California Picks Up Where Feds Leave Off on Fighting Fraud; Over 2,000 Enforcement Actions Expected This Year
(I actually heard that they are much tougher than the SEC. I'm glad they're taking up the slack caused by Bush's budget cut in the SEC enforcement payroll. They send people to jail and fine them lots of money. The SEC slaps them on the wrist and just tells them not to do it again. Because of recent developments I'm starting to believe that perhaps the SEC has gotten too close to big business. Just my personal opinion)
SACRAMENTO, Calif.--(BUSINESS WIRE)--May 2, 2001--The California Department of Corporations today announced that it will compensate for the potential drop in federal enforcement actions against fraudulent broker-dealers as a result of Securities and Exchange Commission staff cuts necessitated by the Bush Administration's budget plan.
In the budget proposal submitted by the Bush Administration, the SEC would be required to cut 57 authorized staff positions, 12 of which are related to the prevention and suppression of fraud.
"Scam artists need to understand that California is not the place they want to do business," said Corporations Commissioner Demetrios A. Boutris. "The California Department of Corporations has investigators going undercover everywhere from investor conferences to Internet chat rooms to find fraudulent operators and shut them down."
"Fraud perpetrators in California have been 40 times more likely to run into the California Department of Corporations than the SEC," added the Commissioner. "The Davis Administration wants California's investors to understand that regardless of what is happening at the national level, here in California we are working around the clock to protect the integrity of the financial marketplace."
The Department of Corporations is a licensing and regulatory agency reporting to Business, Transportation and Housing Agency Secretary Maria Contreras-Sweet and Governor Gray Davis. The Department is responsible for the regulation of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. Additional information, or a complaint form, can be obtained from the Department of Corporations' web site at www.corp.ca.gov.
CONTACT:
The California Department of Corporations
Andre Pineda, 916/322-6941
KEYWORD: CALIFORNIA
BW0431 MAY 02,2001
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