The Securities and Exchange Commission recently charged a father and son in Lexington, S.C., with operating a fraudulent investment program designed to illegally profit from the deaths of terminally ill individuals.

The SEC alleges that Benjamin S. Staples and his son Benjamin O. Staples deceived brokerage firms and bond issuers and made at least $6.5 million in profits by lying about the ownership interest in bonds they purchased in joint brokerage accounts opened with people facing imminent death who were concerned about affording the high costs of a funeral. The Stapleses recruited the terminally ill individuals into their program by offering to pay their funeral expenses if they agreed to open the joint accounts and sign documents that relinquished their ownership rights to the accounts or any assets in them.

According to the SEC’s complaint filed in federal court in Columbia, S.C., once a joint account was opened and they had sole control, the Stapleses purchased discounted corporate bonds containing a “survivor’s option” that allowed them to redeem the bonds for the full principal amount prior to maturity if a joint owner of the bond dies. Following the death of one of their terminally ill participants, the Stapleses redeemed the bonds early by citing the survivor’s option to the brokerage firm and misrepresenting that the deceased individual had ownership rights to the bond. Their illicit profit was the difference between the discounted price of the bonds they purchased and the full principal amount they obtained when redeeming the bonds early.

According to the SEC’s complaint, the Stapleses operated what they called the Estate Assistance Program from early 2008 to mid-2012. They recruited at least 44 individuals into the program and purchased approximately $26.5 million in bonds from at least 35 issuers. The Stapleses required the terminally ill individuals to sign three documents: an application to open a joint brokerage account with them, an estate assistance agreement, and a participant letter. The latter two documents required the terminally ill participant to relinquish any ownership interest in the assets in the joint account, including the bonds that the Stapleses later purchased.

The SEC alleges that after a terminally ill participant died, the Stapleses wrote a letter to the brokerage firm where the joint account was held and asked that the bonds be redeemed under the survivor’s option. In their redemption request letters, the Stapleses falsely represented that the deceased participant was an “owner” of the bonds. The Stapleses did not inform the brokerage firms or bond issuers that the deceased program participants had signed the estate assistance agreements and participant letters relinquishing all ownership interest in the bonds.

The SEC’s complaint charges Ben S. Staples and Ben O. Staples with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions. The SEC’s complaint names a different son of Ben S. Staples – Brian Staples also of Lexington, S.C. – as a relief defendant for the purposes of recovering $400,000 in illicit profits that were transferred into his possession. Brian Staples had no active role in the scheme.

Contact Us:

With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individual. If the reader would like to review the entire FINRA release or the broker-check information, you can follow these highlighted links:

April 2012 Disciplinary and Other FINRA Actions

Broker Check: http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/

FINRA Case No. 2010025767501 – In April of 2012, the Financial Industry Regulatory Authority, Inc. (FINRA) issued a release advising that Joshua Martinez submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. In order to view a copy of the full release, please follow above the referenced links.

Contact Us:

With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

In our continued attempt to keep members of the investing public abreast of current fraud related issues, we are providing a series of posts relating to identity theft, including how to prevent it and what to do if you are exposed to it. These posts are not designed to be complete in all material respects. They are being provided for educational purposes only. If you have any specific quetions relative to the contents of any of these posts, you should consult a qualified expert.

What is a credit freeze?

Many states have laws that let consumers “freeze” their credit – in other words, letting a consumer restrict access to his or her credit report. If you place a credit freeze, potential creditors and other third parties will not be able to get access to your credit report unless you temporarily lift the freeze. This means that it’s unlikely that an identity thief would be able to open a new account in your name. Placing a credit freeze does not affect your credit score – nor does it keep you from getting your free annual credit report, or from buying your credit report or score.

Credit freeze laws vary from state to state. In some states, anyone can freeze their credit file, while in other states, only identity theft victims can. The cost of placing, temporarily lifting, and removing a credit freeze also varies. Many states make credit freezes free for identity theft victims, while other consumers pay a fee – typically $10. It’s also important to know that these costs are for each of the credit reporting agencies. If you want to freeze your credit, it would mean placing the freeze with each of three credit reporting agencies, and paying the fee to each one.

You can find more information about credit freeze laws specific to your state by clicking here, including information on how to place one.

Who can access my credit report if I place a credit freeze?

If you place a credit freeze, you will continue to have access to your free annual credit report. You’ll also be able to buy your credit report and credit score even after placing a credit freeze. Companies that you do business with will still have access to your credit report – for example, your mortgage, credit card, or cell phone company – as would collection agencies that are working for one of those companies. Companies will also still be able to offer you prescreened credit. Those are the credit offers you receive in the mail that you have not applied for. Additionally, in some states, potential employers, insurance companies, landlords, and other non-creditors can still get access to your credit report with a credit freeze in place.

Can I temporarily lift my credit freeze if I need to let someone check my credit report?

If you want to apply for a loan or credit card, or otherwise need to give someone access to your credit report and that person is not covered by an exception to the credit freeze law, you would need to temporarily lift the credit freeze. You would do that by using a PIN that each credit reporting agency would send once you placed the credit freeze. In most states, you’d have to pay a fee to lift the credit freeze. Most states currently give the credit reporting agencies three days to lift the credit freeze. This might keep you from getting “instant” credit, which may be something to weigh when considering a credit freeze.

What does a credit freeze not do?

While a credit freeze can help keep an identity thief from opening most new accounts in your name, it’s not a solution to all types of identity theft. It will not protect you, for example, from an identity thief who uses your existing credit cards or other accounts. There are also new accounts, such as telephone, wireless, and bank accounts, which an ID thief could open without a credit check. In addition, some creditors might open an account without first getting your credit report. And, if there’s identity theft already going on when you place the credit freeze, the freeze itself won’t be able to stop it. While a credit freeze may not protect you in these kinds of cases, it can protect you from the vast majority of identity theft that involves opening a new line of credit.

What’s the difference between a credit freeze and a fraud alert?

A fraud alert is another tool for people who’ve had their ID stolen – or who suspect it may have been stolen. With a fraud alert in place, businesses may still check your credit report. Depending on whether you place an initial 90-day fraud alert or an extended fraud alert, potential creditors must either contact you or use what the law refers to as “reasonable policies and procedures” to verify your identity before issuing credit in your name. However, the steps potential creditors take to verify your identity may not always alert them that the applicant is not you.

A credit freeze, on the other hand, will prevent potential creditors and other third parties from accessing your credit report at all, unless you lift the freeze or already have a relationship with the company. Some consumers use credit freezes because they feel they give more protection. As with credit freezes, fraud alerts are mainly effective against new credit accounts being opened in your name, but will likely not stop thieves from using your existing accounts, or opening new accounts such as new telephone or wireless accounts, where credit is often not checked. Also, only people who’ve had their ID stolen – or who suspect it may have been stolen, may place fraud alerts. In some states, anyone can place a credit freeze.

In our continued attempt to keep members of the investing public abreast of current fraud related issues, we are providing a series of posts relating to identity theft, including how to prevent it and what to do if you are exposed to it. These posts are not designed to be complete in all material respects. They are being provided for educational purposes only. If you have any specific quetions relative to the contents of any of these posts, you should consult a qualified expert.

What is a fraud alert?

There are two types of fraud alerts: an initial alert, and an extended alert.

• An initial fraud alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. An initial alert is appropriate if your wallet has been stolen or if you’ve been taken in by a “phishing” scam. With an initial fraud alert, potential creditors must use what the law refers to as “reasonable policies and procedures” to verify your identity before issuing credit in your name. However, the steps potential creditors take to verify your identity may not always alert them that the applicant is not you. When you place an initial fraud alert on your credit report, you’re entitled to order one free credit report from each of the three nationwide consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports.
• An extended fraud alert stays on your credit report for seven years. You can have an extended alert placed on your credit report if you’ve been a victim of identity theft and you provide the consumer reporting company with an Identity Theft Report. An automated Identity Theft Report, such as the printed ID Theft Complaint available from this Web site, should be sufficient to obtain an extended fraud alert. With an extended fraud alert, potential creditors must actually contact you, or meet with you in person, before they issue you credit. When you place an extended alert on your credit report, you’re entitled to two free credit reports within twelve months from each of the three nationwide consumer reporting companies. In addition, the consumer reporting companies will remove your name from marketing lists for pre-screened credit offers for five years unless you ask them to put your name back on the list before then.

To place either of these alerts on your credit report, or to have them removed, you will be required to provide appropriate proof of your identity: that may include your Social Security number, name, address and other personal information requested by the consumer reporting company.

As mentioned, depending on the type of fraud alert you place, potential creditors must either contact you or take reasonable steps to verify your identity. This may cause some delays if you’re trying to obtain credit. To compensate for possible delays, you may wish to include a cell phone number, where you can be reached easily, in your alert. Remember to keep all contact information in your alert current.

What does a fraud alert not do?

While a fraud alert can help keep an identity thief from opening new accounts in your name, it’s not a solution to all types of identity theft. It will not protect you from an identity thief using your existing credit cards or other accounts. It also will not protect you from an identity thief opening new accounts in your name that do not require a credit check – such as a telephone, wireless, or bank account. And, if there’s identity theft already going on when you place the fraud alert, the fraud alert alone won’t stop it. A fraud alert, however, can be extremely useful in stopping identity theft that involves opening a new line of credit.

In our continued attempt to keep members of the investing public abreast of current fraud related issues, we are providing a series of posts relating to identity theft, including how to prevent it and what to do if you are exposed to it. These posts are not designed to be complete in all material respects. They are being provided for educational purposes only. If you have any specific quetions relative to the contents of any of these posts, you should consult a qualified expert.

If you have been the victim of identity theft:

1. File a complaint with the Federal Trade Commission.

You can file a complaint with the FTC using the online complaint form; or call the FTC’s Identity Theft Hotline, toll-free: 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261; or write Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580. Be sure to call the Hotline to update your complaint if you have any additional information or problems.

By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC can refer victims’ complaints to other government agencies and companies for further action, as well as investigate companies for violations of laws the agency enforces.

Additionally, you can provide a printed copy of your online Complaint form to the police to incorporate into their police report. The printed FTC ID Theft Complaint, in conjunction with the police report, can constitute an Identity Theft Report and entitle you to certain protections. This Identity Theft Report can be used to (1) permanently block fraudulent information from appearing on your credit report; (2) ensure that debts do not reappear on your credit report; (3) prevent a company from continuing to collect debts that result from identity theft; and (4) place an extended fraud alert on your credit report.

2. File a report with your local police or the police in the community where the identity theft took place.

Call your local police department and tell them that you want to file a report about your identity theft. Ask them if you can file the report in person. If you cannot, ask if you can file a report over the Internet or telephone.

If the police are reluctant to take your report, ask to file a “Miscellaneous Incident” report, or try another jurisdiction, like your state police. You also can check with your state Attorney General’s office to find out if state law requires the police to take reports for identity theft. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.

When you go to your local police department to file your report, bring a printed copy of your FTC ID Theft Complaint form, your cover letter, and your supporting documentation. The cover letter explains why a police report and an ID Theft Complaint are so important to victims.

Ask the officer to attach or incorporate the ID Theft Complaint into their police report. Tell them that you need a copy of the Identity Theft Report (the police report with your ID Theft Complaint attached or incorporated) to dispute the fraudulent accounts and debts created by the identity thief. (In some jurisdictions the officer will not be able to give you a copy of the official police report, but should be able to sign your Complaint and write the police report number in the “Law Enforcement Report” section.)

Identity Theft (2)

In our continued attempt to keep members of the investing public abreast of current fraud related issues, we are providing a series of posts relating to identity theft, including how to prevent it and what to do if you are exposed to it. These posts are not designed to be complete in all material respects. They are being provided for educational purposes only. If you have any specific quetions relative to the contents of any of these posts, you should consult a qualified expert.

Close the accounts that you know, or believe, have been tampered with or opened fraudulently.

Call and speak with someone in the security or fraud department of each company. Follow up in writing, and include copies (NOT originals) of supporting documents. It’s important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.

When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

If the identity thief has made charges or debits on your accounts, or has fraudulently opened accounts, ask the company for the forms to dispute those transactions:

• For charges and debits on existing accounts, ask the representative to send you the company’s fraud dispute forms. If the company doesn’t have special forms, use the sample letter to dispute the fraudulent charges or debits. In either case, write to the company at the address given for “billing inquiries,” NOT the address for sending your payments.
• For new unauthorized accounts, you can either file a dispute directly with the company or file a report with the police and provide a copy, called an “Identity Theft Report,” to the company.
  • If you want to file a dispute directly with the company, and do not want to file a report with the police, ask if the company accepts the FTC’s ID Theft Affidavit (PDF, 56 KB). If it does not, ask the representative to send you the company’s fraud dispute forms.
  • However, filing a report with the police and then providing the company with an Identity Theft Report will give you greater protection. For example, if the company has already reported these unauthorized accounts or debts on your credit report, an Identity Theft Report will require them to stop reporting that fraudulent information. Use the cover letter to explain to the company the rights you have by using the Identity Theft Report. More information about getting and using an Identity Theft Report can be found here.

Once you have resolved your identity theft dispute with the company, ask for a letter stating that the company has closed the disputed accounts and has discharged the fraudulent debts. This letter is your best proof if errors relating to this account reappear on your credit report or you are contacted again about the fraudulent debt.

Identity Theft:

In our continued attempt to keep members of the investing public abreast of current fraud related issues, we are providing a series of posts relating to identity theft, including how to prevent it and what to do if you are exposed to it. These posts are not designed to be complete in all material respects. They are being provided for educational purposes only. If you have any specific quetions relative to the contents of any of these posts, you should consult a qualified expert.

What are the steps I should take if I’m a victim of identity theft?

If you are a victim of identity theft, take the following four steps as soon as possible, and keep a record with the details of your conversations and copies of all correspondence.

1. Place a fraud alert on your credit reports, and review your credit reports.

Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place a fraud alert on your credit report. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too. If you do not receive a confirmation from a company, you should contact that company directly to place a fraud alert.

TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

Equifax: 1-800-525-6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374-0241

Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9554, Allen, TX 75013

Once you place the fraud alert in your file, you’re entitled to order one free copy of your credit report from each of the three consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports. Once you get your credit reports, review them carefully. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain. Check that information, like your Social Security number, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed. See Correcting Fraudulent Information in Credit Reports to learn how. When you correct your credit report, use an Identity Theft Report with a cover letter explaining your request, to get the fastest and most complete results.

Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred.

How to Protect Your On-line Presence:

Let’s hope this never happens to you: You have a few free minutes so you decide to go on-line to check your brokerage account information. Your account balance is much lower than you expect – and you know that, at least for today, neither the market nor any of your securities fell in value. You see that there were several wire transfers of money from your account to an outside checking account. But you never authorized those transactions – instead, an identity thief did, and that thief has now stolen your cash as well as your personal information.

Like many investors, you may enjoy some of the conveniences of an on-line brokerage account, like checking your brokerage account information at any time of day or night, buying and selling securities, or even transferring money between your brokerage account and another account. But if you don’t take steps to protect your personal information when you go on-line, you could be telling your own story of identity theft.

How On-line Identity Theft Can Happen:

Many identity thieves use malicious software programs to attack vulnerable computers of on-line users. These software programs can monitor your computer activity and send information back to the thief’s computer. Sometimes, these programs will log your key strokes, which allows identity thieves to easily obtain user-name and password information for any of your on-line accounts, including your brokerage account.

How to Protect Your On-line Presence:

The purpose of this post is to the reader with a general discussion as to various way to protect your on-line presence. Please keep in mind that this post is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon for legal or investment advice. If you have any questions concerning this post, you should contact a qualified professional.

Identity thieves “phish” for your personal information. “Phishing” involves the use of fraudulent emails and copy-cat websites to trick you into revealing valuable personal information – such as your account number, your social security number, and the user-name and password information you use when accessing your account. Sometimes fraudsters will use phishing scams to try to get you to download keystroke logging or other malicious software programs unsuspectingly.

But not all identity thieves have gone “high tech.” Many still use less sophisticated ways of stealing your personal information, such as looking over your shoulder when you’re typing sensitive information or searching through your trash for confidential account information.

How to Protect Yourself On-line:

You’ll need to protect yourself against identity thieves, whether hackers, phishers, or snoops, when you use your on-line brokerage account. Here are a few suggestions on ways to keep your personal information and money more secure when you go on-line:

Beef Up Your Security. Personal firewalls and security software packages (with anti-virus, anti-spam, and spyware detection features) are a must-have for those who engage in on-line financial transactions. Make sure your computer has the latest security patches, and make sure that you access your on-line brokerage account only on a secure web page using encryption. The website address of a secure website connection starts with “https” instead of just “http” and has a key or closed padlock in the status bar (which typically appears in the lower right-hand corner of your screen).

Security Tip: Even if a web page starts with “https” and contains a key or closed padlock, it’s still possible that it may not be secure. Some phishers, for example, make spoofed websites which appear to have padlocks. To double-check, click on the padlock icon on the status bar to see the security certificate for the site. Following the “Issued to” in the pop-up window you should see the name matching the site you think you’re on. If the name differs, you are probably on a spoofed site.

Use a Security Token (if available). Using a security token can make it even harder for an identity thief to access your on-line brokerage account. That’s because these small number-generating devices offer a second layer of security – a one-time pass-code that typically changes every 30 or 60 seconds. These unpredictable pass-codes can frustrate identity thieves. While fraudsters can use keystroke logging programs to obtain regular user-name and password information, they can’t use these programs to obtain the security token pass-code. Ask your brokerage firm if you can protect your on-line account with a security token or similar security device.

Be Careful What You Download. When you download a program or file from an unknown source, you risk loading malicious software programs on your computer. Fraudsters often hide these programs within seemingly benign applications. Think twice before you click on a pop-up advertisement or download a “free” game or gadget.

Use Your Own Computer. It’s generally safer to access your on-line brokerage account from your own computer than from other computers. If you use a computer other than your own, for example, you won’t know if it contains viruses or spyware. If you do use another computer, be sure to delete all of the your “Temporary Internet Files” and clear all of your “History” after you log off your account.

Don’t Respond to Emails Requesting Personal Information. Legitimate entities will not ask you to provide or verify sensitive information through a non-secure means, such as email. If you have reason to believe that your financial institution actually does need personal information from you, pick up the phone and call the company yourself – using the number in your rolodex, not the one the email provides!

Security Tip: Even though a web address in an email may look legitimate, fraudsters can mask the true destination. Rather than merely clicking on a link provided in an email, type the web address into your browser yourself (or use a bookmark you previously created).

Be Smart About Your Password. The best passwords are ones that are difficult to guess. Try using a password that consists of a combination of numbers, letters (both upper case and lower case), punctuation, and special characters. You should change your password regularly and use a different password for each of your accounts. Don’t share your password with others and never reply to phishing emails with your password or other sensitive information. You also shouldn’t store your password on your computer. If you need to write down your password, store it in a secure, private place.

Use Extra Caution with Wireless Connections. Wireless networks may not provide as much security as wired Internet connections. In fact, many “hotspots” – wireless networks in public areas like airports, hotels and restaurants – reduce their security so it’s easier for individuals to access and use these wireless networks. Unless you use a security token, you may decide that accessing your on-line brokerage account through a wireless connection isn’t worth the security risk. You can learn more about security issues relating to wireless networks on the website of the Wi-Fi Alliance.

Log Out Completely. Closing or minimizing your browser or typing in a new web address when you’re done using your on-line account may not be enough to prevent others from gaining access to your account information. Instead, click on the “log out” button to terminate your on-line session. In addition, you shouldn’t permit your browser to “remember” your user-name and password information. If this browser feature is active, anyone using your computer will have access to your brokerage account information.

How to Know if Your Identity Has Been Stolen:

Sometimes, it can be extraordinarily difficult to determine whether someone has stolen your identity. If you take the steps below, you may be able to find out whether you’ve been victim of identity theft and protect yourself from further harm:

Read Your Statements. Don’t toss aside your monthly account statements! Read them thoroughly as soon as they arrive to make sure that all transactions shown are ones that you actually made, and check to see whether all of the transactions that you thought you made appear as well. Be sure that your brokerage firm has current contact information for you, including your mailing address and email address. If you see a mistake on your statement or don’t receive a statement, contact your brokerage firm immediately.

Monitor Your Credit Report. Reviewing your credit report may alert you to unauthorized activity, and, therefore, can be an effective way to fight identity theft. You can obtain a free credit report every 12 months from three different credit bureaus by contacting the Annual Credit Report Request Service.

Investor Tip: Read your brokerage account agreement carefully because many firms take the position that you are responsible for the security of your account information, such as your user-name, password, and account number. In addition, your brokerage account agreement may provide information about what specific steps you should take if you notice any unauthorized account activity.

What to Do if You Run into Trouble

Always act quickly when you come face to face with a potential fraud, especially if you’ve lost money or believe your identity has been stolen.

Identity Theft. If you think that your personal information has been stolen, visit the Federal Trade Commission’s Identity Theft Resource Center at www.consumer.gov/idtheft/index.html for information on how to file a complaint and control the damage.

Securities Scams. Before you do business with any investment-related firm or individual, do your own independent research to check out their background and confirm whether they are legitimate.

Phishy Emails. If a phishing scam rolls into your email box, be sure to tell the company right away. You can also report the scam to the FBI’s Internet Fraud Complaint Center at http://www.ifccfbi.gov/. If the email purports to come from a brokerage firm or mutual fund company, be sure to pass along that tip to the SEC’s Enforcement Division by forwarding the email to [email protected].

Contact Us:

With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.