Karney are asked to contact the Department.

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 - Amogh Karney

March 25, 2020

Statement from Nebraska Department of Banking and Finance regarding Examinations of Financial Institutions during the COVID-19 Emergency

For all Nebraska State chartered, licensed, and supervised depository and non-depository financial institutions:

• The Nebraska Department of Banking and Finance (Department) will temporarily cease all regular examination activity effective March 25, 2020, except where the examination work is critical to safety and soundness, consumer protection, or is required to address an urgent or immediate need.

• The Department will reassess its approach to examinations on April 24, 2020 or when the emergency has concluded, whichever is sooner.

• The Department’s action will allow financial institutions to prioritize working with their customers during the COVID-19 emergency.

• The institution may elect to move forward with a Department examination if it has previously provided a majority of the requested information; however, the determination to proceed will be left up to the institution.

• The Department’s action to temporarily cease examinations follows federal regulators such as the FDIC and Federal Reserve Bank.

• Additional time will be granted to resolve non-critical existing supervisory findings.

• Please contact Greg Freese at greg.freese@nebraska.gov with examination questions regarding banks, credit unions, or trust companies or Scott Peter at scott.peter@nebraska.gov for examination questions of mortgage companies, delayed deposit services, installment loan companies, and money transmitters.  Both can also be reached at the Department’s main phone number: 402-471-2171.

   

DDS LICENSE RENEWAL DEADLINE

News Release Date: March 04, 2020

NDBF REMINDS DDS LICENSEES OF May 1, 2020 RENEWAL DEADLINE

The Nebraska Department of Banking and Finance ("NDBF") reminds DDS licensees holding an active Delayed Deposit Services license in Nebraska that it will expire on May 1, 2020.

Nebraska Statutes require that each Delayed Deposit Services Business renew its license annually. Be advised that Section 45-926 of the Delayed Deposit Services Licensing Act prohibits the operation of a Delayed Deposit Services business without a license. Your current license will expire on May 1, 2020.

The 2020 Delayed Deposit Services Renewal Licensing Forms and Instructions are available on the Department web site at https://ndbf.nebraska.gov/industries/delayed-deposit-services-payday-len.... Licensees must use the licensing forms provided on the Department’s website. Forms from previous years will not be accepted.

To renew a DDS Business License, a licensee must submit the following:

1) Delayed Deposit Services Business License Renewal Application and Fee- MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE AND BE POSTMARKED NO LATER THAN APRIL 10, 2020.

 Companies holding licenses in more than one county, all principal places of business and branches may be submitted on one application.

 When you submit the license renewal application, you must include the appropriate renewal fees. The renewal fee is $500 for each principal place of business and $500 for each branch office.

2) Delayed Deposit Services Licensee Annual Report and Supplemental Annual Report for 2019- MUST BE ELECTRONICALLY SUBMITTED TO DOB.CONSUMERFINANCE@NEBRASKA.GOV NO LATER THAN APRIL 10, 2020.

 Annual Report and Supplemental Annual Report for 2019 must be submitted for each license #.

3) Delayed Deposit Services Licensee Annual Report- Affidavit

 Upon approval of the Annual Report and Supplemental Annual Report, the Department will email the Licensee’s Primary Contact the required Affidavit to be signed and notarized. The individual signing this form is

affirming that to the best of his or her knowledge the information contained in the Annual Report is true.

 The completed Affidavit MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE.

ONCE APPROVED, RENEWAL LICENSES AND CERTIFICATES OF BRANCH APPROVAL WILL BE MAILED TO THE PRINCIPAL PLACE OF BUSINESS.

You must still file an Annual Report and Supplemental Annual Report, even if you are not renewing your DDS license.

If you have questions, please email dob.consumerfinance@nebraska.gov and include your company name and license number in the subject line or call 402-471-2171.

Nebraska Department of Banking and Finance

January 24, 2020

Responses to Questions regarding RFP 2020-001

The Nebraska Department of Banking and Finance has issued a Request for Proposal for an Administrator of the Public Funds Security Act Single Bank Pooled Method described in Nebraska Revised Statutes Sections 77-2386 et seq.

The last day to submit questions regarding the RFP was 1/17/2020.  Below are the Department’s responses to all questions submitted by the deadline.

RFP can be found at this link:  https://ndbf.nebraska.gov/sites/ndbf.nebraska.gov/files/news-release/Banking%20and%20Finance%20RFP2020-001.pdf

“RFP Number 2020-001-Public Funds Security Act Single Bank Pooled Method Questions”

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2019 RENEWAL DEADLINE

November 1, 2019 (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, 2019. 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, 2020.

State-registered investment adviser and investment adviser representative deadlines:

• By December 20, 2018 – Submit Nebraska specific forms and documentation to NDBF

• Before December 26, 2018 – Submit renewal payments through CRD/IARD

• Before December 26, 2018 – Submit required electronic form filings through CRD/IARD

FINRA broker-dealer and agent deadlines:

• Before December 26, 2018 – Submit renewal payments through CRD/IARD

• Before December 26, 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 20, 2019

###

2020 Non FINRA Renewal Notice and Checklist.pdf

2020 IA Renewal Notice.pdf

Nebraska Department of Banking and Finance

September 27, 2019

Notice of Request for Information

The Nebraska Department of Banking and Finance has issued a Request for Information for gathering information from qualified parties interested in serving as administrator of a Single Bank Pooled Collateral program as set forth in LB 622 of the 2019 Nebraska Legislature.

The due date and time for responses to the RFI is 2:00 p.m. Central Daylight Time on November 1, 2019.

All information pertinent to this request can be found on the Department’s webpage at https://ndbf.nebraska.gov/

Questions regarding the RFI should be submitted to Nebraska Department of Banking and Finance Director Mark Quandahl at mark.quandahl@nebraska.gov

RFI Pooled Collateral 2019 FINAL September 19 2019

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on August 19, 2019, commencing at 1:30 p.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 revision of 48 NAC Chapters 2, 4, 5, 7, 10, 12, 18, 20, and 21.

2) The proposed outright repeal of 48 NAC Chapters 17, 22-34, and 36.

48 NAC 2—Definitions. The purpose of the proposed amendments is to repeal definitions that are no longer necessary due to the proposed amendments to 48 NAC 21, and the proposed outright repeal of 48 NAC 22-34, and 36. The proposal also clarifies existing definitions and adopts a definition of the term "Department."

48 NAC 4—Broker-Dealers. The purpose of the proposed amendments is to eliminate requirements for manual signatures and the payment of filing fees by physical checks or money orders.

48 NAC 5—Issuer-Dealers. The purpose of the proposed amendments is to eliminate requirements for manual signatures and the payment of filing fees by physical checks or money orders.

48 NAC 7—Investment Advisers. The purpose of the proposed amendments is to adopt cybersecurity requirements for investment advisers. In addition, the proposed amendments eliminate requirements for manual signatures and the payment of filing fees by physical checks or money orders.

48 NAC 10—Recordkeeping by Investment Advisers. The purpose of the proposed amendments is to amend recordkeeping requirements for investment advisers as related to cybersecurity.

48 NAC 12—Fraudulent, Dishonest and Unethical Business Practices. The purpose of the proposed amendments is to provide that an investment adviser’s use of a client’s password to access the client’s account is a dishonest and unethical business practice. The rule further provides that an investment adviser’s failure to establish, maintain and enforce a required policy is a dishonest and unethical business practice.

48 NAC 17—Uniform Limited Offering Exemption. This chapter is proposed for outright repeal as such rule is no longer necessary as a result of the United States Securities and Exchange Commission’s repeal of Regulation D, Rule 505, 17 CFR 230.505.

48 NAC 18—Information Requirements for the Section 8-1111(20) Nebraska Intrastate Issuer Exemption. The purpose of the proposed amendments is to eliminate

requirements for manual signatures and the payment of filing fees by physical checks or money order.

48 NAC 20—Federal Covered Securities. The purpose of the proposed amendments is to eliminate the requirement that issuers offering securities in Nebraska pursuant to the Securities & Exchange Commission ("SEC") Regulation A, Tier 2 use a broker-dealer, provided no commissions or other remuneration are paid as provided by LB 259 (2019). The proposal also eliminates requirements that filing fees be paid by physical check or money order.

48 NAC 21—Underwriting Expenses, Underwriter’s Warrants, Selling Expenses, and Selling Securities Holders. The purpose of the proposed amendment is to replace this rule with a rule captioned "North American Securities Administrator Association Statements of Policy." The rule incorporates by reference Statements of Policy adopted by the North American Securities Administrators Association ("NASAA") and requires issuers registering offerings to comply with the requirements of the Statements of Policy. The following NASAA Statements of Policy are proposed for adoption:

1) "Statement of Policy Regarding Corporate Securities Definitions" as amended on May 6, 2018.

2) "Statement of Policy Regarding Underwriting and Selling Expenses, Underwriter’s Warrants and Selling Expenses" as amended on May 6, 2018.

3) "Statement of Policy Regarding Promotional Shares" as amended on March 31, 2008.

4) "Statement of Policy Regarding Promoters’ Equity Investment" as amended on September 11, 2016.

5) "Statement of Policy Regarding Loans and Other Material Transactions" as amended on May 6, 2018.

6) "Statement of Policy Regarding the Impoundment of Proceeds" as amended on March 31, 2008.

7) "Statement of Policy Regarding Unequal Voting Rights" as amended on September 11, 2016.

8) "Statement of Policy Regarding Specificity in Use of Proceeds" as amended on September 11, 2016.

9) "Statement of Policy Regarding Unsound Financial Condition" as amended on May 6, 2018.

10) "Statement of Policy Regarding Debt Securities" as adopted on April 25, 1993.

11) "Statement of Policy Regarding Preferred Stock" as amended on September 11, 2016.

12) "Statement of Policy Regarding Options and Warrants" as amended on March 31, 2008.

13) "Statement of Policy Regarding Real Estate Investment Trusts" as amended on May 7, 2007.

14) "Statement of Policy Regarding Real Estate Programs" as amended on May 7, 2007.

15) "Registration of Oil and Gas Programs" as amended on May 6, 2012.

16) "Registration of Publicly-Offered Cattle Feeding Programs" as adopted on September 17, 1980.

17) "Registration of Commodity Pool Programs" as amended on May 6, 2012.

18) "Equipment Programs" as amended on May 6, 2012.

19) "Registration of Asset Backed Securities" as amended on May 6, 2012.

20) "Statement of Policy Regarding Church Extension Fund Securities" as amended on April 18, 2004.

21) "Mortgage Program Guidelines" as amended on May 7, 2007.

22) "Omnibus Guidelines" as amended on May 7, 2007.

23) "Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures" as adopted on May 7, 2017.

48 NAC 22—Promotional Shares. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 23—Promoter’s Equity Investment. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 24—Loans and Other Material Affiliated Transactions. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 25—Impoundment of Proceeds. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 26—Unequal Voting Rights. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 27—Specificity Regarding Use of Proceeds. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 28—Unsound Financial Condition. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 29—Debt Securities. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 30—Preferred Stock. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 31—Options and Warrants. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 32—Real Estate Investment Trusts. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 33—Limited Partnerships. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 34—Registration of Asset Backed Securities. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 36—General Obligation Financing by Religious Denominations. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

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 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 11th day of July, 2019.

Claire McHenry, Deputy Director—Securities

Nebraska Department of Banking and Finance

• Title 48 Changes
  • TITLE 48 CHAPTER 02.pdf
  • TITLE 48 CHAPTER 04.pdf
    • TITLE 48 CHAPTER 4 Appendix.pdf
  • TITLE 48 CHAPTER 05.pdf
  • TITLE 48 CHAPTER 07.pdf
    • TITLE 48 CHAPTER 7 Appendix.pdf
  • TITLE 48 CHAPTER 10.pdf
    • TITLE 48 CHAPTER 10 Appendix.pdf
  • TITLE 48 CHAPTER 12.pdf
    • TITLE 48 CHAPTER 12 Appendix.pdf
  • TITLE 48 CHAPTER 17.pdf
  • TITLE 48 CHAPTER 18.pdf
    • TITLE 48 CHAPTER 18 Appendix.pdf
  • TITLE 48 CHAPTER 20.pdf
    • TITLE 48 CHAPTER 20 Appendix.pdf
  • TITLE 48 CHAPTER 21.pdf
  • TITLE 48 CHAPTER 22.pdf
  • TITLE 48 CHAPTER 23.pdf
  • TITLE 48 CHAPTER 24.pdf
  • TITLE 48 CHAPTER 25.pdf
  • TITLE 48 CHAPTER 26.pdf
  • TITLE 48 CHAPTER 27.pdf
  • TITLE 48 CHAPTER 28.pdf
  • TITLE 48 CHAPTER 29.pdf
  • TITLE 48 CHAPTER 30.pdf
  • TITLE 48 CHAPTER 31.pdf
  • TITLE 48 CHAPTER 32.pdf
  • TITLE 48 CHAPTER 33.pdf
  • TITLE 48 CHAPTER 34.pdf
  • TITLE 48 CHAPTER 36.pdf
  • Fiscal Impact Statement

   

• NASAA Statement of Policy
  • Asset Backed Securities
  • Cattle Feeding Programs
  • Church Extension Fund Securities
  • Commodity Pool Programs
  • Corporate Securities Definitions
  • Debt Securities
  • Electronic Offering Documents and Electronic Signatures
  • Equipment Programs
  • Impoundment of Proceeds
  • Loans and Other Material Transactions
  • Mortgage Program Guidelines
  • Oil and Gas Programs
  • Omnibus Guidelines
  • Options and Warrants
  • Preferred Stock
  • Promoters Equity Investment
  • Promotional Shares
  • Real Estate Investment Trusts
  • Real Estate Programs
  • Specifity in Use of Proceeds
  • Underwriting Expenses
  • Unequal Voting Rights
  • Unsound Financial Condition

May 20, 2019 (LINCOLN, NEB.) — Investors are increasingly turning to robo-advisers to help them manage their portfolios. Easy-to-use smartphone apps and online portals make setting up an account with a robo-adviser convenient and quick, which is contributing to their increasing popularity.

The Nebraska Department of Banking and Finance (NDBF) today issued an investor awareness advisory providing information and resources to help investors better understand robo-advisers. The advisory discusses how robo-advisers work and things to consider when investing with a robo-adviser.The full advisory is available on the agency’s website here https://ndbf.nebraska.gov/about/news-publications.

Robo-advisers are relatively new to the investing landscape. Before making any financial decisions, ask questions, do your homework.

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.

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Consumer Advisory - Robo-Advisers.pdf

Informed Investor Advisory - Robo-Advisers.pdf

April 22, 2019 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) today announced that the North American Securities Administrators Association’s (NASAA) Electronic Filing Depository (EFD) System has been expanded to accommodate the electronic filing of Form NF-UIT notice filings for unit investment trusts (UITs) with the NDBF.

Developed by NASAA, the EFD System was launched in 2014 and was initially used to facilitate the filing of Form D for Regulation D, Rule 506 offerings with state securities regulators and to pay related fees.

“By continuing to embrace technology, states are providing more innovative capital formation solutions to benefit issuers and investors alike,” NDBF Deputy Director Claire McHenry said.

Nebraska is among a growing number of states participating in the online filing of Form NF-UIT and among the 48 states participating in the online EFD system for Form D.  Future system enhancements are being considered to accommodate the electronic filing of Form NF-Mutual Funds and franchise filings.

The Department’s expansion of online filing for unit investment trusts  helps grow Nebraska and further the state’s mission of creating opportunities through more effective, more efficient and consumer focused state government.

The EFD website also enables the public to search and view, free of charge, filings made through EFD with state securities regulators. EFD is available at: https://www.efdnasaa.org.

“If you have questions about a particular offering, you should contact the NDBF,” McHenry said.

Issuers or investors with questions about EFD can contact the NDBF at (402) 471-3445.

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 - Online UIT Filings.pdf

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Nebraska Energy Office 1% Energy Related Disaster loans through Nebraska Financial Institutions

Nebraska Financial Institutions should be aware of important changes to the Nebraska Energy Office’s Dollar and Energy Savings Loan Program. The NEO has adjusted its Dollar and Energy Savings Loan program to make it more attractive to Nebraska Financial Institutions and more helpful to Nebraskans affected by the recent weather disasters.

Effective immediately, the Nebraska Energy Office (NEO) is offering Dollar and Energy Savings Loan Program 1% loans to assist those impacted by floods to repair their homes, provided the home has not been condemned. 

Project applications need to be submitted to your Nebraska-based lender and the NEO office prior to installation for verification of compliance with program requirements.  However, if emergency improvements have been made, and you wish to apply for the 1% program with your lender, NEO will consider prior improvements provided installed equipment and materials meet program requirements.  NEO is also waiving the requirement that the property needs to be at least 5 years old for this offering.  

This program will end August 1, 2019.  All necessary project forms and additional information can be obtained here: 

Getting a Loan for Prequalified Projects. 

Additional questions, please contact energy@nebraska.gov

Representatives from Department of Banking and Finance and the Nebraska Energy Offices will hold a webinar to provide information and take questions from interested Nebraska Financial Institutions on the NEO’s Disaster Assistance 1% Dollar and Energy Savings Loan Program

Event Information:         Nebraska Energy Office 1% Disaster Loans

Time:                                 9:00 am CST to 10:00 am CST  April 12, 2019

https://nvcn-cio.webex.com/nvcn-cio/onstage/g.php?MTID=e116112b646a7f8667e5861c73e9ab420

March 21, 2019 (LINCOLN, NEB.)  In the aftermath of widespread damage from the recent flooding throughout Nebraska, the Nebraska Department of Banking and Finance (NDBF) cautioned investors to watch out for opportunistic investment scams.

“Nebraskans have big hearts and are looking for ways to help out communities and neighbors impacted by flooding. However, we know from experience that financial predators are out there trying to seek profit from the misfortune of others,” said NDBF Director Mark Quandahl. “Unsolicited investment offers seeking to capitalize on the aftermath of the flooding should be approached with extreme caution.”

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

NDBF offered three tips to help investors avoid disaster-related scams:
•Delete unsolicited emails or social media messages and hang up on aggressive cold callerspromoting flood-related investments, especially those from small companies touting unprovenor new technologies or products.
•Use common sense. Claims of guaranteed returns or low/no investment risk are classic redflags. Every investment involves some degree of risk.
•Do your homework. Contact NDBF to check that both the seller and investment are licensedand registered. If not, they may be operating illegally. Contact information for other statesecurities regulators is available on www.nasaa.org.

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.

NDBF Press Release - Nebraska Flooding - Scams Alert (03-21-2019)

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NDBF REMINDS DDS LICENSEES OF May 1, 2019 RENEWAL DEADLINE

The Nebraska Department of Banking and Finance ("NDBF") reminds DDS licensees holding an active Delayed Deposit Services license in Nebraska that it will expire on May 1, 2019.

Nebraska Statutes require that each Delayed Deposit Services Business renew its license annually. Be advised that Section 45-926 of the Delayed Deposit Services Licensing Act prohibits the operation of a Delayed Deposit Services business without a license. Your current license will expire on May 1, 2019.

The 2019 Delayed Deposit Services Renewal Licensing Forms and Instructions are available on the Department web site at https://ndbf.nebraska.gov/industries/delayed-deposit-services-payday-len.... Licensees must use the licensing forms provided on the Department’s website. Forms from previous years will not be accepted.

To renew a DDS Business License, a licensee must submit the following:

1) Delayed Deposit Services Business License Renewal Application and Fee- MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE AND BE POSTMARKED NO LATER THAN APRIL 12, 2019.

 Companies holding licenses in more than one county, all principal places of business and branches may be submitted on one application.

 When you submit the license renewal application, you must include the appropriate renewal fees. The renewal fee is $500 for each principal place of business and $500 for each branch office.

2) Delayed Deposit Services Licensee Annual Report and Supplemental Annual Report for 2018- MUST BE ELECTRONICALLY SUBMITTED TO DOB.CONSUMERFINANCE@NEBRASKA.GOV NO LATER THAN APRIL 12, 2019.

 Annual Report and Supplemental Annual Report for 2018 must be submitted for each license #.

3) Delayed Deposit Services Licensee Annual Report- Affidavit

 Upon approval of the Annual Report and Supplemental Annual Report, the Department will email the Licensee’s Primary Contact the required Affidavit to be signed and notarized. The individual signing this form is affirming that to the best of his or her knowledge the information contained in the Annual Report is true.

 The completed Affidavit MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE.

ONCE APPROVED, RENEWAL LICENSES AND CERTIFICATES OF BRANCH APPROVAL WILL BE MAILED TO THE PRINCIPAL PLACE OF BUSINESS.

You must still file an Annual Report and Supplemental Annual Report, even if you are not renewing your DDS license.

If you have questions, please email dob.consumerfinance@nebraska.gov and include your company name and license number in the subject line or call 402-471-2171.

2018 Annual Report

DDS Business License Renewal Application 2019

DDS 2018 Supplemental Annual Report

Electronic Surety Bond Adoption

EFFECTIVE February 1, 2019

On January 25, 2019 the Director of the Nebraska Department of Banking and Finance signed the Order Adopting Acceptance of Electronic Surety Bonds for Mortgage Bankers, Installment Loan Licensees, Installment Sales Licensees and Money Transmitter Licensees.  Effective February 1, 2019, Electronic Surety Bond (ESB) tracking will be managed through NMLS for the following license types:

•             Mortgage Banker License

•             Mortgage Banker Registration

•             Installment Loan License

•             Installment Sales License

•             Installment Sales Registration

•             Money Transmitter License

Management of ESBs through NMLS will allow for the tracking of surety bond requirements and the maintenance of surety bond information validated by authorized surety companies and/or surety bond producers. After February 1, 2019, new company license applications will be required to meet all surety bond requirements by completing the electronic process. Current licensees must convert all existing surety bonds to NMLS via the submission of an ESB by the date listed on the Conversion Plan found on the State Licensing Requirement page of the NMLS Resource Center. Please thoroughly review the Conversion Plan and take the necessary steps to convert existing surety bonds by the January 31, 2020 deadline. Failure to complete the conversion process may affect your company’s ability to renew your license for the next year. Refer to the renewal section of the Conversion Plan for more information. 

Licensees must first grant authority to their surety bond company/producer in NMLS, and then contact the company/producer to prepare the ESB. See the ESB for Licensees page for resources and more information. As noted in the Conversion Plan, there is an ESB Quick Guide on the NMLS Resource Center for your reference. 

If you have any questions about the ESB adoption plan, feel free to contact this agency at 402-471-2171or by email at dob.mortgage@nebraska.gov.  When contacting this agency, please specify the type of license you are referring.

Electronic Surety Bond Adoption

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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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

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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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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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

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

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

NDBF Announces New Resources and Tools for Choosing a Financial Professional

February 14, 2018 (Lincoln, Neb.)  — The Nebraska Department of Banking and Finance (“NDBF”) announced today a new resource, The Informed Investor Advisory: Financial Service Providers.  The advisory will help Nebraskans understand the different types of financial services providers, how to check out their background, and important questions to ask before signing a contract.

Nebraskans are also encouraged to check out a new online guide available at www.aarp.org/InterviewAnAdvisor that helps identify questions to ask before hiring a financial adviser.  Interview an Adviser is a free tool launched recently by AARP and the North American Securities Administrators Association (NASAA), of which the Department is a member.  The online tool does not require an AARP membership to use. 

“Many people would benefit from working with a financial professional.  It’s best to take the time and do your homework to understand the services they offer, their responsibilities to you, and what you will be paying.  However, many people don’t know where to start or what questions to ask,” says NDBF Deputy Director Claire McHenry.

The selection of any professional can be done best by following a step-by-step search process.  Check his or her credentials, experience, reputation and qualifications by using BrokerCheck.FINRA.org or contacting NDBF.  Identify your primary needs in seeking financial advice in order to evaluate each financial adviser you meet based on his or her ability to help fulfill those needs.  Ask a lot of questions to make sure the adviser is a good fit for you based on your financial situation and needs.  It is your responsibility and right to fully investigate the financial adviser's background, methods of practice, and credentials.

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.

Informed Investor Advisory Financial Service Providers
Choosing Advisers and Planners Consumer Alert

The Nebraska Department of Banking and Finance has issued a Cease and Desist Order against Steve’s Payday Loans and its officers, directors, employees, and agents.  The Order prohibits Steve’s Payday Loans from deceptively claiming to be, and from operating as, a payday lender in Nebraska until the entity has obtained the required delayed deposit services business license in Nebraska.

NDBF Press Release - Steve's Payday Loans 12-5-2017

Steve's Payday Loans Cease and Desist Order

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2017 RENEWAL DEADLINE

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, 2017.  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, 2018.

State-registered investment adviser and investment adviser representative deadlines:

• By December 22, 2017 – Submit Nebraska specific forms and documentation to NDBF
  (see requirements)
• Before December 26, 2017 – Submit renewal payments through CRD/IARD
• Before December 27, 2017 – Submit required electronic form filings through CRD/IARD

FINRA broker-dealer and agent deadlines:

• Before December 26, 2017 – Submit renewal payments through CRD/IARD
• Before December 27, 2017 – Submit required electronic form filings through CRD/IARD

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF
( see requirements) by December 22, 2017.  

NDBF OFFERS NEW PUBLICATION ON RED FLAGS OF GUARDIAN FINANCIAL ABUSE

NOVEMBER 2, 2017 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (“NDBF”) announced the availability of a new brochure, “Guarding the Guardians,” to help spotlight suspected guardian financial exploitation.

“Education is an investor’s best defense against this type of financial abuse. We are pleased to provide this free resource to the public to strengthen awareness of the warning signs of guardian financial abuse,” said Deputy Director Claire McHenry.

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 accounts.

In addition to helping individuals identify suspected guardian abuse, the “Guarding the Guardians” brochure also provides examples of warning signs of exploitation and offers information on where to turn for help.

The brochure was developed by the North American Securities Administrators Association, of which NDBF is a member. A copy of the brochure is available on the agency’s website at www.ndbf.nebraska.gov/about/news-publications. To learn more about investor education resources available in Nebraska, contact the NDBF at (877) 471-3445 in Nebraska, or (402) 471-3445 for out of state. 

Guardian Brochure
Consumer Alert - Guardian Financial Abuse

Ohio Company Ordered to Stop Soliciting Investors

August 31, 2017 (Lincoln, Nebraska) – The Nebraska Department of Banking and Finance (“Department”) issued a Cease and Desist Order against an Ohio company known as A Voice 4 U, LLC; its President, Katrina S. Farmer (“Farmer”); and its affiliates, control persons, officers, directors, agents, and employees.  The Order prohibits the entity and individuals named from offering or selling securities in Nebraska until the securities have been registered with the Department. The Order also prohibits the entity and individuals named from offering or selling securities in Nebraska until they are registered as broker-dealers or agents of a broker-dealer with the Department.  

From 2012 to 2014, Farmer sold profit-sharing agreements in A Voice 4 U, LLC to investors in Nebraska. The profit-sharing agreements were not registered in Nebraska under the Securities Act of Nebraska. Neither A Voice 4 U, LLC nor Farmer were registered in Nebraska as a broker-dealer or agent of a broker-dealer.  The sale of unregistered securities and the solicitation of investments by unlicensed broker-dealers is illegal under Nebraska law.

Individuals who invested in the above securities are asked to contact the Department.

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.

CONTACT: Thomas A. Sindelar, Investigation Supervisor
PHONE: (402) 471-2171
EMAIL: thomas.sindelar@nebraska.gov 

A Voice 4 U C&D
A Voice 4 U Consumer Alert

The Nebraska Department of Banking and Finance has adopted forms and guidelines to implement amendments to the laws governing the licensing of bank executive officers and credit union loan officers.  The amendments, adopted as part of LB 140 (2017), are effective August 24, 2017, and authorize exemptions from the licensing process.  The Department has also updated a number of related forms to reflect the amendments.

Click here for the Financial Institution Officer Exemptions

Securities Act of Nebraska Rules Effective

Comprehensive Securities Rules Update Announced

JUNE 20, 2017 (LINCOLN, NEB.) — The Nebraska Department of Banking & Finance (“Department”)
announces that amendments to its Rules under the Securities Act of Nebraska contained in Title 48 of
the Nebraska Administrative Code became effective June 5, 2017. These amendments represent the
first comprehensive amendments to these rules since 1999, as 33 of the 42 chapters in Title 48 were
amended.

The amendments reflect the Department’s goal of reducing regulatory complexity and promoting
uniformity while protecting investors and promoting capital formation in Nebraska. Highlights of the
amendments include the following:

• Implements filing requirements for Regulation A, Tier 2 Offerings,
•  Increases the maximum amount that can be raised pursuant to the Intrastate Offering Exemption, Section 8-1111(20) of the Securities Act of Nebraska, from $750,000.00 to $1,000,000.00,
•  Amends the information required to be submitted to the Department to request an Order Curing Late Notice for certain notice filings,
•  Adopts the most recent North American Securities Administrators Association (“NASAA”) Statements of Policy concerning the registration of securities in Nebraska,
•  Adopts the recent amendments to NASAA’s Brochure Rule for state -registered investment advisers,
•  Adopts NASAA’s model custody rule for state -registered investment advisers, which includes a definition of the term “custody”,
•  Adopts rules concerning succession planning for state-registered investment advisers, and
•  Repeals a rule concerning debt securities issued by a church or congregation

Copies of the updated regulations are available on the Department’s website.

The Department will be conducting compliance seminars with state-registered investment advisers to
discuss rule amendments affecting them. Details regarding the seminars will be forthcoming in the next
few weeks.

View Notice of New Securities Rules

On Thursday June 8, 2017, Department of Banking and Finance Legal Counsel Mike Cameron and Deputy Director Financial Institutions Kelly Lammers met with Girls State participants.  The discussion included the uniqueness of Nebraska Securities and Banking regulations, the volume of updates to laws and rules over this past year, and time for questions, which included interest in ID theft.  Pictured below in a State Capitol hearing room are Mike Cameron and Girls State delegates representing the communities of Friend, Hartington, Callaway, Scribner, Sutherland, Syracuse, Tekamah, Mullen, Wahoo, and Minden.

Papillion Company Ordered to Stop Soliciting Investors

The Nebraska Department of Banking and Finance (“Department”) has issued a Cease and Desist Order to Blazefly, Inc., Papillion, NE, its President Jamie Crager, and its affiliates, control persons, officers, directors, agents, and employees.  The Order prohibits the entity and individuals named from offering or selling securities in Nebraska until the securities have been registered, and until the entity and individuals are registered as broker-dealers or agents of a broker-dealer with the Department.   

Blazefly Inc C&D
Blazefly Inc Order Affirming C&D
Consumer Alert Blazefly Inc May 2017

Comprehensive Banking Act Update Signed Into Law

LB 140 was signed into law by Governor Pete Ricketts on March 29, 2017, during a ceremony at the Nebraska State Capitol.  LB 140 is the first comprehensive revision of the Nebraska Banking Act since 1963.  LB 140 also updates related laws for banks and other financial institutions. 

In 2016, then Banking, Commerce and Insurance (BCI) Committee Chair Jim Scheer introduced Legislative Resolution 430, proposing to study whether the Nebraska Banking Act should be updated. Senator Scheer gathered legislators, BCI committee staff, banking and credit union industry professionals and Department of Banking and Finance (NDBF) staff into a working group, and led a seven-month section by section review and redrafting of the Act.  LB 140 is the product of the LR 430 study committee and reflects its goals:  reducing regulatory complexity and carefully updating the Act to reflect the current banking environment, while protecting consumers and preserving the public confidence in the financial institutions of Nebraska.

LB 140 was introduced by Senator Matt Williams, Vice Chair of BCI, who participated in the working group.  The bill as introduced encompassed 143 Pages and 157 Sections, consisting of a combination of new sections, repealed sections, and amendments of existing sections of the Banking Act. Among its provisions, LB 140 authorizes an increase in the maximum number of a bank board of directors from 15 to 25; prohibits bank-affiliated individuals from being paid a higher rate of interest on deposits than paid by the bank for similar deposits and provides that a violation is a Class IV felony; allows financial institutions, in a state of emergency, to open a temporary office to conduct business for up to 30 months; authorizes the Department to provide for the electronic filing of certain bonds; repeals a registration requirement for banks making personal loans; and clarifies merger and acquisition procedures. 

The Legislature incorporated three other bills into LB 140:  LB196, introduced by Sen. Joni Craighead at the request of NDBF, which provides an annual update of the equal rights laws for  state-chartered depository financial institutions with their federal counterparts, and LB341 and LB 454, introduced by current BCI Chair Sen. Brett Lindstrom, who participated in the LR 430 working group. These bills allow for an opt-out of licensing requirements for bank executive officers and credit union loan officers, respectively.   

With the exception of the three sections amended by former LB 196, which carried the emergency clause and became effective March 30, 2017, LB 140 will become effective on or about September 1, 2017. NDBF will provide detailed information on the changes prior to that date.   The Slip Law version of LB 140 can be viewed at http://nebraskalegislature.gov/bills/view_bill.php?DocumentID=30705

State Regulators Release BSA/AML Self-Assessment Tool

State regulators and the Conference of State Bank Supervisors (CSBS) have released a new voluntary self-assessment tool to help banks better manage Bank Secrecy Act and anti-money laundering risk. The tool is meant to help institutions better identify, monitor, and communicate BSA/AML risk, reduce uncertainty surrounding BSA/AML compliance and foster greater transparency within the industry. Learn more and access the tool at the CSBD WebSite.

Securities Rules Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on August 10, 2016, commencing at 9:30 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

Hearing Notice
Fiscal Impact Statement
Current Title 48 Securities Rules

Effective July 1, 2016, the Nebraska Department of Banking and Finance (NDBF) will require issuers filing pursuant to registration by coordination under Section 8-1106 of the Securities Act of Nebraska to file a separate Form U-1/Uniform Application to Register Securities for each distinctive share class to be offered. NDBF will receipt each share class under a separate and distinct state file number, applying the requisite fee to each filing accordingly. NDBF will no longer allow an issuer to reallocate fees between share classes of the offering after the initial filing is received and receipted.

A Bellevue area woman won this year’s DASH for the STASH in Nebraska. Eighteen Nebraska libraries and other locations participated in the contest from March 15-May 15, 2016. Much like a scavenger hunt, players gather information about saving and investing by going to participating locations, reading investor education posters, and answering questions. The posters covered four key topics: finding financial advisers, avoiding fraud, understanding investment fees, and building a nest egg. The winner was randomly selected from those players who correctly answered the questions and awarded $1,000 to open or add to an Individual Retirement Account (IRA).

NEBRASKA DEPARTMENT OF BANKING AND FINANCE, INVESTOR PROTECTION INSTITUTE TO OFFER $1,000 PRIZE IN “DASH FOR THE STASH” FINANCIAL LITERACY PUSH IN LIBRARIES

Public libraries and other institutions in Nebraska will participate in the DASH for the STASH investor education/protection program and contest taking place April 15-May 15, 2015 as part of Financial Literacy Month. Research shows that the four focuses of DASH for the STASH – financial fraud, building a nest egg, selecting financial advisers, and the cost of investment fees – are all topics about which many investors need to learn more.

Read more, including Contest Rules, Participating Libraries, and the Focus of the Contest

The Office of the Comptroller of the Currency (OCC) has issued a warning that the Web site "helpwithmybank.com," is attempting to masquerade as the legitimate Web site, "helpwithmybank.gov," and contains potentially damaging malware. The illegitimate site redirects the user to the legitimate site "helpwithmybank.gov" in an attempt to convince users that they are connecting to a legitimate site. Attempts to connect to the fake Web site could expose the user to harmful malware.

Any information that you may have concerning this matter should be brought to the attention of:

Email: occalertresponses@occ.treas.gov
Mail: Office of the Comptroller of the Currency Enforcement & Compliance Division, MS 8-10 250 E St. SW, Washington, DC 20219
Fax: (202) 874-5301

Lincoln, Neb., September 13, 2011 – Jack E. Herstein, Assistant Director of the Nebraska Department of Banking and Finance and head of the Department’s Bureau of Securities, begins his one-year tenure today as President of the North American Securities Administrators Association (NASAA). Herstein gave his inaugural address during the annual NASAA conference, being held this year in Wichita, Kansas. NASAA is celebrating 100 years of state securities regulation in the state which enacted the first laws to protect investors.

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Effective June 25, 2011, Chapters 1 and 15 of Title 48 of the Nebraska Administrative Code have been amended. Please ensure you have the most recent version of these Chapters.

Revised Chapter 1 updates the Department address.
Revised Chapter 15 provides for the filing of financial statements and sales reports by certain issuers claiming a transactional exemption from securities registration pursuant to 48 NAC 15 and Neb. Rev. Stat. § 8-1111(9). The revisions implement statutory changes enacted in 2010 and apply to issuers who make filings in five consecutive years or who sell in excess of $1 million dollars in securities.

The Department has updated its Delayed Deposit Services Interpretative Opinions and its Frequently Asked Questions document. The Interpretative Opinions were effective May 1, 2011, and include new Interpretative Opinion No. 7, which relates to Collection Items and the types of documentation that Department examiners will be looking for in collection files.

Click here for the DDS Interpretative Opinions.
Click here for the DDS FAQs.

Jack E. Herstein, Assistant Director of the Nebraska Department of Banking and Finance and head of the Department’s Bureau of Securities, has been elected President-Elect of the North American Securities Administrators Association (NASAA). 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.

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The Nebraska Department of Banking and Finance is warning Nebraska residents about two Internet-based companies offering personal loans to consumers. Barstow Brokers claims to be based at 11110 Fort Street, Suite 201, Omaha, Nebraska, and 1st Liberty Financial Corporation lists its address as 2900 South 70th Street, Suite 200, Lincoln, Nebraska. The Department has verified that the companies do not have offices at the addresses listed. Both companies require potential borrowers to pay fees between $200 and $1,500 in advance of funding any loan. The Department urges consumers to exercise extreme caution when completing online loan applications which require personal information. Money is often not the only thing scammers are seeking; many are after personal information. With the application, the scammer has access to a consumer’s Social Security number, credit card numbers, and bank account information.

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Information for Customers of TierOne Bank, a Federal Savings Bank, Insolvent The Federal Deposit Insurance Corporation (FDIC) was named receiver of TierOne Bank, FSB, after it was closed by the Office of Thrift Supervision on June 4, 2010. Customers of TierOne Bank who have questions or concerns are strongly urged to review a special FDIC website for TierOne Bank: http://www.fdic.gov/bank/individual/failed/tieronebankne.html.

Great Western Bank, 3405 South Sycamore Avenue, Sioux Falls, South Dakota 57110, assumed all the deposits and purchased assets of TierOne Bank from the FDIC. Contact with Great Western Bank may be by telephone at 605-371-9708, or through its website, www.greatwesternbank.com

The Department cautions customers of TierOne Bank that customers of failed financial institutions are prime targets for attempts at identity theft. Neither the FDIC nor the purchasing bank will send emails requesting private information such as social security numbers, account numbers, or account passwords. Do not respond to, and immediately delete, any such emails.

The Nebraska Department of Banking and Finance today announced that it has joined a 35 State settlement agreement with CitiFinancial and its mortgage lending entities. The agreement between CitiFinancial and state mortgage regulators was executed after an examination conducted by the Massachusetts Division of Banks to determine compliance with state and federal consumer protection laws. The examination found that CitiFinancial had failed to report 91,127 residential mortgage loans to the federal government as required by the Home Mortgage Disclosure Act (HMDA), including 472 Nebraska loans that were not reported. The mortgage loans that were omitted from CitiFinancial’s HMDA Loan Application Register were originated between 2004 through 2007. The underreporting of the mortgage loans was apparently caused by an internal systems error at CitiFinancial that went undetected until the Massachusetts examination.

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The Nebraska Department of Banking and Finance has issued a Cease and Desist Order and an Order to Show Cause against Envision Investment Advisors, LLC, 1065 North 115th Street, Suite 150, Omaha, Ne, and Ryan Jindra, its President and Chief Executive Officer. Envision is an investment advisory firm registered with the Department and the Securities and Exchange Commission (SEC).

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Order to Cease and Desist
Order to Show Cause

The Department issues a warning of a scam targeting consumers who want to become mystery shoppers. A company calling itself Global Compliance, Inc., offers consumers an opportunity to participate in a paid customer research program known as “mystery shopping” or “secret shopping.” The Department has verified that the company does not have offices at the addresses listed.

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The Nebraska Department of Banking and Finance (NDBF) announced that at 4 p.m. Feb. 13, it closed Sherman County Bank of Loup City, Nebraska. The bank’s branch offices in Farwell, Dannebrog and St. Paul, which operated under the name Howard County Bank, were also closed. The NDBF had been closely monitoring the bank and had ordered it to increase its capital reserves to a safe level. However, efforts by the bank to do so were unsuccessful. The Department named the Federal Deposit Insurance Corporation (FDIC) as receiver of the bank. The FDIC has entered into a purchase and assumption agreement with Heritage Bank headquartered in Wood River, Nebraska, to assume all of the deposits. Heritage Bank has branch offices in Aurora, Doniphan, Grand Island, Hastings, Kearney, Neligh and Stromsburg, as well as mobile branches in Adams, Buffalo and Hall counties. Customers who have questions regarding Sherman County Bank and their accounts can call the FDIC toll free at 1-800-823-5346. Customers can also visit the FDIC’s website at www.fdic.gov for more information.

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The Nebraska Department of Banking and Finance is warning consumers about an apparent online lending fraud involving an Internet-based lender, USA Financial Center, which listed its address as 1033 O Street, Suite 600, in Lincoln, Ne. The Department has verified that the company was not licensed and does not have an office at that location.

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The Nebraska Department of Banking and Finance is issuing a warning of yet another scam targeting consumers who use Internet-based companies to borrow money. This time, a company calling itself Penbrook Financial Group, which lists its address as 6910 Pacific Street, Omaha, NE, offers personal loans to consumers and requires up-front "collateral payments" in advance of funding a loan. In this case, the company required a borrower to make four monthly payments totaling $2,460 prior to securing the loan. The Department has verified that the company does not have an office at the address listed.

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Attorney General Jon Bruning and John Munn, Director of the Nebraska Department of Banking and Finance (NDBF), announced that the State is suing Omaha-based Advantage Mortgage Service, Inc., a mortgage brokerage firm, and its principal owners and operators for predatory lending practices. The NDBF is also instituting license revocation proceedings.

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Nebraska Department of Banking and Finance Director John Munn issued a consumer advisory today urging Nebraskans facing the possibility of foreclosure on a home mortgage to be cautious when working with foreclosure rescue consultants and companies. Recent inquiries to the Department regarding foreclosure have prompted Department officials to warn Nebraskans of the potential risks associated with foreclosure rescue services.

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The Nebraska Department of Banking and Finance (NDBF) issued an Order to Cease and Desist on May 22,2007, against Northern Utilities, LLC, 2840 South 70th Street, #360, Suite 7, Lincoln, and two managing members, David R. Anderson and Trent P. Anderson. The Order states that Northern Utilities is offering $48,000,000 in membership interests to finance the development of an ethanol plant in Bradshaw, Nebraska.

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