Securities News

DISR and NASAA Announce Top 10 Investment Scams for 2004

(Washington, DC) Commissioner Lawrence H. Mirel of the District of Columbia Department of Insurance and Securities Regulation (DISR) issued a list today informing District of Columbia investors of the Top 10 investment schemes of 2004 as identified by the North American Securities Administrators Association (NASAA).

"Investors face a continuous stream of confusing scams, schemes and scandals," said Mirel. "Unfortunately, the fight against investment fraud never ceases because each year con artists discover new ways to cheat the public. Many of the scams continue to operate to defraud victims."

Securities regulators at the federal, state, and local levels of government share the common goal of protecting investors. Both NASAA and DISR have information available on-line (www.nasaa.org and disr.dc.gov, respectively) for consumers to get information about avoiding investment scams.

NASAA bases the following ranking of scams, schemes, and scandals for 2004 on a survey state securities regulators conducted. The list is based on the order of prevalence and seriousness as identified by state securities regulators: 1) Ponzi Schemes, 2) Senior Investment Fraud, 3) Promissory Notes, 4) Unscrupulous Broker/Dealer Representatives, 5) Affinity Fraud, 6) Insurance Agent Securities Fraud, 7) Prime Bank/High-Yield Investment Schemes, 8) Internet Fraud, 9) Mutual Fund Business Practices, and 10) Variable Annuities. Investors residing in the District of Columbia can submit questions about investment fraud to DISR's Fraud Bureau at (202) 442.7845 or via e-mail to Stephen.Perry@dc.gov. Questions about investment products can be submitted to the DISR's Securities Bureau via either telephone at (202) 442.7640 or e-mail to Ron.Claiborne@dc.gov.

The DC Department of Insurance and Securities Regulation (DISR) has two missions, (1) to provide fair, efficient and fast regulatory supervision of the insurance and securities businesses for the protection of the people of the District of Columbia, and (2) to create conditions that will retain and attract national and international insurance and other financial businesses to the District.

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	Did You Know?
	Swap: In general, the exchange of one asset or liability for a similar asset or liability Swap: In general, the exchange of one asset or liability for a similar asset or liability for the purpose of lengthening or shortening maturities, or raising or lowering coupon rates, to maximize revenue or minimize financing costs. This may entail selling one securities issue and buying another in foreign currency; it may entail buying a currency on the spot market and simultaneously selling it forward. Swaps also may involve exchanging income flows; for example, exchanging the fixed rate coupon stream of a bond for a variable rate payment stream, or vice versa, while not swapping the principal component of the bond. Swaps are generally traded over-the-counter.